meed-logo

line1 line2 line3
SIGN IN / REGISTER

Egypt’s utility projects keep pace

11 February 2025

 

The overall value of awarded contracts in Egypt's power and water sector in 2024 doubled to $3.9bn compared to the previous year.

Water project contract awards significantly decelerated while power contract awards soared in 2024, according to the latest available data from regional projects tracker MEED Projects.

Egypt's water sector awarded just $113m-worth of contracts in 2024, compared to close to $1.3bn in 2023. Contract awards in the power sector, on the other hand, increased by more than five-fold to reach $3.8bn in 2024.

Power contract awards

Egypt awarded several solar, wind, nuclear and transmission and distribution contracts in 2024, including a 1,000MW solar photovoltaic (PV) and 100MW battery energy storage system plant to be developed by Norway's Scatec.

The Norwegian renewable energy developer also agreed to develop another 1,000MW solar PV farm with aluminium producer Egyptalum.

Red Sea Wind Energy, the project company developing a 500MW onshore wind farm in the Gulf of Suez, managed to obtain financing for a 150MW extension of the project.

Red Sea Wind Energy is a consortium of France’s Engie, which holds a 35% stake; the local Orascom Construction, which holds 25%; Japan’s Toyota Tsusho Corporation with 20%; and Eurus Energy Holdings Corporation with 20%.

According to the Japan Bank for International Cooperation, a total loan of $106m is co-financed with the London-based European Bank for Reconstruction & Development, Japan's Sumitomo Mitsui Banking Corporation and Norinchukin Bank, and France's Societe Generale.

Japan’s Nippon Export & Investment Insurance has also agreed to provide insurance for the loans.

On the nuclear power generation front, civil construction works are ongoing for the reactors of the El-Dabaa nuclear power plant in Matrouh.

Russia's Rosatom State Corporation Engineering Division appointed Northern Construction Department, a division of Titan-2 Holding, as the main contractor for the $563m civil works supporting the main and auxiliary buildings and structures of the nuclear islands for units three and four of the El-Dabaa plant.

Rosatom also appointed SC SEM, another Titan-2 Holding division, as the main contractor for the $421m package to undertake electrical installation works and foundation grounding systems for units three and four.

Other key projects awarded in 2024 include the 300MW Alexandria wind power plant and the 200MW Ras Ghareb wind farm.

Water sector

Egypt remains one of the most water-stressed states in the Middle East and North Africa region, with an annual water deficit of about 7 billion cubic metres, according to Unicef, and only 500 cubic metres of renewable water resources per capita a year, according to the Food & Agriculture Organisation.

Despite this, the procurement of water desalination public-private partnership (PPP) projects to augment the potable water supply continues to face delays.

In 2023, the Sovereign Fund of Egypt prequalified 17 teams and companies to bid for the contracts to develop up to 8.85 million cubic metres a day of renewable energy-powered desalination capacity in the North African state.

MEED reported in July 2024 that the technical consultant for these schemes was undertaking final assessments of the locations and land allocated for the first batch of projects.

However, as of February 2025, a request for proposals has yet to be issued to the prequalified developers. 

Only a handful of water sector-related contracts were awarded in 2024, including a lifting station project and a wastewater treatment scheme in Cairo and a contract to rehabilitate several canals in Dakahlia Governorate.

Outlook

In January, the developer team behind the 1,100MW Suez wind independent power project (IPP) in Egypt, which is led by Saudi utility developer Acwa Power, awarded the project's engineering, procurement and construction (EPC) contract to Beijing-headquartered PowerChina.

Located in the Gulf of Suez and the Gabal El-Zeit area, the Suez wind farm, Egypt's largest wind IPP to date, has an overall investment value of $1.2bn.

The project recently reached financial close, more than two years after the Acwa Power-led consortium signed the project agreements.

This indicates a promising change of pace, as well as gradually improving investor confidence, following years of uncertainty due to Egypt's currency crisis.

The project secured a $703.6m senior debt facility from a consortium of the following banks:

  • European Bank for Reconstruction & Development (EBRD)
  • African Development Bank 
  • British International Investment Corporation
  • German Investment Corporation
  • Opec Fund for International Development
  • Arab Petroleum Investments Corporation (Apicorp)

The senior debt funded by EBRD included a B loan structure provided by Standard Chartered Bank and Arab Bank. Acwa Power holds a 70% stake in the project, with HAU Energy owning the remaining 30%.

Meanwhile, SCZone Istithmar has invited interested firms to prequalify to bid for a contract to develop a seawater desalination plant at Egypt’s Suez Canal Economic Zone. SCZone Istithmar is wholly owned by the General Authority for the Suez Canal Economic Zone.

The finance ministry's PPP Central Unit, along with EBRD, is supporting SCZone Istithmar in the project's tender proceedings.

Overall, an estimated $42bn-worth of power contracts are in the pre-execution phase in Egypt, which is significantly more than the $5.3bn of water sector contracts that are at the same stage.

These include major projects that are in the concept or memorandum of understanding stages, such as the 2,000MW onshore wind power project that Dubai-based renewable energy investor Alcazar Energy Partners plans to develop in Egypt.

The value of power contracts under execution, at about $10.4bn, is also three times the value of known water projects that are under construction in the North African state.

While the estimated value of overall utility contracts awarded in 2024 is far from being a record high, especially compared to the $9.3bn of awarded contracts in 2015, it shows a significant improvement compared to 2023.

The volume and value of pre-execution projects also remain robust, although a significant number – including the planned seawater desalination plants – have been in the planning and design stages for some time.

A good scenario would be for Egypt to be able to maintain, if not improve, the momentum of tender proceedings and awards in 2025. The project announcement activity during the first month of this year suggests that this could be a possibility.

READ THE FEBRUARY MEED BUSINESS REVIEW

Trump unleashes tech opportunities; Doha achieves diplomatic prowess and economic resilience; GCC water developers eye uptick in award activity in 2025.

Published on 1 February 2025 and distributed to senior decision-makers in the region and around the world, the February MEED Business Review includes:

> WATER & WASTEWATER: Water projects require innovation
https://image.digitalinsightresearch.in/uploads/NewsArticle/13372346/main1310.jpg
Jennifer Aguinaldo

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • WEBINAR: Saudi gigaprojects 2026 and beyond

    7 November 2025

    Webinar: Saudi Gigaprojects 2026 & Beyond
    Tuesday 25 November 2025 | 11:00 GST  |  Register now

    Agenda:

    • Latest update to November 2025 on the gigaprojects programme and the Saudi projects market in general, with full data analysis for 2025 year-to-date
    • Latest assessment on the reprioritisation of the programme and views on which of the gigaprojects are being prioritised
    • Summary of key recent project developments and announcements 
    • Analysis of key contracts awarded this year to date
    • Highlights of key contracts to be tendered and awarded over the next six months
    • Key drivers and challenges going forward plus MEED’s outlook for the future short and long-term prospects of the gigaprojects programme
    • In-depth look at the recently announced King Salman Gate gigaproject and other planned, but unannounced PIF developments
    • Life beyond the gigaprojects – what other key project programmes are being implemented in the kingdom 
    • Q&A session

    Hosted by: Edward James, head of content and analysis at MEED

    A well-known and respected thought leader in Mena affairs, Edward James has been with MEED for more than 19 years, working as a researcher, consultant and content director. Today he heads up all content and research produced by the MEED group. His specific areas of expertise are construction, hydrocarbons, power and water, and the petrochemicals market. He is considered one of the world’s foremost experts on the Mena projects market. He is a regular guest commentator on Middle East issues for news channels such as the BBC, CNN and ABC News and is a regular speaker at events in the region. 

    Click here to register

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15045990/main.gif
    Edward James
  • Bahrain advances utility reform

    7 November 2025

     

    In September, Bahrain’s government referred a draft law to parliament to restructure the kingdom’s electricity and water sector.

    This proposes dissolving the Electricity & Water Authority (Ewa) and transferring its assets and functions to a newly established National Electricity & Water Company, which will operate under the oversight of the Electricity & Water Regulatory Authority. 

    The reform marks the first full structural overhaul of Bahrain’s utilities sector in nearly two decades and signals a shift towards a more commercially driven model. 

    Regulatory and operational roles would be separated for the first time, allowing private sector participation under transparent licensing and tariff systems, aligning Bahrain with utility reforms seen in Saudi Arabia, Oman and the UAE.

    It comes amid a relatively subdued year for new contracts that broadly falls in line with 2024’s performance. Most significantly, Bahrain continues to move towards its two upcoming utility public-private partnership (PPP) schemes, the Sitra independent water and power project (IWPP) and the Al-Hidd independent water project (IWP).

    In August, a developer tender was issued for the main works package for the Sitra IWPP. This followed the prequalification of seven companies and consortiums, reflecting a wide range of international interest.

    The planned Sitra IWPP replaces the previously planned Al-Dur 3 and will be the first IWPP project to be awarded since the 1,500MW Al-Dur 2 IWPP was completed in 2021.

    The combined-cycle gas turbine (CCGT) plant is expected to have a production capacity of about 1,200MW of electricity, while the project’s seawater reverse osmosis (SWRO) desalination unit will have a production capacity of 30 million imperial gallons a day (MIGD) of potable water. The main contract is expected to be awarded by the end of the year, with commercial operations set for 2029. 

    A developer tender was also recently launched for Bahrain’s first independent, standalone SWRO plant following a prequalification process that shortlisted nine companies and consortiums.

    The Al-Hidd IWP is expected to have a production capacity of about 60MIGD of potable water and be completed in 2028. It is likely to be the last IWPP for Bahrain, which aims to reach net-zero carbon emissions by 2060.

    The imminent launch of the two projects boosts Bahrain’s projects pipeline, which has experienced muted growth in the aftermath of the Covid-19 pandemic, carried by relatively small-scale projects.

    Solar PV projects

    The creation of the National Electricity & Water Company as Bahrain’s new operational entity could also support the rollout of future renewable energy schemes. 

    As a corporatised offtaker, the company will be able to enter long-term power purchase agreements (PPAs) with private developers under a more bankable framework. Currently, these are negotiated by Ewa on a case-by-case basis.

    The government recently signed a 123MWp solar PPA with the UAE’s Yellow Door Energy, highlighting growing private sector interest in the market. The project includes the world’s largest single-site rooftop solar installation and will be developed at Foulath Holding’s industrial complex in Salman Industrial City.

    Bahrain has already set a target to source 20% of its energy from renewables by 2035 and reach net-zero emissions by 2060.

    In October, Ewa also issued a tender for the development of the Bilaj Al-Jazayer solar independent power project (IPP). The planned 100MW project will be developed on a build-own-operate basis with a 25-year contract term.

    In parallel, Bahrain is broadening its long-term energy strategy beyond solar. In July, the kingdom signed a cooperation agreement with the US on the peaceful use of nuclear energy, aimed at advancing research and potential deployment of small modular reactor (SMR) technology.

    For countries like Bahrain, which has limited land availability and high energy demand growth, SMRs could offer a way to produce low-carbon, reliable baseload power without requiring vast areas of land for solar or wind farms. 

    Officials have indicated that SMRs, along with floating solar solutions, are being studied as part of a broader push to diversify energy sources and expand renewable generation capacity.

    Water and waste

    Bids for four Ewa-owned projects are currently being evaluated. This includes the construction of a new SWRO desalination plant on Hawar Island and rehabilitation works for the Ras Abu Jarjur water treatment plant in Askar. Contracts for both projects are expected to be awarded this year.

    Bahrain’s Ministry of Works (MoW) is the other client for the island-state’s power and water infrastructure-related projects. It has awarded three smaller sewage-related contracts this year.

    It is also preparing to tender the construction of a $130m sewage treatment plant in Khalifa City, which will be developed in two phases. Meanwhile, the construction of MoW’s sewerage scheme phase 2 network in Bahrain remains in the early design stage with no further updates.

    As Bahrain moves ahead with these projects, the new electricity and water law could define how future investments are structured, regulated and financed. This could reshape the kingdom’s utilities landscape for decades to come.

    MEED's December special report on Bahrain also includes:

    > ECONOMY: Bahrain’s cautious economic evolution
    > BANKING: Mergers loom over Bahrain’s banking system
    > OIL & GAS: Bahrain remains in pursuit of hydrocarbon resources
    > CONSTRUCTION: Bahrain construction faces major slowdown
    > TRANSPORT: Bahrain signs game-changer aviation deal with Air Asia

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15044915/main.gif
    Mark Dowdall
  • Masdar and OMV sign 140MW green hydrogen plant deal

    7 November 2025

    Register for MEED’s 14-day trial access 

    Abu Dhabi Future Energy Company (Masdar) has signed a binding agreement with Austrian energy company OMV to develop and operate a major green hydrogen production plant in Austria.

    The 140MW green hydrogen electrolyser plant will be Europe's fifth-largest hydrogen plant, according to Masdar chairman, Sultan Ahmed Al-Jaber.

    It will be built in Bruck an der Leitha, about 40 kilometres southeast of Vienna.

    The facility will be developed under a newly established joint venture, in which Masdar owns 49% and OMV holds the majority 51% stake.

    The agreement was signed at the Abu Dhabi International Petroleum Exhibition and Conference (Adipec), in the presence of Al-Jaber; Austria’s Federal Minister of Economy, Energy and Tourism, Wolfgang Hattmannsdorfer; OMV CEO Alfred Stern; and Masdar CEO Mohamed Jameel Al-Ramahi.

    It is expected that the project will reach financial close in early 2026, subject to final documentation, shareholder consent and regulatory approvals.

    Construction began in September, with operations scheduled to start in 2027.

    OMV, which already operates a 10MW electrolyser in Schwechat, will procure renewable electricity for hydrogen production and retain ownership of the output.

    Several large-scale hydrogen facilities across Europe are currently under construction.

    In 2024, Germany's Siemens Energy signed a deal with German utility EWE to build a 280MW green hydrogen electrolysis plant. This is expected to begin operations in 2027.

    Masdar and OMV previously signed a letter of intent to cooperate on green hydrogen, synthetic sustainable aviation fuels (e-SAF) and synthetic chemicals in both the UAE and central and northern Europe.

    READ THE NOVEMBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Mena players up the ante in global LNG production race; Investment takes UAE non-oil economy from strength to strength; Project finance activity draws international lenders back to market

    Distributed to senior decision-makers in the region and around the world, the November 2025 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15040802/main0933.jpg
    Mark Dowdall
  • Firms submit Saudi customs warehouses PPP bids

    7 November 2025

     

    Three Saudi-based firms submitted bids on 29 September for a contract to build new customs warehouses in Saudi Arabia.

    The project is being tendered as a public-private partnership (PPP) on a design, build, finance, operate, maintain and transfer basis, with a contract duration of 15 years, including the construction period.

    The bidders include:

    • Al-Drees Petroleum & Transport Services Company
    • Lamar Holding
    • Mada International Holding

    The contract scope covers the development of 13 warehouses – including the design and construction of 12 new facilities and the renovation of one – across 13 different points of entry in the kingdom, along with the maintenance of all sites.

    The contract also includes the supply of equipment, as well as logistical support and cleaning services, for all new and existing warehouses at 38 points of entry across the kingdom.

    In January, the Zakat, Tax and Customs Authority (Zatca), through the National Centre for Privatisation and PPP (NCP), prequalified five companies to bid, MEED reported.

    The client issued the expressions of interest (EOI) and request for qualifications (RFQ) notices for the project in October last year.

    PPP plans

    In April 2023, Saudi Arabia announced a privatisation and public-private partnership (P&PPP) pipeline comprising 200 projects across 16 sectors.

    The P&PPP pipeline aims to attract both local and international investors and ensure their readiness to participate in the schemes tendered to the market.

    The initiative supports the kingdom’s efforts to enhance the attractiveness of its economy and increase the private sector’s contribution to GDP.

    READ THE NOVEMBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Mena players up the ante in global LNG production race; Investment takes UAE non-oil economy from strength to strength; Project finance activity draws international lenders back to market

    Distributed to senior decision-makers in the region and around the world, the November 2025 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15040496/main.gif
    Yasir Iqbal
  • KBR selected for Iraq gas project

    7 November 2025

    Register for MEED’s 14-day trial access 

    US-based KBR has been selected by Turkiye’s Enka to provide detailed design services for its part of the broader $27bn Gas Growth Integrated Project (GGIP) masterplan.

    KBR was selected to provide the detailed design services after successfully completing the front-end engineering and design (feed) work for Enka’s central processing facility (CPF) package, according to a statement issued by the company.

    The wider GGIP project is being developed by France’s TotalEnergies along with its partners Basra Oil Company (BOC) and Qatar Energy.

    In September, Enka signed a contract to develop a CPF at Iraq’s Ratawi oil field as part of the second phase of the field’s development.

    Enka did not give a value for the contract, but it is believed to be worth more than $1bn.

    The contract covers engineering, procurement, supply, construction and commissioning (EPSCC) of the CPF for the project known as ‘Associated Gas Upstream Project Phase 2 (AGUP2)’.

    The aim of the AGUP2 project, due to start in 2028, is to process oil and associated gas from the Ratawi oil field to increase production capacity to 210,000 barrels a day of oil and 154 million standard cubic feet a day of gas.

    GGIP masterplan

    The GGIP programme is being led by TotalEnergies, which is the operator and holds a 45% stake.

    Basra Oil Company and QatarEnergy hold 30% and 25% stakes, respectively. The consortium formalised the investment agreement with the Iraqi government in September 2021.

    The four projects that comprise the GGIP are:

    • The Common Seawater Supply Project (CSSP)
    • The Ratawi gas processing complex
    • A 1GW solar power project for Iraq’s electricity ministry
    • A field development project at Ratawi, known as the Associated Gas Upstream Project (AGUP)

    The CSSP is designed to support oil production in Iraq’s southern oil and gas fields – mainly Zubair, Rumaila, Majnoon, West Qurna and Ratawi – by delivering treated seawater for injection, a method used to boost crude recovery rates and improve long-term reservoir performance.

    China Petroleum Engineering & Construction Corporation (CPECC) won a $1.61bn contract in May to execute EPC works to build the gas processing complex at the Ratawi field development.

    CPECC’s project team based in its office in Dubai is performing detailed engineering works on the project.

    In August last year, TotalEnergies awarded China Energy Engineering International Group the EPC contract for the 1GW solar project at the Ratawi field. A month later, QatarEnergy signed an agreement with TotalEnergies to acquire a 50% interest in the project.

    The 1GW Ratawi solar scheme will be developed in phases that will come online between 2025 and 2027. It will have the capacity to provide electricity to about 350,000 homes in Iraq’s Basra region.

    The project, consisting of 2 million bifacial solar panels mounted on single-axis trackers, will include the design, procurement, construction and commissioning of the photovoltaic power station site and 132kV booster station.

    Separately, in June, TotalEnergies awarded CPPE an EPC contract worth $294m to build a pipeline as part of a package known as the Ratawi Gas Midstream Pipeline.

    Also, TotalEnergies awarded UK-based consultant Wood Group a pair of engineering framework agreements in April, worth a combined $11m, under the GGIP scheme.

    The agreements have a three-year term under which Wood will support TotalEnergies in advancing the AGUP.

    One of the aims of the AGUP is to debottleneck and upgrade existing facilities to increase production capacity to 120,000 b/d of oil on completion of the first phase, according to a statement by Wood.

    READ THE NOVEMBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Mena players up the ante in global LNG production race; Investment takes UAE non-oil economy from strength to strength; Project finance activity draws international lenders back to market

    Distributed to senior decision-makers in the region and around the world, the November 2025 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15040492/main.png
    Wil Crisp