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
  • Stability holds as project work continues

    14 October 2026

     

    When Dean McGrail describes the performance of the region’s construction market, he keeps returning to a single word: “stable”.

    After initial concerns that the market would experience a sharp downturn and project cancellations following the onset of conflict in the region, regional president McGrail says WSP has yet to see a single major contract cancelled across its regional portfolio.

    “We have seen some projects re-evaluated – questions around whether the mix between residential and commercial is right, and whether it should be luxury residential,” he says. “But as of today, we have not seen any projects cancelled, which is a real sign of resilience in the market.”

    Under the surface

    That resilience does not mean nothing has changed. McGrail is careful to separate re-evaluation from cancellation. Projects already on site and selling into the market are pressing ahead. It is schemes that have not yet been released for off-plan sales that are being paused and reconsidered.

    “None of the projects we are currently involved in have been put on hold or suspended,” he says. “It is more re-evaluation. Some of that is investor sentiment, but some of it is materials and logistics as well, which people do not necessarily consider.”

    Logistics, in particular, is a pressure that rarely makes the headlines. According to McGrail, shipping disruption has complicated the delivery of heavy equipment on certain schemes. “If we have big pieces of kit coming in – chillers or turbines for a power station – that becomes challenging,” he says.

    The bigger question is viability. And while rising material costs, set against softening sales prices, are forcing developers to reappraise the numbers, for now the balance sits firmly on the side of continuity. McGrail estimates that revalidation and feasibility work accounts for less than 3% of the firm’s current order book, with the remainder progressing as normal.

    “Requests for proposals have not slowed down across any of our disciplines or business units,” he says. “We are definitely seeing an uptick in infrastructure.”

    Infrastructure pivot

    That focus points to where McGrail expects the next few years of growth to come from. Rail sits at the centre of the UAE story, alongside road upgrades and other major developments in Abu Dhabi. In Dubai, the clearest signal of intent is the expansion of Al-Maktoum International airport.

    “Al-Maktoum is a really good indicator of the future direction of travel,” he says. “That is not a project that is slowing down. There has been a commitment to Emirates that it will move there, and it is still progressing.”

    The scale of the airport – and the challenge of relocating an airline the size of Emirates in one move – raises the question of how it will be funded. Here, McGrail returns to the theme of stability and to the mechanism that underpins it.

    “One of the beauties of this region is the ability of government to step in,” he says. “They can fund it. If the private sector does start to suffer, that is the backstop. They push money into infrastructure – roads, rail, airports – which keeps our industry moving.”

    Saudi reset

    In Saudi Arabia, the recalibration story predates the conflict, and McGrail says the change should be read as a strength rather than a retreat.

    “I am positive,” he says. “When the reprioritisation started at the beginning of 2025, having lived through the global financial crisis here, I saw the decision to stop, re-evaluate and reprioritise expenditure as a positive. When Vision 2030 was set, Saudi Arabia had not won Expo or the World Cup, so the reprioritisation was the right thing to do. Saudi Arabia will come out of it stronger. Short-term pain, long-term gain.”

    The nature of the work is shifting with the budget. McGrail sees the kingdom moving towards a model long familiar in the UAE, in which core infrastructure and a handful of landmark buildings are delivered first, before surrounding plots are carved up and sold on.

    “You establish a few key iconic buildings, then the plots on the outside are carved up and they look for external investment to come in and develop them,” he says. “It is no different from Downtown Dubai, where Emaar built the Burj Khalifa and a few buildings, then started selling plots.”

    That approach is increasingly tied to public-private partnerships (PPPs), although McGrail is measured on how far the model will stretch.

    “PPP is definitely becoming more prevalent on some of the larger infrastructure projects, though still not as significant as it was made out to be when they first started talking about it,” he says. He sees industrials, mining, healthcare and schools as a natural fit, rather than PPP becoming a blanket procurement route.

    Aviation is another priority. WSP was recently appointed to the rehabilitation of the existing terminal at Jeddah’s King Abdulaziz International airport, alongside a new terminal. It also recently secured a role on the expansion and upgrade of King Fahd International airport in Dammam.

    “Aviation is definitely a key area of focus for us as we head into the next 12, 24, 36 months,” McGrail says.

    Beyond the two dominant markets, McGrail sees pockets of activity but no challenge to the balance of the portfolio. In Qatar, he points to a recovery taking shape towards the end of last year, with WSP active on the Qatar Children’s Museum and continuing its long-running work with the Public Works Authority (Ashghal). Oman is generating masterplanning work, including reviving the Blue City scheme.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20545689/main.gif
    Colin Foreman
  • Gas-fired projects drive resilience in UAE power sector

    14 October 2026

     

    The $3bn Taweelah C combined-cycle gas turbine (CCGT) project has been the UAE power sector’s standout contract award this year, accounting for the majority of the $4.17bn in awards as of early September.

    The total is well below the record $12.02bn awarded in 2025, when Abu Dhabi’s $6bn round-the-clock solar photovoltaic (PV) and battery energy storage system (bess) project lifted the market to record levels. However, 2026 remains broadly consistent with recent years, compared with $5.93bn in 2024 and $3.05bn in 2023.

    According to MEED Projects, generation accounted for $3.06bn across three awards, while transmission contracts totalled $1.11bn.

    Gas-fired focus

    Emirates Water & Electricity Company (Ewec) signed the power-purchase agreement (PPA) for Taweelah C in June with a consortium comprising Abu Dhabi National Energy Company (Taqa), Saudi Arabia’s Al-Jomaih Energy & Water Company and Singapore’s Sembcorp Industries.

    The scale of the 2.5GW independent power producer (IPP) provides a useful lens through which to view the wider market. Although the UAE continues to expand solar generation and battery storage, it is still investing heavily in flexible thermal capacity to support rising electricity demand and a grid with significant renewable generation.

    Major gas-fired opportunities are also moving into the Northern Emirates, with state utility Etihad Water & Electricity (EtihadWE) preparing to receive offers from five contractor groups for the 2.6GW Al-Zawra CCGT project in Ajman.

    The project follows the retirement of EtihadWE’s older 200MW Al-Zawra gas plant in 2023. With Ewec acting as offtaker, the scheme also points to a wider role for EtihadWE in developing large-scale generation.

    It is understood that the Ajman project will be the first of at least three planned power plant projects procured by the utility under a new long-term roadmap for future projects across both power and water.

    Abu Dhabi’s 3.3GW Al-Nouf IPP is another major gas-fired plant moving towards execution. Japan’s Sumitomo Corporation is expected to formally sign the PPA by the end of the year, while the joint venture of Spain’s Tecnicas Reunidas and Egypt’s Orascom Construction is also set to be confirmed as the engineering, procurement and construction (EPC) contractor.

    To put this into context, the deal would make 2026 the second most valuable year for power sector investment on record, eclipsing both 2017 and 2018, when contract awards in the UAE reached $7.39bn and $7.27bn, respectively.

    Solar and storage

    The UAE’s renewable procurement is increasingly combining solar generation with storage to provide electricity beyond daylight hours.

    Dubai Electricity & Water Authority (Dewa) is preparing to award the seventh phase of the Mohammed Bin Rashid Al-Maktoum Solar Park, with Abu Dhabi Future Energy Company (Masdar) submitting the lowest tariff for the project in July.

    China’s BYD will act as a bess supplier for the project, which combines 2,000MW of PV capacity with a 1,400MW bess designed to discharge for six hours, equivalent to 8,400MWh of stored energy.

    The storage component will allow Dewa to use more solar power after sunset, reducing the gap between daytime generation and the evening demand peak.

    The 1,800MW sixth phase is also nearing completion, with Larsen & Toubro delivering the estimated $1.5bn project for Shuaa Energy 4, the project company formed by Dewa and Masdar.

    Dewa has increased the planned capacity of the solar park to 7,260MW by 2030, from its earlier target of 5,000MW.

    Furthermore, Ewec is advancing its 1.5GW Al-Zarraf solar PV plant, with EDF and Korea Western Power Company selected as the consortium to develop the project.

    Grid expansion

    Multibillion-dollar IPP schemes have driven annual award values in recent years, while transmission work continues to provide a steadier flow of opportunities for contractors and equipment suppliers.

    Transmission awards fell to $1.11bn across 22 packages in 2026, from $2.98bn in 2025, reflecting the absence of a comparable large-scale package rather than a halt in network investment.

    Ewec and Taqa are expanding 400kV and 132kV networks across Abu Dhabi and the Northern Emirates, while Dewa continues to reinforce its cable and substation systems in Dubai.

    In September, EtihadWE received bids for a contract to carry out a techno-economic feasibility study for a proposed 2GW subsea electricity interconnector with India.

    The proposed 1,400-kilometre link would be the UAE’s first direct subsea cross-border electricity interconnector, illustrating a potential longer-term ambition to connect the UAE to wider regional and international power markets.

    Earlier this year, the GCC Interconnection Authority awarded Omexom, part of France’s Vinci Group, a contract to build a 400kV overhead transmission line between the UAE and Saudi Arabia.

    In October, the UAE and Saudi Arabia signed a memorandum of understanding to advance cross-border electricity interconnection, paving the way for feasibility studies on power exchange, commercial electricity trading and the expansion of the wider GCC interconnection grid.

    Waste-to-energy

    Waste-to-energy continues to become an increasingly important part of the UAE’s infrastructure pipeline as the country seeks to reduce landfill dependence and diversify its power mix through alternative generation sources.

    Dubai Municipality recently invited developers to submit expressions of interest for its planned Jebel Ali waste-to-energy public-private partnership, a greenfield facility designed to treat up to 6,000 tonnes of municipal solid waste a day.

    According to a source, the municipality plans to prequalify developers later this year, then issue a request for proposals in the first quarter of 2027.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20582379/main.gif
    Mark Dowdall
  • Riyadh awards $1.5bn metro rolling stock contracts

    14 October 2026

    Register for MEED’s 14-day trial access 

    Saudi Arabia’s Royal Commission for Riyadh City (RCRC) has signed contracts worth about SR5.5bn ($1.5bn) to procure 94 additional trains for the Riyadh Metro network.

    Germany’s Siemens and France’s Alstom have been awarded the contracts. They cover rolling stock manufacture, onboard systems, equipment and related services.

    The procurement will increase the metro fleet from 183 to 277 trains. Deliveries are due to begin in phases in 2028, with the additional units subject to testing and operational trials before entering service.

    RCRC expects the programme to increase the network’s passenger capacity by 60%.

    The additional trains will be distributed across the six metro lines based on current demand and projected ridership.

    The Red Line will receive the largest capacity increase, at 142%, followed by the Yellow Line at 116% and the Blue Line at 60%. Capacity on the Orange and Purple lines will increase by 27% and 16%, respectively.

    Daily capacity on the Blue Line is set to increase from about 340,000 to 533,000 passengers. Capacity on the Red Line will rise from 154,000 to 370,000 passengers a day, while the Yellow Line will increase from 133,000 to more than 288,000.

    The expansion is intended to meet rising demand for public transport as Riyadh prepares to host Expo 2030 and the 2034 Fifa World Cup, alongside continued growth in residential, commercial and entertainment developments.

    Speaking at the 37th government press conference, RCRC chief executive Ibrahim Al-Sultan said the metro has carried more than 300 million passengers since it began operating.

    Average metro ridership rose by about 25% in the first nine months of 2026 compared with the same period in 2025, he added.

    The wider Riyadh public transport system, including buses and the metro, is approaching 500 million passenger journeys.

    MEED’s October 2026 report on Saudi Arabia includes:

    > COMMENT: Saudi projects hold steady
    > GOVERNMENT: Riyadh looks to reset its regional defence outlook
    > ECONOMY: Conflict bolsters case for Saudi economic diversification
    > BANKING: Saudi lenders readjust to lower lending and deposit climate
    > UPSTREAM: Aramco upstream spending gathers pace
    > DOWNSTREAM: Sabic steps up Saudi petchems investment
    > POWER: Saudi Arabia’s power award activity slows
    > WATER: Saudi water sector hits sharp slowdown
    > CONSTRUCTION: Saudi construction defies the headwinds
    > TRANSPORT: Saudi infrastructure pushes forward amid conflict
    > DATABANK: Saudi data indicates project spending shift

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/20582763/main.png
    Yasir Iqbal
  • Jeddah extends bid deadline for drainage scheme

    14 October 2026

     

    Jeddah Municipality has extended the deadline for contractors to submit bids for the construction of a rainwater drainage network for the Prince Fawaz neighbourhood.

    The new deadline is 15 November. The original deadline was 12 October.

    The project aims to collect and convey rainwater away from residential streets and low-lying areas. It is valued at $60m and is intended to reduce flood risk during heavy rainfall.

    The scope includes manholes, stormwater catch basins and connections to existing manholes, as well as the restoration of road surfaces.

    Prince Fawaz is a residential district in southern Jeddah, divided into northern and southern sections.

    It is connected to the Mecca-Jeddah Expressway and Al-Harmain Road, with road improvements in the southern section designed to improve access for residents and neighbouring districts

    The municipality is also advancing a second stormwater drainage project for the first package of Zone (BC), Old Zahraa, in Jeddah Governorate. The project is valued at about $30m.

    According to a source, bids were submitted for the project on 16 September.

    The two projects are part of the municipality’s wider drainage programme, which includes the flagship King Abdullah Road-Falasteen Road tunnel project.

    MEED previously reported that Saudi contractor Thrustboring Construction Company had been selected for phases one and two of the project, each valued at about $175m, covering the construction of large-diameter stormwater drainage tunnels. As of August, an official agreement had yet to be signed.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20580980/main.jpg
    Mark Dowdall
  • US initiates procurement for Expo 2030 Riyadh pavilion

    14 October 2026

     

    Register for MEED’s 14-day trial access 

    The US Department of State has initiated market research to procure a design-and-build contract for the US Pavilion at Expo 2030 Riyadh.

    According to procurement documents released through the US federal contracting portal, the project covers the full design, construction, exhibition fit-out, maintenance, and eventual decommissioning and removal of the national pavilion.

    The total cost for the design, construction and decommissioning packages is estimated at $55m to $65m.

    The request for information notice was issued on 9 October.

    The pavilion will be developed on plot P5.N1.B03.01 within the Expo 2030 masterplan’s Technology district, fronting the Loop of Nations corridor.

    It spans 5,368 square metres (sq m), with a maximum permitted gross floor area (GFA) of 8,052 sq m and an overall building height limit of 20 metres.

    The planned temporary structure will rise approximately three storeys and house between 5,000 and 6,000 sq m of exhibition space. The brief requires the facility to accommodate at least 23,000 visitors a day over the event’s six-month duration.

    Additional programme elements include:

    • A rooftop garden and restaurant
    • Two commercial kitchens
    • A VIP reception suite
    • Dedicated retail and administrative office space
    • Back-of-house operational areas and exterior shaded public landscaping

    Interested contractors and joint ventures have been invited to submit capability statements by 11 November. Bidders must demonstrate prior experience delivering major pavilions or large-scale immersive exhibition spaces completed within the past 15 years, alongside international logistics and regional project delivery capabilities.

    UK-based engineering consultancy Buro Happold prepared the plot masterplanning and development guidelines for the zone.

    Another UK-headquartered firm, Trivandi, was selected in April as the operations partner for the US Pavilion at Riyadh Expo.

    Expo 2030 Riyadh will run from October 2030 to March 2031 under the theme Foresight for Tomorrow, with host authorities projecting roughly 42 million visits.

    The masterplan covers 6 square kilometres, making it one of the largest sites ever designated for a World Expo event.

    Situated north of the Saudi capital, the site will be near the future King Salman International airport and will provide direct access to Riyadh landmarks.

    The Public Investment Fund, Saudi Arabia’s sovereign wealth vehicle, launched Expo 2030 Riyadh Company – a wholly owned subsidiary – in June 2025 to build and operate facilities for Expo 2030.

    MEED’s October 2026 report on Saudi Arabia includes:

    > COMMENT: Saudi projects hold steady
    > GOVERNMENT: Riyadh looks to reset its regional defence outlook
    > ECONOMY: Conflict bolsters case for Saudi economic diversification
    > BANKING: Saudi lenders readjust to lower lending and deposit climate
    > UPSTREAM: Aramco upstream spending gathers pace
    > DOWNSTREAM: Sabic steps up Saudi petchems investment
    > POWER: Saudi Arabia’s power award activity slows
    > WATER: Saudi water sector hits sharp slowdown
    > CONSTRUCTION: Saudi construction defies the headwinds
    > TRANSPORT: Saudi infrastructure pushes forward amid conflict
    > DATABANK: Saudi data indicates project spending shift

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/20580855/main.jpeg
    Yasir Iqbal