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
  • Saudi Arabia to localise desalination equipment production

    31 July 2026

    Saudi Water Authority (SWA) has announced plans to establish a factory in Saudi Arabia to manufacture energy recovery devices used to reduce power consumption at reverse-osmosis desalination plants.

    US-based Energy Recovery will operate the facility with a capacity to produce 2,000 devices a year. Production is scheduled to begin in the first quarter of 2027.

    SWA said the facility will be the first factory outside the US to manufacture the specialised equipment.

    Domestic demand in Saudi Arabia is estimated at 1,200 devices a year. About 40% of the factory’s production is expected to be supplied to markets in the GCC, Africa and Asia.

    Energy recovery devices improve the efficiency of desalination plants by recovering energy from the reverse-osmosis process, reducing power consumption and operating costs.

    SWA said local manufacturing will reduce dependence on imports, shorten supply times and improve the reliability of supply chains serving desalination plants.

    The authority estimates the market opportunity for the industry at more than SR547m ($146m). This includes about SR247m ($69.5m) in Saudi Arabia and SR300m ($80m) across the Middle East and North Africa.

    The project is expected to contribute about SR137m ($36.5m) to Saudi Arabia’s GDP by 2033. SWA expects localisation within the product’s value chain to exceed 80%.

    The project is also intended to support knowledge transfer and develop local capabilities in the manufacture of desalination technologies.

    SWA led efforts to establish the project in cooperation with Saudi Arabia’s Ministry of Investment, Ministry of Industry & Mineral Resources and Local Content & Government Procurement Authority.

    READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDF

    Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

    Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:

    > MARKET FOCUS: Maghreb fortunes diverge
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17853316/main.jpg
    Mark Dowdall
  • EtihadWE seeks bids for retendered substations

    31 July 2026

    Etihad Water & Electricity (Etihad WE) has retendered a contract for the construction of two 33/11kV substations and associated underground cabling works in the Northern Emirates.

    The bid submission deadline is 24 August.

    Estimated to cost $100m, the project had originally been tendered earlier this year, with bids due on 20 May.

    The scope covers a new 33/11kV substation at Umm Dera (UMDR) in Umm Al-Quwain and another at Rams-3 (RMS3) in Ras Al-Khaimah. The contract also includes associated 33kV underground cabling works at both locations.

    The works are divided into four packages:

    • A1: New Umm Derra 33/11kV Substation (UMDR)
    • A2: New Rams-3 33/11kV Substation (RMS3)
    • A3: Umm Derra 33kV Underground Cabling Works
    • A4 : Rams-3 33kV Underground Cabling Works

    Etihad WE has invited prequalified engineering, procurement and construction (EPC) contractors to bid for the project on a lump-sum turnkey basis.

    According to the utility, contractors prequalified for both substation and cabling works can bid for the full scope. Contractors qualified only for substation works can bid for the complete substation scope, while those qualified only for cabling works can bid for the complete cabling scope.

    The project includes design, engineering, supply, construction, installation, testing and commissioning.

    The substation scope includes switchgear, transformers, protection and control systems and Scada systems. The project also covers civil works and supporting infrastructure.

    Etihad WE is responsible for electricity and water services in Ajman, Umm Al-Quwain, Ras Al-Khaimah, Fujairah and parts of Sharjah. The utility has been investing in new substations and transmission infrastructure as electricity demand continues to increase across the Northern Emirates.

    Earlier in July, the utility tendered a contract to build three new substations in Ajman.

    Estimated to cost $150m, the project involves the construction of three new 132/11kV substations in the Bahya, Rumaila and Liwara districts. It also includes associated 132kV underground cabling works to connect the substations to the existing transmission network.

    The bid submission deadline is 10 August.

    READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDF

    Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

    Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:

    > MARKET FOCUS: Maghreb fortunes diverge
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17857843/main.jpg
    Mark Dowdall
  • Taqa raises $750m to finance water projects

    30 July 2026

    Abu Dhabi National Energy Company (Taqa) has issued a $750m five-year blue bond to finance sustainable water and wastewater management projects.

    The company said the transaction is the largest blue bond issuance in the Europe, Middle East and Africa region. It is also the largest blue bond issued by an integrated power and water utility globally.

    Issuing the bond allows Taqa to raise money from investors specifically to support water-related environmental projects. These can include desalination, wastewater treatment, water recycling and reuse, and infrastructure that improves water efficiency.

    It is the first blue bond issued under Taqa’s Green and Blue Finance Framework, and follows another blue financing transaction in the UAE earlier this year.

    On 8 January, Dubai-based Emirates NBD bank announced the completion of a $1bn dual-tranche sustainable bond issuance, comprising a $300m blue tranche with a three-year tenor and a $700m green tranche with a five-year tenor.

    Emirates NBD said at the time that the $300m tranche was the largest blue bond issued in the UAE and GCC. The proceeds are intended to support marine conservation and sustainable water projects, while proceeds from the green tranche will finance green initiatives.

    Taqa launched its original Green Finance Framework in 2023 and updated it in 2026 to include blue financing instruments. The latest issuance takes its total green and blue labelled bond issuances to $2.6bn since 2023.

    The Taqa financing also comes as the company expands and modernises its water infrastructure. Taqa is targeting reverse-osmosis technology for 66% of its desalination capacity by 2030, up from about 40% in 2025.

    In June, Taqa awarded a contract for the construction of a 1-million-cubic-metre emergency lagoon in Abu Dhabi. The project will be developed in two phases.

    Phase one has a capacity of 500,000 cubic metres and is planned to be completed within 18 months of the contract award.

    READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDF

    Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

    Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:

    > MARKET FOCUS: Maghreb fortunes diverge
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17845953/main.jpg
    Mark Dowdall
  • UAE renewables firm secures $375m in financing

    30 July 2026

    Positive Zero, the UAE-based renewable energy firm, has announced the successful closing of a financing facility of up to $375m.

    The long-term financing was arranged by Paris-headquartered Natixis Corporate & Investment Banking (Natixis CIB) and Saudi Arabia-based The Arab Energy Fund.

    Natixis CIB also acted as financial adviser, facility agent, security agent and green loan coordinator for the transaction.

    “The non-recourse financing is the first transaction of its kind in the region for a diversified portfolio of decentralised infrastructure assets, including distributed solar power generation, energy efficiency and clean mobility solutions,” Positive Zero said in a statement.

    “The financing will provide substantial long-term capital to support Positive Zero’s continued expansion in the United Arab Emirates, Saudi Arabia, Bahrain, Oman and Qatar, funding the growth of its distributed infrastructure portfolio, capital expenditure programme and strategic development initiatives,” the Dubai-based firm said.

    The new debt facility secured by Positive Zero builds on US-based BlackRock’s investment of up to $400m in the company in 2023, “further strengthening the company’s capital structure and supporting the next phase of its growth”.

    Positive Zero has the largest distributed solar capacity in the region with more than 500MW in operations and under construction, avoiding more than 450,000 metric tonnes a year of carbon emissions.

    The company has also saved over 100 million kilowatt-hours (kWh) in energy consumption across its client portfolio through its energy-efficiency solutions.

    READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDF

    Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

    Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:

    > MARKET FOCUS: Maghreb fortunes diverge
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17845491/main3835.jpg
    Indrajit Sen
  • US-Saudi consortium to build $5bn refinery outside Strait of Hormuz

    30 July 2026

    Register for MEED’s 14-day trial access 

    A consortium of privately owned US and Saudi companies has announced an investment commitment of $5bn to build an integrated oil refining, storage and export facility outside the volatile Strait of Hormuz shipping lane.

    After three years of evaluating sites across the Gulf, the consortium has shortlisted three GCC locations beyond the Strait of Hormuz. Discussions have advanced over the past two years, with a preferred site expected to be selected by the end of 2026.

    The consortium, Mera Oil, comprises Fort Worth, Texas-based MWG Enterprises; the US-based Patel Family Office; and PWS, an associate company of Saudi Arabia’s AHQ Group.

    Mera Oil said it remains open to alternative proposals that meet its infrastructure, resilience and development requirements.

    The proposed project will feature a 200,000-barrel-a-day refinery, deepwater port connectivity, large-scale crude and refined-product storage, and marine export facilities.

    A pre-feasibility study covering refinery design, logistics, capital requirements and execution planning is at an advanced stage.

    Once a host jurisdiction is confirmed, the project will proceed to detailed site assessments and engineering design, with mechanical completion targeted for end-2029, followed by commissioning and the start of commercial operations.

    The consortium plans to focus on producing high-specification middle distillates, including ultra-low sulphur diesel and jet fuel, for selected international markets.

    The project is expected to occupy about 1,200-1,500 acres of port-connected industrial land and could create up to 3,000 direct jobs, and around 15,000 indirect and induced jobs, during construction and operations.

    Mera Oil is also progressing discussions with feedstock suppliers and expects financing to include sponsor equity, sovereign and institutional investment, project finance, export-credit support and sharia-compliant funding structures.

    “Designed as a route-resilient energy hub, the development aims to strengthen regional manufacturing, logistics, technical expertise and energy security,” Mera Oil said.

    The first phase of the planned investment will “incorporate energy-efficient refining technologies, emissions-control systems, and potential future capabilities including sustainable aviation fuel co-processing and carbon management.”

    READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDF

    Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

    Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:

    > MARKET FOCUS: Maghreb fortunes diverge
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17843946/main.jpg
    Indrajit Sen