meed-logo

line1 line2 line3
SIGN IN / REGISTER

Egypt’s desalination projects inch forward

8 February 2024

This package on Egypt’s water sector also includes:

> Egypt expects desalination tender in May
> Egypt nears 6 October City wastewater tender
> Egypt invites Helwan wastewater prequalification
> Team wins Fayoum wastewater retrofit deal

 

Data shows Egypt’s per capita annual renewable water supply dwindled from 1,426 cubic metres in 1977 to about 558 cubic metres in 2022. This puts the North African state well below the water scarcity threshold of 1,000 cubic metres a year per capita.

Climate change, inefficiency and the potential impact of the Grand Ethiopian Renaissance Dam (GERD) on water flows into the Nile River, which supplies up to 95 per cent of the country’s water requirements, will only exacerbate the water scarcity issue.

With a population of 113 million and one baby born every 19 seconds, Egypt must implement immediate measures and projects in line with its long-term water strategy to keep up with demand and avert a full-blown crisis, which would have a major impact on agriculture and economic output.

Government agencies have responded to the challenge by drawing up plans to modernise agricultural techniques to minimise water waste or develop unconventional water sources through the treatment of wastewater and seawater.

Currently, the country is understood to have over 60 water desalination plants with a total combined capacity of around 800,000 cubic metres a day (cm/d).

The government aims to grow this capacity 10-fold to 8.8 million cm/d by 2050 and has initiated an ambitious capacity procurement programme to reach this target.

In March last year, the London-based European Bank for Reconstruction & Development (EBRD) and Washington-headquartered International Finance Corporation signed an advisory deal with The Sovereign Fund of Egypt (TSFE) and the Egyptian government to support them in preparing and procuring the programme’s first four seawater desalination plants.

EBRD said the desalination project will help “to ensure Egypt’s water security, improve its resilience, mitigate the impact of climate change-induced freshwater scarcity and boost sustainable economic growth”.

The bank also stressed that the electricity used to power the desalination plants will be procured from renewable energy sources.

Two months later, in May 2023, TSFE prequalified 17 teams and companies that can bid for the contracts to develop up to 8.85 cm/d of renewable energy-powered desalination capacity in Egypt.

These companies and consortiums include the largest international and regional water utility developers and investors, as well as engineering, procurement and construction (EPC) contractors.

The entire programme will be procured in batches, with prequalified bidders split into four bands that will determine the capacity or size of the projects they can bid on.

In January 2024, Atter Ezzat Hannoura, public-private partnership (PPP) central unit director at Egypt’s Finance Ministry, said the target date for issuing the request for proposals for the first batch of water desalination plants is in May this year.

He also said the first batch of projects will comprise eight or nine seawater reverse osmosis (SWRO) plants, with a combined total capacity of up to 900,000 cm/d. This is significantly higher than the previously proposed four desalination plants with a capacity of under 500,000 cm/d.

Concerned authorities and ministries are still undertaking final discussions before the request for proposals can be released, according to Hannoura. One of these issues is how and where to source renewable power for the desalination plants.

The discussions are understood to revolve around two available options – drawing renewable power from the electricity grid or integrating solar farms into the desalination plants to minimise or eliminate their dependence on the grid.

Crucially, discussions are also focusing on the project structure to make them bankable.

As one expert points out, the planned water desalination PPP projects in Egypt, similar to its power generation capacity expansion plans, face multiple issues, not the least the creation of a more favourable business investment climate.

“We are monitoring the projects closely,” says a Dubai-based executive with a multinational bank. “We want to understand how they intend to manage the fiscal risks as well as the long-term nature of these projects, and how we might be able to play a role.”

Wastewater

Treating wastewater for reuse is another key element in Egypt’s water scarcity response. Some $2.1bn-worth of water treatment plant schemes are in the pre-execution phase in Egypt, according to the latest available data from regional projects tracker MEED Projects.

Egypt’s Construction Authority for Potable Water & Wastewater is undertaking the prequalification process for the contracts to design and build the next phases of the Gabal Al Asfar, Helwan and Alexandria West wastewater treatment plants.

Through Egypt’s PPP Central Unit, the New Urban Communities Authority (Nuca) has also initiated the procurement of an independent wastewater treatment plant (IWTP) in 6 October City, which is anticipated to have a design capacity of 150,000 cm/d.

The procuring authority is expected to issue the tender for the contract to develop and operate the project in the first quarter of 2024.

Under the current plan, the sewage treatment charge in the financial bids Nuca expects to receive will be split, with 70% in Egyptian pounds (£E) and 30% based on the US dollar, paid in £E at the prevailing US dollar/£E exchange rate on the day of payment.

Nuca is planning another IWTP facility in New Damietta along the Mediterranean coast, which will have a capacity of 50,000 cm/d.

  MEED’s March 2024 special report on Egypt also includes:

> Cairo beset by regional geopolitical storm
> More pain for more gain for Egypt
> Familiar realities threaten Egypt’s energy ambitions

 

https://image.digitalinsightresearch.in/uploads/NewsArticle/11497556/main.jpg
Jennifer Aguinaldo

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

Click here to register
Exclusive from Meed
Related Articles
  • Qatari Diar unveils $30bn Egypt project masterplan

    21 July 2026

    Qatari Diar, the real estate arm of the Qatar Investment Authority, has announced the masterplan for its $30bn Alam Al-Roum project on Egypt’s north coast.

    The masterplan was developed by US-based architectural firm Skidmore, Owings & Merrill.

    The master-planning team also includes US-based landscape architecture firm SWA; UK-headquartered marina design and operations consultant Marina Projects; and French transport and traffic engineering consultant Setec.

    The development will cover more than 20 million square metres and include 7.2 kilometres of private beachfront on the Mediterranean Sea.

    The site is about 20 minutes from Marsa Matrouh and 50 minutes from Ras El-Hekma.

    According to a statement, the project includes $3.5bn in direct cash investment and is designed as an integrated, year-round Mediterranean destination.

    Alam Al-Roum expands Qatari Diar Egypt’s portfolio, which includes CityGate, New Giza and The St Regis Cairo.

    Qatari Diar and Egypt’s New Urban Communities Authority signed the project agreement for Alam Al-Roum in November 2025.

    The estimated value of the deal to Egypt is $7.5bn. Under the agreement, Cairo will receive an upfront payment of $3.5bn by late December 2025 for the initial land purchase and is expected to receive an in-kind stake in the project, estimated to be worth $1.8bn.

    Qatari Diar’s broader investment plans for the area include spending up to $26.2bn in addition to the $3.5bn already allocated for the land purchase.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17707658/main.jpg
    Yasir Iqbal
  • Contractors submit final offers for Global Sports Tower

    21 July 2026

     

    Contractors submitted their last and final offers in the first week of July for the main construction contract for the Global Sports Tower, located in the Athletics District of the Sports Boulevard development in Riyadh.

    The Sports Boulevard Foundation issued the tender for the main works contract on 31 July last year.

    The 130-metre-tall Global Sports Tower will cover an area of 84,000 square metres (sq m) and include more than 30 sports facilities.

    The tower will feature the world’s tallest indoor climbing wall, at 98 metres, and a 250-metre running track.

    Saudi Arabia’s Sports Boulevard Foundation also received bids on 10 June for a contract covering project management consultancy (PMC) services for the Global Sports Tower, as MEED reported.

    MEED reported in May 2025 that design work on the tower had been completed. Saudi Arabia’s Crown Prince Mohammed Bin Salman Bin Abdulaziz Al-Saud approved the designs in 2024.

    The Sports Boulevard development runs across Riyadh from east to west and, once complete, is set to be the world’s longest park, spanning more than 135 kilometres.

    The development will feature several districts, including Wadi Hanifah, the Arts District, Urban Wadi, the Entertainment District, the Athletics District and the Eco District, as well as Sands Sports Park.

    The large-scale project aims to transform central Riyadh – currently dominated by major highways – into a recreational corridor.

    Sports Boulevard, which will feature 4.4 million sq m of public realm and landmark buildings, will also be home to the Centre for Cinematic Arts and a 2,000-seat amphitheatre.

    The development will provide more than 2.3 million sq m of mixed-use commercial, residential and retail assets, along with sports facilities around the park, which will be known as Linear Park.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17707675/main.jpeg
    Yasir Iqbal
  • Consultants submit bids for Saudi Arabia’s GCC rail link

    20 July 2026

     

    Consultants submitted proposals on 14 July for a contract to provide design consultancy services for the Saudi Arabian section of the GCC railway network, which is intended to link all six member states.

    Saudi Arabia Railways (SAR) issued the tender on 7 May, MEED previously reported.

    The tender covers the concept, preliminary and issued for construction design stages. SAR requires the selected consultant to review, update and complete the existing preliminary design.

    The consultants who submitted bids include: 

    • Atkins with Khatib & Alami
    • DeutscheBahn with ARX
    • Egis with Sener
    • Idom with Dal Al-Handasah
    • Systra

    Saudi Arabia’s section of the railway will start at Al-Khafji in the Eastern Province, near the border with Kuwait, and end at Al-Batha, on Saudi Arabia’s border with the UAE. The route length in Saudi Arabia will be about 672 kilometres (km).

    The railway will interface with the Kuwait National Rail Road (KNRR) project on the Kuwaiti side. Last year, MEED exclusively reported that the KNRR design contract was awarded to Turkiye’s Proyapi Muhendislik ve Musavirlik Anonim Sirketi.

    The KNRR forms part of the wider GCC rail network. GCC railway projects have gained renewed momentum since the six member states signed the Al-Ula Declaration in January 2021.

    In October last year, Qatar’s cabinet approved a draft agreement paving the way for a railway link between Qatar and Saudi Arabia as part of the GCC railway network.

    GCC railway line

    Under the overall plan, the railway will run from Kuwait, pass through Dammam in Saudi Arabia, reach Bahrain via a planned causeway, and continue from Dammam to Qatar, the UAE and, ultimately, Muscat via Sohar in Oman. The railway is reported to span about 2,186km in total.

    The route length within each member state is as follows: 684km in the UAE, 672km in Saudi Arabia, 306km in Oman, 283km in Qatar, 145km in Kuwait and 36km in Bahrain.

    The railway is designed for passenger trains travelling at 220km/h and freight trains operating at 80-120km/h.

    With high levels of project activity, governments in spending mode and renewed cooperation under the Al-Ula Declaration, the latest efforts to restart the GCC railway project may make more progress than previous attempts. If completed, the railway could prove transformational for a region that is globally connected but still divided by national borders.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17705320/main.gif
    Yasir Iqbal
  • Chinese firm wins Dubai drainage contract

    20 July 2026

    China State Construction Engineering Corporation (CSCEC) has announced it has won a contract to deliver a stormwater drainage pipeline package under Dubai Municipality’s Tasreef programme.

    The contract is for the TF-15-C2 stormwater drainage network project located along Umm Suqeim Road in the Al-Barsha and Al-Quoz areas of Dubai. 

    MEED exclusively revealed in May that the contractor had been selected for the engineering, procurement and construction (EPC) contract. The project is estimated to cost $162m.

    The scope of work includes the construction of about 20 kilometres of new stormwater pipelines, together with associated inspection and intake manholes. The project is located west of the Dubai Canal and will connect the Al-Quoz 3 and Al-Quoz 4 industrial areas with Al-Quoz 1.

    It is being delivered as part of Dubai’s Tasreef strategic plan, which supports the Dubai 2040 Urban Master Plan. Once completed, the new drainage infrastructure is expected to improve the emirate’s stormwater network, increase flood protection and enhance the resilience of Dubai’s infrastructure.

    In February, the municipality confirmed it had awarded contracts for five new projects under phase two of the programme to expand and strengthen Dubai’s stormwater drainage network.

    These include a separate contract awarded to CSCEC for the TF-11-C1 stormwater drainage project in the Dubailand area.

    Also in February, Dubai Municipality invited consultants to qualify for a contract to supervise construction on the TF-15-C2 stormwater drainage projects along with two other projects (TF-13-C1 and TF-16-C1) under the Tasreef programme.

    According to a source, a consultant has yet to be appointed.

    TF-16-C1 involves upgrading and rehabilitating the stormwater system east of the Dubai Canal, while TF-13-C1 involves building a water pipeline stormwater drainage system at Al-Marmoum, Al-Qudra and Al-Yalayis 2 & 3.

    Bids are currently under evaluation for the EPC contracts for both projects.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17705058/main.jpg
    Mark Dowdall
  • Dubai receives eight bids for Hassyan SWRO pipeline contract

    20 July 2026

    Register for MEED’s 14-day trial access 

    Eight contractors have made offers for a contract to supply, install, test and commission glass-reinforced epoxy (GRE) water transmission pipelines and associated works for the Hassyan seawater reverse osmosis (SWRO) phase two network in Dubai.

    The contract relates to project one of the Hassyan pipeline network expansion being undertaken by state utility Dubai Electricity & Water Authority (Dewa).

    Local firm Binladin Contracting Group submitted the lowest offer of AED335.92m ($91.5m), according to results published by the utility.

    The other bids were:

    • Green Oasis General Contracting (UAE) – AED345.00m ($93.9m)
    • Al-Nasr Contracting (UAE) – AED391.54m ($106.6m)
    • Wade Adams Contracting (UAE) – AED393.80m ($107.2m)
    • RMB Contracting (UAE) – AED437.96m ($119.3m) 
    • Tristar Engineering & Construction (UAE) – AED441.55m ($120.2m)
    • Shapoorji Pallonji Mideast (UAE/India) – AED451.47m ($122.9m)
    • Gulf Petrochemical Services Trading (UAE) – AED495.20m ($134.8m)

    RMB also submitted a conditional discounted offer of AED427.02m ($116.3m). Three companies submitted regret notices, while one offer was rejected after no valid commercial offer was received. 

    In January, Dewa announced that construction of the 180-million-imperial-gallon-a-day phase one of the Hassyan SWRO independent water project was 90% complete.

    Dewa has two other contracts out for tender for GRE water transmission pipeline work related to the Hassyan SWRO phase two network.

    Project two was tendered on 22 January and has a bid submission deadline of 21 July. Project three was tendered on 26 January and has a bid submission deadline of 29 July.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17704940/main.jpg
    Mark Dowdall