Egypt is advancing a major desalination initiative under a Public-Private Partnership (PPP) framework, with initial tenders expected in late 2024.
The project, managed by The Sovereign Fund of Egypt (TSFE) alongside the Ministry of Finance’s PPP Central Unit, seeks to establish renewable energy-powered desalination plants across Egypt to reach a production capacity of 8.85 million cubic meters per day (m³/day) by 2050. This aligns with Egypt’s national water security strategy and environmental sustainability objectives.
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Scope of work
Phase I involves constructing 15 desalination plants by 2025, delivering a combined capacity of 3.35 million m³/day. Speaking at a PPP forum in Dubai, Atter Hannoura, the Director of Egypt’s PPP Central Unit, detailed that the first phase of plants—initially two locations, Dabaa (40,000 m³/day) and El Hamam (190,000 m³/day)—will attract about $3 billion in investment. Each plant will operate under a 30-year concession, and the total investment for these initial projects is estimated at $210 million.
TSFE and the Ministry of Finance’s PPP Central Unit prequalified 17 consortia in May 2023, categorizing them based on their expertise to expedite deployment. Hannoura noted that, after securing necessary land, Egypt aims to launch successive plants every 5-6 months. Environmental sustainability remains central to the project, aligning with Egypt’s long-term ecological goals.
Launched in 2020, Egypt’s 30-year strategy intends to expand its desalination capacity from the current 1.3 million m³/day to 8.85 million m³/day by 2050, addressing the country’s increasing demand for clean water amidst climate challenges.
Egypt is facing an annual water deficit of around seven billion cubic metres and the country could run out of water by 2025, when it is estimated that 1.8 billion people worldwide will live in absolute water scarcity and climate change is a key part of the problem.
