Egypt is set to invite bids for the first phase of its extensive water desalination project under a Public-Private Partnership (PPP) framework in the fourth quarter of 2024.
This collaborative initiative, managed by The Sovereign Fund of Egypt (TSFE) alongside the Ministry of Finance’s PPP Central Unit, aims to establish renewable energy-driven desalination facilities throughout the nation. The target is to reach a total production capacity of 8.85 million cubic meters per day (m³/day) by 2050.
In the initial phase, 15 desalination plants will be built, providing a total capacity of 3.35 million m³/day by 2025, as stated by Atter Hannoura, Director of the PPP Central Unit at Egypt’s Ministry of Finance. At a PPP forum in Dubai, Hannoura disclosed that the first batch will comprise four plants.
This initial phase is projected to draw approximately $3 billion in investments, with each facility supported by a 30-year concession agreement, as noted in Hannoura’s presentation.
The first tenders will be issued for two plants: one in Dabaa with a capacity of 40,000 m³/day, and another in El Hamam with a capacity of 190,000 m³/day.
These projects represent a combined investment of around $210 million. Preparations for the tender documents are already in progress, with the official bid invitation expected to be announced in late 2024.
In May 2023, the TSFE and the Ministry of Finance’s PPP Central Unit prequalified 17 consortia for the first phase. These consortia were categorized into four groups based on their expertise and capability to deliver. Hannoura noted that the government implemented a unified pre-qualification process to facilitate the launch of new projects, intending to initiate new batches of plants every five to six months once the required land is secured.
Hannoura also stressed that environmental sustainability is a crucial factor in the planning of these desalination projects, ensuring that all future phases align with Egypt’s long-term ecological objectives.
Egypt’s 30-year desalination plan, first announced in 2020, aims to significantly boost the country’s desalination capacity from the current 1.3 million m³/day to 8.85 million m³/day by 2050, representing nearly an eightfold increase.
Source :Zawya
