Country Reports - Egypt

Addressing Egypt's Escalating Water Stress: Strategic Expansion of Desalination Projects

May 2024

Country Reports - Egypt

Addressing Egypt's Escalating Water Stress: Strategic Expansion of Desalination Projects

May 2024

Over the past decade, Egypt has faced increasing water stress, primarily due to escalating population demands that have surpassed the Nile River’s capacity. Historically a crucial water source for Egypt, the Nile now struggles to reach the Mediterranean Sea. This situation has been exacerbated by the filling of the Grand Ethiopian Renaissance Dam, which began in 2021, posing a significant risk of water scarcity for drinking purposes.

The Egyptian Ministry of Water Resources and Irrigation estimates the country's annual water needs at approximately 114 billion cubic meters. However, Egypt receives around 55 billion cubic meters annually from the Nile, the primary source of the nation’s water supply. To address this significant shortfall, the government has been actively expanding seawater desalination projects.

Egypt's Strategic Desalination Plan

The Egyptian Center for Strategic Studies highlights that Egypt has become the largest owner of desalination facilities in the Middle East, operating around 100 plants with a capacity of 1.2 million cubic meters per day, as per data from the Ministry of Housing and Urban Communities. The government is implementing a strategic plan to increase this capacity to 9 million cubic meters per day by 2050 through six five-year plans.

The first phase involves the construction of 21 desalination plants, costing USD 3 billion (EGP 140 billion). This phase aims to boost daily water production to over three million cubic meters. In December 2023, Atter Hanoura, head of the Central Unit for Public-Private Partnership at the Egyptian Ministry of Finance, announced that the government aims to operate the first six plants by the fiscal year 2025-2026, with a total capacity of approximately 900,000 cubic meters per day and investments of USD 900 million (EGP 42 billion).

Additionally, Egypt plans to invite investment bids for four desalination plants costing USD 350 million (EGP 16.3 billion), with some located near Ras El Hikma. These projects, targeting a production capacity of 300,000 to 400,000 cubic meters per day of potable water, are expected to commence by mid-July. Seventeen consortia, comprising Gulf, Chinese, European, and Egyptian companies, including prominent players like Acwa Power, Orascom Construction, Hassan Allam, Samcrete, and AAW Consulting Engineers, have qualified for the tender.

Implementation and Quality Assurance

The desalination projects will be tendered under the Build-Operate-Transfer (BOT) system, supporting the government's efforts to develop the North Coast. Furthermore, in February 2024, Egypt signed a contract with ADQ, the Abu Dhabi sovereign investment company, to enhance Ras El Hikma City with USD 35 billion (EGP 1.6 trillion) in foreign direct investments.

In May 2024, the General Authority for Specifications and Quality issued four new specifications for water desalination. These specifications address operational terms and equipment, primary treatment, reverse osmosis, and technical requirements for concentration treatment using osmotic pressure. The Authority is currently drafting additional specifications for final treatment and common issues in desalination plants, as well as considering proposals for specifications necessary for plants within natural reserves.

By Muhammed Kotb

https://egyptianstreets.com/