In the running for the SFE’s desalination tenders: The Sovereign Fund of Egypt has prequalified 17 consortiums to bid in its upcoming tenders for renewables-powered desalination projects, it said in a statement (pdf) yesterday. The firms were chosen with the technical help of the Finance Ministry’s public-private partnerships (PPP) unit. More than 25 consortiums applied,the fund told Enterprise.

The big picture: Announced a few years ago to bolster the country’s water security, the government’s water desalination program aims to add 8.85 mn cbm/d of capacity by 2050, according to the release. Plants developed during the initial phase will process a combined 3.35 mn cbm/d by 2025, it said.

What’s next: The SFE is planning to have three or four of these plants tendered by 3Q 2023,an SFE spokesperson told Enterprise yesterday. Contracts for the remaining plants in the program’s first phase should be signed in the next 18-24 months, they added.

The prequalifying consortiums have been split into four groups determining the size of the plants they can bid for based on their previous experience in the field. Prequalified bidders include a number of major Gulf, Chinese, Japanese, and European companies, as well as top local names Infinity Energy, Hassan Allam Holding, Orascom Construction, and Elsewedy Electric. Companies chosen in the final stage will develop, construct, and operate the plants.

DFIs are lending a helping hand: The European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) are advising the SFE on technical and legal aspects of the public-private partnerships as well as ESG assessments for the projects “in order to bring to the market a solid investment product,” the release reads. The SFE will be investing in the plants alongside successful private-sector players.

Costs are TBD: The Finance Ministry is ascertaining the size of the required investment against the backdrop of global inflation and a weaker EGP, a senior government source with first-hand knowledge of the process told Enterprise back in March.

IN THE RUNNING-

The big hitters: Category A consortiums can bid for plants with a capacity of up to 1 mn cubic meters per day (cmb/d).

  • Hassan Allam Holding and Engie
  • Orascom Construction, Scatec, Toyota Tsusho Corp, Acciona Agua, and Metito Utilities
  • ACWA Power
  • Sumitomo Corporation
  • Enertech Holding Co, Utico FZC, and SEPCO
  • Concrete Plus, Abengoa, and Cuasar
  • Infinity Energy, GS Inima, and China Energy Engineering Corporation
  • AEW, Gama, SOGEX, and WABAG
  • Sacyr Agua
  • TAM Environmental Services, Desalia SL, and Al Ahly Capital
  • Meridiam Infrastructure Africa Fund II, Suez International, and Elsewedy Electric

In the running to build medium-sized plants with a capacity of up to 600k cbm/d:

  • AMEA Power Ltd, Safbon, ICAT
  • Aqualia, Globeleq, Ignis, and Samcrete
  • Taqa Arabia, and Al Ghanem International
  • Beijing Enterprises Water Group Ltd, and Asia-Africa Green Energy Investment

Up for smaller plants:

  • A consortium of Sinohydro Hong Kong Holding Ltd, Qingdao Desalination, and SEPCO III Electric Power can bid for plants with capacities of up to 400k cbm/d
  • A consortium of Desal Egypt, EMCO Engineering, Amarenco Solarize Egypt, and Redcon Construction are in the running to build the smallest projects with up to 200k cbm/d of capacity.
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