More infrastructure reforms for El Sisi’s third term: The government has laid out itsambitious targets for infrastructure and exports for the next six years over President Abdel Fattah El Sisi’s third term in the Cabinet Information and Decision Support Center’s recently released report (pdf).Among the biggest targets are: plans for digital transformation, boosting exports in oil and gas and electricity, increasing water security, and tackling unplanned areas.

** In case you missed it, we dove deeper into the more strictly economic aspects of the report here and our renewable energy targets here.

ENERGY POWERHOUSE AMBITIONS-

Big oil + gas export targets: Oil and gas exports are set to double to USD 36 bn — a number the government hopes to achieve through streamlining procedures for investors and offering more oil and gas exploration bids and expanding exploration activities.

Emissions reductions are still a priority: The government is eyeing a 65% reduction in emissions from the oil and gas sector and an end to routine gas flaring by the end of the decade, according to the report. The government also wants to develop a regulatory framework for methane emissions from the sector by the end of the year, the report added.

Electricity exports will also get a boost: Egypt envisions itself as a regional electricity hub, aiming to double its daily exports to 1.5 GW. The country will achieve this by implementing electrical interconnection projects, becoming a gateway for European energy through Greece and Italy, and strengthening electric connections with neighboring countries.

Four Egypt-Europe interconnectors are in the cards. The atest proposals include a 3-GW Scatec-backed link and a 3-GW Italy-funded connection, both targeting Egypt-Italy connections. The 2 GW Greece-Africa Power Interconnector (GAP) advanced with a signed MoU last year, and is expected to be completed by 2030. Meanwhile, the 2 GW EuroAfrica Interconnector remains stalled, with no news on consultant selection — initially planned for 2H 2023 — yet.

Meanwhile, Egypt and Jordan are exploring a cost-effective upgrade to their electricity link through a 1.1 GW subsea cable, currently under technical and financial assessment, a government source told us previously. This subsea option complements the planned 2 GW expansion and could break ground on the first phase as early as 1Q 2024 if implemented.

Egypt also recently launched the first phase of its 300-MW interconnection project withSudan.This initial stage serves as a springboard for further expansion, aiming to reach 3k MW in the next phase, Youm7 reported previously.

As will mineral mining: Egypt is also planning to boost the contribution of mineral mining to GDP from 0.5% to 5% by 2030.

WATER SECURITY + INFRASTRUCTURE-

Sewage coverage to expand: Egypt intends to provide 100% sewage coverage nationwide by 2030 with a plan to expand drainage networks to cover 6.4 mn feddans. The government is also looking to upgrade irrigation systems and expand them to revitalize 1.1 mn feddans. A USD 50 bn water resources management plan tackles quality, treatment, and efficiency, while a seawater desalination program aims to increase capacity by 3.35 mn cbm per day by 2025.

Desalination plants to be offered up to the private sector in 1H 2024: Four desalination plants will be offered up to the private sector in the first half of 2024 to kick off the government’s plan to tender 21 plants in total. The tender for the first batch of plants, which a Sovereign Fund of Egypt (SFE) spokesperson told us in May was set to kick off in 3Q 2023, was waiting on the land allocation process to be completed and revisions for financials in light of exchange rate fluctuations.

The government is also focusing on flood mitigation measures through 30 rainwater collection facilities, rainwater harvesting initiatives, and extensive drainage network upgrades across 60k feddans in the short term, the report said, without specifying an exact timeframe for the upgrades.

HOUSING + SLUMS-

Egypt’s urban environment is set for a significant makeover: The government is planning todouble the currently inhabited area of the country to 14% by 2030, the report said. This will include a EGP 318 bn strategy tackling unplanned areas, with 672k new housing units — including social housing — set to be built annually The government also plans to establish 30 new smart cities — also referred to as fourth-generation cities — with housing to accommodate 15-20 mn people.

DIGITAL INFRASTRUCTURE-

The government also has plans to boost the country’s digital infrastructure by:

  • Nearly tripling outsourcing exports to USD 13 bn;
  • Building 45k new mobile network towers nationwide;
  • Launching a digital and IT freezone in the Suez Canal Economic Zone;
  • Boosting the tech sector’s contribution to GDP from 3.4% to 7%;
  • Setting up 20 fiber optic cable factories across the country and connecting all government buildings to fiber optic networks, as well as boosting fiber optic cable exports to Africa.

Next week: We’ll break down the government’s targets and plans for the logistics and transport sectors.

Your top infrastructure stories for the week:

  • AD Ports to operate three tourism terminals: AD Ports has inked a USD 3 mn initial agreement with the Red Sea Port Authority to operate and manage three cruise terminals in Hurghada, Safaga, and Sharm El Sheikh.
  • Tarboul is getting an EV factory: Russian EV manufacturer Concordia is setting up an electric vehicle components factory in GV Investments’s Tarboul industrial project in Giza.
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