{"id":585927,"date":"2023-05-02T00:00:00","date_gmt":"2023-05-02T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/05\/02\/a-very-long-shortlist-underscores-tons-of-interest-in-desalination-projects\/"},"modified":"2023-05-02T00:00:00","modified_gmt":"2023-05-02T00:00:00","slug":"a-very-long-shortlist-underscores-tons-of-interest-in-desalination-projects","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/05\/02\/a-very-long-shortlist-underscores-tons-of-interest-in-desalination-projects\/","title":{"rendered":"A very long shortlist underscores tons of interest in desalination projects"},"content":{"rendered":"

<\/span>In the running for the SFE\u2019s desalination tenders:<\/span> The Sovereign Fund of <\/span>Egypt has prequalified <\/span>17 c<\/span>onsortiums to bid in its upcoming tenders for renewables-powered <\/span>desalination projects, it said in <\/span>a statement (pdf)<\/a><\/span> yesterday<\/span>. The firms were chosen with the technical help of the Finance Ministry\u2019s public-private partnerships (PPP) unit. <\/span>More than 25 consortiums applied,<\/span>the fund told Enterprise.<\/span><\/p>\n

The big picture:<\/span> Announced a few years ago to bolster the country\u2019s water security, the government\u2019s 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.<\/span><\/p>\n

What\u2019s next: <\/span>The SFE is planning to have three or four of these plants tendered b<\/span>y 3Q 2023<\/span>,<\/span>an SFE spokesperson told Enterprise yesterday. Contracts for the remaining plants in the program\u2019s first phase should be signed in the next <\/span>18-24 months<\/span>, they added. <\/span><\/p>\n

The prequalifying consortiums have been split into four groups <\/span>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. <\/span>Companies chosen in the final stage will develop, construct, and operate the plants. <\/span><\/p>\n

DFIs are lending a helping hand: <\/span>The European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) are <\/span>advising the SFE<\/a><\/span> on technical and legal aspects of the public-private partnerships as well as ESG assessments for the projects \u201cin order to bring to the market a solid investment product,\u201d the release reads. <\/span>The SFE will be investing in the plants alongside successful private-sector players.<\/span><\/p>\n

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

IN THE RUNNING- <\/span><\/p>\n

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