Egypt’s Ambitious Move Towards Water Desalination: A Strategic Partnership with the Private Sector

Egypt is stepping up its game in the realm of water sustainability, with a focused initiative aimed at boosting private sector investment and securing concessional financing for water desalination projects. This ambition is being driven by a coordinated effort among several international financial institutions, marking a significant stride towards enhancing the country’s water resource management.

Collaborative Efforts for Sustainable Infrastructure

Minister of Planning, Economic Development, and International Cooperation, Rania Al-Mashat, recently convened an expanded meeting that brought together key representatives from various financial institutions. Attendees included delegates from the International Finance Corporation (IFC), the European Bank for Reconstruction and Development (EBRD), and the African Development Bank (AfDB). The discussions, held at the directive of Prime Minister Mostafa Madbouly, were centered around sustainable infrastructure, particularly within the water sector.

The meeting’s primary aim was to mobilize both technical assistance and funding, setting the stage for a robust public-private partnership (PPP) model. This cooperation is integral to tackling the challenges of climate resilience and promoting sustainable water resource management in Egypt.

The Water Pillar of the NWFE Initiative

At the heart of these discussions was the water component of Egypt’s National Water Financing Initiative (NWFE) platform. This initiative is designed to address pressing water issues while simultaneously enhancing the country’s climate resilience. As Al-Mashat emphasized, the water sector represents a crucial pillar in Egypt’s cooperation with international institutions and development partners, aiming to attract greater private sector engagement aligned with national development priorities.

The involvement of high-level representatives from organizations such as the French Development Agency (AFD), the Japan Bank for International Cooperation (JBIC), the German Development Bank (KfW), and the Japan International Cooperation Agency (JICA) underscores the international support behind this initiative. Their participation reflects a joint commitment to addressing water scarcity and advancing infrastructural development in Egypt.

Highlighting Previous Successes

Al-Mashat also pointed to previous collaborations that yielded significant infrastructure contributions—most notably the Bahr El-Baqar wastewater treatment system, recognized as one of the largest of its kind globally. Another important project, the Al-Mahsama plant, has been vital for supplying treated water to expand agricultural land in the Sinai region. These projects not only illustrate the potential for successful collaborations but also serve as benchmarks for future endeavors.

Partnership Agreements Paving the Way

A recent partnership agreement from 2023, established between the IFC, the EBRD, and Egypt’s Sovereign Fund, serves as a foundation for upcoming projects. This agreement focuses on providing technical advisory services for the establishment of four seawater desalination plants, which are set to deliver an initial output of 335,000 cubic meters of clean water per day. These plants will ultimately scale their capacity to 650,000 cubic meters per day in regions like Matrouh Governorate and Egypt’s North Coast, further aligning with the nation’s 2030 Sustainable Development Goals.

Future Plans: ACWA Power and Beyond

During the meeting, discussions also included the expansion plans from ACWA Power, a critical player in the water and energy sectors. Represented by Egypt CEO Hussein Amin, ACWA Power’s involvement highlights the importance of industry leaders in public-private partnerships. Additionally, delegates from Proparco and the EBRD’s regional head of sustainable infrastructure, Gonzalo Correa, contributed to the conversations on how to effectively implement these ambitious plans.

Attendees Committed to Change

The meeting was well-attended by prominent figures dedicated to the mission of improving Egypt’s water system. Notable attendees included Abdelrahman Diaw, AfDB Country Manager; Clemence Vidal, AFD Director; Saad Sabra, IFC Country Manager for Egypt; and Reem El Saady, Deputy Head of the EBRD Office in Egypt. Their collective expertise and commitment are critical for driving forward Egypt’s water initiatives.

With these strategic discussions and partnerships, Egypt is paving a forward-looking path toward significant strides in water sustainability, showcasing a strong commitment to addressing water scarcity and climate challenges through innovative financing and private sector involvement.