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Market brief

Egypt

The authorities that procure water infrastructure in Egypt, how the deals are put together, and what is in the pipeline.

Reference profile for Egypt

Market snapshot

The commercial picture in Egypt: the scale of the economy and the water sector, the investment climate, and where the near-term activity is concentrated.

0
million people · +1.6% a year
US$ 0
GDP · +2.4% a year
US$ 0
tracked investment pipeline (major projects)

Political stability

49/100 · Below average

World Bank Governance Indicators, 2024. Percentile among all countries; higher is more stable.

Investment climate

47/100 · Below average

World Bank Governance Indicators, 2024. Regulatory quality for private investment; higher is better.

Financing & PPP

  • PPP frameworkActive (Build-Operate-Transfer desalination programme)
  • Tracked pipelineUS$ 5.8 bn in our projects register
  • Active fundersAfDB, World Bank
  • Climate adaptation planAdopted (2022)

Opportunities

  • National 2050 desalination build-out (BOT pipeline)
  • Agricultural drainage reuse at scale
  • Smart metering & non-revenue-water reduction
  • Delta wastewater treatment expansion

Key challenges

  • Near-total dependence on the Nile (>90% of supply)
  • Upstream GERD flow uncertainty
  • Rapid population growth above 105 million
  • Coastal aquifer salinity in the Delta

Sources: FAO AQUASTAT / national reports (latest available); World Bank 2023–24. Figures approximate. Governance indicators: World Bank Worldwide Governance Indicators (2024).

Contracting authorities

The bodies that commission, regulate and operate water infrastructure in Egypt. Ministries set policy and sign the offtake; utilities run the assets; regulators set the tariff and the service standard.

How deals are structured

The framework in Egypt is Active (Build-Operate-Transfer desalination programme), the schemes we track carry US$ 5.8 bn of disclosed value, and the funders most active in the sector are AfDB, World Bank, Green Climate Fund.

Delivery splits by asset class across the region: dams and trunk conveyance are mostly engineering contracts carried by sovereign or development-bank finance; bulk supply increasingly uses build-operate-transfer concessions against a long-term offtake; and distribution work is let as performance-based contracts paid against measured leakage reduction. The Finance & Economics hub sets out each model and where it has been used.

The projects register bears this out. Of the 22 tracked schemes in Egypt, 2 name a concession structure in the finance note; the rest record only where the money came from, which is not the same as saying they were not concessions.

How to bid

Two things changed in Egypt in the last year and neither is on most tender lists. Law 172 of 2025, gazetted on 1 September 2025 and in force six months later, reconstitutes the water regulator as an independent authority reporting to the prime minister and creates operating licences of up to fifteen years, obliging the ministry to activate private participation.34 And in August 2026 the state replaced sovereign guarantees on the desalination programme with free land, take-or-pay offtake and performance-linked pricing.5 The first desalination tender has slipped from December 2025 and had still not been launched.56

How to bid
Procuring bodyThe contracting authority tenders; the Supreme Committee for public-private partnership, chaired by the prime minister, approves the annual list, the projects and the pricing, and the partnership central unit at the Ministry of Finance reviews the documents and monitors execution.1
RoutePublic tender in two stages with pre-bid clarifications; private tender for specialised projects; or direct contracting for urgent state need, a well-performing incumbent, or a private-sector initiative supported by feasibility studies.1
Foreign bidderMay bid directly and price in foreign currency, converted at the central bank rate on the date of technical opening; in practice a branch or local entity performs the work.2
Project companyMust be majority private: public shareholding is capped at 20%.1
Contract form and termDesign-finance-build-operate-maintain-transfer against a long-term water purchase agreement. Minimum five years and maximum thirty from completion, longer only by cabinet decree; the desalination programme uses usufruct of twenty to thirty years.175
Payment securitySovereign guarantees have been withdrawn and replaced by free land, take-or-pay offtake and performance-linked pricing. Currency and energy prices are the named residual risks.5
Governing lawEgyptian law is mandatory. Arbitration or other dispute resolution needs Supreme Committee approval.1
Challenge windowPre-contract complaints go to a finance-ministry committee within 15 days and are decided within 30.1

The current bidder pool is the seventeen consortia the Sovereign Fund of Egypt pre-qualified, still in place in September 2025.6 Five treatment plants were in preparation in May 2026, including Abu Rawash at 400,000 cubic metres a day rising to 520,000 at peak, on a design-build-operate-maintain basis at about US$157 million.7 What could not be established: withholding tax and VAT treatment, and whether the holding company signs the water purchase agreements, which no fetched source states.

Regulatory intelligence

The rules shaping investment:

Regulatory status matrix
RegulationStatusYearNote
Water Resources & Irrigation LawIn force2021Consolidated water law: licensing, protection zones, penalties.
PPP Law (amended)In force2021Framework used for desalination and treatment concessions.
Reuse code ECP 501In force2015Treated-wastewater reuse classes by crop and treatment level.
Desalination PPP programme (SFE)Active2022–Phased tenders toward multi-BCM coastal capacity.
Law 172 of 2025 on the water and sanitation facilityIn force2025Reconstitutes the regulator as an independent authority and creates operating licences of up to 15 years.
Tariff reformIn progress–Stepwise municipal tariff increases under fiscal reform; the holding company denied in August 2026 that any increase had been approved.

Principal instruments; primary references are the irrigation ministry and the regulator reconstituted under Law 172 of 2025.

Projects

Track record

What has actually been signed in Egypt, from the awards log and the major projects register.

Disclosed value by year

US$ bn of tracked awards in Egypt carrying a published value

20170.43 bn20200.2 bn20213.87 bn

9 further awards in this sector carry no published value and are not in the chart.

Tracked awards in Egypt
YearProjectWinning firmsUS$ m
2024 on lineGabal El-Asfar Wastewater PlantOrascom Construction, Arab Contractorsn/a
2022 on lineNew Administrative Capital Wastewater PlantHassan Allam Constructionn/a
2021 on lineBahr El-Baqar Wastewater TreatmentOrascom Construction, Arab Contractors740
2021 on lineEast Port Said DesalinationMetito and Orascom Construction joint venture130
2021 on lineNew Delta (El-Hammam) TreatmentHassan Allam Construction, Orascom Construction, Arab Contractors and Metito joint venture3,000
2020 on lineAl Arish DesalinationMetito97
2020 on lineAl Galala DesalinationMetito and Orascom Construction joint venturen/a
2020 on lineAl-Mahsama Agricultural Drainage Treatment and ReuseMetito and Hassan Allam Construction joint venture100
2019 on lineNew Administrative Capital Nile Water TransmissionArab Contractors, Orascom Construction, Concord for Engineering and Contracting and Ebna Elaamn/a
2017 on lineAbu Rawash Wastewater PlantOrascom Construction and FCC Aqualia joint venture430
2017 on lineEast Alexandria Sludge Treatment UnitSUEZ and The Arab Contractors (consortium); design by AAW Consulting Engineersn/a
2016 on lineNew Alamein DesalinationAqualia Infrastructure and FCC Construccionn/a
2014 on lineAl Yosr (Hurghada) DesalinationMetiton/a
2009 on lineNew Cairo Wastewater PlantOrasqualian/a

Years without a label are award years from the curated log; rows marked on line are dated by commissioning, from the projects register. 15 rows in total for Egypt.

Repeat winners

  • Arab Contractors2 tracked awards
  • Metito2 tracked awards
  • Metito and Orascom Construction joint venture2 tracked awards
  • Orascom Construction2 tracked awards

Firms or consortia appearing on two or more tracked awards in Egypt.

Pipeline & tenders

Structured procurements and live tenders in Egypt, drawn from the same review that maintains the pipeline tracker.

Pipeline & awards

Tenders

Prices

What households pay

What households pay in Egypt
Household tariff (US$/m³)Cost of supply (US$/m³)YearSource
$0.013 – 0.065not published2018Prime ministerial decree of 31 May 2018, as reported; HCWW statement of 2 August 2026

EGP 0.65/m³ for the first 10 m³ a month rising to EGP 3.15 above 40 m³, with sanitation billed at 75% of the water charge. This is the schedule set by the prime ministerial decree of 31 May 2018 and applied from the June 2018 bill; the holding company denied on 2 August 2026 that any increase had been approved since. Among the lowest tariffs in the region in dollar terms, below Algeria and above Iraq, and falling in real terms as the pound depreciates against a schedule fixed in 2018.

Residential tariffs, and the cost of supply where a utility publishes it, are kept in one place for the whole region so the comparison holds: a tariff means little without the cost it is measured against.

Watch list

What has actually moved in Egypt, dated, from the monthly briefings. Each item names the edition it came from.

  • 2026-05The five-plant PPP bundle, led by the SCZone desalination plant, had still not been tendered when last reported.August 2026 briefing

The full editions are in the briefing archive.

Sources

12 references

Project, pipeline and tender records are compiled from procurer announcements, lender disclosures and trade reporting; each project page carries its own source and the date it was last checked. Institutions are from the decision-maker directory. Economic and water indicators are cited on the reference profile.

  1. Shand & Partners, guide to PPP investment under Egyptian law. A practitioner guide.
  2. Shand & Partners, government procurement in Egypt, 2025.
  3. Law No. 172 of 2025 on the organisation of the drinking water and sanitation facility, text and commentary, gazetted 1 September 2025.
  4. The Water Diplomat, “Egypt’s water sector opens avenues for public-private partnerships”, 14 July 2026.
  5. Enterprise, “Egypt swaps sovereign guarantees for land and long-term contracts”, 12 August 2026.
  6. Enterprise, “Government to relaunch stalled desalination PPPs in December”, 21 September 2025.
  7. MEED, “Egypt prepares to tender five water treatment plants”, 25 May 2026.
  8. FAO, AQUASTAT — Global Information System on Water and Agriculture: country water resources, withdrawals by sector and dam register. fao.org/aquastat. Latest country values as compiled at build.
  9. World Bank, World Development Indicators and country water-sector reporting. data.worldbank.org.
  10. Kaufmann & Kraay, Worldwide Governance Indicators (World Bank), 2024 update — political-stability and regulatory-quality scores, 0–100, shown in the market snapshot. worldbank.org/wgi.
  11. World Resources Institute, Aqueduct 4.0 Water Risk Atlas (2023) — the sub-basin risk, stress and groundwater-decline layers on the interactive maps. wri.org/aqueduct.
  12. MENA Water Review major projects register and PPP pipeline — compiled from procurer publications, development-bank project pages and trade reporting; each record names its source.

Numbered references are linked from the superscript markers in the text. Figures without a marker come from the sources above as compiled in the site methodology.