Egypt awards Abu Rawash wastewater contract

31 August 2015

Local/international consortium will finance and build expansion of treatment plant

  • Local/international consortium signs contract to develop public-private partnership wastewater project
  • Work will involve expanding capacity of existing plant and building secondary treatment stage
  • Total revenue for concession period expected to reach $2.7bn

Egypt’s PPP Central Unit, on behalf of Egypt’s Construction Authority for Potable Water & Wastewater (CAPW), has signed a contract with a consortium of the local Orascom Construction and International Consultants for Agency & Trade (Icat), Spain’s Aqualia, and France’s Veolia to build the Abu Rawash wastewater treatment plant expansion.

MEED reported on 18 August that the group had been selected and that a contract award was imminent.

The scheme is being developed as a public-private partnership (PPP) project.

The winning consortium has signed a 25-year deal with CAPW. The tendering of the project has been overseen by the PPP Central Unit.

According to Aqualia, the build-operate-transfer (BOT) contract will involve an initial investment of more than €500m ($561m), with expected total revenue for the 25-year concession period reaching €2.4bn.

The agreement will cover the design, financing and expansion of the existing Abu Rawash plant from 1.2 million cubic metres a day (cm/d)  to 1.6 million cm/d, as well as the construction of an advance secondary treatment stage. The project will also include the operation and maintenance of the whole plant.

CAPW is receiving technical assistance from the PPP Central Unit. The UK’s EY is the lead and financial adviser on the project.

The scheme has faced several delays since it was first launched. The PPP Central Unit initially produced a list of prequalified companies allowed to bid to build the plant in early 2011, but due to delays resulting from the political uprisings and changes in specifications, the project owner decided to restart the process earlier this year.

CAPW and the PPP Central Unit received bids in January this year from three consortiums, and subsequently shortlisted proposals from the Orascom consortium and Kuwait’s Kharafi National.

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