Egypt selects group for Abu Rawash wastewater treatment plant

18 August 2015

Project regarded as trailblazer for Egypt’s ambitious PPP programme

  • Local/international consortium selected to develop public-private partnership wastewater project
  • Work will involve expanding capacity of existing plant and building secondary treatment stage

Egypt’s PPP Central Unit, on behalf of Egypt’s Construction Authority for Potable Water & Wastewater (CAPW), has selected 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.

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

According to sources close to the scheme, the Orascom-led consortium has been selected by the client and is expected to receive a contract letter of award by 22 August. The group will sign a 20-year PPP deal with CAPW. The tendering of the project has been overseen by the PPP Central Unit.

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 and 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 advisor on the project.

The project 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.

The Abu Rawash project is regarded as an important part of Egypt’s development programme, with several major utility and infrastructure schemes set to follow after the wastewater project reaches financial close.

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