Egypt to award wastewater treatment plant deal

03 November 2009

Developers have until 2011 to raise capital for public-private partnership scheme

Egypt’s Housing, Utilities & Urban Development Ministry expects to award the contract to develop its planned $150–200m wastewater treatment plant in 6 October Governorate in October 2010.

The ministry has invited companies to submit their applications to prequalify for the scheme by 30 December.

It expects to announce a list of qualified developers in January 2010 and issue an invitation to bid in February.

Under the present tentative timetable, the ministry’s bid deadline is September 2010. Following the contract award in October 2010, the winning developer will have until March 2011 to raise the capital needed to finance the scheme.

The project is Egypt’s second wastewater public-private partnership (PPP) scheme. The ministry awarded the first such deal to build a wastewater plant in New Cairo in July.

A private developer will design, finance, build, operate and maintain a 150,000-cubic-metre-a-day (cm/d) wastewater treatment plant in the southern part of 6 October Governorate.

The ministry wants the developer to finish the plant in the first quarter of 2013.

The developer will also operate and maintain an adjacent 100,000-cm/d plant which Orascom Construction Industries, an Egyptian contractor, is currently building.

The project is due to come on line in mid-2011.

The ministry has not set the duration of the concession, but other Arab countries have awarded 20-year contracts for similar PPPs.

Ernst & Young is the lead transaction adviser. DHV International of the Netherlands and Chemonics Egypt are the technical advisers, and the UK’s Trowers & Hamlins is the legal consultant.

The 6 October Governorate has a population of about 500,000.

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.