EBRD Plans $32.1 Million Investment to Support Expansion of Egypt's Desalination Projects

en.Wedoany.com Reported - The European Bank for Reconstruction and Development (EBRD) has disclosed a planned investment of up to US$32.1 million in RWD Investments BV to support its expansion of desalination operations in Egypt. RWD is currently wholly owned by Hassan Allam Utilities. The financing will be used to execute its medium-term desalination project development pipeline and cover the early-stage development costs of future large-scale water PPP projects. The project was approved on July 8.

RWD's expansion priorities include adding new desalination capacity and improving the operational efficiency of existing facilities. According to EBRD project documents, the platform will continue to expand its desalinated water supply business serving industrial, tourism and other areas lacking municipal water supply coverage, and will promote greater private capital participation in Egypt's water infrastructure sector.

In addition to the aforementioned equity investment, EBRD is providing a senior loan of up to EGP 350 million, equivalent to approximately EUR 6.4 million, to Ridgewood for Water Desalination, a subsidiary of Hassan Allam Utilities. The funds will be used to build new small-scale desalination stations along Egypt's Red Sea and Mediterranean coasts, while upgrading existing central water supply facilities and standalone desalination stations. The related projects are expected to add approximately 10,000 to 15,000 cubic meters per day of desalination capacity.

Ridgewood for Water Desalination was established in 1999 and mainly supplies desalinated water to private customers in Egypt's coastal areas. Its existing customers cover the tourism and industrial sectors, with some project locations not yet connected to the municipal water supply network. The financing will also be used to improve the operational and energy efficiency of existing desalination facilities.

Hassan Allam has continued to expand its regional water platform in recent years. Its subsidiary MetiPro completed the EPC of the Sfax seawater desalination plant in Tunisia in June this year and has entered the operation and maintenance phase. The project can be expanded to 200,000 cubic meters per day, serving nearly 1 million people in the Sfax region.