Egypt to privatise operation of desalination plants

• Seawater facilities in northwest
• Greater role for private sector
• Include Ras Sudr and Dahab plants

Egypt has invited the private sector to take over the operation and maintenance of seawater desalination facilities on its northwestern shores.

All desalination plants in the area with a daily capacity of more than 10,000 cubic metres will be handed over to the private sector, as part of the country’s plans to give the private sector a greater role in its economy.

Egypt has already privatised several public entities and is planning to sell more establishments to boost public revenue and slash a persistent budget deficit.

The decision was announced by Randa El-Menshawy, the minister of housing, utilities and urban communities, the ministry said on its website.

It did not mention how many facilities would be offered to the private sector apart from saying they are located along the northwestern coastline. This includes the desalination plants in Ras Sudr, El Tor, Dahab, Nuweiba, Abu Zenima and Sharm El Sheikh. 

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Privatisation is a key feature of reforms recommended by the International Monetary Fund to stimulate Egypt’s economy, attract capital and slash fiscal and trade deficits.

The country has also sold land plots to its overseas citizens and has recently announced the issue of bonds targeting individuals for the first time.

Cairo is also planning to privatise the management and operation of its Hurghada airport in the eastern Red Sea governorate.

In February, the government said it has received interest from 68 international companies and consortia to manage and operate the airport.

Hurghada will serve as the pilot for the privatisation programme, conducted in partnership with Egypt’s International Finance Corporation, the cabinet said.