The European Bank for Reconstruction and Development (EBRD) approved an equity investment of up to USD 32.1 million (EUR 27.6M) in RWD Investments BV. RWD is a water infrastructure platform wholly owned by Egypt-based Hassan Allam Utilities (HAU).

The equity investment will support RWD Investments’ desalination expansion and the development of future water projects under PPP structures

Why You Should Care

The investment forms part of a USD 92.9 million project aiming to expand RWD’s water infrastructure activities in Egypt. This is with a focus on desalination and future large-scale projects developed through public-private partnerships.

For Egypt’s water sector, the deal brings additional private capital into infrastructure aiming to provide alternative water sources. This includes businesses in areas that are not connected to the municipal network.

The Details

Established in 2019, Netherlands-based RWD Investments (RWD) is a water infrastructure platform wholly owned by Hassan Allam Utilities BV (HAU). 

The EBRD’s equity investment aims to support RWD’s medium-term expansion pipeline in Egypt. It also seeks to cover development costs related to future large-scale water projects.

A key focus is desalination. The project intends to help RWD expand its desalinated water capacity while improving the operating efficiency of its existing plants.

The investment will also support the development of future projects using PPP structure. This will create a framework for private sector participation in additional water infrastructure projects.

The Ripple

The project could expand the role of private-sector operators in Egypt’s water infrastructure, particularly in desalination.

The PPP component also extends the scope beyond RWD’s immediate expansion plans. Moreover, the development spending under the investment intends to help prepare future large-scale water projects. This could potentially creating additional opportunities for private participation in the sector.

What to Watch

RWD’s next phase will focus on executing its medium-term expansion pipeline in Egypt. This includes expanding desalination capacity and developing future large-scale water projects under PPP structures. 

The investment aims to support greater private sector participation in Egypt’s water infrastructure. It also aims to support the development of alternative water sources for businesses.