• EBRD approved a senior loan of up to 350 million Egyptian pounds ($7.4 million) for Ridgewood for Water Desalination.
• The project will add 10,000–15,000 cubic meters per day of desalination capacity along the Red Sea and Mediterranean coasts.
• Egypt continues to rely on desalination as a strategic response to growing water security risks linked to Nile dependency.

Egypt intensified efforts to secure water supply as pressure on its water resources increased. The country expanded its reliance on private initiatives and international financing to strengthen water infrastructure and reduce vulnerability.

The European Bank for Reconstruction and Development announced on Thursday, January 8, that it approved a senior loan of up to 350 million Egyptian pounds, equivalent to about $7.4 million, to Ridgewood for Water Desalination. The company operates as a subsidiary of Hassan Allam Utilities, an Egyptian infrastructure group.

The financing will allow Ridgewood to build new small-scale desalination units and modernise existing facilities along the Red Sea and Mediterranean coastlines. These installations aim to provide more reliable water supply to key economic sectors, including tourism and industry.

Regulatory constraints limit regular access to the public water network for many coastal developments. As a result, private desalination facilities play a critical role in sustaining economic activity in these areas.

The EBRD said the project will add an estimated 10,000 to 15,000 cubic meters per day of desalination capacity. The bank said the investment will also improve operational and energy efficiency, while supporting the growth and diversification of Ridgewood’s activities.

Egypt ranks among the EBRD’s largest countries of operation. The country holds founding member status within the institution. Since launching operations in Egypt in 2012, the EBRD said it has invested nearly €13.9 billion across 209 projects spanning multiple sectors of the economy.

The investment comes amid heightened regional tensions over water resources. Egypt views the recent commissioning of Ethiopia’s Grand Ethiopian Renaissance Dam on the Blue Nile as a major challenge to its water security, given its heavy dependence on the Nile River.

Against this backdrop, Egypt increasingly positions desalination as an essential complementary solution to safeguard long-term water availability.

This article was initially published in French by Abdoullah Diop

Adapted in English by Ange Jason Quenum