New Desalination Plant to Supply Growing Coastal Communities

The Holding Company for Water and Wastewater has approved the construction of a new EGP 800 million desalination plant to serve the Sahl Hasheesh area and surrounding coastal developments. The plant, with a capacity of 50,000 cubic meters per day, will address long-standing water supply constraints that have limited development density in the area.

Timeline and Capacity

Construction is expected to take 24 months, with the plant becoming operational in Q3 2028. Once online, it will increase the region's desalinated water capacity by approximately 40%, enough to serve an estimated 150,000 residents and 20,000 hotel rooms.

Development Impact

Local developers have welcomed the announcement, noting that several projects in the Sahl Hasheesh pipeline had been delayed or scaled back due to water supply limitations. With the new plant confirmed, at least four previously paused projects are expected to resume planning.

The announcement has already had an impact on land prices in the area, with several large plots changing hands at premiums of 15–20% in the weeks following the news.