The 2025 North Africa Power & Water Congress (NAPAC) in Algiers has put Algeria’s expanding desalination pipeline in the spotlight, with European, Middle Eastern and Asian firms lining up to bid for contracts that could unlock billions in private capital. According to Eurasia Review, the event confirmed that three flagship reverse-osmosis plants—Skikda, Béni Saf and Fouka—are now at procurement stage, each designed to deliver 250 million litres per day.
Water ministry officials told the congress that the combined capacity would double Algeria’s current desalinated output to 3.2 billion litres daily by 2028. “These are the largest independent water projects tendered in North Africa and they are oversubscribed,” said one senior procurement officer, speaking on condition of anonymity. The same officer confirmed that pre-qualification lists are closed and final RFQs will be issued in the first quarter of 2026.
Bidding consortia from Spain’s Acciona, France’s Veolia and China’s Power Construction Corporation (PowerChina) are already shortlisted for Skikda and Béni Saf, while a Turkish-Saudi joint venture is favourite for Fouka. According to Eurasia Review, the total capital outlay for the three plants is estimated at €4.8 billion, with 60 % expected to come from export-credit agencies and multilateral lenders at concessional rates. The remaining 40 % will be raised as project finance, secured against 25-year water-purchase agreements with Algeria’s national water utility, Algérienne des Eaux (ADE).
For Algerian entrepreneurs, the timing is critical. “Regional water demand is forecast to rise 35 % by 2030,” said NAPAC panellist Amina Benkhelil, CEO of local engineering firm H2O Ingénierie. Her company is positioning itself as the local engineering partner on all three sites, a move that could generate 1,200 local engineering-months of work in design and supervision. Benkhelil told the audience that Algerian SMEs specialising in valves, pumps and corrosion-resistant coatings should start preparing certification files now; several tenders will set aside 15 % of contract value for domestic suppliers.
The Algerian diaspora is also eyeing the opportunity. At a NAPAC networking breakfast, Ahmed Zitouni, a Paris-based civil engineer, announced that he is raising a €30 million mezzanine fund to finance Algerian subcontractors bidding for desalination components. “The diaspora capital can move faster than institutional money,” Zitouni told Eurasia Review. His fund will target companies with ISO 9001 certification and a track record in petrochemical maintenance, exactly the profile most likely to qualify under the 15 % local-content clause.
Water tariffs remain politically sensitive. The government has frozen retail water prices since 2022, but energy subsidies for desalination—currently €0.12 per cubic metre—are under review. Energy minister Youssef Cherif told the congress that any increase in desalination energy tariffs would be phased in over five years and matched by efficiency gains. “This gives entrepreneurs at least 18 months to lock in forward energy-price hedges,” noted Cherif.
Logistics are another angle. Port authorities in Oran and Algiers have published draft capacity forecasts showing a 40 % spike in break-bulk and container traffic for plants in Skikda and Béni Saf starting in Q3 2026. Local freight forwarders report that refrigerated containers—required for membrane storage—now account for 8 % of total tonnage, up from 3 % in 2023.
For Algerian start-ups in IoT water metering, the desalination surge offers a live pilot market. Hamma Smart Water, a 2022 Algiers-based metering venture, recently raised €1.2 million from Algerian private investors and is installing 50,000 digital meters in Oran this quarter. “Desalination plants need real-time salinity and flow monitoring,” said co-founder Yacine Taleb. “That’s a direct channel for our devices.”
Key takeaway for entrepreneurs
Algerian firms with ISO certification can compete for 15 % of desalination component contracts. The €30 million diaspora mezzanine fund will prioritise certified Algerian subcontractors. Port and logistics firms should plan for a 40 % traffic increase starting mid-2026.
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