The UAE’s Metito Holdings Ltd., Scatec ASA and Orascom Construction are in talks with Egypt on a $1.5 billion renewables-powered desalination plant, as the most populous Arab nation moves to address looming water shortages.

The three-company consortium is in discussions with Egypt’s sovereign wealth fund to partner on the project that would follow a build, own, operate and transfer system, according to Metito’s managing director for Africa, Karim Madwar.

Reliant on the Nile River for much of its fresh water, Egypt has announced plans for a swathe of new desalination plants, including a $2.5 billion initiative involving the sovereign fund and private investors to build more than a dozen renewables-powered facilities by 2025.

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