IFC Helps Egypt Complete First Public-Private Infrastructure Transaction
In Cairo:
Riham Mustafa
Phone: +202 24 619 140
Fax: +202 24 619 145
E-mail: RMustafa@ifc.org
Cairo, Egypt, July 1, 2009 – IFC,
a member of the World Bank Group, announced that
Egypt’s government has selected the winning bidder for the country’s
first public-private
partnership project, a large wastewater facility that will greatly improve
sanitation services at a
new city outside Cairo.
A consortium comprising of Egypt’s Orascom Construction Industries and
Spain’s Aqualia and
Aqualia Infrastructure will build and operate a wastewater facility in
New Cairo, a city with growing
infrastructure demands rising on the outskirts of Cairo.
Egypt’s Ministry of Finance appointed IFC as lead transaction advisor
for the wastewater project,
which will have a capacity of 250,000 m3/day and increase private sector
participation in Egypt’s
infrastructure development. IFC helped Egypt carry out the international
bidding process.
Rania Zayed, Head of the Public-Private Partnership Central Unit at Egypt’s
Ministry of Finance,
said, "This transaction is the first pilot public-private partnership
project in Egypt and will help
mobilize private sector finance and know-how for the government. Egypt
is following an active
public-private partnership program and we are encouraging private sector
participation in other
projects by providing an appropriate legal and regulatory framework and
a balanced risk
allocation between the public and private sectors."
Michael Essex, IFC Director for Middle East and North Africa, said, “Public-private
partnerships
helps increase private sector investment in public infrastructure to meet
the needs of a growing
economy and to improve services. IFC has a unique capacity to structure
private participation in
infrastructure projects that balances commercial viability with the public
good.”
The Egyptian/Spanish consortium will build and operate the facility for
20 years before
transferring it to the Egyptian government. Egypt has prioritized the development
of infrastructure
services in New Cairo, whose population is expected to jump from 500,000
to 3.8 million by 2029.
The project was jointly funded by the Development Collaboration Partnership,
a multi-donor
facility established by IFC and the United Kingdom's Department for International
Development.
IFC’s advisory services programs work with governments on public-private
partnerships to help
them increase access to and improve the quality of public services, alleviate
the budgetary
constraints of governments, and attract private sector know-how and investments
through the
structuring of commercially viable transactions.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to
escape poverty and
improve their lives. We foster sustainable economic growth in developing
countries by supporting
private sector development, mobilizing private capital, and providing advisory
and risk mitigation
services to businesses and governments. Our new investments totaled $16.2
billion in fiscal
2008, a 34 percent increase over the previous year. For more information,
please visit
www.ifc.org.
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