Overview on the Development
of the Egyptian PPP Program
Atter Hannoura
Tendering & Monitoring Manager
PPP Central Unit
Ministry of Finance
“Public Service Delivery, PPP & Regulatory Reform”
OECD
Rabat, Morocco
May 20-21, 2008
Ministry of Finance
PPP Central Unit
Agenda
PPP Program in Egypt
PPP Policy Framework – Implementation
Main Legal & Commercial Aspects of PPP Transactions
Role of the PPP Central Unit
Key Problems and Issues
Goals and Expectations
PPP Pilot Projects
2
Ministry of Finance
PPP Central Unit
PPP Program in Egypt
PPPs are key to the Government’s economic reform
agenda and strategy to increase private sector
involvement in public services through leveraging
private spending against public spending
Provide a new source of investment capital for required
infrastructure projects
Reduce Government sovereign borrowings and associated risks
Drive the creation of local long term funding market
Utilize efficiencies of private sector in running public services
Expand economy and stimulate job creation
Increase quality of public services to the Egyptian citizen
3
Ministry of Finance
PPP Central Unit
PPP Program in Egypt
(cont’)
Fundamental Aspects of Egypt’s PPP Policy Framework
Performance-based contract under which the Private Sector supplies
public services over time and is paid by the Public Sector, end user or
a hybrid of both. Output is specified by Line Ministries while input is
the responsibility of the private sector
Under the PPP contract:
The Government retains total strategic control on the service
The Government secures new infrastructure which becomes Government
assets at the end of contract life
Project and performance risks are allocated to the party best able to
manage or mitigate
4
Ministry of Finance
PPP Central Unit
PPP Policy Framework
Egypt is providing the right environment for implementation
Adoption and localisation of international successful PPP models
(UK)
Provision of Supportive Legislative Environment
New Legal Framework for PPP Projects
(Draft under finalization for Submission to Cabinet and Parliament)
Standard PPP Contracts
Standardization of procurement documentation and procedures
Creation of regulatory bodies for post contract implementation
5
Ministry of Finance
PPP Central Unit
PPP Policy Framework
(cont’)
Implementation Strategy
Placing clearly PPP initiative within reform macro fiscal agenda
Establishing a PPP Central Unit at Ministry of Finance as well
as Satellite Units in Line Ministries
Ongoing International Advisory Mentoring
Identifying PPP’able projects as part of Line Ministries’ 5 years
Strategic Plan
Providing legislative framework – PPP Law
Developing Tool Kit for implementation of projects
6
Ministry of Finance
PPP Central Unit
PPP Policy Framework
(cont’)
Implementation Strategy (cont’)
Finalizing budgetary and accounting practices to capture PPP
transactions
Setting “Best Practice” precedence through pilot projects
Arranging for Credit Enhancement mechanisms
Stimulating domestic banking sector to offer longer tenors
and competitive pricing
7
Ministry of Finance
PPP Central Unit
Main Commercial & Legal
Aspects of PPP Transactions
Risk mitigation
Availability payments upon acceptance certificate
Inflation and interest rate indexation
Ministry of Finance support to contractual payments
Conflict Resolution techniques
Direct Agreement and step-in rights for Funders
Compensation for termination/ extra-ordinary events/ direct
impact on change of Laws
All transactions are in local currency
8
Ministry of Finance
PPP Central Unit
Role of PPP Central Unit
Act as a Public face of PPP initiative in Egypt since June 2006
Establish a national PPP policy framework for implementation
Set PPP guidelines and methodologies appropriate to Egypt
Draft and issue standard project documents, contracts and PPP
laws
Coordinate
the
PPP
program
and
process
across
Line
Ministries, private sector and funding market
Report to Ministerial Committee for projects approval and
recognize issues that may impede the PPP program
Identify PPP able projects as part of Line Ministries’ 5 years
strategic plan
9
Ministry of Finance
PPP Central Unit
Role of PPP Central Unit (cont’)
Manage PPP transactions and provide technical and advisory
support as well as ensure compliance with legislative
framework
Supervise
Tendering
and
Performance
Monitoring
Committees
Act as:
Center of PPP Expertise, Support and Intelligence Gatherer
Center for Capacity Building
Central Complaints Resolution Office for PPP Investors
10
Ministry of Finance
PPP Central Unit
Key Problems and Issues
Public perception of PPP's as privatization
Resistance to change / Project ownership issues
Project screening
Bankability of projects
Project execution and performance monitoring
Local funding accommodating PPP transactions
11
Ministry of Finance
PPP Central Unit
Goals and Expectations
Develop
action
plan
to
overcome
obstacles
and
key
impediments
Share Egyptian experience internationally
Acquire academic aspects of PPP project structuring
Enhance strategies‘ & setting capabilities of team members
Act as a Center of Expertise on a national & regional basis
Provide ownership for PPP projects amongst both Public &
Private Sectors
12
Ministry of Finance
PPP Central Unit
PPP Pipeline Projects
Approx Value USD in Billion
Social Infrastructure
6.12
Education Sector
5.00
Health Sector
1.12
Educational Medical Facilities
0.23
General Medical Facilities
0.80
Utilities Sector
2.20
Wastewater Treatment Plants
2.20
Transportation Sector
7.00
Total Current PPP Projects
15.32
13
Ministry of Finance
PPP Central Unit
Education Sector
1800 Public Schools
Overview
• Location: 27 Governorates
• Project Duration : 15 Years
6 Batches of Approx 350 to be
tendered over 5 years
Timeline
Project Structure
• 1st Batch Launch date: November 2007
• Project Awarding date : September 2008
• Schools availability date: 2009 / 2010
SP to finance, design, build,
furbish & maintain schools,
provide
non
educational
services & transfer ownership
to government at contract
end.
14
Ministry of Finance
PPP Central Unit
Health Sector
Educational Medical Facility - 1
Overview
• Location: University of Alexandria
• Capacity : 230 Beds
• Project Duration : 20 Years
Timeline
• Launch Date : May 2008
• Project Awarding date : March 2009
• Operation date: December 2011
Ministry of Finance
Construction
of
a
new
Specialized University Hospital
(Al Mowassat) in Alexandria
Governorate as:
i) Neuro - Center
ii)
Urology
/
Nephrology
Center
Project Structure
SP to finance, design, build,
equip,
furnish,
maintain,
provide non clinical services &
transfer
ownership
to
Government at contract end.
PPP Central Unit
15
Health Sector
Educational Medical Facility - 2
Overview
• Location: University of Alexandria
• Capacity : 200 Beds
• Project Duration : 20 Years
Timeline
• Launch Date : May 2008
• Project Awarding date : March 2009
• Operation date: December 2011
Construction of a Gynecology /
Obstetrics University Hospital
as part of Smouha Medical
Complex, as well as a Blood
Bank with a capacity of 200,000
bags / year, in Alexandria
Governorate
Project Structure
SP to finance, design, build,
equip,
furnish,
maintain,
provide non clinical services &
transfer
ownership
to
Government at contract end.
16
Ministry of Finance
PPP Central Unit
Health Sector
General Medical Facilities - 1
Overview
• Location: Cairo Governorate
• Capacity : 300 Beds - General Hospital
Demolition and Re-construction
of Al Abassia Chest Hospital and
change scope to a General
Hospital,
plus
a
separate
building for Oncology Center
100 Beds - Oncology Center
• Project duration : 20 Years
Timeline
Project Structure
• Launch Date : December 2008
• Project Awarding date : December 2009
• Operation date: December 2011
SP to finance, design, build,
equip,
furnish,
maintain,
provide non clinical services &
transfer
ownership
to
Government at contract end.
17
Ministry of Finance
PPP Central Unit
Health Sector
General Medical Facilities - 2
Overview
• Location: Cairo Governorate
• Capacity : 230 Beds
• Project duration : 20 Years
Demolition and Re-construction
of Boulak General Hospital
Project Structure
Timeline
• Launch Date : December 2008
• Project Awarding date : December 2009
SP to finance, design, build,
equip, furnish, maintain, provide
non clinical services & transfer
ownership to Government at
contract end.
• Operation date: December 2011
18
Ministry of Finance
PPP Central Unit
Health Sector
General Medical Facilities - 3
Overview
• Location: Beheira Governorate
• Capacity : 100 Beds / hospital
• Project duration : 20 Years
Construction of 3 Central
Hospitals
Project Structure
Timeline
• Launch Date : 2009
• Project Awarding date : 2010
• Operation date: December 2012
SP to finance, design,
build,
equip,
furnish,
maintain,
provide
non
clinical
services
&
transfer
ownership
to
Government at contract
end.
19
Ministry of Finance
PPP Central Unit
Health Sector
General Medical Facilities - 4
Overview
• Location: Cairo Governorate
• Capacity : 100 Beds
• Project duration : 20 Years
Timeline
Construction of a Rehabilitation Center
Project Structure
• Launch Date : 2009
• Project Awarding date : 2010
• Operation date: December 2012
SP to finance, design,
build,
equip,
furnish,
maintain,
provide
non
clinical services & transfer
ownership to Government
at contract end.
20
Ministry of Finance
PPP Central Unit
Health Sector
General Medical Facilities - 5
Overview
• Location: Alexandria Governorate
• Capacity : 100 Beds
• Project duration : 20 Years
Construction of Oncology
Center
Project Structure
Timeline
• Launch Date : 2009
• Project Awarding date : 2010
• Operation date: December 2012
SP to finance, design, build,
equip, furnish, maintain,
provide non clinical services
& transfer ownership to
Government
at
contract
end.
21
Ministry of Finance
PPP Central Unit
Utilities Sector
Wastewater Treatment Plant - 1
Overview
• Location: New Cairo
• Capacity : 250,000 m3/day
• Project duration : 25 Years
Project Structure
Timeline
• Launch Date : October 2008
• Project Awarding date : September 2009
SP to finance, design,
build, operate, maintain
plant
&
transfer
ownership to Government
at contract end.
• Operation date : December 2011
22
Ministry of Finance
PPP Central Unit
Utilities Sector
Wastewater Treatment Plant - 2
Overview
• Location: Abo Rawash - Giza
Expansion of a waste water
treatment plant in Giza
Governorate
to
raise
capacity up to 2,000,000
• Capacity : 800,000 m3/day
• Project duration : 25 Years
m3/day
Timeline
Project Structure
• Launch Date : December 2008
• Project Awarding date : September 2009
• Plant Operation date: December 2011
SP to finance,
design,
build, operate, maintain
plant & transfer ownership
to Government at contract
end.
23
Ministry of Finance
PPP Central Unit
Utilities Sector
Wastewater Treatment Plant - 3
Overview
• Location: Gabal Asfar - Cairo
3rd phase expansion of a
wastewater
treatment
plant with capacity of
500,000 m3/day to raise
capacity up to approx.
3,000,000 m3/day
• Capacity : 500,000 m3/day
• Project duration : 25 Years
Timeline
Project Structure
• Launch Date : January 2009
• Project Awarding date : September 2009
• Plant Operation date: September 2012
SP to finance, design,
build, operate, maintain
plant & transfer ownership
to Government at contract
end.
24
Ministry of Finance
PPP Central Unit
Utilities Sector
Wastewater Treatment Plant - 4
Overview
• Location: Helwan
• Capacity : 500,000 m3/day
• Project duration : 25 Years
Project Structure
Timeline
• Launch Date : January 2009
• Project Awarding date : September 2009
SP to finance, design,
build, operate, maintain
plant & transfer ownership
to Government at contract
end.
• Plant Operation date: September 2012
25
Ministry of Finance
PPP Central Unit
Utilities Sector
Wastewater Treatment Plant - 5
Overview
• Location: 6th October city - Giza
• Capacity : 450,000 m3/day
• Project duration : 25 Years
Project Structure
Timeline
• Launch Date : October 2008
SP to finance, design, build,
operate, maintain plant &
transfer
ownership
to
Government at contract end.
• Project Awarding date : April 2009
• Plant Operation date: April 2012
26
Ministry of Finance
PPP Central Unit
Utilities Sector
Wastewater Treatment Plant - 6
Overview
• Location: Nahia - Giza
• Capacity : 200,000 m3/day
• Project duration : 25 Years
Project Structure
Timeline
• Launch Date : October 2008
SP to finance, design, build,
operate, maintain plant &
transfer
ownership
to
Government at contract end.
• Project Awarding date : April 2009
• Plant Operation date: April 2012
27
Ministry of Finance
PPP Central Unit
Transport Sector
Cairo / Alexandria free road
Port Said / Matrouh free road
Overview
• Length : Cairo / Alex 162 kms
Link to Coastal Road 25 kms
Alex / Matrouh 280 kms
Port Said / Alex 285 kms
• Description: Connection of all of
Egypt’s Mediterranean Ports
• Project duration : 20 Years
Timeline
• Launch Date : October 2008
• Project Awarding date : October 2009
Project is to build & upgrade
existing roads and transfer
to free roads
Project Structure
SP to finance, design, build,
operate & maintain road &
transfer
ownership
to
Government at contract end.
28
Ministry of Finance
PPP Central Unit
Transport Sector
Railway Project -1
Overview
• Location: Cairo / 10th of Ramadan City
• Length: 77 km
• Description: Double track line
• Project duration : 20 Years
Timeline
The Project is to Double the
current line from Ain Shams
to El- Roubaky (45 km) &
Build a new line from ElRoubaky
to
10th
of
Ramadan City (32 km)
Project Structure
• Launch Date : December 2008
• Project Awarding date : March 2010
Ministry of Finance
SP to finance, Upgrade
existing tracks & stations,
Construct new tracks &
stations, Operate, Maintain
& transfer ownership to
Government
at
contract
end.
PPP Central Unit
29
Transport Sector
Railway Project - 2
Overview
• Location: Alexandria / Borg El Arab
• Length: 50 km
• Description: Double track line
• Project duration : 20 Years
The Project is to Double the
current line from Alexandria to
Borg El-Arab (50 km)
Project Structure
Timeline
Under Due-Diligence
SP to finance, Upgrade existing
tracks & stations, Construct
new tracks & stations, Operate,
Maintain
&
transfer
of
ownership to Government at
contract end.
30
Ministry of Finance
PPP Central Unit
Transport Sector
Maritime Projects
Overview
•Description: Investment opportunities
include:
• New container terminals
Location
• Multi purpose terminals
• Sokhna, Damietta
• Liquid bulk terminals
• Alexandria & Dekhela
• General cargo terminals
• Port Said – East Ports
• Vessels bunkering
• Tugging and marine services
• Stevedoring
• Value added activities and services
Timeline
Under Due-Diligence
• Shipyard, Ship repair
31
Ministry of Finance
PPP Central Unit
Transport Sector
River Transport Project - 1
CAI / Damitte
240 km.
CAI / Alex.
220 km.
Overview
CAI / Aswan
960 km.
•Description:
Developing river transportation fleet
Aswan / Wadi Halfa
350 km.
• 4 main routes:
•Cairo / Alexandria 220 km
•Cairo / Damietta 240 km
•Cairo / Aswan 960 km
•Aswan / Wadi Halfa 350 km
These
routes
multiple
creates
development
opportunities,
commercial
centers,
&
services
added
value
services & also the fleet
Timeline
could serve commercial
Under Due-Diligence
transportation to Sudan.
32
Ministry of Finance
PPP Central Unit
Transport Sector
River Transport Project - 2
•Description:
Developing new river ports terminals
• 7 main ports:
•Upper Egypt
•Sohag River Port
•Assiut River Port
•El Tebeen River Port
•Kena River Port
•Delta
•El Nahda River Port
•El Nahda Port Extension
•Meat Ghamr River Port
Timeline
Under Due-Diligence
33
Ministry of Finance
PPP Central Unit
Thank You
Contact Details:
PPP Central Unit
Ministry of Finance
Tel: +202 23421283
+202 23421284
Fax: +202 23421283 / 84
ext. 6152
e-mail: pppcentralunit@mof.gov.eg
Web: pppcentralunit.mof.gov.eg
34
Ministry of Finance
PPP Central Unit