Bassel Shoirah

1
Overview on the Development of the Egyptian PPP
Program

• Bassel Shoirah
• Utilities Sector Officer
• PPP Central Unit
• Ministry of Finance
• Capacity-Building Workshop
• on Public Private Partnerships
• Intercontinental Hotel
• Amman, Jordan
• April 28-29, 2008

2
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

3
PPP Program in Egypt

• PPPs are key to the Governments 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

4
PPP Program in Egypt (cont)

• Fundamental Aspects of Egypts 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

5
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

6
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
• Identifying PPPable projects as part of Line
  Ministries 5 years Strategic Plan
• Providing legislative framework PPP Law
• Developing Tool Kit for implementation of projects

7
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

8
Main Commercial LegalAspects 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

9
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

10
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

11
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

12
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

13
PPP Pipeline Projects

• Social Infrastructure
• Education Sector
• Health Sector
• Educational Medical Facilities
• General Medical Facilities
• Utilities Sector
• Wastewater Treatment Plants
• Transportation Sector

14
Education Sector
1800 Public Schools
Overview

• Location 27 Governorates
• Project Duration 15 Years

6 Batches of Approx 350 to be tendered over 5
years Project Structure SP to finance, design,
build, furbish maintain schools, provide non
educational services transfer ownership to
government at contract end.
Timeline

• 1st Batch Launch date November 2007
• Project Awarding date June 2008
• Schools availability date 2009 / 2010

15
Health Sector
Educational Medical Facility - 1
Overview

• Location University of Alexandria
• Capacity 230 Beds
• Project Duration 20 Years

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.
Timeline

• Launch Date May 2008
• Project Awarding date January 2009
• Operation date December 2011

16
Health Sector
Educational Medical Facility - 2
Overview

• Location University of Alexandria
• Capacity 200 Beds
• Project Duration 20 Years

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.
Timeline

• Launch Date May 2008
• Project Awarding date January 2009
• Operation date December 2011

17
Health Sector
General Medical Facilities - 1
Overview

• Location Cairo Governorate
• Capacity 300 Beds - General Hospital
• 100 Beds - Oncology Center
• Project duration 20 Years

Demolition and Re-construction of Al Abassia
Chest Hospital and change scope to a General
Hospital, plus a separate building for Oncology
Center Project Structure SP to finance,
design, build, equip, furnish, maintain, provide
non clinical services transfer ownership to
Government at contract end.
Timeline

• Launch Date July 2008
• Project Awarding date July 2009
• Operation date December 2011

18
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 SP to finance,
design, build, equip, furnish, maintain, provide
non clinical services transfer ownership to
Government at contract end.
Timeline

• Launch Date July 2008
• Project Awarding date July 2009
• Operation date December 2011

19
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 SP to finance, design, build, equip,
furnish, maintain, provide non clinical services
transfer ownership to Government at contract
end.
Timeline

• Launch Date September 2008
• Project Awarding date September 2009
• Operation date December 2011

20
Health Sector
General Medical Facilities - 4
Overview

• Location Cairo Governorate
• Capacity 100 Beds
• Project duration 20 Years

Construction of a Re-habilitation
Center Project Structure SP to finance,
design, build, equip, furnish, maintain, provide
non clinical services transfer ownership to
Government at contract end.
Timeline

• Launch Date September 2008
• Project Awarding date September 2009
• Operation date December 2011

21
Health Sector
General Medical Facilities - 5
Overview

• Location Alexandria Governorate
• Capacity 100 Beds
• Project duration 20 Years

Construction of Oncology Center Project
Structure SP to finance, design, build, equip,
furnish, maintain, provide non clinical services
transfer ownership to Government at contract
end.
Timeline

• Launch Date December 2008
• Project Awarding date December 2009
• Operation date December 2011

22
Utilities Sector
Wastewater Treatment Plant - 1
Overview

• Location New Cairo
• Capacity 250,000 m3/day
• Project duration 25 Years

Project Structure SP to finance, design, build,
operate, maintain plant transfer ownership to
Government at contract end.
Timeline

• Launch Date October 2008
• Project Awarding date September 2009
• Operation date December 2011

23
Utilities Sector
Wastewater Treatment Plant - 2
Overview

• Location Abo Rawash - Giza
• Capacity 800,000 m3/day
• Project duration 25 Years

Expansion of a waste water treatment plant in
Giza Governorate to raise capacity up to
2,000,000 m3/day Project Structure SP to
finance, design, build, operate, maintain plant
transfer ownership to Government at contract end.
Timeline

• Launch Date December 2008
• Project Awarding date September 2009
• Plant Operation date December 2011

24
Utilities Sector
Wastewater Treatment Plant - 3
Overview

• Location Gabal Asfar - Cairo
• Capacity 500,000 m3/day
• Project duration 25 Years

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 Project
Structure SP to finance, design, build, operate,
maintain plant transfer ownership to Government
at contract end.
Timeline

• Launch Date January 2009
• Project Awarding date September 2009
• Plant Operation date September 2012

25
Utilities Sector
Wastewater Treatment Plant - 4
Overview

• Location Helwan
• Capacity 500,000 m3/day
• Project duration 25 Years

Project Structure SP to finance, design, build,
operate, maintain plant transfer ownership to
Government at contract end.
Timeline

• Launch Date January 2009
• Project Awarding date September 2009
• Plant Operation date September 2012

26
Utilities Sector
Wastewater Treatment Plant - 5
Overview

• Location 6th October city - Giza
• Capacity 450,000 m3/day
• Project duration 25 Years

Project Structure SP to finance, design, build,
operate, maintain plant transfer ownership to
Government at contract end.
Timeline

• Launch Date October 2008
• Project Awarding date April 2009
• Plant Operation date April 2012

27
Utilities Sector
Wastewater Treatment Plant - 6
Overview

• Location Nahia - Giza
• Capacity 200,000 m3/day
• Project duration 25 Years

Project Structure SP to finance, design, build,
operate, maintain plant transfer ownership to
Government at contract end.
Timeline

• Launch Date October 2008
• Project Awarding date April 2009
• Plant Operation date April 2012

28
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 Egypts
  Mediterranean Ports
• Project duration 20 Years

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.
Timeline

• Launch Date June 2008
• Project Awarding date January 2009
• Project Operation date June 2012

29
Transport Sector
Railway Project -1
Overview

• Location Cairo / 10th of Ramadan City
• Length 77 km
• Description Double track line
• Project duration 20 Years

The Project is to Double the current line from
Ain Shams to El- Roubaky (45 km) Build a new
line from El- Roubaky to 10th of Ramadan City (32
km) Project Structure SP to finance, Upgrade
existing tracks stations, Construct new tracks
stations, Operate, Maintain transfer
ownership to Government at contract end.
Timeline

• Launch Date August 2008
• Project Awarding date January 2010

30
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 SP to finance, Upgrade existing tracks
stations, Construct new tracks stations,
Operate, Maintain transfer of ownership to
Government at contract end.
Timeline
Under Due-Diligence
31
Transport Sector
Maritime Projects
Overview

• Description Investment opportunities include
• New container terminals
• Multi purpose terminals
• Liquid bulk terminals
• General cargo terminals
• Vessels bunkering
• Tugging and marine services
• Stevedoring
• Value added activities and services
• Shipyard, Ship repair

• Location
• Sokhna, Damietta
• Alexandria Dekhela
• Port Said East Ports

Timeline
Under Due-Diligence
32
Transport Sector
River Transport Project - 1
CAI / Damitte 240 km.
CAI / Alex. 220 km.
Overview
CAI / Aswan 960 km.

• Description
• Developing river transportation fleet
• 4 main routes
• Cairo / Alexandria 220 km
• Cairo / Damietta 240 km
• Cairo / Aswan 960 km
• Aswan / Wadi Halfa 350 km

Aswan / Wadi Halfa 350 km.
These routes creates multiple development
opportunities, commercial services centers,
added value services also the fleet could serve
commercial transportation to Sudan.
Timeline
Under Due-Diligence
33
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
34
Thank You
Contact Details PPP Central Unit Ministry of
Finance Tel [phone]
23421284 Fax [phone] / 84 ext. 6152
e-mail pppcentralunit_at_mof.gov.eg Web
pppcentralunit.mof.gov.eg