Since 2006, the Ministry of Investment has begun to adopt a comprehensive strategy to promote public private partnership projects in order to expand and increase private investments in infrastructure projects, such as water, transportation, health and education. This strategy has included the development of legislative and institutional framework designed to facilitate means to implement these projects through public private partnership.
On the legislative front, the new legislation no 67 for year 2010 for PPP was issued (Click here) to manage the relationship between the government and the private sector. The new legislation deals –in details– with the responsibilities of each party.
On the institutional and the capacity-building front, the ministries of Investment and Finance established a joint unit of PPP in the Ministry of Finance. The PPP Unit provides support to projects, provides technical assistance expertise, develops national frameworks for the implementation of projects and provides models of contracts and technical consultations for the ministries concerned with infrastructure projects.
During the period extending from 1990 to 2008, the private sector was involved with PPPs in four infrastructure domains: telecommunications, transportation, water and sewage. The private sector implemented a total of 23 projects with a total investment cost of US$ 16.556 billion. The telecommunications sector accounted for the lion’s share of investment, standing at US$ 12.459 billion. This represents, however, just the launch of a successful experiment which the government intends to replicate and vastly expand in the future.
The Government signed the contract in June 2009 with the Consortium of Orascom Construction Industries Company and Aquila Corp. for the design, implementation, finance, operation and management of waste water treatment plant in New Cairo, with a total capacity of 250 thousand cubic meters per day.
Increased private sector participation in key initiatives, such as this initiative, reflects the strong commitment of the Government to improve the quality of services and facilities being provided to citizens.
Opportunities for Growth: An opportunity for private sector involvement in Infrastructure Projects - August 2009, Click here
For more information about PPP Projects, click here