Egypt signs agreement with IFC to boost private sector role in airports
Egypt has signed on Tuesday an advisory services agreement with the International Finance Corporation (IFC) to enhance private sector participation in the country’s airport sector.
Prime Minister Moustafa Madbouly said in a Cabinet statement the agreement builds on ongoing collaboration with IFC to support the government’s IPO programme. He emphasised that IFC’s advisory services will facilitate greater private sector involvement in airport operations, improve services, and expand the capacity of Egypt’s airports.
Under this engagement, IFC said in a statement that it would advise the Ministry of Civil Aviation on prepare a strategy for partnership development with the private sector in 11 airports across Egypt. As a pilot project, IFC will be the Lead PPP Transaction Advisor for Hurghada International Airport, Egypt’s second busiest in terms of annual passengers and aviation traffic.
The agreement is part of a broader strategy to attract private investment and strengthen public-private partnerships in key sectors. Minister of Planning, Economic Development, and International Cooperation Rania Al-Mashat, noted that this initiative aligns with the State Ownership Policy Document, launched in June 2023, which promotes private sector-led economic growth. She highlighted that Egypt is implementing structural reforms and financial measures to create a more attractive investment climate, aiming to restore the private sector’s role in driving economic development.
Minister Al-Mashat also pointed out that private sector investments now account for 63 per cent of total investments, with inbound tourism reaching record levels in 2024. She added that the upcoming inauguration of the Grand Egyptian Museum is expected to further boost airport traffic, creating new opportunities for private sector participation in airport operations.
Similarly, Minister of Civil Aviation Sameh Hefny, stated that under the agreement, the Ministry will work to identify viable airport projects for public-private partnerships aimed at modernising infrastructure and improving services.
IFC’s Role in Airport Development
For his part, Sérgio Pimenta, IFC’s Vice President for Africa, said: “Enhancing Egypt’s airport infrastructure through public private partnership will drive economic growth and boost connectivity in the country and across the wider region,”
“This programme will help attract world-class investors to deliver modern, efficient airports that strengthen Egypt’s position as a global travel and trade hub.” Pimenta concluded.
For Hurghada International Airport, IFC said it would assist the Ministry of of Civil Aviation and the Egyptian Holding Company for Airports and Air Navigation (EHCAAN) in launching a public competitive tender to select a qualified private-sector partner for the upgrade, maintenance, and operation Ownership of the airport will remain with EHCAAN, , according to the IFC statement.
Beyond Hurghada, IFC will assist in determining the optimal model for private sector involvement in 10 other airports. This includes evaluating the possibility of bundling multiple airports in a single transaction and developing a strategic roadmap for implementing the programme. The 10 other airports included in the programme are:
- Sphinx International Airport
- Sharm El Sheikh International Airport
- Borg El Arab International Airport
- Luxor International Airport
- Aswan International Airport
- Sohag International Airport
- Assiut Airport
- Abu Simbel Airport
- El Alamein International Airport
- Marsa Matruh Airport
Attribution: Amwal Al Ghad English
Subediting: M. S. Salama
AfDB 2023