Egypt encourages PPP to boost economy
The Egyptian government invested 19.8 billion Egyptian pounds in public-private partnerships (PPPs) projects last fiscal year, announced the Minister of Finance Ahmed Kouchouk on Tuesday.
These projects are focusing on sectors like solid waste management, dry ports, electricity infrastructure, technical education, and strategic goods warehouses, as per a Cabinet statement.
The government aims to implement six new PPP projects this year in partnership with the private sector, with a total investment of over 27 billion pounds, the statement mentioned. Additionally, several other projects are under consideration, including the establishment of power transformer facilities, sewage treatment plants, technical schools, warehouses and wholesale markets.
Kouchouk highlighted that the PPP system offers competitive opportunities for local and foreign investors to invest in Egypt. It also serves as an alternative framework for public investments, allowing influx of private investments into the Egyptian economy.
The PPP system promotes private sector investment and sustainable development to improve citizens’ quality of life, taking into account the private sector’s ability to finance and manage projects more efficiently and provide high quality services.
He explained that the PPP system aligns with the state’s economic policy goals and is supported by financial policies, incentives, and institutional reforms to benefit the business community. The system also offers fair contracts to both local and international investors, enabling them to engage in partnerships that support Egypt’s development.
Atter Hannoura, head of PPP Central Unit at the Ministry of Finance, emphasised the ongoing expansion of projects to engage with the private sector. This initiative aims to drive development and ease pressure on the state’s budget amidst internal and external geo-economic challenges.
Hannoura highlighted Egypt’s successful PPP models in various sectors and its efforts to expand partnerships with investors in new industries. Egypt is a top country in Africa and the Arab region for PPPs.
The ministry hosted delegations from Sudan, Libya, Burundi, and South Africa in the last two years, seeking to leverage Egyptian expertise and technical assistance in implementing their PPP projects, which are supported by the EU and UN.
During the Asian Infrastructure Investment Bank meetings, Uzbekistan sought collaboration with the PPP Central Unit at the Ministry of Finance to boost private investment and leverage Egypt’s experience in overcoming obstacles with innovative solutions.
Attribution: The Egyptian Cabinet statement
Subediting: M. S. Salama
