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IFC Helps Egypt Complete First Public-Private Infrastructure Transaction


In Cairo:
Riham Mustafa

Phone: +202 24 619 140

Fax: +202 24 619 145

E-mail:
RMustafa@ifc.org


Cairo, Egypt, July 1, 2009 – IFC, a member of the World Bank Group, announced that
Egypt’s government has selected the winning bidder for the country’s first public-private

partnership project, a large wastewater facility that will greatly improve sanitation services at a

new city outside Cairo.


A consortium comprising of Egypt’s Orascom Construction Industries and Spain’s Aqualia and

Aqualia Infrastructure will build and operate a wastewater facility in New Cairo, a city with growing

infrastructure demands rising on the outskirts of Cairo.


Egypt’s Ministry of Finance appointed IFC as lead transaction advisor for the wastewater project,

which will have a capacity of 250,000 m3/day and increase private sector participation in Egypt’s

infrastructure development. IFC helped Egypt carry out the international bidding process.


Rania Zayed, Head of the Public-Private Partnership Central Unit at Egypt’s Ministry of Finance,

said, "This transaction is the first pilot public-private partnership project in Egypt and will help

mobilize private sector finance and know-how for the government. Egypt is following an active

public-private partnership program and we are encouraging private sector participation in other

projects by providing an appropriate legal and regulatory framework and a balanced risk

allocation between the public and private sectors."


Michael Essex, IFC Director for Middle East and North Africa, said, “Public-private partnerships

helps increase private sector investment in public infrastructure to meet the needs of a growing

economy and to improve services. IFC has a unique capacity to structure private participation in

infrastructure projects that balances commercial viability with the public good.”


The Egyptian/Spanish consortium will build and operate the facility for 20 years before

transferring it to the Egyptian government. Egypt has prioritized the development of infrastructure

services in New Cairo, whose population is expected to jump from 500,000 to 3.8 million by 2029.


The project was jointly funded by the Development Collaboration Partnership, a multi-donor

facility established by IFC and the United Kingdom's Department for International Development.


IFC’s advisory services programs work with governments on public-private partnerships to help

them increase access to and improve the quality of public services, alleviate the budgetary

constraints of governments, and attract private sector know-how and investments through the

structuring of commercially viable transactions.


About IFC

IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and

improve their lives. We foster sustainable economic growth in developing countries by supporting

private sector development, mobilizing private capital, and providing advisory and risk mitigation

services to businesses and governments. Our new investments totaled $16.2 billion in fiscal

2008, a 34 percent increase over the previous year. For more information, please visit

www.ifc.org.