Cairo, Egypt, February 4, 2010 —
IFC, a member of the World Bank Group, and Egypt’s Ministry of Finance
today announced the financial close of Egypt’s first public-private partnership,
the construction of a large wastewater facility that will greatly improve
sanitation services in New Cairo City, a new city located outside Cairo.
IFC, appointed lead transaction advisor
on the project, helped Egypt carry out an international bidding process
that was awarded in May 2009 to Orasqualia, a consortium comprising Egypt’s
Orascom Construction Industries and Spain’s Aqualia and Aqualia Infrastructure.
Egypt and Orasqualia today agreed upon
final financial details that will allow construction of the project to
begin. The wastewater facility is expected to be completed in 2012 and
will have a capacity of 250,000 m3/day.
Ms. Rania Zayed, Head of the Private
Public Partnership (PPP) Central Unit at Egypt’s Ministry of Finance,
said, “We are actively working to collaborate with the private sector
to meet the growing infrastructure demands in Egypt. This project is an
important step towards setting the stage for future PPPs”.
Moazzam Mekan, IFC Manager for the Middle
East and North Africa, said, "This transaction has opened up the market
for international investors who are now comfortable to work on PPP projects
in Egypt, which will help the country address its growing infrastructure
needs by harnessing the strength of the private sector."
Orasqualia will build and operate the
facility for 20 years before transferring it to Egypt’s 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 (DevCo), an untied multi-donor facility
established by IFC and the United Kingdom's Department for International
Development (DFID) to support IFC's privatization advisory work in infrastructure
and IFC Advisory Services in the Middle East and North Africa.
IFC is the only international financial
institution focused exclusively on the private sector, the engine of sustainable
development in emerging markets. Along with IBRD, it is currently
seeking a capital increase to strengthen its ability to create opportunity
for the poor in developing countries—including by structuring public-private
partnerships in the Middle East and North Africa.
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 $14.5
billion in fiscal 2009, helping channel capital into developing countries
during the financial crisis. For more information, visit www.ifc.org.