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IFC Helps Establish First Public-Private Partnership in Egypt


In Cairo:
Name: Riham Mustafa
Phone: +202 24 619 140
Fax: +202 24 619 145

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.

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 $14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit
www.ifc.org.