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Overview on the Development of the Egyptian PPP Program

Overview on the Development of the Egyptian PPP Program. Atter Hannoura Tendering & Monitoring Manager PPP Central Unit Ministry of Finance “ Public Service Delivery, PPP & Regulatory Reform” OECD Rabat, Morocco May 20-21, 2008. Agenda. PPP Program in Egypt

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Overview on the Development of the Egyptian PPP Program

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  1. Overview on the Development of the Egyptian PPP Program Atter Hannoura Tendering & Monitoring Manager PPP Central Unit Ministry of Finance “Public Service Delivery, PPP & Regulatory Reform” OECD Rabat, Morocco May 20-21, 2008

  2. Agenda PPP Program in Egypt PPP Policy Framework – Implementation Main Legal & Commercial Aspects of PPP Transactions Role of the PPP Central Unit Key Problems and Issues Goals and Expectations PPP Pilot Projects

  3. PPP Program in Egypt • PPPs are key to the Government’s economic reform agenda and strategy to increase private sector involvement in public services through leveraging private spending against public spending • Provide a new source of investment capital for required infrastructure projects • Reduce Government sovereign borrowings and associated risks • Drive the creation of local long term funding market • Utilize efficiencies of private sector in running public services • Expand economy and stimulate job creation • Increase quality of public services to the Egyptian citizen

  4. PPP Program in Egypt (cont’) Fundamental Aspects of Egypt’s PPP Policy Framework • Performance-based contract under which the Private Sector supplies public services over time and is paid by the Public Sector, end user or a hybrid of both. Output is specified by Line Ministries while input is the responsibility of the private sector • Under the PPP contract: • The Government retains total strategic control on the service • The Government secures new infrastructure which becomes Government assets at the end of contract life • Project and performance risks are allocated to the party best able to manage or mitigate

  5. PPP Policy Framework Egypt is providing the right environment for implementation • Adoption and localisation of international successful PPP models (UK)‏ • Provision of Supportive Legislative Environment • New Legal Framework for PPP Projects (Draft under finalization for Submission to Cabinet and Parliament)‏ • Standard PPP Contracts • Standardization of procurement documentation and procedures • Creation of regulatory bodies for post contract implementation

  6. PPP Policy Framework(cont’) Implementation Strategy • Placing clearly PPP initiative within reform macro fiscal agenda • Establishing a PPP Central Unit at Ministry of Finance as well as Satellite Units in Line Ministries • Ongoing International Advisory Mentoring • Identifying PPP’able projects as part of Line Ministries’ 5 years Strategic Plan • Providing legislative framework – PPP Law • Developing Tool Kit for implementation of projects

  7. PPP Policy Framework(cont’) Implementation Strategy (cont’) • Finalizing budgetary and accounting practices to capture PPP transactions • Setting “Best Practice” precedence through pilot projects • Arranging for Credit Enhancement mechanisms • Stimulating domestic banking sector to offer longer tenors and competitive pricing

  8. Main Commercial & LegalAspects of PPP Transactions • Risk mitigation • Availability payments upon acceptance certificate • Inflation and interest rate indexation • Ministry of Finance support to contractual payments • Conflict Resolution techniques • Direct Agreement and step-in rights for Funders • Compensation for termination/ extra-ordinary events/ direct impact on change of Laws • All transactions are in local currency

  9. Role of PPP Central Unit • Act as a Public face of PPP initiative in Egypt since June 2006 • Establish a national PPP policy framework for implementation • Set PPP guidelines and methodologies appropriate to Egypt • Draft and issue standard project documents, contracts and PPP laws • Coordinate the PPP program and process across Line Ministries, private sector and funding market • Report to Ministerial Committee for projects approval and recognize issues that may impede the PPP program • Identify PPP able projects as part of Line Ministries’ 5 years strategic plan

  10. Role of PPP Central Unit(cont’) • Manage PPP transactions and provide technical and advisory support as well as ensure compliance with legislative framework • Supervise Tendering and Performance Monitoring Committees • Act as: • Center of PPP Expertise, Support and Intelligence Gatherer • Center for Capacity Building • Central Complaints Resolution Office for PPP Investors

  11. Key Problems and Issues • Public perception of PPP's as privatization • Resistance to change / Project ownership issues • Project screening • Bankability of projects • Project execution and performance monitoring • Local funding accommodating PPP transactions

  12. Goals and Expectations • Develop action plan to overcome obstacles and key impediments • Share Egyptian experience internationally • Acquire academic aspects of PPP project structuring • Enhance strategies‘ & setting capabilities of team members • Act as a Center of Expertise on a national & regional basis • Provide ownership for PPP projects amongst both Public & Private Sectors

  13. PPP Pipeline Projects Approx Value USD in Billion Social Infrastructure 6.12 • Education Sector 5.00 • Health Sector 1.12 • Educational Medical Facilities 0.23 • General Medical Facilities 0.80 • Utilities Sector 2.20 • Wastewater Treatment Plants 2.20 • Transportation Sector 7.00 Total Current PPP Projects 15.32

  14. Education Sector 1800 Public Schools Overview • Location: 27 Governorates • Project Duration : 15 Years 6 Batches of Approx 350 to be tendered over 5 years Project Structure SP to finance, design, build, furbish & maintain schools, provide non educational services & transfer ownership to government at contract end. Timeline • 1st Batch Launch date: November 2007 • Project Awarding date : September 2008 • Schools availability date: 2009 / 2010

  15. Health Sector Educational Medical Facility - 1 Overview • Location: University of Alexandria • Capacity : 230 Beds • Project Duration : 20 Years Construction of a new Specialized University Hospital (Al Mowassat) in Alexandria Governorate as: i) Neuro - Center ii) Urology / Nephrology Center ProjectStructure SP to finance, design, build, equip, furnish, maintain, provide non clinical services & transfer ownership to Government at contract end. Timeline • Launch Date : May 2008 • Project Awarding date : March 2009 • Operation date: December 2011

  16. Health Sector Educational Medical Facility - 2 Overview • Location: University of Alexandria • Capacity : 200 Beds • Project Duration : 20 Years Construction of a Gynecology / Obstetrics University Hospital as part of Smouha Medical Complex, as well as a Blood Bank with a capacity of 200,000 bags / year, in Alexandria Governorate ProjectStructure SP to finance, design, build, equip, furnish, maintain, provide non clinical services & transfer ownership to Government at contract end. Timeline • Launch Date : May 2008 • Project Awarding date : March 2009 • Operation date: December 2011

  17. Health Sector General Medical Facilities - 1 Overview • Location: Cairo Governorate • Capacity : 300 Beds - General Hospital • 100 Beds - Oncology Center • Project duration : 20 Years Demolition and Re-construction of Al Abassia Chest Hospital and change scope to a General Hospital, plus a separate building for Oncology Center ProjectStructure SP to finance, design, build, equip, furnish, maintain, provide non clinical services & transfer ownership to Government at contract end. Timeline • Launch Date : December 2008 • Project Awarding date : December 2009 • Operation date: December 2011

  18. Health Sector General Medical Facilities - 2 Overview • Location: Cairo Governorate • Capacity : 230 Beds • Project duration : 20 Years Demolition and Re-construction of Boulak General Hospital ProjectStructure SP to finance, design, build, equip, furnish, maintain, provide non clinical services & transfer ownership to Government at contract end. Timeline • Launch Date : December 2008 • Project Awarding date : December 2009 • Operation date: December 2011

  19. Health Sector General Medical Facilities - 3 Overview • Location: Beheira Governorate • Capacity : 100 Beds / hospital • Project duration : 20 Years Construction of 3 Central Hospitals ProjectStructure SP to finance, design, build, equip, furnish, maintain, provide non clinical services & transfer ownership to Government at contract end. Timeline • Launch Date : 2009 • Project Awarding date : 2010 • Operation date: December 2012

  20. Health Sector General Medical Facilities - 4 Overview • Location: Cairo Governorate • Capacity : 100 Beds • Project duration : 20 Years Construction of a Re-habilitation Center ProjectStructure SP to finance, design, build, equip, furnish, maintain, provide non clinical services & transfer ownership to Government at contract end. Timeline • Launch Date : 2009 • Project Awarding date : 2010 • Operation date: December 2012

  21. Health Sector General Medical Facilities - 5 Overview • Location: Alexandria Governorate • Capacity : 100 Beds • Project duration : 20 Years Construction of Oncology Center ProjectStructure SP to finance, design, build, equip, furnish, maintain, provide non clinical services & transfer ownership to Government at contract end. Timeline • Launch Date : 2009 • Project Awarding date : 2010 • Operation date: December 2012

  22. Utilities Sector Wastewater Treatment Plant - 1 Overview • Location: New Cairo • Capacity : 250,000 m3/day • Project duration : 25 Years Project Structure SP to finance, design, build, operate, maintain plant & transfer ownership to Government at contract end. Timeline • Launch Date : October 2008 • Project Awarding date : September 2009 • Operation date : December 2011

  23. Utilities Sector Wastewater Treatment Plant - 2 Overview • Location: Abo Rawash - Giza • Capacity : 800,000 m3/day • Project duration : 25 Years Expansion of a waste water treatment plant in Giza Governorate to raise capacity up to 2,000,000 m3/day Project Structure SP to finance, design, build, operate, maintain plant & transfer ownership to Government at contract end. Timeline • Launch Date : December 2008 • Project Awarding date : September 2009 • Plant Operation date: December 2011

  24. Utilities Sector Wastewater Treatment Plant - 3 Overview • Location: Gabal Asfar - Cairo • Capacity : 500,000 m3/day • Project duration : 25 Years 3rd phase expansion of a wastewater treatment plant with capacity of 500,000 m3/day to raise capacity up to approx. 3,000,000 m3/day Project Structure SP to finance, design, build, operate, maintain plant & transfer ownership to Government at contract end. Timeline • Launch Date : January 2009 • Project Awarding date : September 2009 • Plant Operation date: September 2012

  25. Utilities Sector Wastewater Treatment Plant - 4 Overview • Location: Helwan • Capacity : 500,000 m3/day • Project duration : 25 Years Project Structure SP to finance, design, build, operate, maintain plant & transfer ownership to Government at contract end. Timeline • Launch Date : January 2009 • Project Awarding date : September 2009 • Plant Operation date: September 2012

  26. Utilities Sector Wastewater Treatment Plant - 5 Overview • Location: 6th October city - Giza • Capacity : 450,000 m3/day • Project duration : 25 Years Project Structure SP to finance, design, build, operate, maintain plant & transfer ownership to Government at contract end. Timeline • Launch Date : October 2008 • Project Awarding date : April 2009 • Plant Operation date: April 2012

  27. Utilities Sector Wastewater Treatment Plant - 6 Overview • Location: Nahia - Giza • Capacity : 200,000 m3/day • Project duration : 25 Years Project Structure SP to finance, design, build, operate, maintain plant & transfer ownership to Government at contract end. Timeline • Launch Date : October 2008 • Project Awarding date : April 2009 • Plant Operation date: April 2012

  28. Transport Sector Cairo / Alexandria free road Port Said / Matrouh free road Overview • Length : Cairo / Alex 162 kms • Link to Coastal Road 25 kms • Alex / Matrouh 280 kms • Port Said / Alex 285 kms • Description: Connection of all of Egypt’s Mediterranean Ports • Project duration : 20 Years Project is to build & upgrade existing roads and transfer to free roads Project Structure SP to finance, design, build, operate & maintain road & transfer ownership to Government at contract end. Timeline • Launch Date : October 2008 • Project Awarding date : October 2009

  29. Transport Sector Railway Project -1 Overview • Location: Cairo / 10th of Ramadan City • Length: 77 km • Description: Double track line • Project duration : 20 Years The Project is to Double the current line from Ain Shams to El- Roubaky (45 km) & Build a new line from El- Roubaky to 10th of Ramadan City (32 km) Project Structure SP to finance, Upgrade existing tracks & stations, Construct new tracks & stations, Operate, Maintain & transfer ownership to Government at contract end. Timeline • Launch Date : December 2008 • Project Awarding date : March 2010

  30. Transport Sector Railway Project - 2 Overview • Location: Alexandria / Borg El Arab • Length: 50 km • Description: Double track line • Project duration : 20 Years The Project is to Double the current line from Alexandria to Borg El-Arab (50 km) Project Structure SP to finance, Upgrade existing tracks & stations, Construct new tracks & stations, Operate, Maintain & transfer of ownership to Government at contract end. Timeline Under Due-Diligence

  31. Transport Sector Maritime Projects Overview • Description: Investment opportunities include: • New container terminals • Multi purpose terminals • Liquid bulk terminals • General cargo terminals • Vessels bunkering • Tugging and marine services • Stevedoring • Value added activities and services • Shipyard, Ship repair • Location • Sokhna, Damietta • Alexandria & Dekhela • Port Said – East Ports Timeline Under Due-Diligence

  32. Transport Sector River Transport Project - 1 CAI / Damitte 240 km. CAI / Alex. 220 km. Overview CAI / Aswan 960 km. • Description: • Developing river transportation fleet • 4 main routes: • Cairo / Alexandria 220 km • Cairo / Damietta 240 km • Cairo / Aswan 960 km • Aswan / Wadi Halfa 350 km Aswan / Wadi Halfa 350 km. These routes creates multiple development opportunities, commercial & services centers, added value services & also the fleet could serve commercial transportation to Sudan. Timeline Under Due-Diligence

  33. Transport Sector River Transport Project - 2 • Description: • Developing new river ports terminals • 7 main ports: • Upper Egypt • Sohag River Port • Assiut River Port • El Tebeen River Port • Kena River Port • Delta • El Nahda River Port • El Nahda Port Extension • Meat Ghamr River Port Timeline Under Due-Diligence

  34. Thank You Contact Details: PPP Central Unit Ministry of Finance Tel: +202 23421283 +202 23421284 Fax: +202 23421283 / 84 ext. 6152 e-mail:pppcentralunit@mof.gov.eg Web:pppcentralunit.mof.gov.eg

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