Egypt looks to private sector for utilities investment

27 November 2014

Cairo is turning to public-private partnerships to develop sewage and desalination projects

Egypt plans to use public-private partnerships (PPP) to help fund a progamme of improvements to its sewage infrastructure and to build desalination plants.

The country needs to spend about £E100bn ($14bn) to improve sewage connection rates and infrastructure in outlying areas, and cannot meet this financial requirement through government specnding alone.

Speaking at MEED’s Invest in Egypt conference, Mostafa Madbouly, Egypt’s minister for housing utilities and urban communities, said that with only £E3bn-4bn coming annually from the fiscal budget for the sewage sector, more investment was required from the private sector to complete the programme.

“It is not enough; every year we need £E12bn-13bn. We are working with the World Bank, but are hoping for PPP, so private investors can come and build private sewage and desalination plants,” said Madbouly.

He added that there was a growing demand for water supply on northwestern coast and in Red Sea areas, and that these areas will rely on desalinated water to meet demand.

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