EXCLUSIVE: Egypt restructuring Nile River Bus Ferry PPP

13 June 2017

Prequalification process will be reopened after bids had been received late last year

Egypt’s PPP Central Unit is restructuring the Nile River Bus Ferry public-private partnership (PPP), and will reopen the prequalification process for the country’s first transport PPP by the end of July.

According to a source at the PPP Central Unit, only two bids were received for the project in December for the project, and now the PPP body has decided to restructure the project.

“There is financial restructuring of the project, partly due to the devaluation of the [Egyptian] pound, and there is also a technical restructuring to mitigate risks such as demand risks,” the PPP Central Unit told MEED. “We are planning to re-open prequalification in three to four weeks.”

MEED reported in 2016 that local and international companies interested in the project include the UAE’s Mubadala Infrastructure Partners, UK consultants Mott MacDonald, shipping line P&O and South Korea’s SK Engineering & Construction.

The UK’s EY is the transaction and financial adviser for the project. Other advisers to the PPP Central Unit, the General Transportation Authorisation in Cairo and Cairo Governorate are: Eversheds (UK), WSP PB (UK), Arab Legal Consultants (local) and Dorsch Gruppe (Germany).

This is Egypt’s first transport PPP project, with other transport investment being funded by development banks.

The contract involves financing, developing, operating and maintaining the freight and passenger transport service for 25 years.

The service currently has nine boats and 16 terminals in a poor condition.

The work involves procuring and operating 30 boats. The original 16 terminals will be rehabilitated, and 14 new ones designed and built.

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