PPP Central Unit Ministry of Finance Bassel Shoirah Utilities Sector Officer PPP Central Unit...

PPP Central UnitMinistry of Finance

Bassel ShoirahUtilities Sector Officer

PPP Central UnitMinistry of Finance

“Capacity-Building Workshop on Public Private Partnerships”

Intercontinental HotelAmman, Jordan

April 28-29, 2008

Overview on the Development Overview on the Development of the Egyptian PPP Programof the Egyptian PPP Program

PPP Central Unit

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Ministry of Finance

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

PPP Central Unit

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Ministry of Finance

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

PPP Central Unit

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Ministry of Finance

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

PPP Program in Egypt (cont’)

PPP Central Unit

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Ministry of Finance

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

PPP Policy Framework

PPP Central Unit

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Ministry of Finance

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

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

PPP Central Unit

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Ministry of Finance

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

PPP Central Unit

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Ministry of Finance

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

PPP Central Unit

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Ministry of Finance

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

PPP Central Unit

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Ministry of Finance

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

Role of PPP Central Unit (cont’)

PPP Central Unit

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Ministry of Finance

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

PPP Central Unit

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Ministry of Finance

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

PPP Central Unit

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Ministry of Finance

PPP Pipeline Projects

Social Infrastructure

Education Sector

Health Sector

Educational Medical Facilities

General Medical Facilities

Utilities Sector

Wastewater Treatment Plants

Transportation Sector

PPP Central Unit

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Ministry of Finance

• Location: 27 Governorates

• Project Duration : 15 Years

Overview

Timeline

• 1st Batch Launch date: November 2007

• Project Awarding date : June 2008

• Schools availability date: 2009 / 2010

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.

1800 Public Schools

Education Sector

PPP Central Unit

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Ministry of Finance

• Location: University of Alexandria

• Capacity : 230 Beds


Overview

Timeline

• Launch Date : May 2008

• Project Awarding date : January 2009

• Operation date: December 2011

Construction of a new Specialized University Hospital (Al Mowassat) in Alexandria Governorate as:i) Neuro - Center ii) Urology / Nephrology Center

Project Structure SP to finance, design, build, equip, furnish, maintain, provide non clinical services & transfer ownership to Government at contract end.

Health Sector

Educational Medical Facility - 1

PPP Central Unit

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Ministry of Finance

• Location: University of Alexandria



Overview

Timeline

• Launch Date : May 2008



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


Educational Medical Facility - 2

Health Sector

PPP Central Unit

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Ministry of Finance

• Location: Cairo Governorate

• Capacity : 300 Beds - General Hospital

100 Beds - Oncology Center

• Project duration : 20 Years

Overview

Timeline

• Launch Date : July 2008

• Project Awarding date : July 2009


Demolition and Re-construction of Al Abassia Chest Hospital and change scope to a General Hospital, plus a separate building for Oncology Center


General Medical Facilities - 1

Health Sector

PPP Central Unit

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Ministry of Finance




Overview

Timeline

• Launch Date : July 2008

• Project Awarding date : July 2009


Demolition and Re-construction of Boulak General Hospital


Health Sector


PPP Central Unit

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Ministry of Finance

• Location: Beheira Governorate

• Capacity : 100 Beds / hospital


Overview

Timeline

• Launch Date : September 2008

• Project Awarding date : September 2009


Construction of 3 Central Hospitals


Health Sector


PPP Central Unit

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Ministry of Finance




Overview

Timeline

• Launch Date : September 2008



Construction of a Re-habilitation Center


Health Sector


PPP Central Unit

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Ministry of Finance

• Location: Alexandria Governorate



Overview

Timeline

• Launch Date : December 2008

• Project Awarding date : December 2009


Construction of Oncology Center


Health Sector


PPP Central Unit

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Ministry of Finance

• Location: New Cairo

• Capacity : 250,000 m3/day


Overview

Timeline

• Launch Date : October 2008


• Operation date : December 2011

Project StructureSP to finance, design, build, operate, maintain plant & transfer ownership to Government at contract end.

Wastewater Treatment Plant - 1

Utilities Sector

PPP Central Unit

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Ministry of Finance

• Location: Abo Rawash - Giza



Overview

Timeline

• Launch Date : December 2008


• Plant Operation date: December 2011

Expansion of a waste water treatment plant in Giza Governorate to raise capacity up to 2,000,000

m3/day



Utilities Sector

PPP Central Unit

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Ministry of Finance

• Location: Gabal Asfar - Cairo



Overview

Timeline

• Launch Date : January 2009


• Plant Operation date: September 2012

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


Utilities Sector


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Ministry of Finance

• Location: Helwan



Timeline


• Launch Date : January 2009


• Plant Operation date: September 2012

Overview

Utilities Sector


PPP Central Unit

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Ministry of Finance

• Location: 6th October city - Giza



Overview

Timeline


• Launch Date : October 2008

• Project Awarding date : April 2009

• Plant Operation date: April 2012

Utilities Sector


PPP Central Unit

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Ministry of Finance

• Location: Nahia - Giza



Overview

Timeline

Project StructureSP to finance, design, build, operate, maintain plant & transfer ownership to Government at contract end.• Launch Date : October 2008

• Project Awarding date : April 2009

• Plant Operation date: April 2012

Utilities Sector


PPP Central Unit

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Ministry of Finance

• 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


Overview

Timeline

• Launch Date : June 2008


• Project Operation date: June 2012

Project is to build & upgrade existing roads and transfer to free roads

Project StructureSP to finance, design, build, operate & maintain road & transfer ownership to Government at contract end.

Transport SectorCairo / Alexandria free roadPort Said / Matrouh free road

PPP Central Unit

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Ministry of Finance

• Location: Cairo / 10th of Ramadan City

• Length: 77 km

• Description: Double track line


Overview

Timeline

• Launch Date : August 2008


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 StructureSP to finance, Upgrade existing tracks & stations, Construct new tracks & stations, Operate, Maintain & transfer ownership to Government at contract end.

Railway Project -1

Transport Sector

PPP Central Unit

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Ministry of Finance

• Location: Alexandria / Borg El Arab

• Length: 50 km

• Description: Double track line


Overview

Timeline

Under Due-Diligence

The Project is to Double the current line from Alexandria to Borg El-Arab (50 km)

Project StructureSP to finance, Upgrade existing tracks & stations, Construct new tracks & stations, Operate, Maintain & transfer of ownership to Government at contract end.

Railway Project - 2

Transport Sector

PPP Central Unit

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Ministry of Finance

•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

Overview

Timeline

Under Due-Diligence

Maritime Projects

Transport Sector

Location

•Sokhna, Damietta

•Alexandria & Dekhela

•Port Said – East Ports

PPP Central Unit

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Ministry of Finance

•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

Overview

Timeline

Under Due-Diligence

River Transport Project - 1

Transport Sector

These routes creates

multiple development

opportunities,

commercial & services

centers, added value

services & also the fleet

could serve commercial

transportation to Sudan.

Aswan / Wadi Halfa Aswan / Wadi Halfa 350 km.350 km.

CAI / Aswan CAI / Aswan 960 km.960 km.

CAI / Damitte CAI / Damitte 240 km.240 km.CAI / Alex. CAI / Alex.

220 km.220 km.

PPP Central Unit

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Ministry of Finance

•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 PortTimeline

Under Due-Diligence

River Transport Project - 2

Transport Sector

PPP Central Unit

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Ministry of Finance

Thank You

Contact Details:

PPP Central Unit

Ministry of Finance

Tel: +202 23421283

+202 23421284

Fax: +202 23421283 / 84

ext. 6152

e-mail: [email protected]

Web: pppcentralunit.mof.gov.eg

PPP Central Unit Ministry of Finance Bassel Shoirah Utilities Sector Officer PPP Central Unit...

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