ppp central unit ministry of finance atter hannoura tendering & monitoring manager ppp central...
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PPP Central UnitMinistry of Finance
Atter Hannoura
Tendering & Monitoring Manager
PPP Central Unit
Ministry of Finance
“Public Service Delivery, PPP & Regulatory Reform”
OECD Rabat, MoroccoMay 20-21, 2008
Overview on the Development Overview on the Development of the Egyptian PPP Programof the Egyptian PPP Program
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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
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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
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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’)
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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
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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
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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
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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
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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
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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’)
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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
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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
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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
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• Location: 27 Governorates
• Project Duration : 15 Years
Overview
Timeline
• 1st Batch Launch date: November 2007
• Project Awarding date : September 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
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• Location: University of Alexandria
• Capacity : 230 Beds
• Project Duration : 20 Years
Overview
Timeline
• Launch Date : May 2008
• Project Awarding date : March 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
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• Location: University of Alexandria
• Capacity : 200 Beds
• Project Duration : 20 Years
Overview
Timeline
• Launch Date : May 2008
• Project Awarding date : March 2009
• Operation date: December 2011
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
Project Structure SP to finance, design, build, equip, furnish, maintain, provide non clinical services & transfer ownership to Government at contract end.
Educational Medical Facility - 2
Health Sector
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• Location: Cairo Governorate
• Capacity : 300 Beds - General Hospital
100 Beds - Oncology Center
• Project duration : 20 Years
Overview
Timeline
• Launch Date : December 2008
• Project Awarding date : December 2009
• Operation date: December 2011
Demolition and Re-construction of Al Abassia Chest Hospital and change scope to a General Hospital, plus a separate building for Oncology Center
Project Structure SP to finance, design, build, equip, furnish, maintain, provide non clinical services & transfer ownership to Government at contract end.
General Medical Facilities - 1
Health Sector
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• Location: Cairo Governorate
• Capacity : 230 Beds
• Project duration : 20 Years
Overview
Timeline
• Launch Date : December 2008
• Project Awarding date : December 2009
• Operation date: December 2011
Demolition and Re-construction of Boulak General Hospital
Project Structure SP to finance, design, build, equip, furnish, maintain, provide non clinical services & transfer ownership to Government at contract end.
Health Sector
General Medical Facilities - 2
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• Location: Beheira Governorate
• Capacity : 100 Beds / hospital
• Project duration : 20 Years
Overview
Timeline
• Launch Date : 2009
• Project Awarding date : 2010
• Operation date: December 2012
Construction of 3 Central Hospitals
Project Structure SP to finance, design, build, equip, furnish, maintain, provide non clinical services & transfer ownership to Government at contract end.
Health Sector
General Medical Facilities - 3
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• Location: Cairo Governorate
• Capacity : 100 Beds
• Project duration : 20 Years
Overview
Timeline
• Launch Date : 2009
• Project Awarding date : 2010
• Operation date: December 2012
Construction of a Re-habilitation Center
Project Structure SP to finance, design, build, equip, furnish, maintain, provide non clinical services & transfer ownership to Government at contract end.
Health Sector
General Medical Facilities - 4
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• Location: Alexandria Governorate
• Capacity : 100 Beds
• Project duration : 20 Years
Overview
Timeline
• Launch Date : 2009
• Project Awarding date : 2010
• Operation date: December 2012
Construction of Oncology Center
Project Structure SP to finance, design, build, equip, furnish, maintain, provide non clinical services & transfer ownership to Government at contract end.
Health Sector
General Medical Facilities - 5
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• Location: New Cairo
• Capacity : 250,000 m3/day
• Project duration : 25 Years
Overview
Timeline
• Launch Date : October 2008
• Project Awarding date : September 2009
• 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
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• Location: Abo Rawash - Giza
• Capacity : 800,000 m3/day
• Project duration : 25 Years
Overview
Timeline
• Launch Date : December 2008
• Project Awarding date : September 2009
• 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
Project StructureSP to finance, design, build, operate, maintain plant & transfer ownership to Government at contract end.
Wastewater Treatment Plant - 2
Utilities Sector
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• Location: Gabal Asfar - Cairo
• Capacity : 500,000 m3/day
• Project duration : 25 Years
Overview
Timeline
• Launch Date : January 2009
• Project Awarding date : September 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
Project StructureSP to finance, design, build, operate, maintain plant & transfer ownership to Government at contract end.
Utilities Sector
Wastewater Treatment Plant - 3
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• Location: Helwan
• Capacity : 500,000 m3/day
• Project duration : 25 Years
Timeline
Project StructureSP to finance, design, build, operate, maintain plant & transfer ownership to Government at contract end.
• Launch Date : January 2009
• Project Awarding date : September 2009
• Plant Operation date: September 2012
Overview
Utilities Sector
Wastewater Treatment Plant - 4
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• Location: 6th October city - Giza
• Capacity : 450,000 m3/day
• Project duration : 25 Years
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
Wastewater Treatment Plant - 5
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• Location: Nahia - Giza
• Capacity : 200,000 m3/day
• Project duration : 25 Years
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
Wastewater Treatment Plant - 6
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• 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
Overview
Timeline
• Launch Date : October 2008
• Project Awarding date : October 2009
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
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• Location: Cairo / 10th of Ramadan City
• Length: 77 km
• Description: Double track line
• Project duration : 20 Years
Overview
Timeline
• Launch Date : December 2008
• Project Awarding date : March 2010
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
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• Location: Alexandria / Borg El Arab
• Length: 50 km
• Description: Double track line
• Project duration : 20 Years
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
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•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
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•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.
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•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
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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