In line with the Government's strategy to promote and increase the private sector involvement in the country's economic and social development plan - particularly in the area of public utility services- the Government has taken initiative to introduce the Public Private Partnership Program (PPP).

The “Partnership” is in essence a way of public services provision whereby the Government contracts with private sector companies to build finance and operate infrastructure for public services or for its own use. At the end of the contract the infrastructure passes to State ownership so increasing the stock of public assets.

PPPs introduce the disciplines and efficiencies of private sector management and methods to the provision of public services. By harnessing the complementary skills of public and private sectors, experience from other countries now points to significant advantages in terms of cost, value and quality of the delivered services. Such participation aims at improving the quality of services provided to citizens, alleviating the burden on the State  budget without affecting the state ability in providing services at fair social prices, creating job opportunities, stimulating investment and consumption thus boosting growth, attracting FDIs, and others.

Throughout a PPP the Government retains close control over the delivery of the specified level and standard of services. Where core social services are involved (such as teaching, medical care) these will be retained by the public sector professionals. The Government is expecting a higher quality of service delivery from PPP’s. Policies on free access and user charges, however, will be the same for facilities provided under PPP’s or by normal methods. For the reasons above and because PPPs open up new channels of finance, the Government will have more latitude in bringing forward its investment program. This in turn will open up opportunities for the domestic contracting and financing sectors, including smaller contractors who are expected to benefit considerably from the program.

Affirming the government's seriousness to activate the PPP initiative, a PPP Central Unit was established within the Ministry of Finance and reporting directly to the Minister. The Ministry of Finance PPP unit is charged with co-coordinating the PPP national program across ministries and public bodies. The upcoming period will witness the intensification of contacts with line ministries, other government bodies and with the private sector to activate this initiative. In this context, the Central Unit in the Ministry of Finance will provide support to line ministries on all forms of PPP projects.

PPP is a complex process but with proper and experienced management can deliver projects to the benefit of all.  Now that Egypt has initiated the PPP initiative and the first potential projects in the healthcare and education sectors are taking shape, more and more organisations and authorities will want to consider PPP as a way forward.  This guide will be a useful tool for establishing whether PPP is a promising solution.

The Central PPP unit here at The Ministry of Finance has produced this guide with the assistance of International Capital Partnerships Ltd, a London based consultancy with wide international experience in helping Governments develop PPP programmes. This is the first time such a guide has been produced in Egypt.

Dr. Youssef B. Ghali
Minister of Finance
Egypt