The new PPP law

Following the evolution of PPP in the UK and other European countries, the Egyptian Government expects to benefit from private sector’s know how, experience and resources to facilitate the timely and cost effective procurement of works and services. Further, the Government seeks to ensure better contract management through the fair incentivisation of the developers; avoid short term significant capital expenditure and therefore procure a larger number of projects, limit the Government’s debt; and pass a substantial part of project risk to the private sector. Its main objectives are to create a market-friendly regulatory environment, establish the administrative basis necessary to coordinate this development and clarify the procurement process for PPP's.

The new PPP law (under preparation) will avoid the necessity for Parliamentary ratification for individual projects within its ambit; creates a specialized Central Unit (see Appendix B) within the Ministry of Finance, modelled on the UK’s and other countries’ PPP taskforces; addresses a number of risk allocation issues previously difficult to handle in common asset and services public procurement practice.

In summary, the law attempts to regulate the majority of private financing in Egypt, while also enforcing institutional framework reforms in the same direction. It also sets down a number of elements in respect to risk allocation, which had previously discouraged investment proposals. It aims for eventual standardisation of all related processes combined with public administration responsiveness and effectiveness. 

 Draft Law for PPP

The amended Law 89 of 1998 that was amended by the Egyptian Parliament on 24 March 2009

 Amendment in Law No. 89 of 1998

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