Additional services provided by the Government to encourage  the investment in Egypt.

INFRASTRUCTURE

Realizing that the private sector is the engine for growth in the Egyptian economy, the Government of Egypt has since the beginning of the economic reform program in 1991, focused on investing in areas that would support private sector activities, rather than those which would complete within it. 

As such, infrastructure was given top priority with the commencement of the reform program. Recently, the government has been reviewing its traditional involvement in investments directed towards infrastructure and utilities to include the private sector.

New legislations contain provisions for the private sector to invest in infrastructure and telecommunications using schemes which provide for an active participation of the domestic and international private sectors in infrastructure development in Egypt.

ELECTRIC POWER

Part of the infrastructure development in Egypt was to improve electricity services in the various governorates of Egypt.  During the past ten years, electricity coverage has been expanded to all parts of Egypt. By the end of 1999, the whole population had access to electricity.  Since 1981, several important targeted power station schemes were well accomplished; they have included a 1256 MW plant at Kuraymat, a 900 MW plant at Abu Qir in Alexandria, a 900 MW plant at Ataka in Suez, a 660 MW lpant in West Cairo, a 600 MW plant in Assiut, and a 1125 MW combined cycle plant in Damietta.

Electrical services are but necessary for Egypt’s rising manufacturing and industrial sectors.  Currently, electric energy consumption is around 61 billion KWH; 39% of which is used by industry.  The demand for electricity has been increasing by 5.6% per year during the past decade, and is forecasted to continue growing up to 6% to reach 86.5billion KWH by 2005.

In order to meet the rising demand for electricity, approximately 3935 MW have been added to Egypt’s installed capacity over the past decade.  Installed capacity currently stands at 14.5 GW.  Another 1950 MW is scheduled for the year 2002 at a projected cost of US$ 1.22 billion.  Specific new projects include a 650 MW plant at Sidi Krir, and another 650 MW at Oyoun Moussa.  By 2002, the first BOOT dual gas/oil fired power station of 650 MW at Sidi Krir will be commissioned.

As a result of this rising demand, other alternatives such as natural gas, liquid fuel, hydro-sources, as well as solar and wind-power sources have come to the surface to cater for this increasing demand.  All thermal and gas power stations are structured to use natural gas fuel.

Again, the private sector is seen to foster the speed at which the electricity sector grows.  Accordingly, a plan has been set for private sector participation in power generation projects.

The plan covers the period from 2002 to 2010 with total investment of about US$ 5.55 billion.  The Ministry of Electricity and Energy has a principal plan and that is to call on developers to participate in sixteen BOOT power projects with a total capacity of 7650 MW.

To further development, new and high-tech investments in the sector under the fourth five-year plan are expected to reach LE 17.7 billion.  These include L.E. 6.8 billion for the completion of pending projects, 1.17 billion for the refurbishment of existing power plants, and L.E. 7.83 billion for new power plants financed from soft loans by the electricity sector.

On the regional level, work is also proceeding for the US$ 348 million project power grid to link Egypt, Jordan, Syria and Turkey.  This grid will also link up the unified European electricity grid to that between Egypt and Libya; allowing for a link to Italy through Tunisia, and to Spain through Gibraltar. There are also plans for an electrical transmission link between Egypt and Congo through which Egypt could use the excess capacity generated by Congo’s giant Inga Dam.

TRANSPORTATION

Railway Network

Egypt boasts the second oldest extended railway networks in the world and the oldest in the Middle East and North African region.  The government is still keen to increase the network of these railway lines.

Between 1981 and 1998, the railway network was expanded some 4,935 m (including replacements and renewals), bringing the total length of tracks to 9,400 km, connecting approximately 75% of the cities, towns & villages throughout the country.

The main recent development in that sector include the twin-tracking Upper Egypt line from Assiut to Aswan for some 505 km long, the construction of the Safaga-Qena line of length 230 km, the construction of the Qena-New Valley line of length 450 km, the extension of a 108 km cargo railway line between Cairo and Alexandria, and the construction of a 42 km railway line connecting Baris Oasis to the New Valley/Qena line.  In addition, the Ismailia-Rafah 225 km railway line is currently under construction; this extension covers El-Ferdan steel wing bridge over the Suez Canal.

In this context, the Ministry of Transportation has upgraded it monitoring and automatic control systems.

Roads and Bridges

As part of Egypt’s scheme of establishing a strong infrastructure, Egypt has and still continues to improve its highway and bridge system.

At present, Egypt possesses a sophisticated network of highways and paved roads network of some 44,000 km compared to 15,300 km in 1981.  There is great potential for private investors to improve the quality and coverage of the roads and bridges throughout the country.

The government has already stated publicly it invitation to the private sector to heavily invest in the transportation sector, specifically toll roads.  The Cairo-Alexandria desert toll-road was widened and doubled by the private sector during the early eighties; one of the most successful experiences with the private sector in the field.  Egypt’s highways and inter city roads accommodate 85% of domestic freight and 60% of passenger movements.

A network of roads has been constructed to link Sinai to the valley.  In addition, Upper Egypt & lower Egypt were connected through three vertical axial roads parallel to the Nile.  The new valley is joined to the Nile valley at Assiut, Luxor and Toshka.  The Nile valley is also joined to the Red Sea Coast through seven transversal roads.  Ten bridged were constructed to connect the road network across the Nile at Beni Suef, Minya, Dessouk, Benha, mansoura, Faraskour, Luxor, Assiut, Sherbeen and Meet Ghamr.

A bridge over the Suez Canal with a total length of 9.5 km is now under construction to connect Egypt to Palestine, Jordan and Israel.  Two similar road extensions were constructed in the south to connect Egypt to Sudan, and in the west connecting Egypt to countries of North Africa.

The Road BOOT Projects