Freeman Spogli Institute for International Studies Program on Energy and Sustainable Development Stanford University


Egyptian IPP Experience, The

Working Paper

Anton Eberhard
Katherine Gratwick

Issued by
Program on Energy and Sustainable Development Working Paper #50, August 2005 (revised November 2005)

The 1990s ushered in a major change for Egyptian infrastructure projects. Prior to this period, Egypt relied primarily on government funding together with soft loans from multi- and bi-lateral agencies to build and operate the country's roads, sewers and power plants. By the beginning of the decade however a consensus was growing among donors, which advocated that the private, not the public, sector should both finance and operate infrastructure projects. Limited public sector funding should target social sectors, such as health and education. The World Bank, among Egypt's foreign funders, championed this new change in resource allocation, backing an exit from infrastructure. According to several Egyptian government officials, aid was still available for roads, sewers and power plants, but conditions (e.g. loans were contingent on liberalizing electricity prices) were such that they made it politically unpopular to accept. Therefore Egypt like many of its peers throughout Africa and other developing regions opened up to private participation in infrastructure.