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Egypt: Law on Public-Private Partnership to Develop Infrastructure Being Discussed

(Jan. 4, 2010) On November 14, 2009, Egypt's Council of Ministers discussed new legislation on creating a long-term partnership agreement between the private sector and the Egyptian government. The proposed law would enable private corporations to play a larger role in developing the public infrastructure projects that in the past have been built exclusively by state corporations.

According to the Minister of Finance, the new law, if adopted, would allow Egyptian corporations to fund, build, maintain, and enhance all current and future public projects owned by the government. The period of contractual partnership agreements between the government and private corporations would vary from 5 to 30 years. The legislation also stipulates that private corporations will not receive any monetary compensation until they fulfill their obligations towards the government.

A designated authority will be assigned to monitor and evaluate the performance of the private corporations. It also will determine whether these corporations are eligible to be paid upon completion of their work, the legislation states. (The Council of Ministers Discusses a New Law to Engage the Private Sector in Developing Egypt's Infrastructure, AL AHRAM NEWSPAPER, Nov 24, 2009, available at