i-law

International Construction Law Review

PPPs IN EGYPT

SAID HANAFI*

LL M (London) General Counsel, Orascom Development Holdings
AND

KHALED EL DARDIRY

LL M (London) In-house counsel, Orascom Construction Industries

INTRODUCTION

Public Private Partnerships (“PPPs”) are arrangements between public and private entities for the delivery of infrastructure services and are depicted as a source for additional budget funding.1 This model has provided an efficient alternative for under-performing public sector utilities which are normally characterised by a lack of adequate technical and management resources. It is also suggested that PPPs contribute to meeting the growing investment demands that exceed public resources.2 Nevertheless, PPPs are also a very delicate structure where striking a balance between the public interest and private sector demands is not without difficulties. Governments will attempt to obtain as much benefit as possible out of the PPP relationship; including, improving the efficiency of the sector, financing the project, transfer of know-how, as well as maintaining the flexibility to intervene where, in their opinion, the public interest is jeopardised. On the other hand, the private sector would not venture into this type of operation without the assurance that it is commercially viable, that there is a certain degree of security with respect to payments and price fluctuations, and that it is able to manage the project without government interference. Governments wishing to embark on PPP programmes attempt to address these questions by creating a legislative framework that is conducive to successful yet balanced implementation.


Pt 4] PPPs in Egypt

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