EUR 10 mn in PPP support? The European Bank for Reconstruction and Development (EBRD) the Finance Ministry inked a cooperation agreement that will see them set up a EUR 10 mn fund — dubbed the Egypt Account — to finance feasibility studies and advisory services for projects being set up under the public-private partnership model, according to a cabinet statement.

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More than just financing: The fund will make it easier for the Madbouly government to launch more than one PPP project at the same time and speed up the process of tapping consultants for projects — they will now be selected in no more than six weeks, Finance Minister Ahmed Kouchouk said.

What does it mean for investors? The Egypt Account will help cut down the period it takes for investors to secure the needed financing to carry out feasibility studies for PPPs — they can now secure the needed funding in just two months. The process used to take up to a year. All in all, the fund will help boost local and foreign investments through the PPP model.

DATA POINT- The government signed 10 PPP contracts in 2024, with combined investments of EGP 19.8 bn, across a variety of sectors — waste recycling, dry ports, sanitation, technical education, and more.

And there’s more to come: Nine other PPP projects, worth a combined EGP 53.9 bn, are currently being offered to investors. The projects include water desalination, transformer stations and technical schools, Kouchouk added.

It doesn’t stop there: Kouchouk also noted that there are another 10 PPPs totalling EGP 37 bn in the preparation phase. These projects include transformer stations, electricity distribution, and industrial drainage.

The big picture: The government plans to increase the private sector’s contribution to the overall economy to more than 65% of total investments over the coming couple of years.

More support from the EBRD: The multilateral lender will also provide the government with technical support — in the form of capacity building and institutional support — in developing PPP projects under an MoU inked between the two sides. The EBRD will also help the Madbouly government prepare and implement projects carried out under the PPP model.

Priority sectors: While the support will cover projects across all sectors, four sectors were named as priority sectors — transportation, healthcare, energy, and water treatment and desalination.

REMEMBER- The EBRD is one of the largest development finance institutions supporting the country’s private sector — 98% of the lender's total investments in the country last year went to the private sector. It spent some EUR 1.5 bn across 26 projects, half of which in green finance.

CIRCLE YOUR CALENDAR- Egypt will host the EBRD’s annual meetings in 2027 after receiving approval from the bank’s board.

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