What does the government have in store for spending on the Hayah Karima (Decent Life) initiative in the upcoming fiscal year? Earlier this month, Planning Minister Hala El Said and Finance Minister Mohamed Maait presented the government’s spending plans for FY 2023-24. The government’s proposed sustainable development plan (pdf) — which the ministry issues every year to work towards Egypt Vision 2030 — covers planned government spending on several key sectors, including education, infrastructure, the green economy, and manufacturing.

ICYMI- We’ve recapped the spending and development plans for transformative industries,education, the green economy, and nationwide infrastructure.

The sustainable development plan sees the government spending a total of EGP 180 bn on the Hayah Karima (Decent Life) initiative in the upcoming fiscal year, according to El Said’s statement to the House of Representatives. This figure covers the spending needed to complete the first phase of the initiative and launch its second phase to provide over 1.6k villages with essential services and infrastructure, as well as create jobs and ways to improve household incomes in rural areas.

What is Hayah Karima? Launched in 2019, the Hayah Karima Initiative is a far-reaching, multi-year infrastructure investment plan designed to develop the country’s rural areas. Running through to 2023, the five-year program aims to alleviate poverty in rural communities by revamping infrastructure, improving access to basic services such as education and healthcare, and creating jobs. The government has earmarked around USD 45-50 bn (c.EGP 700-790 bn) for the full program, El Said previously said (watch, runtime: 2:25).

Finishing the first phase is the top priority for spending on the initiative in FY 2023-24, with the government earmarking EGP 150 bn to complete projects under the first phase. The government had planned to spend EGP 200 bn on developing almost 1.1k villages around the country in FY 2021-22, with c.90% of the first phase projects completed in early 2022, Planning Ministry media advisor Mohamed El Okby told Enterprise at the time. The spending plan also earmarks an additional EGP 30 bn to kick off the second phase of the initiative.

Water and sewage projects in the first phase of the initiative are the largest recipient of investment in the upcoming fiscal year’s plan, with total investment of EGP 71.6 bn. Out of that sum, EGP 52.5 bn will cover building and upgrading 167 water treatment stations, 1,441 pumping stations, and developing 21.3k km of sewage networks. Also, EGP 19.1 bn will go to building 323 water purification plants, and upgrading water networks.

Electricity and irrigation projects come in second, with about EGP 40.8 bn going to electricity coverage and irrigation projects under the first and second phases of the initiative.Some EGP 28.4 bn is going to electricity projects to set up electricity networks for 1,446 villages, while roughly EGP 12.4 bn will be used to line and rehabilitate water canals spanning about 6.3k km, and set up 608 irrigation bridges.

Healthcare, telecommunications, roads and railways are also getting a big chunk in the upcoming fiscal year’s allocations for Hayah Karima, with some EGP 8.9 bn earmarked for the first phase healthcare projects, such as upgrading 24 central hospitals, 1.1k health units, and purchasing 367 ambulances. The upcoming fiscal year’s telecommunications investment budget for the initiative has earmarked EGP 5.6 to extend the fiber optics cable network to cover 1,468 villages. The plan also includes EGP 4.2 bn that will go to finish building 164 main roads and 166 railway stations, plus another EGP 2.6 bn for road pavement in 1,446 villages.

Also covered in the government’s plan for the initiative: Agriculture projects, building or developing government complexes and fire and police stations, supplying households with gas, and providing educational, youth, and sports services are getting a total investment of around EGP 8.1 bn. That’s in addition to EGP 5 bn for local development services, such as road services, lighting, security, and traffic projects.

Phase 2 cometh: For the second phase of the initiative, the allocated EGP 30 bn will fund 620 water and sewage projects, including lining and rehabilitating water canals spanning 1,740 km, upgrading 66 hospitals, and adding and upgrading up to 3k classrooms across 1.6k villages.

Your top infrastructure stories for the week:

  • State infrastructure spending for the year ahead: The government is proposing to invest a total of EGP 1.05 tn over the coming fiscal year, including EGP 587 bn of spending outlined in the FY 2023-2024 budget.
  • Privatizing power: Egypt has requested permission from German banks to sell shares in the three 4.8 GW Siemens-built power stations to investors.
  • Boosting green hydrogen: Ministers have approved a package of incentives aimed at stimulating Egypt’s nascent green hydrogen industry and increasing FX inflows.
  • New renewables partnership could be in the works: Infinity Power and Greek infrastructure investor Coupelouzos could jointly produce renewable energy in Egypt that would be sent to Europe via a planned electricity link.
  • New Alameda hospital: Alameda Healthcare will establish a branch of the Al Salam International Hospital in New Assiut as part of the company’s EGP 5 bn expansion plans.
Tags: