{"id":586811,"date":"2023-05-17T00:00:00","date_gmt":"2023-05-17T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/hardhats\/a-look-at-the-states-infrastructure-spending-priorities-for-fy-2023-24\/"},"modified":"2023-05-17T00:00:00","modified_gmt":"2023-05-17T00:00:00","slug":"a-look-at-the-states-infrastructure-spending-priorities-for-fy-2023-24","status":"publish","type":"hardhat","link":"https:\/\/enterpriseam.com\/egypt\/hardhats\/a-look-at-the-states-infrastructure-spending-priorities-for-fy-2023-24\/","title":{"rendered":"A look at the state\u2019s infrastructure spending priorities for FY 2023-24"},"content":{"rendered":"

<\/span>What are the state\u2019s infrastructure investment priorities for FY 2023-24?<\/span> Last week,<\/span> Planning Minister Hala El Said and Finance Minister Mohamed Maait presented the government\u2019s spending plans for FY 2023-24. 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.<\/span><\/p>\n

The government is once again prioritizing spending going towards completing ongoing<\/span> national projects<\/span>, which are currently 70% complete, according to the <\/span>sustainable development plan (pdf)<\/a><\/span> for the upcoming fiscal year, which El Said presented to the House of Representatives last week. The projects are expected to be completed by the end of the upcoming fiscal year. The plan notes that the government will not start new national projects unless technical and financial feasibility studies clearly indicate a social or economic return on investment. <\/span><\/p>\n

For the third consecutive year, transport is the single largest recipient of investments:<\/span> Like the current fiscal year, transport gets the biggest portion of the investment budget, with EGP 321 bn earmarked for projects in the sector, up about 4.6% y-o-y. The allocations for the next fiscal year will cover upgrading several roads between governorates, such as the Cairo-Ismailia Agricultural Road, the 6th of October-Wahat Road, and the Matrouh-Siwa Road, and resuming construction on 11 other projects, including upgrading the Cairo-Alexandria Agricultural road, and the Nubariya Axis. Railways are getting EGP 4.2 bn to build and develop 164 railroads, and 166 train stations. Transport allocations in FY 2023-24 also cover the 6th of October-new capital monorail, resuming construction on the third and fourth phases of Cairo Metro Line 3 and the first phase of Cairo Metro Line 4, as well as overhauling Alexandria\u2019s Abu Qir, and rehabilitating Alexnaria\u2019s tram.<\/span><\/p>\n

Construction, water, and sewage come in second<\/span>, with some EGP 237 bn of spending<\/span> earmarked for these sectors, EGP 119 bn of which will go towards finishing 29 sewage projects to increase the network\u2019s capacity and coverage across the country. There will also be an additional 228 projects to expand sewage networks in governorates. Meanwhile, some EGP 119 bn are earmarked for 25 new water projects focused on expanding existing water projects\u2019 production capacity. This marks a 35.5% increase from the current fiscal year \u2014 reflecting increasing prioritization of securing our potable water supply, particularly amid the threat posed by the Grand Ethiopian Renaissance Dam, which officially <\/span>started generating electricity<\/a><\/span> last year. Social housing projects will include building 130k new homes, resuming construction on 116k units, and finishing about 60k units.<\/span><\/p>\n

Education, healthcare, and other social services are also getting a big chunk in the<\/span> upcoming fiscal year,<\/span> with some EGP 691.5 bn earmarked for education, higher education, and scientific research. (Check out our <\/span>Blackboard story<\/a><\/span> breaking down education spending for the upcoming fiscal year.) The upcoming fiscal year\u2019s healthcare investment budget is earmarked for a number of projects, including the <\/span>universal healthcare scheme<\/a><\/span>, which entails building 68 hospitals and 55 health units. The plan also includes projects within the Urban Community Development program, such as upgrading 15 hospitals and 105 health units and purchasing 255 ambulances.<\/span><\/p>\n

Electricity + renewables is another priority sector:<\/span> Some EGP 81.4 bn is going to the<\/span> electricity and renewable energy sector next year, \u064fEGP 69.4 bn from public investments, with a portion allocated for expanding the coverage of our national electricity grid, and another going towards ensuring electricity provision for construction and developments areas, like East Owainat, North Sinai, and land reclamation projects in Toshka and the New Delta. <\/span>Get the full breakdown of the government\u2019s plan for the green economy in the upcoming fiscal year in our latest <\/span>Going Green story<\/a><\/span>.<\/span><\/p>\n

Also covered in the government\u2019s infrastructure development plans:<\/span> Irrigation is getting<\/span> around EGP 12.4 bn of investments to rehabilitate and line canals within the Hayah Karima initiative.<\/span><\/p>\n

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Your top infrastructure stories for the week:<\/span><\/p>\n