EGYPT Trends and Developments Contributed by: Nermine Tahoun, Tahoun Law Firm
Concession, BOT, and PPP Agreements in Egypt: An Introduction In recent years, Egypt has been actively encour - aging private sector participation in infrastructure development through Concessions, Build-Oper - ate-Transfer (BOT), Build-Own-Operate (BOO), and Public-Private Partnership (PPP) agree - ments. These frameworks allow the government to leverage private sector expertise and funding while ensuring efficient service delivery and long- term sustainability. Following its agreement with the International Monetary Fund (IMF), Egypt has intensified efforts to attract private investment, particularly in sectors such as energy, transpor - tation, healthcare, and technology. This article explores the current landscape of Concession, BOT, and PPP agreements in Egypt, highlight - ing key trends, legal frameworks, and challenges that stakeholders should consider. Egypt was the first country in the region to issue a Public-Private Partnership law and to amend its procurement law to execute long-term conces - sions with the private sector. However, despite these legal advancements, it has not fully real - ised its potential in executing concessions and Egypt’s legal framework for PPPs was signifi - cantly strengthened with the enactment of Law No 67 of 2010, commonly referred to as the PPP Law. This law provides a comprehensive regula - tory framework for PPP projects, outlining the roles and responsibilities of public and private entities, as well as the procedures for project approval, tendering, and implementation. The PPP Law also established the Public-Private Partnership Central Unit (PPPCU) under the Min - other PPPs over the past decade. Legal Framework and Regulatory Environment The PPP law
istry of Finance, which serves as the primary reg - ulatory body overseeing PPP projects in Egypt. Concession and BOT agreements Concession, BOO, and BOT agreements are governed by Law No 182 of 2018. These laws provide the legal basis for private sector partici - pation in public infrastructure projects, allowing private entities to design, build, finance, oper - ate and maintain public assets for a specified period before transferring ownership back to the government. The Egyptian government has increasingly relied on these models to address infrastructure gaps, particularly in the energy and transportation sectors. Key Trends in Concession, BOT, and PPP Agreements Energy sector dominance The energy sector has been the primary benefi - ciary of Concession, BOT, and PPP agreements in Egypt. The government has prioritised renew - able energy projects, particularly solar and wind, to meet its ambitious target of generating 42% of electricity from renewable sources by 2035. Notable projects include the Benban Solar Park, one of the largest solar installations in the world, developed under a PPP model. Additionally, BOT agreements have been used to develop natural gas infrastructure, including liquefied natural gas Egypt’s transportation sector has also seen sig - nificant investment through PPP and BOT agree - ments. The Cairo Metro Line 3 extension and the Luxor-Aswan High-Speed Rail project are prime examples of how these models are being used to modernise the country’s transportation network. These projects not only improve con - nectivity but also create opportunities for private (LNG) terminals and pipelines. Transportation infrastructure
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