2005 - 2006 - Pinsent Masons Water Yearbook 2012

EGYPT PART 2: COUNTRY ANALYSIS
Freshwater
Industrial (1993) 8%
Agriculture (1993) 86%
Environmental legislation
A National Water Policy has set out targets for 2017. These concentrate on improving the efficiency
of the irrigation systems and increasing the amount of treated wastewater used for irrigation.
Plan costs, 2003-17
LE billion Investment Recurrent costs
Ministries 95.1% 20.5%
Municipalities 0.2% 66.0%
Private sector 4.7% 13.5%
Total 145 44
Planned spending
LE billion 2003 2004 2005 2006 2007 07-12 12-17 Total
Capital projects
Drinking water treatment 2.75 2.75 2.75 2.75 2.75 7.50 7.50 28.25
Wastewater treatment 5.96 5.96 5.96 5.96 5.96 22.50 13.21 65.49
Operating spending
Drinking water treatment 0.69 0.74 0.80 0.85 0.91 4.99 6.65 15.63
Wastewater treatment 0.49 0.59 0.69 0.79 0.89 5.13 6.50 15.09
Private sector participation encouraged
In 2000, a law on the ‘grant of concessions for establishment, management and utilisation of
water/wastewater utilities’ was passed. This allows for the granting of concessions for up to 99 years
to private sector companies. An intermunicipal policy co-ordinating committee was established to act
as a regulator for the water and wastewater sector, with the specific aim of encouraging management
efficiency, cost recovery and private sector participation.
Groundwater
Annual availability (1998) 1.3km 3
Per capita 20m 3
Annual withdrawal (1985) 3.0km 3
Privatisation prospects
The first major private sector operated facility was to be for developing industrial water provision in the
Suez Special Economic Zone (SEZ). In 2001, a US$180 million 33 year water treatment BOT
contract was awarded to Canada’s SNC Lavalin. In 2002, the contract was suspended. The BOT
plans for water provision for the resort city of Sharm El Sheikh have also been postponed. Bechtel
has been asked to develop a series of proposals for Independent Water and Power Projects (IWPP's)
in the Sinai. A private sector managed system supplies water to most of the hotels in the city's
Naama Bay area, and a private wastewater treatment facility is being built that will also supply treated
water for reuse.
In Nuweiba, private companies maintain the city's water and wastewater system. In the longer term,
pressures for new investment through PPP are likely to return. Along with Suez, the Port Said
industrial zone is the most likely candidate for a BOT, along with the tourist resorts.
MAJOR CITIES
City 2000 2015 Status
Alexandria 3,506,000 4,330,000 N/A
Cairo 9,462,000 11,531,000 N/A
Shubra El Khema 937,000 1,234,000 N/A
84 Pinsent Masons Water Yearbook 2005 – 2006