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Jan 01, 2010

Passed public-private partnership law

Egypt passed the Public Private Partnership (PPP) Law 67/2010, which targets key areas of the country's infrastructure, such as agriculture and irrigation, education, industrial development, roads and transport, and water and sanitation. The law allows investments to take place under either an operating contract (whereby the product or service is sold to a Government entity) or a concessionary contract (whereby the private company is responsible for both operating the entity and selling the product or providing the services to the end-users, subject to strict monitoring by the Government). The PPP programme provides that a specially-created Egyptian joint-stock company will carry out the investment, in which the public-sector equity stake would not exceed 20 percent. The private sector must finance, construct or rehabilitate the public utility project. The operating or concessionary contracts are treated as additional obligations. Contracts will last 5-30 years, with options for extensions. Investments must meet a minimum amount of U.S $18 million. No payment may be made to the developer unless the administrative authority issues an acceptance certificate.

Type: Entry and establishment (Ownership and control)

Industry: Not industry specific