The Minister's statement came at the inauguration of the Partnership with the Private Sector Conference, organised by the Finance Ministry's Partnership with the Private Sector Unit, chaired by Rania Zayed, in cooperation with the International Finance Corporation. The Finance Minister said that this is part of the government's efforts to develop and improve the infrastructure, especially when Egypt will need up LE 100 b over the next five years for the development of the basic structure and improvement of public services, including education, health, electricity, sanitation and drinking water, to keep pace with local economy growth rates. Dr. Ghali explained that the general budget will provide only 30 to 40 percent of these needs and the private sector will contribute the rest.

Dr Ghali added that partnership with the private sector projects ameliorates the level of technical performance of the government since infrastructure projects are costly. They used to be funded by the general budget, but with this partnership there will be cooperation with the private sector. The Finance Minister asserted that a meticulous study of any project will be conducted before its implementation to anticipate problems before they occur, and to secure high-quality level of the service provided.

Dr Ghali emphasised the importance of transparency in partnership dealings between the public and the private sectors so that a project may move smoothly for the two parties. Abiding by the laws organising partnership with the private sector is essential to fend off any violation of rules or problems for the two parties, he noted.

The partnership, added Dr Ghali, is a long-term relationship which plans long ahead; hence differences in opinion are expected and put into consideration as a mechanism is developed to solve such problems.

The Minister noted that Egypt managed to overcome the global financial crisis just three years after it broke out, while European countries need from 7 to 10 years to recover from its repercussions. He expects the growth rate in Egypt to reach 8.5% in 2013, compared to 6% for the current and next years, and 7% for 2012.

The Egyptian government has issued a law to organise partnership in the new targeted projects. Egypt signed the first such private sector contract in New Cairo City for drinking water station and sanitary plant, based on this new system.

Dr. Ghali asserted that the most important challenges facing the government today lie in changing the society’s view of profit-oriented private sector projects, confirming that this will not take away from subsidies and efforts to care for the low-income brackets since the government is keen on providing assistance for these brackets of the society.

Engaging the private sector in public projects has nothing to do with public service pricing, The Minister pointed out. The conference is an opportunity for better exposure to partnership business and the relevant procedures, which should lead to more transparency in government works and project assignment.

The high level of transparency and competitiveness in these projects will have a positive impact on lowering the costs and will subsequently lessen the burden on the general budget, according to Dr. Ghali.Participating in the opening session of the conference were Minster of Housing and New Communities, Ahmed Al-Maghrabi, and a large number of Egyptian, Arab and foreign chairpersons of banks and other financial institutions.

(Source: Ministry of Finance)