GRM 2010 GRM 2011

Abstract Details

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The Role of Public Private Partnership in Infrastructure Development: Lessons Learnt from the New Cairo Wastewater Project in Egypt
Paper Proposal Text :
The development of infrastructure facilities using private capital has become a common practice in the GCC and many other Arab countries including Egypt. Despite such a commonality, the implementation of PPP projects in the area of infrastructure development has taken different forms in different countries. Additionally, the analytical results of the implemented infrastructure projects provide a mixed bag of success and failure stories. In this context, the paper argues that, the differences in PPP models and implementation techniques among the GCC and Arab countries allow for lessons drawing and policy learning among the countries of the region. The paper provides a case-study analysis on Egypt’s first Public Private Partnership infrastructure project to Build, Operate and Transfer (BOT) a 250,000 m³/day treatment plant in New Cairo City. The aim is to assess the process of awarding the concession for the establishment of the wastewater treatment facility in addition to underlining the major challenges that might face this relatively new model in practice. The analysis of the case study has underscored several lessons and policy implications, which can be beneficial for the GCC governments. Chief among those lessons is the importance of developing an overall enabling PPP environment in terms of providing the legal, regulatory, and administrative frameworks required for the success of the infrastructure projects. Such frameworks should be a reflection of the country’s social, economic, political and legal contexts. Furthermore, given the institutional complexity of the PPP governance arrangements and the growing role of the private capital in developing infrastructure facilities the paper has concluded that, despite the potential positive impact of PPP projects in the area of infrastructure development, the PPP institutional arrangements should mirror the core values of good governance including transparency, accountability and due process.