Egypt, IFC join forces to upgrade 11 airports via PPPs

Updated 3/25/2025 8:14:00 AM

Arab Finance: The International Finance Corporation (IFC) penned an agreement with Egypt’s Ministry of Civil Aviation to advise on introducing public-private partnerships (PPP) in 11 airports across Egypt to improve infrastructure, connectivity, and passenger services, according to a statement.

As per Egypt’s wider Asset Monetization Program (AMP) previously launched in June 2023, the airports were identified as a strategic sector for increased partnerships with the private sector.

This program seeks to leverage private sector financing to upgrade and expand airports without burdening the national budget.

Prime Minister Mostafa Madbouly stated that the agreement builds on the government’s ongoing collaboration with IFC under the AMP.

Madbouly added that the IFC will provide advisory services to reinforce private sector participation in Egypt’s air transport sector.

He pointed out that this comes as a part of cooperation with the IFC to attract private investment, deliver technical assistance, and promote public-private partnerships across key sectors in Egypt.

Sérgio Pimenta, IFC’s Vice President for Africa, said: “This program will help attract world-class investors to deliver modern, efficient airports that strengthen Egypt’s position as a global travel and trade hub.”

Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, commented: "This is also part of the government's broader effort to implement structural reforms, attracting foreign direct investment and enhancing the role of both local and international investors in key economy sectors including aviation and tourism."

As a pilot project, IFC will act as the lead PPP transaction advisor for Hurghada International Airport, Egypt’s second busiest in terms of annual passengers and aviation traffic.

IFC will enable the ministry and Egyptian Holding Company for Airports and Air Navigation (EHCAAN) to issue a public competitive tender to choose an experienced strategic private partner to upgrade, maintain, and operate the airport. In this regard, EHCAAN will maintain ownership of the airport.

IFC will also help identify the most suitable model for private sector participation for 10 other airports, including Sphinx International Airport, Sharm El Sheikh International Airport, Borg El Arab International Airport, Luxor International Airport, and Sohag International Airport.

Aswan International Airport, Assiut Airport, Abu Simbel Airport, El Alamein International Airport, and Marsa Matruh Airport were also among the list.