The Senate, the upper house of Egypt’s parliament, reconvened this week after a two-week break to discuss government plans to involve the private sector in running, upgrading, and building the nation’s airports.
Addressing senators on Monday, Civil Aviation Minister Sameh Al-Hefni said that an international consultant with extensive experience was contracted five months ago to conduct a strategic feasibility study on Egypt’s airports that could be managed and operated by the private sector.
“Once the study is completed, an international tender will be launched to hand over the reins to qualified companies to run Egypt’s airports, which many see as an attractive and lucrative area for privatisation,” Al-Hefni said.
He emphasised that Egypt’s airports are not for sale as they will remain under the sovereignty of the state. However, the government is taking steps to improve and streamline their performance mainly in partnership with the private sector through BOT (Build, Operate, Transfer) and PPP (Public-Private Partnership) contracts.
Al-Hefni indicated that the government first announced plans last November to invite private-sector partners — including foreign companies — to take over the management of airports in Egypt.
“The final list of airports to be included in the tender is still being studied and will be determined after consultation with the international consultant. Each airport will be a separate tender, as this procedure makes it easier for the private sector to be involved in the management and operation of Egyptian airports,” he said.
Cabinet Spokesperson Mohamed Al-Homsani told CNBC Arabia earlier this month that all Egyptian airports will be studied for potential tenders, including Cairo International Airport.
“It is too early to give an exact date for the tender as this will be announced only after the feasibility studies are completed by the international consultant — a procedure which will happen in the second half of this year,” Al-Homsani said.
“The ultimate goal is raising the performance of Egyptian airports to international standards with improved passenger facilities and larger capacities and modern infrastructure.”
According to Al-Hefni, the government strongly believes in partnerships with the private sector in the civil-aviation sector “as it has the modern technology and administrative know-how required to improve the management of the airports and minimise the risks and boost the returns on investments made in recent years to modernise airport infrastructure.”
Al-Hefni’s statement comes two weeks after Prime Minister Mustafa Madbouli announced that the government has greenlit an agreement with the International Finance Corporation (IFC) to facilitate the privatisation of the country’s airports.
“This strategic partnership aims to offer the management and operation of Egyptian airports to the private sector, marking a significant step in Egypt’s economic reform programme,” Madbouli said.
He suggested that the private sector would also be encouraged to explore the establishment of new airlines through partnerships or alliances with the state. This move would contribute to expanding Egypt’s airlines and support the growth of the aviation sector.
Sergio Pimenta, vice president for Africa at the IFC, told the media earlier this month that the agreement aims to boost efficiency and attract private investment into the civil-aviation sector in Egypt.
“The agreement is a major component of Egypt’s broader strategy to enhance its infrastructure and foster private-sector involvement in key areas, with the potential to have a positive impact on the country’s economic development,” Pimenta said.
Al-Hefni told senators this week that partnerships with private companies in the aviation sector are not new, citing the Marsa Alam Airport (on the Red Sea), which is already managed in partnership with the private sector.
“The only problem with the private sector is that it charges high prices, but this is acceptable as long as it provides better services,” he said.
The Saudi network Al-Arabiya reported earlier this month, citing unnamed sources, that the list of airports to be privatised through BOT and PPP contracts include Cairo International Airport, Sharm El-Sheikh International Airport, Sphinx International Airport, Alamein International Airport, and Hurghada International Airport.
Al-Hefni told senators that an integrated plan to develop the Cairo International Airport is being prepared. It includes the construction of a new terminal with a capacity ranging between 30 and 40 million passengers annually, compared to 28 million passengers at present, with investments amounting to $4 billion.
“I agree that Cairo Airport faces problems, but they are being solved,” Al-Hefni said, adding that “Cairo Airport is the largest in Africa in terms of passenger traffic, and so it is a big challenge for us to alleviate congestion there and to expedite services.”
“We are now using modern technology to reduce crowdedness, not to mention the appointment of more than 350 personnel to help improve services.”
A report by the Cabinet Information and Decision Support Centre (IDSC) said the government has ambitious aviation targets to reach by 2030.
“The government aims to boost the airports’ total capacity to 97.4 million passengers a year from last year’s 64.8 million — with particular focus on Cairo International Airport, aiming to raise its capacity to an annual 31.6 million passengers,” it said.
Responding to questions, Al-Hefni indicated at his meeting with senators this week that the national carrier EgyptAir has passed through hard times over the past 14 years.
“EgyptAir has endured two revolutions, several decisions to liberalise the exchange rate, and the negative impact of the coronavirus pandemic,” Al-Hefni said. “The floatation of the Egyptian pound over the past two years has cost it more than LE2 billion in additional expenses.”
Upgrading the airline will see training and capacity building among employees so that they can offer better services. “Increasing investments and diversifying destinations for EgyptAir is also part of the aviation sector’s growth strategy leading up to 2030,” he said.
EgyptAir announced last November that it has placed orders for 18 new aircraft from Boeing and another for 10 new A350-900 jets from Airbus as part of a plan to modernise its fleet.
* A version of this article appears in print in the 23 January, 2025 edition of Al-Ahram Weekly
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