The action aligns with Egypt's commitment under its Extended Fund Facility (EFF) loan programme with the International Monetary Fund (IMF), mainly accelerating the divestment plan by raising the private sector contribution in the country’s economic activity.
Under this engagement, IFC will do the following:
** It will advise Egypt's Ministry of Civil Aviation (MoCA) on preparing a strategy for partnership development with the private sector in 11 airports across Egypt, representing a significant portion of the country’s domestic and international air travel;
** As a pilot project, IFC will act as Lead PPP Transaction Advisor for Hurghada International Airport, Egypt’s second busiest airport in terms of annual passengers and aviation traffic;
** IFC will support the MoCA and Egyptian Holding Company for Airports and Air Navigation (EHCAAN) in issuing a public competitive tender to select an experienced strategic private partner to upgrade, maintain, and operate the Hurghada International Airport. The airport's ownership will remain with EHCAAN;
** IFC will also help identify the most suitable model for private sector participation for 10 other airports. This includes examining options to potentially bundle more than one airport in the same transaction and developing a recommended roadmap for implementing the programme. The 10 other airports are as follows:
- Sphinx International Airport,
- Sharm El-Sheikh International Airport,
- Borg El-Arab International Airport,
- Luxor International Airport,
- Aswan International Airport,
- Sohag International Airport,
- Assiut Airport,
- Abu Simbel Airport,
- El-Alamein International Airport,
- Marsa Matruh International Airport.
Airports were identified as a strategic sector for increased partnerships with the private sector as per Egypt’s broader Asset Monetization Programme (AMP), launched by the government in June 2023 and supported by the IFC.
According to the EHCAAN, Egyptian airports served more than 50 million passengers on nearly 400,000 flights in 2024. Improving efficiency and passenger experience in the sector will lead to greater air connectivity, which is key to creating jobs and unlocking sustainable economic growth through tourism and trade.
This programme aims to leverage private sector financing for airport upgrades and expansions without burdening the national budget.
Private sector innovation and efficiency are expected to maximize revenue generation for the government, improve airport infrastructure and efficiency, and attract more passengers.
Prime Minister Mostafa Madbouly said the agreement builds on the government’s ongoing collaboration with IFC under the Asset Monetization Programme.
He also highlighted that IFC will provide advisory services to boost private sector participation in Egypt’s air transport sector, reaffirming his commitment to this strategic partnership, which aims to improve airport services and capacity.
He added that the agreement reflects a broader partnership with the IFC to attract private investments, deliver technical assistance, and strengthen public-private partnerships across key sectors in Egypt.
“Enhancing Egypt’s airport infrastructure through public-private partnership will drive economic growth and boost connectivity in the country and across the wider region. 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,” said Sérgio Pimenta, IFC’s vice president for Africa.
"The strategic partnership with IFC will help provide advisory services on public-private partnerships in a number of Egyptian airports, a crucial step towards improved service quality and operational efficiency in the civil aviation sector,” Minister of Civil Aviation Sameh Elhefny said.
Meanwhile, Rania Al-Mashat, minister of planning, economic development, and international cooperation and Egypt’s governor at the World Bank Group, stated that Egypt is committed to building a private sector-led economy that drives growth and jobs.
“This is also part of the government's broader effort to implement structural reforms, attracting foreign direct investment and enhancing the role of local and international investors in key economy sectors including aviation and tourism,” she added.
IFC has a robust track record of advising governments worldwide on attracting private sector investments in state assets.
It has structured public-private partnerships for critical infrastructure, such as Bulgaria's Sofia Airport, Brazil's Galeão and Confins Airports, Jordan's Queen Alia International Airport, and Saudi Arabia's Prince Mohammed bin Abdulaziz International Airport.
In 2010, the IFC helped structure and close Egypt’s first PPP, the landmark New Cairo Wastewater Treatment Plant.
Since beginning operations in Egypt in 1975, IFC has invested and mobilized $9 billion in development projects. Its private sector support in Egypt focuses on fintech, climate finance, manufacturing, infrastructure, renewable energy, healthcare, gender, and other sectors.
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