If there is a country willing to implement PPP schemes to develop infrastructure projects, this is Egypt. Last week a great event took place, the winning consortium for New Cairo waste water treatment plant reached financial close to fund the project.With the first deal concluded, Cairo is already pushing ahead with two other wastewater schemes, at 6 October City and Abu Rawash (prequalification already launched).

More significantly, it has announced plans to develop several independent power projects (IPP), marking a return to private participation in the sector after a 10-year gap.Other PPP project in the street involves the development of a 34km, eight-lane urban highway in Cairo, Egypt. The road will connect the existing ring road around Cairo with the Cairo-Alexandria highway, and will include two bridges crossing the Nile and a possible adjacent lane for the construction of a light railway link.

There are not many news about.The International Finance Corporation, part of the World Bank, is now seeking a consultant to assess the planned PPP projects for the government, including gauging how much financing and what guarantees will be required.The study is part of Cairo's plan to set up a long-term finance facility to lend to PPP projects. If it can organise this, Egypt should find it far easier to launch many more PPPs in the future.Financial closeOrascom Construction Industries (OCI) confirmed last week that its 50/50 joint venture with Spanish group Aqualia(Orasqualia) has signed both the facility and direct agreements for the New Cairo Waste Water Treatment Plant with the project lenders, the New Urban Communities Authority and the Public Private Partnership (PPP) Central Unit at the Egyptian Ministry of Finance.

The 20-year concession was tendered by the Egyptian Ministry of Housing, Utilities & Urban Development in coordination with the Ministry of Finance. The wastewater treatment plant will have a capacity of 250,000 m3 per day and will serve over one million people. The overall contract value during the concession period is EGP 2.646 billion and includes the Engineering, Procurement and Construction (EPC) of the plant and the Operations and Maintenance (O&M). Participant banks in the loan facility include National Société Générale Bank (NSGB) SAE, Commercial International Bank (CIB) Egypt SAE, Arab African International Bank SAE and Ahli United Bank Egypt SAE.NSGB is acting as the facility agent and CIB is the security agent and technical bank.Baker and McKenzie is acting legal counsel for Orasqualia on this loan facility and Zulficar & Partners for the project lenders.