2018年-世界发展银行全球_Wastewater___From_Waste_to_Resource_-_The_Case_of_New_Cairo_Egypt_6页_775kb

Wastewater: From Waste to Resource - The Case of New Cairo, Egypt

Core Content

The New Cairo Wastewater Treatment Plant (WWTP) is a landmark public-private partnership (PPP) project in Egypt, aimed at addressing the country's water scarcity and improving sanitation in newly developed urban areas. The project was initiated to support the rapid growth of New Cairo, which is expected to grow from 550,000 to 4 million residents by 2026. With limited public financing and existing infrastructure unable to meet the growing demand, the Egyptian government sought to engage the private sector to construct and operate the plant.

The plant is designed to treat up to 250,000 cubic meters of wastewater per day, serving the satellite cities of New Cairo, Madinaty, and El Mostakbal. Treated water is used for agricultural irrigation and urban green areas, reducing the need for freshwater and improving environmental quality. Additionally, wastewater sludge is sold to the cement industry as a fuel alternative, contributing to a revenue stream and reducing greenhouse gas emissions.

Main Objectives

• Increase freshwater availability in new urban areas by reusing treated wastewater.
• Reduce untreated wastewater discharge into the Nile River, thereby improving public health and environmental conditions.
• Implement cost-effective solutions to alleviate pressure on public finances and ensure efficient operations.
• Mobilize private sector financing and expertise while minimizing risks for the government.
• Establish a replicable PPP model in Egypt to support future infrastructure projects.

Key Components of the PPP

• Project Structure: A 20-year DBFOT (Design-Build-Finance-Operate-Transfer) concession.
• Contracting Authority: The New Urban Communities Authority (NUCA).
• SPV (Special Purpose Vehicle): Orasqualia, a joint venture between Orascom Construction Industries (Egypt) and Aqualia (Spain).
• Financing:
  • Total private investment: US$140 million
  • Project finance without recourse: US$100 million
  • Equity: US$40 million
• Payment Method:
  • Fixed payment for capital investment and debt service
  • Variable payment based on treated wastewater volume
  • Pass-through charge for electricity reimbursement

Benefits

For the City and Environment

• 3 million people benefit from improved sanitation and water supply.
• Reduced pollution of the Nile River through wastewater treatment.
• Improved public health due to reduced exposure to untreated effluent.

For the Private Partner

• Risk transfer by the government, including inflation, interest rates, and utility supply risks.
• Reference case for future projects and international recognition.
• Knowledge transfer and local visibility for the Egyptian firm.

For the Government and Utility

• Risk transfer in financing, construction, and operations.
• Institutional strengthening through the creation of the PPP Central Unit.
• New legal and regulatory frameworks were established to support future PPPs.
• Improved efficiency by leveraging private sector expertise.

For the Agricultural Sector

• Alternative irrigation source reduces pressure on freshwater resources.
• Treated sludge can be used as agricultural fertilizer.

Key Factors for Success

• Sound governance arrangements were established early on.
• Strong stakeholder participation and coordination ensured project success.
• Dedicated PPP Central Unit within the Ministry of Finance improved oversight and coordination.
• Transparency in procurement and dialogue with bidders enhanced trust and improved the tender process.
• Detailed risk analysis and clear risk allocation in the contract made the project more attractive to investors.
• Inclusion of a local partner (Orascom) provided stability during the 2011 Egyptian revolution.
• Use of an SPV enabled both firms to combine their strengths and access local financing.
• External advisory support from IFC and PPIAF contributed to the project's success.

Conclusion

The New Cairo WWTP project is a successful example of how a PPP can be used to address water scarcity and improve sanitation in rapidly growing urban areas. It not only provided a sustainable solution for wastewater management but also served as a model for future PPPs in Egypt, leading to the development of legal and regulatory frameworks. The project's success was largely due to strong governance, risk management, and collaboration between public and private sectors.