Egypt Partners with IFC to Introduce Public Private Partnerships at 11 Airports

* IFC and the Government of Egypt - represented by Sérgio Pimenta, IFC Vice President for Africa; Dr. Sameh Elhefny, Egyptian Minister of Civil Aviation; and Dr. Rania Al-Mashat, Egyptian Minister of Planning, Economic Development, and International Cooperation - sign an advisory agreement to introduce private sector participation at 11 Egyptian airports. Photo: Courtesy of Egyptian Prime Minister Mostafa Madbouly’s office

IFC has engaged with the Government of Egypt to advise on introducing public private partnerships (PPP) in the country’s airports sector to improve infrastructure, connectivity, and passenger services.

Under this engagement, IFC will advise the Ministry of Civil Aviation (MoCA) on prepare 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 in terms of annual passengers and aviation traffic.

Airports were identified as a strategic sector for increased partnerships with the private sector as per Egypt’s wider Asset Monetization Program (AMP), which was launched by the Government of Egypt in June 2023 and is supported by IFC. According to the Egyptian Holding Company for Airports and Air Navigation (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 both tourism and trade.

This program 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 Egyptian government, improve airport infrastructure and efficiency, and attract more passengers.

Prime Minister Dr. Mostafa Madbouly stated that the agreement builds on the Government’s ongoing collaboration with IFC under the Asset Monetization Program. He highlighted that IFC will provide advisory services to boost private sector participation in Egypt’s air transport sector, and reaffirmed his commitment to this strategic partnership, which aims to improve airport services and capacity.

He added that the agreement reflects a broader partnership with IFC to attract private investment, 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,” said Sérgio Pimenta, IFC’s Vice President for Africa. “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.”

H.E. Dr. Sameh El-Hefny, Minister of Civil Aviation, stated, "The Ministry of Civil Aviation is committed to developing the air transport sector in Egypt, in alignment with the state’s vision towards enhancing infrastructure and achieving sustainable development that contributes to supporting the national economy. The partnership with IFC as a strategic partner 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.”

H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, and Egypt’s Governor at the World Bank Group, stated, "Egypt is committed to building a private sector-led economy that drives growth and jobs. Since 2023, the IFC has been our strategic advisor, and today’s signing marks the first step in activating this partnership, starting with the inclusion of Egyptian airports in the asset monetization program. 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"

For Hurghada International Airport, IFC will support the MoCA and EHCAAN to issue a public competitive tender to select an experienced strategic private partner to upgrade, maintain, and operate the airport. Ownership of the airport 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 program. The 10 other airports are:

1. Sphinx International Airport
2. Sharm El Sheikh International Airport
3. Borg El Arab International Airport
4. Luxor International Airport
5. Aswan International Airport
6. Sohag International Airport
7. Assiut Airport
8. Abu Simbel Airport
9. El Alamein International Airport
10. Marsa Matruh Airport

IFC has a robust track record of advising governments around the world in attracting private sector investments in state assets. IFC has structured public-private partnerships for critical infrastructure such as Sofia Airport in Bulgaria, Galeão and Confins Airports in Brazil, Queen Alia International Airport in Jordan and the Prince Mohammed bin Abdulaziz International Airport in Saudi Arabia, for example. In Egypt, IFC helped successfully structure and close the country’s first PPP in 2010: the landmark New Cairo wastewater treatment plant.

Since beginning operations in Egypt in 1975, IFC has invested and mobilized $9 billion in development projects. IFC’s private sector support in Egypt focuses on fintech, climate finance, manufacturing, infrastructure, renewable energy, healthcare, gender, and other sectors.

About IFC

IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2024, IFC committed a record $56 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org.

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