Public Private Partnerships in Egypt: Rules versus Deals

In its attempt to expand private economic activity, the Egyptian government has resorted to encouraging local private industry through various investment incentives and foreign trade tariffs. With respect to liberalization and privatization in utility sectors, Egypt’s efforts to introduce private investment in these sectors started shortly after launching “Egypt’s Economic Reform and Structural Adjustment Program” (ERSAP) as a mechanism to curtail public investment needs in utilities. This study summarizes the overall policy framework for both sectors highlighting similarities and differences at the sector policy level. It aims to analyze how market-specific variables may have facilitated reform progress in telecommunication as opposed to electricity. In addition, it evaluates the extent to which other factors may have played a role in limiting or expanding de-facto regulatory space.