Aviation

Egypt partners with IFC for airport privatisation

By Pramod Kumar

March 25, 2025, 12:12 PM

IFC and Egyptian government officials sign the advisory agreement to introduce PPP schemes at 11 Egyptian airports

PPP schemes for 11 airports
IFC will be transaction adviser
Plan tested at Hurghada airport

Egypt’s civil aviation ministry has partnered with the International Finance Corporation (IFC) to introduce public private partnerships (PPP) at 11 airports, in a bit to improve infrastructure, connectivity and passenger services.

As a pilot project, the IFC, a member of the World Bank, will act as the lead PPP transaction adviser for Hurghada International Airport, the country’s second busiest in terms of annual passengers and traffic.

The IFC will support the ministry and state-owned Egyptian Holding Company for Airports and Air Navigation (Ehcaan) in issuing a public tender to select a private partner for upgrading, maintaining and operating the airport.

However, the ownership of the airport will remain with the state, IFC said in a statement.

The privatisation initiative falls under the country’s asset monetisation programme (AMP), launched in June 2023. It aims to leverage private sector financing for airport upgrades and expansions without burdening the national budget.

Egyptian airports served more than 50 million passengers on nearly 400,000 flights in 2024, according to Ehcaan.

Prime Minister Mostafa Madbouly said the agreement builds on the government’s ongoing collaboration with IFC under the AMP, boosting private sector participation in Egypt’s air transport sector.

The IFC will also develop a strategy for private sector participation in 10 other airports – Sphinx International, Sharm El Sheikh International, Borg El Arab International, Luxor International, Aswan International, Sohag International, Assiut, Abu Simbel, El Alamein International and Marsa Matruh.

The IFC has structured PPPs for Queen Alia International Airport in Jordan, Prince Mohammed bin Abdulaziz International Airport in Saudi Arabia, Sofia Airport in Bulgaria, as well as Galeão and Confins Airports in Brazil.

Its first PPP in Egypt was the New Cairo wastewater treatment plant in 2010.

Since 1975, the IFC has invested and mobilised $9 billion in development projects in Egypt, focusing on fintech, climate finance, manufacturing, infrastructure, renewable energy and healthcare.