Public-Private Partnership

Public Private Partnership has developed over the years to become one of the most important methods for building infrastructures. Hence, Egypt as a developing country demands more involvement of private sectors to help building economic infrastructure projects. With the enactment of the new PPP law no. 67 for 2010 in Egypt, Public Private Partnership seems to be the suitable approach to take out this burden that falls on the public budget for financing such projects and transfer it to the private sector. However, this type of partnership involves huge amount of risks for both the Public Authority and Investors that results in allocating the risks emerging from such projects between both parties with focusing on transferring most of the risks to the Investors ’ end. Nevertheless, with the existence of Lenders as an essential factor for financing the project, only certain types of risks are borne by the Project Company while the rest is re-allocated either on a back-to-back basis to Subcontractors or back to the Public Authority.