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Egypt
>> Regional Overview >> Egypt Overview Program Data Sheet
263-018
USAID MISSION: Egypt
PROGRAM TITLE: Infrastructure (Pillar: Economic Growth, Agriculture, and Trade)
STRATEGIC OBJECTIVE AND NUMBER: Access to Sustainable Utility Service in Selected Areas Increased, 263-018
STATUS: Continuing
PLANNED FY 2002 OBLIGATION AND FUNDING SOURCE: None.
UNOBLIGATED PRIOR YEAR FUNDS AND FUNDING SOURCE: $73,143,000 ESF
PROPOSED FY 2003 OBLIGATION AND FUNDING SOURCE: None.
INITIAL OBLIGATION: FY 1999 ESTIMATED COMPLETION DATE: FY 2005Summary: The USAID infrastructure program in Egypt is made up of three components—
- construction activities to enhance utility services and coverage;
- assistance to help utilities operate efficiently, improve services, and recover costs; and
- capacity building in regulating utility performance and increasing private-sector participation.
Inputs, Outputs, and Activities: FY 2002 Program: USAID will provide funding under the Secondary Cities and Egypt Utilities Management grant agreements to complete funding programmed for water and wastewater construction and to expand support for related legal and regulatory reform. The last three large-scale waste and wastewater construction contracts will be awarded in FY 2002. This includes construction of sewerage improvements in Mansoura to treat additional flows created by the recently completed, USAID-financed water treatment plant to serve 1.3 million people; construction of major waste and wastewater facilities in the three governorates of Beni Suef, Fayoum, and Minia to benefit about 1.6 million consumers; and expansion of the water treatment and distribution system in Alexandria to benefit about 5.7 million people. In FY 2002, a new three-year contract will be awarded to support the proposed waste and wastewater regulatory agency. Concurrently, institutional development efforts will continue in the nine USAID-assisted waste and wastewater utilities.
Over the past 25 years, about 20% of the $25 billion in USAID assistance to Egypt has been invested in infrastructure. By 2005, USAID will have concluded its $5 billion, 30-year infrastructure program, including—
- $2.5 billion in water/wastewater: About 21 million people will have benefited directly from USAID investments in new or improved services.
- $1.8 billion in electric power: In the past 25 years, USAID has financed 35% of Egypt’s electric power-generating capacity, benefiting more than 20 million people.
- $700 million in telecommunications: Telephone services have been extended or improved for eight million people.
In the telecommunications sector, FY 2002 funding will initiate Telecom Egypt leadership development training of 25 middle-level managers per year for three years, while the last two construction contracts will be awarded to expand the capacity of the Network Operations Center in Cairo to monitor and re-route telephone and digital messages. In electric power, no new obligations are planned in FY 2002, but the three remaining construction contracts will be awarded: upgrading the controls in the Ataka power plant in Suez; constructing three high-voltage substations; and building a high-voltage equipment short-circuit testing laboratory. Efficiency gains from the upgrade of the Ataka power plant will be passed on to about 4 million consumers. USAID’s capital assistance has shifted emphasis from building new capacity to helping improve the efficiency of existing plants and for control centers that manage the electric power grids. Completion of two regional control centers in Cairo and Alexandria will improve system efficiency for about 20 million beneficiaries. The planned upgrade of the National Energy (Electric Power) Control Center will improve system reliability, benefiting customers nationwide through reduced power outages and surges. Ongoing activities in the power sector include assistance to the Electricity Regulatory Agency in developing operating procedures and guidance; support to the Egyptian Electricity Holding Company to begin implementation of power pooling, involving a system of measuring power flows, billing transfers, and settlement of payments; and support to re-engineer the Alexandria distribution and West Delta power generation companies.
Planned FY 2003 Program: In 2004, USAID will conclude a $700 million telecommunications program and its $1.8 billion power program. In 2005, the $2.5 billion waste and wastewater program will be completed. In concluding its infrastructure program, USAID is phasing out of financing infrastructure construction. It is placing increased emphasis on supporting legal and regulatory reform related to these sectors to create an environment for private-sector participation and improved services to customers. In FY 2003, USAID plans to provide funding to strengthen the financial management systems for electricity companies, and funding for training to assist local waste and wastewater utilities adapt to an improved regulatory environment.
Performance and Results: USAID is currently managing a waste and wastewater portfolio valued at about $743 million. About 10 million people have directly benefited from past USAID investments in water and sanitation. The target for new beneficiaries with new or improved waste and wastewater services from the ongoing construction portfolio is an additional 10.9 million people by 2005. USAID policy dialogue has led to the development of enabling legislation for creating a waste and wastewater regulatory agency and repealing restrictions on private investment. If enacted, the law would sanction the transition to a regulatory framework. USAID support for tariff rate analyses and private transactions is guiding waste and wastewater-sector policy reform and institutional development. Working in the electric power sector since 1975, USAID has supported construction, equipment acquisition, technical assistance, policy reform, institutional strengthening, and training. These investments have contributed to transformation of a formerly disconnected and unreliable system into a modern, centrally managed electric grid. In the last 12 months, the GOE has restructured the electric power sector, from seven combined generation and distribution companies into a transmission company, five generation companies, and seven distribution companies, a further move toward decentralization and increased private-sector participation. This new structure, when combined with power pooling, will greatly enhance competition in the supply of electricity. Also, the establishment of the regulatory board is likely to lead to improved system reliability and cost recovery in the medium term. USAID capital assistance for telecommunications shifted emphasis from increasing the number of telephone lines to introduction of new technology such as digital switching exchanges and a network operations center to make it possible to re-route calls when particular exchanges are overloaded. By 2003, digital switching will expand telephone service to about 1.5 million people.
Principal Contractors, Grantees, or Agencies: USAID works closely with the Ministry of Housing, Utilities and Urban Communities; the Ministry of Communications and Information Technology; the Ministry of Electricity and Energy; and a number of local utilities to implement the program. A large number of U.S. firms are under contract to implement the programs, including ABB SUSA; Washington Group International; Morganti, Metcalf & Eddy; Planning and Development Collaborative (PADCO); PA Consultants (formerly Hagler Bailly); Montgomery Watson Harza (MWH); Chemonics International; Advanced Engineering Associates; Deloitte Touche Tohmatsu; General Dynamics; Duke Engineering Services; Pennsylvania Power and Light; Gilbert Commonwealth International; Nortel Networks; Raytheon; Hewlett-Packard; Macro Corporation; Kuljian; and K&M Engineering.
US Financing in Thousands of Dollars
263-018 Access to sustainable utility service in selected areas increased ESF Through September 30, 2000 Obligations 1,034,053 Expenditures 220,641 Unliquidated 828,954 Fiscal Year 2001 Obligations 0 Expenditures 141,440 Through September 30, 2001 Obligations 1,034,053 Expenditures 362,081 Unliquidated 671,972 Prior Year Unobligated Funds Obligations 73,143 Planned Fiscal Year 2002 NOA Obligations 0 Total Planned Fiscal Year 2002 Obligations 73,143 Proposed Fiscal Year 2003 NOA Obligations 0 Future Obligations 16,666 Est. Total Cost 1,123,862
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Last Updated on: May 29, 2002 |
