The International Finance Corporation (IFC), a member of the World Bank Group, has joined forces with Egypt’s Ministry of Civil Aviation (MoCA) in a Public-Private Partnership (PPP) initiative to develop 11 airports across the country, according to a statement released on March 24.
The program will begin with Hurghada International Airport, which will serve as the pilot project as it is the second-busiest airport in Egypt based on passenger numbers and air traffic.
Boosting air connectivity
The Egyptian government has identified the aviation sector as a critical area for expanding public-private collaborations, as part of its broader Asset Monetization Program (AMP), launched in June 2023 with support from the IFC. The initiative aims to improve infrastructure and services across key sectors, including airports. According to the Egyptian Holding Company for Airports and Air Navigation (EHCAAN), Egyptian airports handled over 50 million passengers and managed nearly 400,000 flights in 2024.
The program’s primary goals are to enhance airport efficiency, improve the passenger experience, and boost air connectivity. This will, in turn, drive job creation and foster sustainable economic growth in the tourism and trade sectors.
“This program aims to leverage private sector financing for airport upgrades and expansions without burdening the national budget,” stated the IFC.
Global travel hub
Prime Minister Mostafa Madbouly said that this agreement marks another step in the ongoing collaboration between the Egyptian government and the IFC under the AMP. He added that the IFC will provide advisory services to encourage private sector participation in the air transport sector.
“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,” said Sérgio Pimenta, IFC’s Vice President for Africa.
Rania Al-Mashat, Egypt’s Minister of International Cooperation, highlighted the importance of private sector involvement in Egypt’s economic development. “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.”
The PPP program will initially focus on Hurghada International Airport, but it will also include the following 10 other airports: Sphinx International Airport, Sharm El Sheikh International Airport, Borg El Arab International Airport, Luxor International Airport, Aswan International Airport, Sohag International Airport, Assiut Airport, Abu Simbel Airport, El Alamein International Airport, and Marsa Matruh Airport.
However, the program is not without its challenges. Mohamed Hanafi, Managing Director at LYNX Strategic Business Advisors, noted that “there will be some administrative challenges that need to be considered.” He pointed out that managing the many diversified entities within a single airport requires improved coordination, which could explain why Cairo International Airport was not included in this initial phase of the program.
PPP vs. AMP
Hanafi also clarified the differences between the PPP program and the AMP. While both programs overlap, they are distinct, he clarified. The monetization program allows for the transfer of full ownership of a government asset to the private sector, while the PPP model involves a partnership where the private sector and government collaborate to manage specific projects.
Despite the challenges, Hanafi sees the program as a very positive step for Egypt’s airport sector. “I think it is a very positive step; it is long-awaited in terms of having efficient operations management of airports because of the impact on different sectors of the economy, first and foremost, being tourism,” he concluded.
By engaging the private sector in airport development, Egypt is poised to enhance its air connectivity and infrastructure, creating a more robust travel and trade hub that will benefit the economy for years to come.
