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Al-Ahram Weekly
12-07-2025
- Business
- Al-Ahram Weekly
More private sector participation in water - Egypt - Al-Ahram Weekly
Ahmed Abdel-Hafez sheds light on a new law opening the door to wider private sector participation in Egypt's water and wastewater services The House of Representatives, the lower house of Egypt's parliament, approved the Drinking Water and Wastewater Regulatory Law, new legislation governing the work of the National Authority for Regulating Drinking Water and Wastewater Services (NARDWWS), this week. Established in 2004 by a presidential decree that placed it under the supervision of the Minister of Housing, the affiliation of the authority will now be transferred from the Ministry of Housing to the office of the prime minister. Under the new law, the private sector will be able to establish and operate water and wastewater treatment plants, in return for an annual fee not exceeding LE50 million. Licences will be granted to companies for a maximum period of 15 years, provided they sell water at prices set by the government's National Authority for Regulating Drinking Water and Wastewater and Consumer Protection (NARDWWCP). Egypt's drinking water and wastewater sector began developing in 2004-2005, when the Holding Company for Drinking Water and Wastewater was established and water authority affiliations were transferred from local governors to the Company. Additionally, the NARDWWCP was created, along with entities responsible for building treatment plants, such as the National Authority for Drinking Water in Greater Cairo, the Central Agency for Reconstruction, and the New Urban Communities Authority. The latter manages the drinking water and wastewater plants it has built in Egypt's new cities, while the Holding Company oversees the water facilities in the remaining governorates. According to the new law, the private sector may participate in the construction, management, and operation of drinking water and wastewater networks and plants, whether individually or jointly, as well as supply lines and storage tanks. The NARDWWCP will be responsible for issuing licences to companies. The law stipulates that the fees paid shall amount to two per cent of the price per cubic metre of produced drinking water and two per cent of the price per cubic metre of collected wastewater, not exceeding LE50 million annually, with a minimum of LE25,000. According to an official at the Holding Company, who spoke on condition of anonymity, the current management of drinking water and wastewater treatment plants is divided between the Holding Company in the governorates and the New Urban Communities Authority in the new cities. Given the Holding Company's extensive operational capabilities, including investments in human resources, technology, equipment, laboratories, mobile labs, and reference labs, it is not expected that it will outsource the management of its plants and networks to the private sector. However, the New Urban Communities Authority is likely to benefit from the new law, since the water departments in the new cities directly manage plants and networks, including operations, maintenance, pressure regulation, and quality control, the official said. These departments can outsource these services to the private sector. Egypt's current daily water production stands at 33.6 million cubic metres, or 12.2 billion cubic metres a year. There are 588 wastewater treatment plants in the country with a combined capacity of 18.8 million cubic metres per day. The Drinking Water and Wastewater Regulatory Law divides consumers into the following consumption brackets: 0-10 cubic metres paying 65-66 piastres per cubic metre; 11-20 cubic metres paying 160-165 piastres per cubic metre; 21-30 cubic metres paying LE2.25-2.27 per cubic metre; 31-40 cubic metres paying LE2.75-2.76 per cubic metre; and over 40 cubic metres paying LE3.15-3.18 per cubic metre. Wastewater fees stand at approximately 75 per cent of water bills for domestic use. To maintain financial stability, the Holding Company has been receiving direct financial support from the government since its establishment, due to the disparity between the cost of production and the selling price of water, in addition to the capital investment required to produce clean water. Water subsidies in the draft 2025-26 budget are estimated at LE2 billion, double the amount allocated in the previous fiscal year. The subsidies are allocated to the Holding Company and its affiliates to cover the cost differences resulting from desalination in residential areas and to ensure the financial stability of the company and the affiliates concerned, a parliamentary statement following a budgetary discussion said. According to Mohamed Attia Al-Fayoumi, head of the House's Housing Committee, the new law allows the regulatory authority to grant the private sector a share in the management of water plants and to establish new plants, or networks, or segments of networks in return for annual fees. The difference between the cost of production and the selling price to consumers is covered by the state budget, as is the case with the Holding Company, he said. Al-Fayoumi added that the new system for water is similar to the one regulating the Energy and Electricity Authority, which allows the private sector to establish and own power stations such as solar energy plants and connect them to the national electricity grid to sell their output at a pre-determined tariff. The private sector is already offering drinking water and wastewater services, such as at the Kafr Al-Sheikh Wastewater Services Project, the Wastewater Treatment Project for villages affected by pollution in Lake Qaroun in Fayoum, and the Kitchener Drain Water Quality Improvement Project in the governorates of Kafr Al-Sheikh, Daqahliya, and Gharbiya. The Orasqualia Wastewater Treatment Plant in New Cairo, operational in July 2022, is the first wastewater treatment facility to be managed and operated through a partnership between the state and the private sector. Several seawater desalination plants have also been put out for tender in Marsa Matrouh, Dabaa, and South Sinai, according to the website of the Holding Company. These partnerships were implemented under build-operate-transfer contracts, in which the private sector constructs and operates the facility for a defined period, recovering its costs and earning profits before transferring ownership to the government at the end of the contract. Operation and maintenance contracts have also been used, whereby the private sector is entrusted with the operation and maintenance of existing facilities. Such public-private partnership agreements are designed to ease the pressure on the state budget while enhancing the quality of services delivered at reasonable prices. According to a former official at the Holding Company and the National Authority, the likelihood of implementing the law is greater in new cities managed by the New Urban Communities Authority than in the governorates because consumption in the latter is lower than in the new cities. The higher per capita consumption in the new cities places users in higher tariff brackets, allowing for the more financially sustainable implementation of private sector management and operations, he noted. * A version of this article appears in print in the 10 July, 2025 edition of Al-Ahram Weekly Follow us on: Facebook Instagram Whatsapp Short link:
Egypt Independent
02-07-2025
- Politics
- Egypt Independent
A call to Egypt's transport minister for a modern political discourse
Transport Minister Kamel al-Wazir's statement that he will remain in his post until death, and carry the title of minister for the rest of his life, genuinely surprised me. This clearly implies that no one can dismiss him, regardless of any mistakes made within his ministry. It's not that anyone wishes the man out of the ministry, or dislikes him. Rather, we want to see things set right in the ministry and prevent a recurrence of incidents like the Monufiya tragedy, which was blamed on the road needing maintenance and supposedly requiring LE50 billion. The question then becomes – where will all this money come from, especially when you were the reason for increasing the state's burden with loans and debts? Is it even conceivable that a road built from scratch for ten billion pounds would cost fifty billion pounds to maintain? Mr. Minister, I want to address you and the government about the nature of the political discourse the government uses with the people. Unfortunately, it's a discourse that needs review, careful precision, and a sense of responsibility. In other contexts, ministers apologize to the public, admit responsibility, and submit their resignations. Some ministers in other countries even commit suicide out of a sense of responsibility and failure to perform their duties. I am not advocating for suicide, nor do I encourage it, but I at least support the idea of apologizing and not justifying mistakes and transgressions. I also want to address Minister Mahmoud Fawzy, who expressed anger at a lawmaker's criticism of the government and demanded its removal from the parliamentary record. I say to him: Mr. Minister, a lawmaker has the right to speak freely under the dome of parliament – that's what immunity is for. Your role in parliament is not to silence or threaten this lawmaker or any other. People haven't forgotten your old statement that 'the numbers are terrifying.' If a lawmaker brings up that statement, would they be acting illogically or improperly? The idea is to modernize political discourse to resonate with the new generation of Egyptians, who simply won't accept empty talk. It's crucial that you let people criticize, and important that you allow them to submit parliamentary requests. Most importantly, you must listen to them. Lawmakers aren't speaking in a vacuum; they're voicing the reality the people live every day, listening to the quiet suffering of the poor and ordinary citizens. All these trillions they keep hearing about haven't eased their pain or solved their problems. A quick look at the homes in al-Sanabsa village, for instance, reveals the sheer scale of the poverty citizens endure—a tragedy so profound it forces underage girls to work just to help their families. In short, the government doesn't feel the suffering of its people. It needs to come down and live among the people in the country it governs. It's simply unacceptable for a government to rule over Egypt's people, claim it's working for them, and declare that alleviating their burdens is its priority, all while seemingly being so out of touch with their lived reality. About the author: A seasoned journalist since 1991, Mohamed Amin has contributed to numerous publications, including Al-Naba newspaper, and served as a correspondent for Agence France-Presse (AFP). His career trajectory includes several prominent editorial roles, culminating in his appointment as Chairman of the Board of Trustees for Al-Masry Al-Youm newspaper in 2016. He has also held the position of Editor-in-Chief for the Cairo-based October Magazine in July 2017.
Egypt Independent
30-06-2025
- Automotive
- Egypt Independent
Transport Minister responds to criticism over Menoufia accident
The Deputy Prime Minister for Industrial Development and Minister of Transport and Industry, Kamel al-Wazir, responded to criticisms from the media following the Menoufia accident that killed 19 people and injured three others. In an interview with TeN TV on Sunday, he said, 'Whoever attacks, attack. I am happy with their attacks. There is no problem at all. It gives us a chance to respond and explain to our people.' Wazir indicated that he coordinated with the Interior Minister to assign committees to take random samples from all road users at all checkpoints to ensure they are not using drugs. He noted that the tests will initially apply to microbus and truck drivers. He explained that Egyptian President Abdel Fattah al-Sisi has ordered the development of a clear timeline for the full development of the Regional Ring Road, adding, 'People say you are spending a billion pounds on the road. No, the road will cost no less than LE50 billion to improve its efficiency and development.' 'The president directed that we develop a very tight timeline. As for those who say, 'You don't have money?' No, we do. The money comes from the toll collected on the road and will be spent on it,' he explained. The minister affirmed his full commitment to his duties towards serving the nation, emphasizing that his ministry does not waste public funds and operates with complete transparency on road development projects. The minister said, 'We, as the Ministry of Transport or the Roads Authority, do not spend money on nothing.' 'The Regional Ring Road was nonexistent eight years ago and cost more than LE 20 billion to build. Developing the road will cost LE50 billion at today's prices,' he explained. Regarding the budget, the minister explained that 'The allocation for Transport Ministry from the general budget is between LE 20 and LE 40 billion, even though we need more than LE 60 billion.' Wazir added 'Anyone who doubts the transparency of operations should bring in the largest international consultant to review our work, and I will pay his salary.' He also called for a cost comparison, saying, 'Go and see how much a road costs in Saudi Arabia and how much it costs us.' Wazir urged media professionals to study topics before presenting them, or to consult specialists for discussion. Edited translation from Al-Masry Al-Youm
Al-Ahram Weekly
21-06-2025
- Business
- Al-Ahram Weekly
Securing power - Economy - Al-Ahram Weekly
Oil and gas prices remain highly sensitive to geopolitical tensions, a pattern observed repeatedly over the decades from the October 1973 War to more recent events such as Russia's invasion of Ukraine in 2022. The military escalation between Israel and Iran on Friday serves as a stark reminder of this volatility, with crude oil prices surging by seven per cent to $78 per barrel before easing to approximately $73 by Monday evening. The percentage increase is not scary, as the current levels are almost $10 lower than prices at the start of the Russia-Ukraine war. Nevertheless, the difficulty in predicting possible future scenarios has sent ripples through the energy markets, resulting in observers putting their estimates for the price of oil during the next period anywhere between $75 and $120. On Sunday, the first working day in the local bourse and banking sector since Israel's attacks on Iran, fears of pessimistic scenarios weighed on transactions in the local currency as well as on the Egyptian Stock Exchange (EGX). The EGX lost LE94 billion of its market capitalisation, with all the indices ending in the red. The exchange price of the Egyptian pound dipped from under LE50 per dollar to cross the LE51 per dollar threshold before settling back at around LE50.2 on Monday. Foreign investors abandoning Egyptian equities and the currency for safer havens is the reason behind the drop. 'If the conflict continues, the world will witness violent price fluctuations. In a worst-case scenario, which is Iran blocking the vital Hormuz Straits, global markets will suffer a daily loss of some 18 to 20 million barrels of oil per day. Prices could go up to $120 per barrel or more. Some analysts talk about $150 per barrel for benchmark Brent crude,' said Nehad Ismail, an oil expert living in London. Being a net importer of gas due to a decline in national production from the Zohr Gas Field and an increase in the demand for power during the hot summer months, the possibility of such a jump in prices is not easy to live with. Egypt's gas deficit (the difference between production and consumption) amounts to 3.5 billion cubic metres per day, with Israel contributing one billion cubic metres of this. Cairo fills the remaining deficit of approximately 2.5 billion cubic metres through imported liquefied natural gas (LNG) shipments that are converted to a gaseous status and then pumped into the national grid. To cover the demand-supply gap and avoid load-shedding plans with power cuts that last for hours, Egypt has become dependent on Israeli gas being exported through pipelines. However, the two gas fields that cover Egypt's demand, the Chevron-operated Leviathan and the Greek firm Energean's Karish, suspended production a few hours after the beginning of the reciprocal attacks. Soon after the closure, Prime Minister Mustafa Madbouli announced that Egypt has activated emergency plans to prevent electricity cuts. Power stations have ramped up their use of fuel oil to maximum available levels, a Ministry of Petroleum statement said, and some plants are being switched to diesel to help protect the stability of the gas network and avoid load reductions. Moreover, fuel reserves have been doubled compared to last year, said the prime minister, adding that additional supplies are being arranged to support continued electricity production through the summer. Since last year, the government has promised several times that this summer will witness no power cuts, an aim which it has worked hard to reach. Egypt's power needs represent two-thirds of overall gas consumption. Egypt has already taken steps to avoid acute shortages of gas. It has agreed to buy LNG from suppliers including Saudi Aramco, the Trafigura Group, and the Vitol Group over two and a half years. The deals will bring in as many as 290 cargoes of LNG starting next month, all aimed at cutting Egypt's reliance on volatile spot markets. They are priced at a premium to the European gas benchmark, according to a Bloomberg report on Thursday. Egypt has also finalised contracts to lease Floating, Storage, and Regasification units (FSRUs). Madbouli said Egypt has secured three floating gas regasification vessels. According to the State Information Service website, one of these units is being prepared in Ain Sokhna to begin operation by the end of June and another will follow in July. The government is acquiring the plants to handle the hundreds of LNG shipments from a variety of sources and intermediaries that will help alleviate shortages during the difficult months of summer. $3 billion worth of contracts have been signed to import sufficient LNG to see the country through the summer. Paying more for imports means that the country's trade balance will show a deficit, and the budget's deficit will not be at a conservative seven per cent, as the value of energy subsidies, halved in the 2025-26 budget, will increase again. Egypt is committed to ending fuel subsidies by the end of this year under its agreement with the International Monetary Fund. * A version of this article appears in print in the 19 June, 2025 edition of Al-Ahram Weekly Follow us on: Facebook Instagram Whatsapp Short link:
Egypt Independent
12-06-2025
- Egypt Independent
El-Degwi family feud: Prosecutors close high-profile theft case after complaint withdrawal
The Egyptian Prosecutor's Office has closed the high-profile case involving the theft of funds belonging to Dr. Nawal El Degwi. The case had garnered significant public attention due to the prominence of the individuals involved, the substantial reported sum stolen, and the tragic shooting death of one of her grandsons. The Prosecutor General's Office stated that Dr. El Degwi officially withdrew her complaint, emphasizing her unwillingness to press charges against any family members, especially her grandsons. Her decision was driven by a desire to preserve family cohesion, strengthen kinship ties, and support reconciliation efforts within the household. Prosecutors had launched an investigation following Dr. El Degwi's report of the theft. They questioned several individuals connected to the incident, including Ahmed Sherif El Degwi and Amr Sherif El Degwi, to determine their involvement. However, investigations found no conclusive evidence that either of them committed the crime, nor were sufficient clues or indications found to implicate them. This outcome aligned with the complainant's wishes, as she explicitly stated in her withdrawal that she was not accusing any specific party. Consequently, the Prosecutor General's Office issued a decision to close the investigation, given the official withdrawal of the complaint and the absence of clear criminal suspicion in the documented evidence. The case had long captivated public interest in Egypt due to the stature of the individuals involved. Dr. Nawal El Degwi is a prominent Egyptian educational entrepreneur, known for founding Egypt's first private language school in the 1950s, a time when foreign schools largely dominated the sector. The media widely dubbed the case 'the grandsons' inheritance conflict,' amidst mutual accusations of stealing a fortune estimated at billions of Egyptian pounds. Further tragedy struck the family in May when Ahmed El Degwi, Dr. El Degwi's grandson, was found dead from a gunshot wound inside his villa, hours after returning from medical treatment abroad. The Ministry of Interior confirmed that he had shot himself with a licensed handgun. The deceased Ahmed and his brother Amr had also been accused in the theft incident by another granddaughter, Ingy El Degwi. It was later revealed that family members had been embroiled in legal disputes for three years, with over 20 lawsuits concerning properties valued at billions of pounds. On the other side of the dispute, the male grandsons—Ahmed, Amr, and Mohamed Sherif El Degwi—challenged the authenticity of sale contracts for six mansions previously owned by Dr. El Degwi. These properties had been sold to her two granddaughters (daughters of Mona El Degwi) for only LE50 million, while their market value was estimated at over LE2 billion.
