Egypt and IFC Partner to Launch Major Airport PPP Program

Under this engagement, IFC will advise MoCA on developing a strategy for private sector partnerships in 11 airports spanning Egypt.

In a landmark move to transform Egypt’s aviation sector, the International Finance Corporation (IFC), a member of the World Bank Group, has partnered with Egypt’s Ministry of Civil Aviation (MoCA) to introduce a comprehensive public-private partnership (PPP) strategy aimed at modernizing and expanding airport infrastructure across the country.

The initiative, which aligns with Egypt’s broader Asset Monetization Program (AMP) launched in June 2023, will support the government’s goal of leveraging private sector investment to upgrade vital national assets without burdening the public budget. The AMP, supported by IFC, aims to stimulate sustainable economic growth, generate employment, and attract foreign direct investment (FDI) by unlocking the potential of state-owned assets in key sectors.

PPP Strategy to Cover 11 Airports Across Egypt

Under this engagement, IFC will advise MoCA on developing a strategy for private sector partnerships in 11 airports spanning Egypt. These airports handle a significant share of the country’s domestic and international passenger traffic, with over 50 million passengers and nearly 400,000 flights recorded in 2024, according to the Egyptian Holding Company for Airports and Air Navigation (EHCAAN).

As part of a pilot project under this initiative, IFC will act as the Lead PPP Transaction Advisor for Hurghada International Airport—Egypt’s second busiest airport in terms of passenger volume and air traffic. IFC will support the Government of Egypt in preparing and launching a public and competitive tender to select a strategic private partner to operate, upgrade, and maintain the airport. Ownership will remain with EHCAAN, while the private operator is expected to bring capital investment, technical expertise, and international best practices to improve operational efficiency and service quality.

10 More Airports Under Consideration for PPP Models

In addition to Hurghada, IFC will assess the viability of various PPP models for 10 other key airports across the country. These include:

• 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

• Marsa Matruh Airport

IFC will evaluate options such as bundling multiple airports into a single transaction, tailoring PPP structures based on airport size and traffic, and developing a roadmap for phased implementation.

National Vision for Infrastructure and Investment

H.E. Dr. Mostafa Madbouly, Prime Minister of Egypt, emphasized that the agreement strengthens Egypt’s long-standing collaboration with the IFC under the AMP. “This strategic partnership will increase private sector participation in Egypt’s aviation sector and is a vital step toward improving service quality and airport capacity,” he said. “IFC’s global expertise will help us attract high-quality private investments that enhance competitiveness and efficiency.”

Minister of Civil Aviation H.E. Dr. Sameh El-Hefny echoed this sentiment, noting that the government is prioritizing civil aviation infrastructure as part of its national development strategy. “Modernizing our airports will enhance connectivity, improve passenger experiences, and support tourism and trade—key pillars of Egypt’s economic growth,” he said. “Partnering with IFC will accelerate this transformation through world-class advisory support and global investor outreach.”

H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, and Egypt’s Governor at the World Bank Group, noted that the partnership reflects Egypt’s strategic shift toward a private-sector-led economy. “Since 2023, IFC has served as our trusted advisor under the AMP. Today’s agreement marks the beginning of integrating our airports into this program. We are committed to implementing structural reforms that attract investment, promote job creation, and expand the role of the private sector in high-impact sectors such as aviation.”

IFC Brings Global PPP Expertise to Egypt

Sérgio Pimenta, IFC’s Vice President for Africa, highlighted the transformative potential of this program. “Enhancing Egypt’s airport infrastructure through PPPs will drive economic development, unlock regional connectivity, and attract world-class investors,” he said. “Our goal is to deliver efficient, modern airports that strengthen Egypt’s role as a hub for international travel and trade.”

IFC brings deep global experience in structuring PPPs for critical transport infrastructure. Notable past advisory roles include Sofia Airport (Bulgaria), Queen Alia International Airport (Jordan), Prince Mohammed bin Abdulaziz International Airport (Saudi Arabia), and Brazil’s Galeão and Confins airports. In Egypt, IFC successfully advised on the country’s first-ever PPP—the New Cairo wastewater treatment plant—in 2010.

Since beginning operations in Egypt in 1975, IFC has invested and mobilized over $9 billion in projects across sectors including infrastructure, manufacturing, fintech, climate finance, healthcare, gender, and renewable energy.

Looking Ahead

This new PPP initiative is expected to be a catalyst for a broader transformation of Egypt’s air transport sector, enhancing efficiency, stimulating tourism, increasing cargo capabilities, and improving the country’s global competitiveness. By fostering private sector engagement, the government is creating a pathway for sustainable infrastructure development while preserving public ownership of strategic national assets.

The competitive tender for Hurghada International Airport is expected to launch soon, with further developments on the remaining 10 airports to follow as IFC completes its feasibility and structuring studies.