Working Papers

Private Participation in Airport Activity in Egypt

Publication Number: ECESWP65-E

December, 2001

Author : Sahar Tohamy and Nihal El-Megharbel

Type : Working Papers

This paper analyzes Egypt’s experience in introducing private participation in airport activity, highlighting its strengths and weaknesses in light of international experiences. The study reviews airport privatization trends in developed and developing countries, the main methods of financing, and the changing role of the state in this activity. More importantly, the paper reviews the main regulatory principles necessary to safeguard this industry against potential anti-competitive behavior and economic inefficiencies in supplying the service.
The paper concludes that Egypt’s move to rely on private investment in airports is consistent with international trends. However, delays in establishing the right institutional and regulatory environment for this activity may compromise effective private participation in airports. Thus, the study recommends that more attention be given to establishing comprehensive economic regulation as a pre-requisite for a strong private role in the provision of airport services in Egypt.