2

Water Mondiaal Egypt Study 3.5

الدراسة المصرية الهولندية للمياة

Quick scan and market analysis of the Egyptian water sector Challenges and opportunities for the Dutch private sector

3

Front page

Pharaoh Dancing Party. The scene is a dancing party held for the Queen and her guests. Pretty girls dancing whilst playing the musical tambourine, the queen holding a beaker of Nile water; the original scene is in the tomb of Queen Nefertari in the Valley of the Queens, West Bank, Luxor, Egypt.

4

Water Mondiaal Egypt Study 3.5

الدراسة المصرية الهولندية للمياة

Quick scan and market analysis of the Egyptian water sector Challenges and opportunities for the Dutch private sector

Occidental Oriental Consult

www.oo-consult.com

Cairo, Den Haag 2011

This Study has been prepared by Occidental Oriental Consult for the exclusive use and disposition of AgentschapNL and the Netherlands Water Partnership, of Den Haag, the Netherlands. Copyright ©2011, is retained by Occidental Oriental Consult. No part of this document may be shared, reproduced, or otherwise commercialized, wholly or partially, in any way, shape, or form without the express and prior written consent of any of the Parties above.

5

6

Contents

1. In summary 1

2. Study objectives, approach 3

3. What the Netherlands can, and wants, in Egypt 5

3.1 Holland BV vs global moral responsibility 5

3.2 Egypt on the threshold 5

3.3 Water Mondiaal; again another program? 5

3.4 A short water history of two countries 6

3.5 What Water Holland thinks about Egypt 7

3.6 What Holland BV thinks about Den Haag 12

4. Water in Egypt; a helicopter view 14

4.1 Water issues 14

4.2 The Egyptian Public Water Sector; organisation 19

4.3 Constraints and concerns 21

4.4 25th January Revolution and the Arab spring 23

4.5 Where to: the Egyptian economy 27

5. Egyptian market; segmentation 29

5.1 Sector wide 31

5.1.1. Studies & Services in Water Resource management 31

5.1.2. New water resources studies, development 34

5.1.3. Hydraulic structures in the Nile and distribution canals 36

5.1.4. Canal and drain infrastructure 38

5.1.5. Coastal protection 41

5.2 Urban Water & Wastewater treatment 43

5.2.1. Public Private Partnerships 47

5.2.2. MHUUD W&WW – State funded investments 50

5.2.3. MHUUD W&WW - Multilateral and foreign sponsorship 52

5.2.4. Private initiatives and overlooked areas 54

5.3 Desalination 56

5.4 The uniformed branches 57

5.5 Agriculture and horticulture 58

5.2.5. Irrigation Water management 60

5.2.6. Irrigation and farming 62

5.2.7. Water services to the food industry 63

5.2.8. Aquaculture 64

7

5.2.9. Supply chain improvements 66

5.2.10. Agricultural product re- selection 68

5.6 Industry 69

5.7 Home Consumer market 73

5.8 Water education 73

5.9 Getting in touch and finding partners 74

6. About money 75

6.1 Cost base Holland: Expensive! 75

6.2 Usual business not as usual 75

6.3 Dutch development collaboration: a new chapter 77

6.4 Funding: a line-up of Dutch Government programs 79

6.3.1. Partners voor Water- Springboard for international ambitions 79

6.3.2. InnoWATOR Garantiefaciliteit 79

6.3.3. ORIO- The Facility for Infrastructure Development 80

6.3.4. PSI- the Private Sector Investment programme 80

6.3.5. PUM- Netherlands Senior Experts 81

6.3.6. MMF- Matchmaking Facility 81

6.3.7. CBI- Centre for the Promotion of Imports from Developing countries 81

6.3.8. BOCI- Domain International Cooperation 82

6.3.9. DECP Dutch Employers’ Cooperation Programme 82

6.3.10. FMO- Financierings Maatschappij voor Ontwikkelingslanden 82

6.3.11. NBSO- Netherlands Business Support Offices 83

6.5 From Innovation support to Water support 83

6.4.1. Innovatiebox 83

6.4.2. BMKB- Borgstelling MKB Kredieten 83

6.4.3. WBSO- law for the promotion of R&D 84

6.4.4. Groeifaciliteit – growth facility 84

6.4.5. Garantie Ondernemingsfinanciering (GO) 84

6.4.6. Innovatiekrediet 84

7. Working in the Egyptian market place 85

7.1.1. Target the right customers 85

7.1.2. Educating the market 85

7.1.3. Join forces 86

7.1.4. Focus on customer needs and improve the embedded added value 86

7.1.5. Enhance the perceived value 86

8

7.1.6. Make your local presence count 87

7.1.7. Reduce production cost 87

7.1.8. The right partner and local setup 88

7.1.9. Presence means being present 89

7.1.10. Business in Egypt, customs and the law 89

7.1.11. Negotiating a price 91

7.1.12. Business etiquette in Egypt: what you won't find on the Internet 91

8. Action 93

9. Acronyms & translations 96

10. Environmental legislation 98

11. Names 99

11.1 Professional business advisors 100

11.2 Egyptian government, Water related (semi-) government organisations 101

11.3 Government – Agriculture, Environment, Finance 106

11.4 International Organisations 107

11.5 Financial Institutions and multilateral donors 109

11.6 Knowledge Institutes 110

11.7 Consultants and consulting engineers 112

11.8 Contractors 116

11.9 Manufacturers of Equipment 122

11.10 Agricultural producers and large farms 123

11.11 Egyptian companies in water equipment business, agents 126

11.12 Home appliances 137

9

1

1. In summary

Autumn 2011, when this study has been published, Egypt’s January 25 Revolution will be nearly a year old. With a newly elected Parliament and President, the uncertainty about the direction of the future that has stalled decision making will have made way for the need to catch up and make up. Egypt’s population has grown with another 1 million, pent-up demand for water quality and sanitation has become more urgent than ever, hoarded cash will look for export driven industry investments and Egyptian decision makers will look for partners trusted of old.

The Netherlands is one of such old partners, with strong connections going back to the Delta drainage projects necessitated by the Aswan High Dam. However, the terms of engagement have changed since these days. Where earlier contracts for Dutch consultants and contractors often came on the back of Dutch development aid projects, the New Egypt and a Netherlands with a more results based international development collaboration agenda call for a more competitive and inventive approach. And, as Egyptian water engineers with hands-on “Holland-experience” fade away and move on to retirement, engaging a Dutch firm is no longer an automatism. As the opportunities are getting bigger, the fight for business will be tougher. A rising Euro is no help.

In a nutshell, the vast Egyptian market still offers exciting opportunities for Dutch business and knowledge owners, but demands hard work and flexibility from those who want to be successful.

- Mega construction projects, such as Nile hydraulic structures, PPP sanitation projects and irrigation improvement efforts are big value contracts for local and global contractors. Interesting niches emerge in the supply of specialised equipment and knowledge as subcontractor or adviser.

- Over the years, Dutch consultants have made many in-depth studies to support the Egyptian Ministries of Water and Agriculture in the development and optimisation of resources for a limited amount of water. As new development collaboration priorities move financing for such studies from the Dutch Government to multilateral agencies like the WorldBank and the EU, the involvement of Dutch consultants becomes harder competitive work.

- Egypt’s largest water market is undoubtedly in sanitation: sewage and wastewater treatment plants. Piped water supply has arrived at nearly every home and the emphasis is now on mitigating health hazards and returning used water to the system for repeated use. With critical budgets and an enormous task ahead, Egypt offers opportunities for technologies that can reduce construction time, investment cost and operation expenses, and improve quality. Sanitation solutions are needed in a diverse range from just a few 100 households to mega city answers.

- Desalination, not just by reverse osmosis, will become increasingly important as urban expansion and tourism populate the coastal areas. Ironically, while there is keen demand for new technologies like low energy and solar desalination, the introduction of cost reducing hi-tech ultra filtration, seen as “difficult”, meets with hesitation.

2

- Egyptian Industry has not been a major investor in water treatment technology and equipment, but this is changing. Improved post revolution law enforcement, the reduction of energy and water subsidies and export customers demanding clean and responsible products all converge to make manufacturers pay more attention to the water they use and the waste water they dispose of.

- Agriculture is Egypt’s largest consumer of water. With water supplies hitting a ceiling, demand for efficiency improvements abound. This includes getting water in the most optimal way to the crop: irrigation and getting the crop in the best way to the consumer: the supply chain. Non traditional methods and crops suitable for desert reclaimed land and aquaculture show equal promise.

- Climate change effects are reaching Egypt, particularly on the Mediterranean coast and answers are needed for creeping salinisation of agricultural land and protection of the shores.

There is more to do in Egypt, both with the public and the private sectors, in the transfer and development of know-how, in localising the production of equipment and in involving the population at large in the realisation that water is a scarce resource and can no longer be taken for granted.

Traditional engagement models are unlikely to work as well as before and the Dutch seller will have to work harder for his contract. Developing a visible presence and reputation in the Egyptian market, localising production and maintaining a continuum of such presence and the quality he is seen to bring to his clients and improving his competitiveness in price and service are the minimum work he will have to do. The closing Chapter of this study suggests several action items to this end.

Tahia Masr!1

Cairo and Den Haag, August 2011

1 Long live Egypt, the catchphrase of the 25 January Revolution

3

2. Study objectives, approach

Egypt and the Netherlands have a long history of development cooperation, particularly in water, with many projects successfully completed and an intimate ongoing collaboration at many levels of government, knowledge institutes, ngo’s and the private sector.

Egypt is one of the 5 focus countries of Water Mondiaal, the interdepartmental program of the Dutch national government, where the Netherlands aspire to a long- term and mutually beneficial relationship in the water sector, with sustainable technical and economic cooperation and exchange of knowledge.

Egypt today is in a difficult post-revolution phase of evaluating the past and determining its future. This is the moment where enormous opportunities emerge for those who come forward with true value. As traditional economic and aid relationships are reviewed and often found wanting, our Dutch tradition of practical and transparent dealing can offer much appreciated alternatives. A classical win-win!

In the framework of Water Mondiaal, Agentschap NL has engaged Occidental Oriental Consult to evaluate current and future market opportunities in the Egyptian water sector for Dutch (private) water sector companies; to supply Dutch products and know-how and to grow competitive advantage at home and abroad with Egyptian outsource partners. In addition, we have been asked to show how knowledge institutes, ngo’s, utilities, waterboards and other non-profit participants in the Dutch water sector can participate and contribute in conjunction with private sector initiatives.

While we look at large nation-scale projects like the new PPP wastewater plants, the approach of the study is to work at a micro level, showing where owners and manufacturers of specialised technology, equipment or know-how can find a profitable niche. After all, being the regular supplier of an indispensable component or process know-how can be much more rewarding than fighting a margin reducing competition for a jumbo contract.

We have approached this as a classic market survey, albeit for hundreds of principals.

To achieve a reasonable chance at finding “matches” we started asking the Dutch private sector what they wanted to do in Egypt and where they thought their expertise would be most appreciated. Over 60 Dutch companies, many with firsthand experience in Egypt, have helped us gain such understanding.

With their views and wishes in mind, we have surveyed “water in Egypt”. Some 400 public and private organisations were individually assessed in phone surveys, we met and interviewed over 100 individuals and scanned over 2000 pages of reports, webpages and printed catalogues. The nett result of over 200 relevant and credible Egyptian organisations and their decision makers can be found in Chapter 11 of this study.

We owe much to those Dutch companies who have built successful operations in Egypt. They have, without hesitation, shared their experiences and given us the benefit of their real-life experience.

4

The time of the study, just after the 25 January Revolution, posed its own challenges and advantages. Uncertainty about government and government policy to come, makes for a most hesitant decision making process, particularly in the bureaucracy2, but it also opens doors and unexpected confidences as we showed that a Dutch friend is a friend, also in times of need.

A study like this is never completed. Business is an exercise in dynamism which makes every day different and every opportunity unique. We want readers to look for the essence of success, for true competitive advantage and to form their own opinions.

Our thanks go to the many people in Egypt and the Netherlands who have given their time to help us compile the information we present in this study, civil servants of all ranks, business people and of course the staff at EKN.

Here in Cairo, we continue work at the fascinating junction of true national need and enormous international growth opportunities.

2 Unlike the Netherlands, where Ministries carry on with the tasks at hand, the Egyptian Civil Service

works under direct instructions from the President and the Minister. With the current caretaker Cabinet, numerous policy issues have been left on the table.

5

3. What the Netherlands can, and wants, in Egypt

3.1 Holland BV vs global moral responsibility

Development collaboration in The Netherlands is changing. Where the driving force was once the support for the less fortunate in other parts of the world – moral responsibility- development aid has become development cooperation. Donors consider beneficiary countries and organisations as partners of equal value and the interests of both donor and beneficiary can now be taken into account.

Then, there is the growing conviction, also in the Netherlands, that intrinsic causes to problems in developing countries require a greater degree of transparency and accountability. Those disenchanted with aid say that the only solution for these countries is intrinsic economic growth. In other words, development cooperation is about economic cooperation.

3.2 Egypt on the threshold

Just 6 months after a popular revolt that brought a detested regime to its knees, the political future of Egypt is still very uncertain and the country holds it breath while parties and interest groups line up to contest for the Presidency and Parliament in September-November this year. This affects many government and business activities where vital decisions are postponed till clarity of direction emerges.

However, certain basics will not change. Egypt is the largest country and economy (non-oil) of the Middle East and despite setbacks is still seen by many as the compass for the Arab World. Exploring and establishing a new way of ruling themselves, Egyptians have a large economic base with a population of 87 million, a GDP over US$500 billion, including substantial amounts in foreign direct aid; bilateral and multilateral, set to increase substantially post-revolution.

Once the political direction has been set, Egypt is expected to quickly reassert itself.

3.3 Water Mondiaal; again another program?

The Dutch Government's policy for international cooperation in the water sector is focused on establishing and broadening long term relationships between Dutch public and private sector organisations and their counterparts overseas, particularly in Delta countries. This is Water Mondiaal.

The emphasis is on collaboration in business and knowledge. Something where a government must act as catalyst and as facilitator; building marginal enablers and conditions, demolishing obstacles. Unlike the days of development aid, when the development of the recipient country was the singular goal, Water Mondiaal is all about mutual gains.

With Water Mondiaal, The Netherlands has opted to work together first with countries that live in river Delta’s and share the same concerns of protection against floods and the need to provide enough clean water for their population.

6

Adapting to Climate Change, reaching Millennium Goals and optimising economic opportunities are at the core of this initiative. In Water Mondiaal, 5 Delta countries have been selected with whom the Netherlands propose to work together for the long term; Bangladesh, Egypt, Indonesia, Mozambique and Vietnam.

Water Mondiaal is an interdepartmental program between the Dutch Ministries of -Foreign Affairs, -Economic Affairs, Agriculture and Innovation, -Infrastructure and Environment. The Netherlands Water Partnership3 is supporting this program as the liaison between the government and the broad Dutch water sector.

3.4 A short water history of two countries

The Egypt-Dutch water connection started in the 1970’s, when the completion of the Aswan dam necessitated large scale drainage schemes in the Nile Valley and Delta. The Egyptian-Dutch Advisory Panel on Water Management (APP) was established in 1976, as the Egyptian-Dutch Advisory Panel on Land Drainage. It is the oldest and first project under the Egyptian–Dutch Bilateral Cooperation Program and has evolved and adapted to a broad-based think tank, supporting the Ministry of Water Resources and Irrigation (MWRI). The APP is made up by representatives of the Egyptian and Dutch public and knowledge sector in water and agriculture4 and has a small office in Cairo and a representative office at Wageningen University Research Centre (WUR). Its –modest- support budget is shared between the Dutch state and Egypt. Commercial companies such as consultants and technology firms can be invited on incidental basis, but are no members of APP.

Over the years, numerous studies have been commissioned by the APP, often executed by Dutch consulting firms,5 and sometimes incorporated in national policy. The best example is the National Water Resources Plan 2017 (NWRP), Egypt’s current water roadmap to which several Dutch consultants have contributed. In all, the APP has amassed an unrivalled reputation for competency, impartiality and unwavering support to the cause of water in Egypt.

Those who expect even more action to support Dutch

business may want to consult the commercial section of the Embassy (EKN) or look for a private sector initiative designed to support exclusively and proactively only those Dutch firms who truly want to work in Egypt.

3 http://www.nwp.nl/en/

4 http://www.app-wm.org/public/current.aspx

5 http://www.app-wm.org/Liberary/filter.aspx covering topics ranging from Long Term Water

development, Skills Development in the Water sector, Aquaculture, Groundwater and, of course, Agricultural Drainage. Consulting firms include Alterra, Deltares, Arcadis, Royal Haskoning, SG Consult and others

NWRP 2017

7

Early projects supported the Alexandria Governorate’s Water Authority, now an Affiliate Company under the HCWW. The Dutch consultants and suppliers that were involved at the time maintain till this day excellent relationships in Alexandria as trusted partners.

Many of the practical water projects initiated and supported under the Egyptian–Dutch Bilateral Cooperation Program have been executed in Fayoum governorate6. By a quirk of nature, Fayoum is a nearly separate hydro-eco system, has a struggling economy and a mix of small urban and rural settlement. Concentrating projects in Fayoum has allowed a continuum of Dutch presence, the facility to objectively measure outcomes and to grab scale economies where possible. Several Technical Assistance Projects have been completed like The Fayoum Drinking Water and Sanitation Project (FadWasp), which is executed in several phases, including improvements and expansion to the potable water system, sewage and WWTP7 system and institutional reform and capacity building, started in 1990 and is scheduled to conclude later this year8.

3.5 What Water Holland thinks about Egypt

Identifying market opportunities for the broad Dutch water sector in Egypt is a matching of Supply and Demand. Knowing full well that Egyptian demand outstrips Dutch supply, we have started our scan with a review of what Dutch Business and Knowledge can and want to do in Egypt. To this end, an e-survey was offered, advertised by direct email, in the NWP newsletter and on LinkedIn, to which 60 Dutch companies responded. In addition, 32 of these were interviewed in personal conversations.

Of all surveyed organisations in the Netherlands, 75% has done business in Egypt before and only 3% believes that the current post-revolution climate is a reason to shy away from business in Egypt. Of those who have done business in Egypt before, 60% has good experiences. The survey also show that 65% of these companies believe that now is the right time to build relationships that will lead to good opportunities.

6 Not exclusively, other projects were executed at the central MWRI level, in Beheira governorate and

Alexandria. 7 Waste Water Treatment Plant

8 http://ikregeer.nl/documenten/blg-91537

In the Netherlands: - 60 online surveys and 32

personal interviews In Egypt - 100 personal interviews - 300 telephone surveys

8

The positive reaction of Dutch water companies to the 25 January Revolution and its promise of an Arab Spring is significant. A recent Grant Thornton “International Business Report” indicated that Dutch business interest in the ME region is modest at 12% of those polled, with only 14% suffering under the impact of the Middle East turmoil. But our SME respondents are not large or multinational companies which typically suffer more from political uncertainty9.

Dutch organisations see their product or service end-users in Egypt in several areas of business and government..

Generally, respondents agreed that the Dutch Water sector needs to work harder and together to establish a recognisable face in Egypt. There is a strong belief that the sector it highly fragmented and although this may support flexibility and innovation, it forms a major handicap when engaging in exports. There is a general feeling that countries like France do a much better job in this (Suez, Veolia); an

9 Smaller companies, unlike those interviewed in this Grant Thornton survey, tend to approach much

of their overseas activities on a contract to contract basis, which allows them an immediate volte face if circumstances change. Large and multinational organisations tend to think more in terms of investment and their overseas forays often include the acquisition and creation of local assets, such as production facilities, human capital, adapted branding and the acquisition of competitors.

Are consultants, 37%

Are manufacturers,

40%

Have done business before

in Egypt, 75%Happy doing business in Egypt, 60%

Disappointed with their

experience in Egypt, 10%

Believe now is the right time,

65%

The Dutch companies interviewed

Irrigation, drainage,

soil managemen

t46%Water

distribution-utility37%

Regulator, government

17%

Where the Dutch see their Egyptian Customer

9

example to emulate! The surveyed organisations were clear that, at least in international business, working together, in a Dutch or an EU effort, made good business sense.

Some of the interviewees suggested extrapolating from the Nedeco example or the “JSF” structure to create a joint Dutch Water “Fist”.

NEDECO-Model10

NEDECO is an independent non-profit foundation that promotes Dutch consultancy know-how and skills in the area of land & water, transport, infra-structure and environment. In close co-operation with the Dutch government, NEDECO initiates pre-competitive strategies for projects and technical assistance in sustainable development and infrastructure projects in countries around the world.

The NEDECO network consists of 9 independent leading Dutch consultancy organizations and technology institutes (Fugro Ingenieursbureau, Alkyon Hydraulic Consultancy & Research, DHV Group, Euroconsult Mott MacDonald, Infram, Ferendi International Management Consultants, Nea Transport research and training, Royal Haskoning, Witteveen + Bos) working internationally in the fields of land & water, transport, environment and infrastructure. The firms cover a much wider field of expertise, but the network limits itself to these sectors where specific Dutch experience and public and private sector know-how meet. With over 20.000 staff in a worldwide network of projects and offices, NEDECO can form a wide variety of consortia, each one tailored to a particular client’s need.

JSF-concept

The Netherlands has few big companies with an international presence who can lead and bundle Dutch know-how and skill for a global market. For the water sector, this means that competing with global players and going for the big tech-jobs is very hard, even though the Dutch have the know-how, the skill and the experience.

Dutch companies, on their own or jointly as a consortium, cannot afford the risks that come with big tenders. The industry, worldwide, may be very complimentary about Dutch know-how, but when it comes to shortlists for big projects, Dutch companies usually do not pass the bar.

The Dutch government has created a number of programs to support Holland BV competing overseas: individual subsidies, consortia subsidies, export support, financing and more. On the ground, however, the experience is that such programs may lead to a one-time gain with no sustainable long term effect.

Despite the respect in which Dutch water technology is held, there are simply no Dutch led main contractors, and true commercial success remains elusive. Of course, some well known Dutch companies supply products at a global level, but nearly always as a junior partner to a foreign market leader (Veolia, GE, Siemens, Mitsubishi) who can handle a large project entirely on their own. And, in a tender submission, that is a major advantage!

10

www.nedeco.nl

Complementary

technology19%

Research Institute

30%Regulator -policy maker20%

Teaching organisatio

n15%

Process design /

Consulting16%

The Dutch can find their partners in..

10

Conversely, our Dutch Water industry is highly fragmented amongst many consulting engineering companies, product suppliers, SMEs, knowledge institutes, water companies, waterboards and so on. In other words, we are not organised to handle big projects. Just getting a team or consortium together to bid on a tender seems impossible as the commercial risks tend to land with just one or two parties. And what to do with firms who earn revenue from writing hours vs. those who sell product? The result is that nothing gets done, we do not bid on the tender. Losers on the sidelines are our Dutch SMEs who miss out on a ride on the big bandwagon. These SMEs find it very onerous to apply for the various government programs that are supposed to help them sell overseas. Overheads to get an application going are just as high as those of a big company, which seems counterproductive. This begs the question if these programs indeed achieve what they promote; profitable export business.

It is worthwhile re-evaluating the entire package of subsidies; pilot projects, promotional efforts and the rest that are to give Holland BV a leg up abroad. An entirely new approach towards long term sustainable profitability in overseas markets, which encourages cooperation amongst Dutch companies, promotes overseas investments and in the end gives the Dutch tax payer a better deal.

The co-financing agreement set up for the Joint-Strike-Fighter is an example. For water technology this would mean that the Government steps in to mitigate the risks of seed funding and the commercial venture in this desired domain with a “floor”, but that the commercial parties accept the obligation to share the rewards of success with the Government. Such a desired domain can be a region, like the Arab Spring countries, or a specific technology realm. The JSF contract provides plenty of guidance and real life experience to expand the concept.

11

Over half of the respondents are looking for reliable local partners! Of those companies presently doing business in Egypt, 40% has no agent, distributor or office in Egypt.

The interviews made it clear that Dutch consultants believe that reduced development funding from The Netherlands means less money to engage their expertise. Expert consultancy services, necessary as they are, are financially and

11

Our thanks to Eef Lammers ,Water4All, who suggested this idea

Has own office9%

Relies on major customer

12%

No rep in Egypt40%

Has agent39%

How Dutch companies work in Egypt

11

culturally expensive in the Egyptian market, so “donor money” is often the only way to get the job done.

Some consultants are shifting focus to countries like Kazakhstan, where oil revenues can pay for quality advisory work. Consultants also noted the increase of work for EU funded projects and the administrative role played by German development Bank KfW in addition to its function in handling German development projects.12

It is significant that among the organisations that reacted to our call to answer the survey, only few are in the business of producing and selling hardware. When prompted in interviews, such companies explained that they were keen to do more business with Egypt but face serious financial management obstacles. In smaller deals a prepayment of 50% -at least direct production cost are covered- can offer a solution, as letters of credit just require too much paperwork, allegedly all caused by the Egyptian side. 13

(Semi)Public sector parties like universities and other knowledge institutions, Water Boards and Utilities are busy in developing countries; Egypt included and are equally concerned that less Dutch government funds will be available.

The public sector is divided and uncertain whether they can simply join forces with a Dutch commercial company. Nonetheless, we have met public parties who take this route and, in the process, promote Dutch business.

Annemarie de Ruiter/ Nuffic NICHE: “Projects and tenders we quote for, at the suggestion of EKN, can be made much richer if we include the vocational know-how that business has in abundance; just what countries like Egypt want!”

In short, the Dutch Water Sector believes that much money can be made with a better degree of cooperation between consultants, the public sector and commercial entities. We noted that the sector expects Water Mondiaal and NWP to support such business development in Egypt.

The high level of interest in funded pilot projects is not surprising, nor does the request to continue well-known activities like trade missions, but the Sector also wants to see local seminars with a strong G2G element, which we believe can be an excellent way to both leverage and expand the work done by the APP.

12

Large development projects co-financed by the World bank, EIB, EU, African Development Bank and others often tender out for management services and KfW with its Cairo office in operation is often selected as Fund Administrator. This should not be confused with bilateral German aid through KfW 13

We have checked LC procedures with 2 commercial banks in Cairo and find no major differences with similar work in other countries. While it is true that ordinary short term commercial credit is hard to come by in Post-revolution Egypt; this is not something the Dutch seller is involved in. In our experience, there are no serious impediments to opening letters of credit.

12

On the Egypt side of doing business, the sector sees bureaucracy and local business culture as the main obstacles to good business. Respondents believe that here is a proactive support role for Water Mondiaal, i.e. NWP. Such support could include the provision and explanation of information about “how to do the business”, mediation between parties ( both Dutch joint actions and Dutch to Egyptian deals) to foster better understanding and help in negotiating sustainable win-win terms of engagement and in matchmaking to strengthen the quality of the Dutch participant(s) offering.

3.6 What Holland BV thinks about Den Haag

In the interviews in the Netherlands, the official Dutch reaction to Egypt’s “Arab Spring” was a common topic. During the time of the interviews in April - May 2011, the respondents generally felt that the Den Haag government did not take Egypt seriously enough as they had not seen any Minister or departmental DG take action.

Since, the Dutch Cabinet has announced its intentions to support the Arab Spring region to help with sustainable transition to:

- Democracy: particularly fair and free elections.

- Restoration of the Rule of Law and protection of Human rights, with particular emphasis on gender equality, religious freedom and protection for minorities.

78%

56%

44% 41% 38% 34%

Pilot projects Seminars in Egypt

Outgoing trade

missions

Collective in conferences

Incoming trade

missions

Holland Water

Branding

Collective actions expected from Water Mondiaal

The Dutch have been supporting several programs in water management for Egyptian farmers since the 1980’s.

13

- Economic growth, through (re)building infrastructure, including the promotion of employment opportunities.

In addition to the already substantial amounts that the Netherlands provides through existing bilateral and multilateral channels, a new bilateral program shall be created through which the Netherlands can contribute in specific and focused ways to support the development of the region.

In order to enable swift project execution during the remainder of 2011, an amount of €7.7 million has been reprioritised for the Arab region from within existing programs. Details for 2012 and beyond are being worked out.

Nonetheless, the days of free flowing ODA14 moneys are over and the consequences of reduced funding for development cooperation with Egypt are perceived as worrisome by Dutch Consultancy Firms and other knowledge “owner-sellers” who will get less to do. GoE15 has a firm policy that “soft” consulting services are never paid out of loans and the cultivated culture of “know-how and consultancy are expected to be paid by the donor nation” is hard to break. Selling hardware without the facilitation of a Dutch consultant is going to be harder.

Everybody appreciates the need to economise and that development aid subsidies and grants are on the way out. Unsurprisingly, the Dutch private sector was less accepting in the suggestion that its role must become more proactive and come to include market making activities presently performed or financed by the Dutch public sector. Respondents were particularly vocal in what they perceived as a dearth of transition facilitation and suggested that a phased move towards the private sector taking on more of such tasks was the more prudent move.

Some respondents were quite outspoken: “they cannot expect us (the private sector) to do their work and do so with less funding and support and still show equal commitment to this market” and “ it has taken us years to build a good relationship with the Egyptian Ministries, we are trusted. Are they (the Dutch Government) going to let it all slip away?”

14

Overseas development assistance 15

Government of Egypt

14

4. Water in Egypt; a helicopter view

4.1 Water issues

Water in Egypt is no longer something that is “just there”. After 5,000 years of unlimited consumption and careless use, the Nile is no longer big enough for the world’s oldest civilisation16.

Pressure is mounting on the supply side; the Nile riparian countries17 are no longer satisfied with an age old colonial treaty and want more of the river as it runs through their countries, at least to generate electric power. Climate Change on both ends of Egypt’s water balance threatens with less precipitation in the African Highlands18 and a rising Mediterranean. Whatever happens in negotiations in Addis Abeba, it is unlikely that Egypt will get more water than its current allotment of 55.5 billion cubic meter (Bcm) per year19.

The Nile and its riparian countries

16

Egypt has dropped significantly below the 1,000m3 water poverty threshold with a gross supply of under 60 Bcm –billion cubic meters- (incl. rainfall and groundwater) per annum for 84 million people or an annual 714m3 for each Egyptian. 17

Rwanda, Burundi, Democratic Republic of the Congo (DRC), Tanzania, Kenya, Uganda, Ethiopia, Eritrea are united in their demands for more water with Sudan, politically otherwise occupied, on the fence. 18

Strictly speaking, more precipitation, negated by much higher run-off. More rain in Ethiopia does not benefit the Nile very much. 19

What bodes well however, is the changed tone of the negotiations. Where a year ago, President Mubarak threatened to send the Army to Ethiopia to protect Egypt’s “water rights”, the post revolution government has restored the dialogue;, Ethiopia has agreed to delay ratification of a new Nile Treaty (upstream countries only, Egypt and Sudan do not want to sign) till Egypt has a new elected government and contracting giant Arab Contractors, along with the public diplomacy mission, has offered they can build the new dam for Ethiopia.

15

On the demand side, relentless population growth – a dropping, but still solid 1.8% p/a has put today’s population at 87 million and counting- , widespread water pollution caused in equal measure by uncontrolled urbanisation, fast industrialisation20 and the demanding role – over 80% of all available water- of agriculture, all make clean water an increasingly scarce commodity.

The Nile Water Balance; little room for play (NWRP 2017)

20

The Cabinet’s Information and Decision Support Centre stated in 2007: “Around 80% of the whole country's annual industrial effluent is discharged untreated into the Nile and its waterways. Egypt's 329 major factories continue to discharge as much as 2.5 million m3/day of untreated effluent into its water.” http://www.idsc.gov.eg/Upload/Documents/28/EN/Desalination_technology_Roadmap%5B1%5D.pdf

16

Egypt’s National Water Resources Plan 201721, a document produced with considerable Dutch22 input, outlines a future strategy:

- Water management and use (demand management)

- Quantity and quality of water supply (supply management)

- Role of different water institutions (internal co-operation)

- Level of co-operation between Nile Basin Countries (external co-operation)

This translates in a variety of actions, many of them potentially offering opportunities for Dutch providers of know-how and technology. To appreciate the Plan, one must remember Egypt’s unique geography, where nearly each drop of water comes from the Nile and eventually flows back to the Nile23. A digest:

- Using the same water multiple times for irrigation. Simple as it sounds, this is the main challenge. Agricultural irrigation uses over 80% of all available water, but provides only a little more than 60% of Egypt’s food needs. Reuse has scope: the geography and the basic infrastructure of irrigation canals, lifting stations and drainage drains is there, and several improvement projects24 are in work, reducing evaporation and providing a more equitable allocation of available water, but the net effect on the fields will depend as much on the quality of the water.

- Reducing and preventing water pollution by urban wastewater. Presently, less than 50% of Egyptian households are connected to a sewerage system and WWTP. Improving coverage and quality is a national imperative. Local laws on returning treated effluent to the Nile system are tight25, requiring treatment to strict quality levels before allowing a license. It appears, however, that not many WWTP actually reach such quality levels26 and the Nile, in its flow northwards, shows increasing levels of pathogenic contamination.

- Curtailing industrial pollution poses issues of enforcement. While the NWRC27 and EEAA28 report positive results cleaning up the State owned factories along the Nile, this does not cover all government owned production units, many of which are serious polluters (steel, cement,

21

http://www.deltares.nl/en/expertise/101129/integrated-water-resources-management/1078289 22

Delft Hydralics (now Deltares) Arcadis, Euroconsult (now Euroconsult-Mott MacDonald), Alterra, UNESCO-IHE and Iwaco (now Royal Haskoning) 23

A simplification, of course, but it is a fact that potable water plants in the Delta use intake water that did go through farms in Upper Egypt and it is true that agriculture must drastically increase re-use of water, simply to have enough for irrigation. 24

For example, the IIIMP project described below. 25

Many Egyptian professionals in believe that current regulations are too demanding and make for investments in equipment that are out of reach for both public and private sector. While a spirited argument finds its proponents and opponents in the Ministries involved (MWRI, MHUDD, MALR and EEAA) action lags behind and sewage is dumped in the nearest waterway; untreated. 26

23 May 2011 by OOSKAnews Correspondent; Egypt Allocates $12 Million USD to Treat Wastewater Dumped in the Nile. Egypt’s National Authority for Drinking Water and Sanitation has allocated $12 million USD for a project to redirect wastewater dumped into the Nile in Aswan governorate to a forest in al Allaqi Valley. 27

National Water Research Centre 28

Egyptian Environmental Affairs Agency

17

fertilisers, tannery), while the apparent majority of private sector factories have taken advantage of the corruption so prevalent under the pre-revolution regime in avoiding any form of waste treatment.29

- Agriculture produces its own kind of water pollution with pesticides and fertilisers in surface runoff30, undoubtedly connected to subsidised prices and low levels of application knowledge. Undermining the efficiency through re-use at the resource level, many farmers are typically unaware of the water problems the country faces and continue field irrigation practices that waste enormous amounts of water, often at the expense of downstream neighbours who receive no water at all.

- Improving the quality and service quality of potable water delivery. While Egypt has nominal piped water coverage of 99% of all households and though Egyptian tap water is generally safe to drink; water pressure, taste and smell are often not up to par and complaints are common31.

- Advocating rational use of water among all users, partially by increasing service fees, partially through awareness campaigns. Making people pay for a resource (albeit through the backdoor euphemism of service fees) that used to be provided free of charge will be a lengthy and politically difficult process, given Egypt's deeply rooted concept of viewing water as a basic human right. Expectations that this will result in actual savings that count are not high.

- Developing deep groundwater sources, including those with brackish water. Improving water storage from flash floods and seasonal rain using a.o. artificial aquifer recharge.

- Developing new sources of water through seawater and brackish water desalination. Much depends on future development of technology such as RO, MSF, MED and CSP32. With current installed desalination capacity of just 0.03Bm3, Egypt has a long way to go but as unit costs from large seawater RO plants are now falling below US$ 0.40/m3, the economics of desalination are increasingly attractive33.

Closely connected to these planned actions is the horizontal expansion of Egypt’s liveable surface. At present, 95% of the population lives on 5% of the available land; a density of 1,000 people / sqkm in the Nile Valley to over 3,000 in the big cities. To alleviate this and to provide farmland to feed a growing population, “horizontal expansion” is scheduled to extend the Delta East and West, to expand the existing oasis communities and to unlock the potential of the “New Valley” (Toshka and East Owaynat) and the North Sinai. All these new communities and farms will need water.

29

Given the choice of being fined for dumping effluent without any treatment or being fined for dumping water treated, but not to the high legal standard, industry owners often believe that investment in wastewater treatment is wasted money. In pre-Revolution Egypt, it was common to pay environmental and industrial inspectors to “go away”. As rampant corruption was one of the main reasons for the fall of the old regime, there is high hope that law enforcement in water pollution will improve. 30

Although evaporation rates are high in flash flood fields, salinisation of the land reaches worrisome levels only in the coastal regions of the Delta. Interview at NWRC 31

Low or unreliable water pressure encourages people to hoard water, often in open containers which quickly become a breeding ground for all forms of micro organisms. 32

Reverse Osmosis, Multi Stage Flash , Multi Effect Distillation, Concentrated Solar Power 33

MWRI and the HCWW are presently working on a desalination technology line-up and development roadmap. Once this has been published, we will assist in circulation to interested parties.

18

Egypt; horizontal expansion to create more living and growing space (NWRP 2017)

Since the publication of the NWRP in 2005, aggressive implementation has taken place, dynamically reacting to changing circumstances, not least because the population level forecast for 2017 was reached this year. The approach to domestic waste water treatment, outside the mega-cities, now tends to focus on smaller clusters served by a single plant and potable water action has moved from basic supply to delivering quality. Post-revolution, proposals on cost recovery, making users pay, are again on the political agenda, but success is highly speculative. Nonetheless, the essence of the plan stands and provides a detailed and thoughtful action guide.

19

4.2 The Egyptian Public Water Sector; organisation

Water in Egypt is the responsibility of several Ministries, sometimes with overlapping responsibilities and conflicting priorities. Since the revolution, however, collaboration between the Ministries is said to have improved at many levels and a true integrated management approach to water in Egypt has come much closer.

- MWRI, the Ministry of Water Resources and Irrigation34 carries responsibility for the Nile, the Delta and the main irrigation canals and drains in addition to the development and conservation of non-traditional sources of water, such as deep groundwater, desalination and the re-use of water. The Ministry operates through a dozen departments, each with a matching research organisation. As the ultimate guardian of the Nile, MWRI makes the rules of what Nile water can be used for35 and the requirements for water returned to the Nile, the latter concurrent with MSEA.

- MHUUD, the Ministry of Housing, Utilities and Urban Development36 carries the responsibility for potable water treatment and distribution as well as the collection and treatment of urban fluid waste (W&WW). Today, as several improvement and expansion projects have come online, 99% of the population has access to tap water, but only 60% of urban residents and 30% of rural settlements are connected to a sewage system. Continuous development, often with multi-lateral foreign aid makes the public W&WW sector the largest buyer of equipment and services.

- Traditionally the remit of the Governorates, water supply was drastically reorganised in 2004 with the establishment of the Holding company for

34

http://www.mwri.gov.eg/En/index.htm 35

For example, fishfarming, a very common secondary income for farmers can only use drain water after it has been for irrigation; first use is prohibited 36

http://www.moh.gov.eg/en/en_design/Default_en.aspx

20

Water and Wastewater37, HCWW, a public owned, private company now holding 24 Affiliate Companies38, each slanted to work more and more as a commercial utility.39 Increasingly, HCWW and the AC’s are to perform all tasks in development, design, building and operating both the distribution and the treatment plants40.

- A holdover from the pre-2004 is NOPWASD41, effectively the building arm of the ministry for water and sanitation projects which plans investments, procures works and supervises the execution of works. NOPWASD has a reputation for delays and cost overruns, low quality delivery and limited transparency and is nowadays not always involved in new projects42.

- As the technology and organisation of W&WW services for the mega-cities43 differ considerably from those deployed in the Governorates, CAPWO44 was created as a similar building arm for the much larger user base of the big cities. Both CAPWO and NOPWASD execute works by planning priority.45

- The Egyptian Water Regulatory Authority (EWRA) is as economic regulator responsible for water service pricing and consumer protection.

- The Ministry of Agriculture and Land Reclamation46 (MALR). With farmers the largest water users, the Ministry focuses on improving the efficiency of water use, curtailing pollution by pesticides and the development, by irrigation, of new farm land. More on this below.

37

http://www.hcww.com.eg/En/Default.aspx 38

All Governorate water departments will be AC’s under HCWW once the new Qaliubeya W&WW Affiliate Company takes over from the Qaliubeya Governorate, later this year. One exception; the Canal Cities, Port Said, Ismailia and Suez, where the Governorates continue to run the W&WW sector, partially, to retain the right to revenue from water sales to ships traversing the Suez Canal. 39

See Chapter 11.1.2 for a list of all AC’s 40

A caveat. With the Revolution, many “privatization” initiatives have stopped or been delayed. It is uncertain at this stage to what extent and when the Affiliate Companies will receive such independence. 41

National Organisation for Potable Water and Sanitary Drainage 42

WorldBank financed ISSIP I is executed by NOPWASD, but the follow-up program IWSP is handled with direct contacts between Fund manager KfW and HCWW 43

Greater Cairo, Alexandria 44

Construction Authority Potable Water & WasteWater 45

For the definition of priorities and the methods used in prioritising, see NWRP Annex B7 46

http://www.agr-egypt.gov.eg/En_Default.aspx

21

- The Ministry of Finance has become a recent participant in the WWTP construction development with the introduction of Public Private Partnerships (PPP) as a mode to obtain private sector finance, in a BOT47 model, for large projects, mainly in the “new” towns. The PPP Central Unit48 (PPPCU) manages the entire life of such projects, from capacity and quality definition, to tender and building supervision to operation with a tenor of up to 20 years.

- The Ministry of Health and Population49 (MoHP) sets standards for drinking water and performs quality checks.

- The Ministry of State of the Environment50 (MSEA) sets standards to control pollution which include effluent norms. Water returned to the Nile must be of good quality51, a condition that requires tertiary treatment and is hard to meet by most WWTP, both urban and industrial. Substantial amounts of treated waste water are dumped in the desert, where it evaporates, but equally large quantities are returned to the Nile, often below standard.52 MSEA and its executive agency EEAA are responsible to perform checks on public and private organisation to ensure compliance, but limited resources and the current security vacuum make this an uphill task. See the Chapter 9 for an overview of Legislation on water pollution and chemistry details.

- A less known government party to the Egyptian Water scene is the Army. The Ministries of Defence and Military Production are active, both as large consumers of water and in the construction and operation of W&WWTP both for their own use and as general contractor to the civilian sector.

4.3 Constraints and concerns

Changing things in Egypt is no easy task as successive Egyptian governments have experienced and in the new Egypt, experiments with democracy and the popular desire to be heard will undoubtedly make for a difficult and often lengthy decision and implementation process. Some of the more important practical constraints on change in water:

- Egypt’s population continues to grow with 1.3 million people/year, forcing infrastructure development into a catch-up race. Coupled with an increasing urban migration, pressure concentrates on already over-burdened mega-systems.

47

Build, Operate, Transfer. 48

http://www.pppcentralunit.mof.gov.eg/pppcusite/content/home/default 49

http://www.mohp.gov.eg/default.aspx 50

http://www.eeaa.gov.eg/English/main/about.asp 51

See Chapter 10 for chemistry details. 52

Raw urban and industrial sewage is dumped in the Nile without any treatment. See Footnote 26

22

- The unique hydro-geography of Egypt and the Nile where most water comes from the Nile and flows back to the Nile for repeated use53, turns a quantity pursuit into a quality assurance exercise. It matters little who pollutes and how; any form of pollution weakens the overall system with lower agricultural yields the final price to pay.

Quantity and Quality issues ( NWRC 2011)

- Egypt’s state controlled economy, Soviet inspired from the days of President Nasser, still provides many basic needs for free or with hefty subsidies. At the consumer level, this includes water, electricity, bread, cooking gas, petrol and much more. While this is essential for the 20-30% of Egypt that must survive on or below the international poverty threshold, it has also encouraged enormous waste of scarce resources such as water. There are regular calls, domestic and international (IMF) to reduce subsidies, but this proves politically extremely unpopular. Making people aware of the need to handle water with care, particularly the small farmers who till most of the old –Valley and Delta- lands where flood irrigation is the norm, is going to be very challenging.

- The difficulty in reducing subsidies, which keeps water tariffs low, also prevents the Water and Wastewater (W&WW) utilities to cover operational costs, let alone depreciation. There is improvement, though, with industry gradually paying higher prices. To achieve the same for households will take substantial political will.

- Egypt is a big country and has a tradition of big solutions for big problems. Technological development, shifting cost patterns and the realisation that the big State apparatus is not the best of managers, are all driving towards smaller scale projects with shorter development time and a less vulnerable downside. Smaller also means increasing levels of delegation and the need to empower people at lower levels and locations away from Cairo Centre. This represents a major cultural shift and Egypt’s state managers struggle for a modus operandi54.

53

To avoid misunderstandings; this repeated use does not include potable water, which in any event amounts to not more than 8% of gross supply. Nevertheless, keeping Nile and Nile canal water at a cleanliness level that enables irrigation of all crops is hard enough 54

There are, however, most encouraging exceptions. At HCWW, several mould breaking constructions are thought up, including an idea for small communities to contribute in kind to the building of, for example, a sewerage system. HCWWW provides the pipes and the heavy equipment, the community provides the labour to dig trenches and lay the network. This shortens the wait and reduces the cost while growing genuine community ownership of necessary services.

23

- Another legacy is the separation of investment and operation. Many investment decisions are still determined by the cost to buy and less by the cost to own. Operational maintenance budgets in the State sector are typically small as are budgets for training and paying quality staff. Often, this results in new installations quickly falling to lower and lower operating yields and degradation of all equipment. This continues till a major upgrade – another investment- replaces much of the original equipment often long before its –objective- economic lifespan has expired. With such short lived returns, any investment turns inevitably expensive. The price ticket approach also means that many technology decisions in the Egyptian water world are often entirely short term price based.

- Wages for state workers are low, by any standard, and many of those who have a job55 try hard to moonlight in an effort to make a workable family income. Unsurprisingly, this has negatively affected work standards, with, most worrying, a growing conviction among Egyptian senior and middle management that workers are not worth higher wages or the investment in training. Training expense for state workers needs to be subsidised or externally funded, while qualified and experienced staff continues to look for better jobs in the Arab Gulf and to a smaller extent in the local private sector.

4.4 25th January Revolution and the Arab spring

The Egyptian government apparatus that we will do business with in future will be different from those of the past with improved transparency and accountability, and hopefully improved efficiency to give the Egyptian taxpayer better value.

Guessing as to what is to come is pointless, but some background and understanding of the functioning of a bureaucracy that provides one third56 of the total population with their primary income will help to understand event as Egypt moves to a new future!

Egypt in transition is ruled by the Army and an appointed Cabinet of new Ministers. Presidential and parliamentary elections are planned for October and November

There have been much publicised arrests of ex-Ministers and high profile businessmen and of some members of the security forces who had resorted to extreme violence before or during the Revolution. At the time of publication of this Study, the trials of the deposed President, his sons and the ex-Minister of Interior are proceeding.

Unemployment stands at over 20% with the bulk in the age group 18-28 56

IMD Business school publication

Building a new Egypt

24

Furthermore, several heads of government departments have been sent on leaves of absence and have been replaced, often by veterans from inside the Ministries or the many parallel research organisations. All in all, many of the top civil servants are new to their position, though well experienced in the work they need to do. The organisation has changed little, although several plans are on the way to introduce transparency and accountability. For now, much of the routine government work has to be done by the same people, using the same Laws and Directives. The big exception is of course the Investigative arm of the Ministry of Interior where all staff has been sent home57.

At heart, Egypt is conservative and despite the promise of the Revolution, the majority of these civil servants, like everybody else hard hit in their income over the last months, yearn for “business as usual”. Amongst them, there is a degree of –arguably exaggerated- fear of setting a foot wrong. Many civil servants in positions where routine decisions must be made are hesitant to do that part of their job for attracting mob criticism and maybe even arrest. This certainly has a paralysing effect on daily business; permits take long to issue, banks do not lend, property is not transferred. But, when a newly elected President will show the direction Egypt is going to follow, this should abate.

Today, there are over 70 political parties registered and while not all will be able to present candidates for either election and mergers and coalitions can be expected, it is uncertain if a single dominating power will emerge. While an informal poll last year put support for a sharia58 based, Brotherhood run, Muslim state near 40%, recent Gallup and PEW 59 polls put this in the 15% to 18% range. Elections in the last quarter of this year will decide the new President and Parliament and speculation in this fast evolving spectrum of new free political life is, indeed, speculative.

The more relevant question for a business opportunity scan is how the economy will perform after what is fast becoming a 6-months hiatus. Are the media correct, when telling us that Egypt is on the brink of bankruptcy? It is true that the Egyptian economy has severely contracted since the 25 January revolution, but Egypt is a big country, with a big economy and has weathered worse in the past. A look at the numbers:

57

Officially, State Security Investigation Service (SSIS) alleged to be responsible for many cases of random arrest, imprisonment without charge, torture and lately, shooting to kill protesters during the 25 January Revolution. This organisation has been dissolved. but its replacement organisation, the “National Security Sector” appears to employ many of the same individuals. 58

The code of conduct or religious law of Islam 59

http://en.islamstory.com/poll-egypt-optimistic-worried-jobs.html and http://www.nytimes.com/2011/04/26/world/middleeast/26poll.html?_r=1&ref=pewresearchcenter

25

Egypt’s GDP in 2010 was just over US500 billion; source http://www.economist.com/node/16564172

- Government revenue, taxes and fees are down, a lot, and this is widening a current account balance already in the red. As these smaller income numbers reflect collection problems more than anything else, this is not structural. Expect a current budget deficit slightly higher than the 9% of GDP last year. For a country that came back from a 20% deficit in the ‘80’s this is not good but neither dramatic and help is at hand60. 61

- Inflation has been hovering in the 10+% range for the last 5 years, driven mainly by increasing global food and fuel prices, so the current 12% is not out of line and, again, not caused by the Revolution.

- Public –mainly international- debt has been a fact of Egyptian treasury life since President Sadat started borrowing at a big scale and the current level of 85% of GDP (some say even more) has little to do with the Revolution. With a good part of the debt denominated in Egyptian Pounds – a good achievement of the previous regime- foreign debt in dollar terms has been fairly constant over the last years and debt service has been manageable. Nothing indicates at this moment that Egypt is going to default on any of these loans and the recent IMF standby facility of $ 3 billion is a good illustration of Egypt’s international investment importance. Moody’s downgrade of Egypt’s

60

A back of the envelope calculation shows substantial budget support and FDI for the next 3 years World bank: $4.5 billion over the next 24 months, 50% in development projects Islamic Development Bank : $2.5 billion in development projects to support the economy Saudi Arabia: $4 billion IMF: $3 billion stand-by facility (refused by Egypt) Qatar: promises to invest as much as @ 10 billion in several projects US: guarantee on $1 billion of Egyptian Eurobonds 61

At the time of finalizing this document, the Supreme Council of the Armed Forces which effectively rules Egypt today has objected to loans “with conditions” and ordered the cabinet to refuse IMF and possibly World Bank help. Concurrently, the growing suspicion that US help is meant to perpetuate the cozy relationship of the Mubarak period may cause US help to be refused as well. With all the popular promises made over the last months; minimum wage, pensions, backpay and more, a larger budget deficit seems inevitable.

26

sovereign debt62 is a reflection more of uncertainty than of direction, something that the elections are likely to settle.

- Foreign currency reserves have taken a near 25% hit with the Central Bank propping up weakness caused by capital flight and market nerves. Despite these efforts –the Pound has lost surprisingly little against the dollar- a longer term lower exchange rate seems inevitable and will drive up import prices.

- On the credit side, some trusted earners have remained stable, the Suez Canal is up, even; overseas workers’ remittances still stand at an estimated LE 8 billion, the Libyan troubles notwithstanding. Tourism is hard hit, but no worse than after the Luxor massacre.

So, as hard as the Revolution has hit the economy; the fundamentals (employment -insufficient as it is-, factory production and public utilities) remain intact. We can expect the Egyptian economy to rebound once the political future is less uncertain.

62

Moody's cut Egypt's sovereign debt rating on March 16, 2011 to Ba3 from Ba2, and kept the ratings outlook at negative, saying uncertainty about the country's transition to stable government was having an adverse impact on its fiscal position and broader economic performance.

27

4.5 Where to: the Egyptian economy

Growth, absolute growth enjoined with job massive creation, is the way forward and despite certain weaknesses, the Egyptian economy has the fundamentals to emerge from the current turmoil as a stronger producer and service provider, ready to take on global competition. Such growth will also provide opportunities for the Dutch Water Sector, to help build the domestic infrastructure and as a partner in exports.

Such growth will not come from the same old reliable income earners. The Suez Canal will remain vital to the world economy, but crossing rates are closely linked to the opportunity cost of volatile crude oil prices which fuel interest in both the “Cape” route and the new Arctic alternative. Similarly, remittances from overseas workers may well have hit a ceiling as Arab countries, the long time destination of Egyptian skilled workers, begin to take action to reduce their own levels of unemployment.

Oil and gas has never been a major export earner for Egypt with imports nearly equalling exports. Even renegotiating the Camp David inspired gas deal with Israel is not going to substantially add to any bottom line.

Absolute growth will have to come from advancing up the value chain, adding product quality, supply chain strength, branding and originality to engage global markets.

“Egypt’s textile business is making T-shirts for Wallmart or Zara. We produce them both, but one sells for $3, the other for $30. For us in Egypt, we do not share in the added value of high quality and a strong brand. To grow, we must work to give meaning to the Egypt brand, encouraging our young

designers, building brand value supported by a true value chain adding value every step of the way.” CEO of a well known Textile Group

Tourism can be the immediate beneficiary of such thinking. Presently, Egypt sells discounted holiday packages to its Red Sea destinations in low spend markets like Russia. This may boost arrivals, but does little for the bottom-line of an industry that has almost no repeat customers63. Improving the customer experience, commanding higher unit prices and selling to the same customer again and again is textbook Value Chain Improvement and will benefit tourism workers as well as the country. Real growth in the tourism industry feeds back directly in the W&WW business, particularly desalination.

Agriculture, already an export stronghold, can equally benefit. While Egyptian fellahin64 are world-class in getting the most from each feddan65 under cultivation, crops do not always reach consumers in good shape. As much as 40% of crop yield is damaged or destroyed post harvest, in domestic transport. In contrast to the high yield per feddan, the Egyptian use of agriculture water per feddan is high, too high. Agriculture uses 80% of all available water in Egypt and even a small reduction in use makes a big difference on the national scale.

63

Egypt counts 1-2% repeat arrivals. Compare Spain with 60+% 64

Farmers 65

1 feddan = 0.42 ha or 4200 m²

28

Industry, including the food processing industry, is in a similar position. Adopting the credo that “good quality is cheaper to produce”, reducing inputs (like water and water pollutants) and tightening processes will reduce production variability, input cost and clean-up costs, leading to a product quality that is not only constant, but also more acceptable to ecologically critical markets like the EU. However, while this leads to considerable enthusiasm for efficiency drives like “LEAN”, on the ground implementation invariably lags.

Even the local capital markets will benefit from improved value chain thinking. Other than a –fairly small- equity market, domestic savings have nowhere to go but abroad. GoE has issued Government Bonds only once66 and never at home. Unleashing the enormous liquidity of the local banks will put much needed capital in the local investment scenery; to finance government debt, to provide leverage for a stock market with an appetite for risk and of course for the PPP projects.

66

2007, in London, Eurobonds @ LE 6 billion, 5-year maturity denominated in LE, payable in US$

Agricultural Crop Efficiency leads to water efficiency. Courtesy Prof Dr Ramzy Stino, Cairo University

29

5. Egyptian market; segmentation

Water is of vital importance in Egypt and water business is everywhere. For clarity and to position marketing efforts in distinct and reasonably homogeneous groups of customers, we have segmented the Egyptian market based on product needs, end-use, sources of funding and decision making processes. We identify each segment by a “product – market” shorthand.

GoE67 is by far the biggest buyer and our segmentation roughly follows the triad of Water Resources, Housing Utilities and Agriculture Irrigation, each time detailing how demand is formed, how to identify gatekeepers, influencers, champions and decision makers, where funds come from and how best to approach each segment as a foreign supplier of consultancy services or physical product.

Dutch consultants, waterschappen and knowledge institutes have a long tradition of quality work in Egypt: conducting ground breaking studies, providing an unbiased technical viewpoint or raising operating and quality standards with training and many different forms of joint-work with Egyptian Ministries and water companies. Part of such activities were an extension from APP deliberations, some were enabled through bilateral funding programs. The demand for such know-how based services is there: it may actually have increased as demographic pressure on the water system mounts. What is expected to change is that consultants and other knowledge providers will have do more pro-active work, as if to “create demand” and will need to engage in creative financing, such as linking a study to contracting work for physical facilities.

Contracting work in Egypt is typically awarded to local general contractors, often in a consortium or subcon relationship with an electrical mechanical (E&M) specialist, often the importer of foreign components. As set out in detail below, foreign companies venturing out in Egypt will find it hard to be successful on their own. More to the point, we do not know of any Dutch companies who desire to operate as main contractor in Egypt. Our segmentation is therefore always seen from the perspective of the Dutch subcontractor or equipment supplier.

While the overall political and economical situation matters a great deal to the general business climate, the individual Dutch exporter will be more concerned knowing if and how his customer’s project is funded, what risks he incurs in such a deal and how best to direct his marketing and sales efforts. Each exporter will thus have his own unique outlook and level of engagement.

67

Government of Egypt

30

Although researched and published before the Revolution, the annual market survey published by GWI still provides an authoritative overview:

With permission: reproduced from Global Water Market 2011 by the publishers of GWI “Global Water Intelligence”.

31

5.1 Sector wide

5.1.1. STUDIES & SERVICES IN WATER RESOURCE MANAGEMENT

SEGMENT Consulting Services to Government institutions

FUNDING Grant Donors, Bi / Multilateral

BUYERS MWRI, NWRC and Institutes, MALR, MHUUD, HCWW

INFLUENCERS WB, EU, EIB, KfW, USAID, AAP

Even since the days of President Nasr, Egypt receives multilateral and bilateral support for a wide range of studies to support government policy, effectively providing consultants to act the role of Ministry specialist and local think-tank. Egyptian–Dutch bilateral cooperation, initially to assist in agricultural drainage necessitated by the Aswan High Dam completion, has contributed substantially to a wide range of technical and policy issues. The APP (Egyptian Dutch Advisory Panel on Water Management) is arguably the best example of successful collaboration where long time mutual respect and earned trust enable discussions of sensitive issues enable workable recommendations. In many cases, Dutch consultants provided follow-up to these initiatives with detailed studies.

However, with changes in Dutch Development Collaboration policy leading to reductions of available bilateral funding, such comfortable contracts opportunities may no longer occur that often. Note that by Law, Egypt does not borrow funds for payment of “soft” consulting services. External funding for studies must always be in the form of a grant.

Funding through multilateral sources such as the World Bank, the EU and EIB, AfDB and bilateral support from USAID, KfW, JICA and several other countries continues and may even be increased as several “Arab Spring” support packages come into force.

Dutch firms will compete exclusively on merit in an international market. This comes at a time when the need for such international studies is high and diverse in Egypt. A random selection of stated needs;

- Integrated Master plan for the Mediterranean North Coast in the light of expected reduced upstream precipitation and sea level rise in the Mediterranean. This covers topics as diverse as aquaculture in the Northern lakes, coastal erosion and flooding risks, the impact on the irrigation and drainage system in the Delta.

- In parallel, a review of soft (water management and pollution abatement) and hard protection options (breakwaters, dikes, dredging, beach restoration) for the Mediterranean coast, particularly in the light of changing climate conditions.

- Finding better solutions for used, possibly treated, water from the new urban communities in what used to be desert. Presently, disposal is in the desert, an apparent waste.

32

- Improved real time quality data collection on water quality along the course of the Nile.

- Renewed and integrated look at groundwater, particularly deep aquifers to formulate a legal framework before uncontrolled extraction creates precedents and irreversible depletion.

- The Nile is arguably the only large river in the world that does not carry substantial cargo loads. While a single private company68 struggles to get a barge network operational, there are differences of opinion on the future of the Nile as a traffic artery; the ecological impact, consequences in an already stressed water balance, the merits of raising clearance of some bridges and other issues. Many of such diverging opinions come from different Ministries and often result in further reaching disagreements and rivalry. Objective, hard facts are valuable both in their own right and as a catalyst for goal-oriented government.

Dutch companies can do well in such competitions; Euro-consult Mott McDonald is the current technical consultant and project manager for IIIMP69, tendered a few years ago by MWRI and KfW; VNG International has been shortlisted in an EU tender for a study on urban WWTP sludge and Royal Haskoning has moved to the next phase in bidding for the Master Plan to rehabilitate Nile Hydraulic Structures.

Says Euroconsult’s Wicher Boissevain, Chief Technical Consultant to the IIIMP program; “It’s the old elementary stuff; we compete in international tenders and win, because of our reputation, because we

work with the right local partners from well before the tender is issued and of course because we are price competitive. If you ensure that each of your projects are run well, thinking flexibly with your client, you do not need any other form of promotion”

Throughout the Public water sector; MWRI, NWRC and HCWW, there is a deeply felt need for institutional support and capacity building. Comparable efforts in the recent past are evidence that such services can add true and sustainable value and in present day Cairo, teams from several Western countries are at work reinforcing

68

Nile Cargo, an investment by Citadel Capital a.o. presently has 35 barges operating from Cairo to Alex Damietta and Assiut. 4 New barges measure 100 meters length and have a capacity of 1,500Mt. With an allowed draft and lowest bridge clearance, tonnage for the other barges is limited to 350Mt or a single layer of TEU’s. When already planned bridge improvements are realised, this can go up to 1200Mt. Dutch company Dubarco has advised Nile cargo in the past. 69

http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=40941&menuPK=228424&Projectid=P073977

Nile cargo traffic is still a fraction of what it can be.

33

local ministries. Caveat here is that nearly without exception, such efforts are primarily paid by foreign donors; multilateral and more often bilateral. Our APP is a case in point.

Irrespective, such tenders are rarely won by strangers and Dutch consultants and water companies are well advised to maintain personal connections with those government institutions they like to service with their expertise. As the current relationships with most experienced Dutch consulting firms are mature and cordial, this is a matter of maintaining contacts. Presently, many senior Egyptian civil servants with personal experience in the Netherlands retire and make way for younger colleagues who have not visited the Deltaplan and the Afsluitdijk: it will be clear that maintaining contacts is a job that is never finished.

Kees Bons, of Deltares, specialist consultancy in water, soil and the subsurface, looks back at 20 years successful collaboration with Egypt and MWRI," We serve science without a hidden agenda; and we see collaborating with our local counterparts as the best way to do top

quality work. Our tools and models are not only world-class, they're our own work and thus adaptable to Egyptian local needs. And, we always have local staff on board to help us "kaaskoppen" see what's really going on."

Data collection and monitoring

There may be interesting mini niches for a PPS70 or NGO-like approach in areas with long term import, but without a current budget. For example, data collection, such as water quality information along the entire course of the Nile71.

GoE organisations, engulfed in a culture of centralised control, approach such from a hardware and real estate angle, which inevitable makes for big budgets. In the new Egypt, where a “Facebook” generation has made it clear that both civic duty and nationwide communication are realities; a simple “social network” supported by basic hardware can provide direly needed hard facts and help inter departmental understanding with “objective” numbers72.

Public awareness

As explained above, Egypt and the Egyptians will have to make many changes in the way water is handled. Much of this, reduction of subsidies, new charges, careful use and water savings, pollution reduction at source, will require a broad level of societal cooperation, which even after the Revolution is a new form of engagement in which GoE has little experience. An APP assignment in 2009; Arcadis wrote an excellent guideline on “Raising Awareness”, but we have not yet seen any of their recommendations put into action. Nonetheless, the need to involve the population in arresting nationwide squandering, is accepted at Ministerial level and we hope that the Government elected end 2011 will find the political strength to confront these realities.

70

See Chapter 6.3 71

During interviews at NWRC 72

Volunteers with access to water courses equipped with sensor and recording equipment use a secure VPN on the public Internet to transmit data to base, the NWRC. In this model asset investment is minimal and the involvement of the public instills a sense of ownership of water resources

34

5.1.2. NEW WATER RESOURCES STUDIES, DEVELOPMENT

SEGMENT Studies, Development – Groundwater, Solar and water, Desalination

FUNDING Donors, Industry

BUYERS MWRI, NWRC, HCWW

INFLUENCERS UNDP, EU, EMWIS73

USAID

Several public and private organisations in Egypt work on studies for the introduction of new, additional, sources of water in Egypt and the preferred means to harvest these. Not surprisingly, there is an prospect of technology ownership and technology providers are interested to be involved.

- Groundwater is now recognised as a water resource that must be carefully managed and dedicated legislation is in the works. Some 7BcM/yr is pumped from the shallow aquifers of the Nile Valley and Delta, which are recharged semi-continuously by canal and drain seepage and to a smaller extent by losses in the urban and industrial W&WW cycles. Water quality issues in this context are addressed below.

73

http://www.emwis.org/countries

35

Deep Groundwater extraction now amounts to some 1.2 BCM per year and is scheduled to increase to 3.2 BCM. Although deep ground water deposits in several aquifers run into enormous quantities, these are non-renewable, are often found at depths too deep for profitable extraction and are occasionally saline. All this calls for prudent policy, intent to preserve quality and stretch profitable use over many years. The Ground Water Resources Institute, part of NWRC, has conducted several studies and expects to continue towards more detail and practicality.74

- Of immediate interest are the relatively new concepts of Conjunctive use75, Managed Artificial Recharge76 and the exploitation of Brackish Deep Ground Water. The first two are largely inside the purview of MWRI and may offer opportunities for consulting services, the latter also calls for a range of water treatments amongst which desalination of brackish water can be promising for industrial suppliers.

- Seawater Desalination is high on GoE’s list of priorities and several policy white papers have been produced comparing the merits of different technologies and assessing the chances that desalination will emerge as the panacea to all water ills. The HCWW will soon publish a new MasterPlan for desalination in the Drinkwater Resource planning which assigns an important role to reverse osmosis plants in the coastal areas.

74

See also “Groundwater Management in Egypt, an APP commissioned study; http://www.app-wm.org/News/NewsDocuments.aspx?newsId=339704 75

Systematic integration of surface water and groundwater 76

Infrastructure and or modifications to an aquifer allowing intentional recharge with excess water in wet periods, enhancing water security and optimising irregular resources

HCWW looks at desalination as an important future water source

36

Of side interest is a 2008 document by the Cabinet Support Centre77, which reviews available technologies such as RO, ERD (as a distinct process), MSF78 and several solar driven processes in the light of developing technical self-sustainability through a medium term R&D plan. Considering the difficulty of creating Egyptian owned production capability for membranes, the study leans strongly towards the development of solar powered and other forms of desalination. If such is adopted by GoE, interesting partnerships in the K2K area can be pursued.

- Solar power and desalination hybrid solutions are attracting much attention, with a large number of private and public organisations engaging in developments, experimentation and promotion.

The Egyptian private sector, notably some smaller companies like El Raed, which works in CSP79, is building prototypes and pilots, typically with their focus on communities ranging from 2,000 to 50,000 people based on 100 litres of drinking water/cap/day. There are an estimated 3,000 such communities in Egypt, with many not included in the MHUUD planning.

Egyptian knowledge Institutes have only partially caught up with all these new technologies. There is ready EU funding for an educational project that brings solar power and desalination to an Egyptian institute of learning.

- A most promising, but also most challenging issue is to re-use urban waste water presently discharged in the desert. Many of the new Cities are a considerable distance from the Nile and the drainage canals, so even if treated properly, the cost of pumping wastewater to its secondary use may exceed the benefits. Landscaping irrigation may offer a solution, but is hardly satisfactory considering the high cost of initial purification, transportation and treatment after use, not to mention the overall scarcity.

5.1.3. HYDRAULIC STRUCTURES IN THE NILE AND DISTRIBUTION CANALS

SEGMENT Dams, barrages, lifting stations, locks

FUNDING MWRI budget, International donors

BUYERS MWRI

INFLUENCERS Donors

Maintaining the world’s longest river over its final 1000km plus 55,000 km of canals and drains is a continuous operation, with work on barrages, locks, lifting stations and pipe networks tendered to contractors every month. Most such jobs are not suitable for direct tendering by Dutch companies, not used to the intricacies of dealing with Egyptian government Employers, but the digest below illustrates the continuum of opportunities for the supply of technological expertise or equipment as a supplier or subcontractor.

77

http://www.idsc.gov.eg/Upload/Documents/28/EN/Desalination_technology_Roadmap%5B1%5D.pdf 78

RO; reverse osmosis- ERD; energy-recovery device, a pressure amplifier in an RO system to recover energy from the brine flow enabling the use of a pump with lower pressure rating; MSF- multi stage flash distillation 79

Concentrated solar power

37

Supply of standby units for the exhaustion of floods water, .... for the operation & maintenance of water wells in Southern Sinai.

Extension of two water lifting stations (Al Watya & Al Mesaada) & construction of a 300 mm. diameter ....

Supply & erection of two water lifting units complete with electric motors to consolidate Helwan main sanitary drainage station No. 1.

Supply of eight submersible water lifting units complete with all related accessories, spare parts for submersible pumps, insulation materials & fillers, ....

Supply & erection of five electric driven water lifting pumps complete with related accessories at different canal ends at subordinated locations under 5 contracts.

Supply & erection of a centrifugal water pumps for the brackish water treatment plant on Ismailiya Canal.

Implementing of the main brackish water network to serve Al Yasmin Resort in Sheikh Zayed City.

Supply & erection of two 1,200 mm. diameter butter fly valves complete with related fittings on two pipelines

Study, design, supply & erection of safety systems to protect from water hammer along discharge pipelines serving booster pumps at ....

Request of offers for the study, design & implementation of sanitary drainage water lifting units at the turbines division & underneath the control room at the location of the first Asswan Dam power station .

Tenders issued by several GoE Institutions, including MWRI, as published in the national newspapers average over a dozen each week.

80

Most of these contracts, some in values of several million Euros, are executed by a local contractor, who often requires imported components, either direct or through an E&M subcontract. See the Chapter 10.7, 8 and 11 for a list of consultants and the larger contractors and specialised E&M subcontractors and suppliers. Very large upgrades and those that require a very high level of technical expertise, such as modernising the Nile barrages, are sometimes co-financed by multilateral donors.

Becoming a supplier to this market segment is no adhoc exercise. Foreign suppliers with a presence in Egypt through an agent, VAR or even their own rep. office make regular sales. Nijhuis Pumps and Duivelaar are good examples.

80

The American Chambre of Commerce in Egypt provides an excellent – free- tender alert service. Note however, that such information cannot be a substitute for market presence and a good pro-active intelligence gathering operation based on continuous contacts with employers, consultants and contractors. http://www.amcham.org.eg/online_services/tas/

38

5.1.4. CANAL AND DRAIN INFRASTRUCTURE

SEGMENT Irrigation canals and Drainage canals maintenance - Government

FUNDING Own funds, multi lateral funding

BUYERS MWRI, MALR

INFLUENCERS Donors, Local contractors, Research Institutes

MWRI, through its Irrigation Authority and the Authority for Drainage Projects (EPADP), maintains a dendritic network of some 35,000 km of irrigation canals and a mirrored network of 21,000 km of drainage canals. Farmers, the private sector, take over responsibility for water at the tertiary irrigation- mesqa- level.

Irrigation Canals have a dendritic layout, fanning out over Delta (NWRC 2017)

Distinguishing between canals and drains that are managed by MWRI and the Mesqa network that is the remit of farmers and MALR is important, as farmers increasingly need to pay directly for part of the services they receive from this mesqa network. Water for farming is not entirely free anymore.

The nomenclature of canals is based on the level of separation from the Nile:

- The Nile through its 2 branches; Rosetta and Dumyatt, flows from South to the Mediterranean in the North.

- Irrigation canals lead water partway, mainly in NE and NW directions

- Branch canals constitute the secondary level. Branch User Associations are formed at this level to achieve participatory management. Today 3 Branch User Associations, covering 40,000 farmers and 140,000 feddan, have been established and work next to the District Water Boards.

39

- Mesqa (tertiary level) is where private farmers take over from MWRI, within rules set by MALR. A mesqa area has no fixed size but can cover a range from 20 to 100 feddan. The mesqa is a level around which a Branch Users Association can be formed.

- Even smaller ditches within the mesqa are called marwa.

The drain network, obviously smaller, follows a layout that broadly mirrors the canals. For the Dutch, Egypt’s agricultural drains have a special significance as the bilateral cooperation that started in the ‘70’s focused on the design and building of a drain network. With the completion of the Aswan High dam, the Nile no longer flooded once a year covering all lands, a period where farming simply stopped, but now provided water on demand all year long. Instead of waiting a month or so for water to drain and farmland to see the sun again, and to avoid harmful salinisation, this now had to be achieved regularly with manmade means. Dutch consultants provided the answers and the Egyptian agricultural drain network was born.

As discussed in more detail below, nearly all farmland in Egypt is irrigated, with traditional “flood” irrigation the standard in the Old lands – the Nile Valley and the Delta- and drip or bubble irrigation prescribed for New lands – the Eastern and Western Desert reclaimed farms and the “New Valley”81 and Sinai projects.

For the business opportunity from a Dutch perspective, scope of this document, the important thing is to be in touch with the general contractors who regularly tender for this kind of work.

The larger canals and drains are open waterways with a lifetime of 25-30 years, after which complete rehabilitation is required. Unfortunately, many people see the agricultural drains, even the canals, as a free dumping ground for urban waste and building rubble. This causes numerous through-flow and contamination problems. Progressively, smaller open canals and drains are covered; where urbanisation encroaches; concrete lined channels covered by slabs, nearer to the fields where canal and drain size is smaller, by underground pipes, logically connecting to the underground irrigation and drainage pipe network that gradually replaces open channels.

81

The natural depressions of Toshka and East Owaynat are located some 300 km west of Lake Nasr.

40

EPADP82 produces its own PVC drainage pipes in 7 factories around the country, presently only for (subsidised) sale to contractors who execute upgrading works for the drainage network. There is an interest in the Authority to bring these factories and their products to a higher level of efficiency and quality in a joint operation with a foreign partner. This will require high level permission as the current production is entirely geared to support the local drainage upgrade program.

Activities around canals and drains are:

- Institutional and organisational; handled to a large extent with waterboards and WUA’s (water user association) to increase the level of participation by farmers in the use and allocation of water and in maintenance. The IIIMP program is a good example of a joint GoE and Donor funded programme to upgrade the physical infrastructure and its management.

- New canals and drains. With a scheduled increase of arable land from 6 million feddan to 8.6 million in the next 30 years, the canal and drain network must grow in proportion. Larger plot sizes and advance irrigation planning will enable a more efficient layout.

- Improvements and upgrades. This includes covering hitherto open canals and replacing smaller canals or drains with underground pipes.

- Regular maintenance, usually twice a year; control of weeds83 and reeds, repairs to side walls and the removal of solid waste from canal bottoms. One of the common problems is the practice by local contractors to remove all vegetation, roots and all, which weakens canal sides and increases canal width at each cleaning operation. This makes it very hard to measure the amount of water that flows through a canal.

A substantial part of drainpipe laying equipment in service in Egypt was delivered by Steenbergen Hollanddrain BV.

82

Egyptian Public Authority of Drainage Projects, a department of MWRI 83

Grass carp are most effective in control of aquatic weeds and MWRI actively propagate the fish through the drain network. This actually started as a Dutch initiative in the early ‘80’s

Samples of drainage pipes at the EPAPD HQ

41

In interviews with MWRI, NWRC, CMRI, EPADP and MALR, the following areas of opportunity were identified:

- Methods to improve irrigation efficiency and reduce water consumption. Doing more with the same water is a top priority

- Anything to reduce / optimise the use of fertiliser and pesticides at the field level to reduce pollution of run-off to the drains84.

- Biological weed control; a succession project to the 1980’s Dutch grass carp project.

- Methods and ideas to facilitate the conversion of open canals to closed systems and pipe networks

- Mechanical equipment to maintain and clean canals and drains with minimum damage to the canal structure. Canals are narrow (<10m) and wheeled access is not ideal.

- Solutions to control and remove side-up and floating aquatic weeds

- Detection equipment to locate blockage in closed or covered canals; from large >10M to pipe networks Ø30cm. Medium pressure systems have proven to work best in closed systems

- Solutions to screen or filter water in the closed drain system, recovering sediment and improving the water quality released.

5.1.5. COASTAL PROTECTION

SEGMENT Coastal protection construction, Climate Change studies - Government

FUNDING MWRI budget, Donors

BUYERS SPA85

, CoRI

INFLUENCERS Donors (Climate Change)

Coast in Egypt means the entire area from the flood line to as much as 40km inland. In Egypt, rising sea levels is not so much about flooding, although 10% of Alexandria Governorate is at risk, but more the intrusion of salt water which both pushes the Nile fresh water further inland and raises the groundwater table, causing salinisation of what is now productive farmland.

With the Nile no longer in seasonal flood, pushing tons of sediment through the Deltas and out to the sea, Egypt’s coastline has started to erode, particularly around the 2 Nile outlets; Rosetta and Damietta, where substantial amounts of land have been lost over the years. A construction program which provided breakers and groins in several threatened locations has arrested the worst.

84

This is a complex issue. Fertiliser used in Egypt is mainly local urea which is sold at subsidized prices which encourages. With skills levels low and little public education for farmers, fertilizer is often used indiscriminately. 85

Shore Protection Agency http://www.mwri.gov.eg/En/institutions%20-%20Egyptian%20Public%20Authority%20for%20Shore%20Protection.htm , Coastal Research Institute http://www.nwrc-egypt.org/nwrc/instcorien.html

42

However, with a rising Med, the existing Master Plan requires revision to ensure that Egypt’s coast has the answers. Meanwhile, Egypt’s pollution hotspot, Alexandria, and what’s left of Lake Mariotta, require immediate attention, both to preserve local agriculture and to stop the release of damaging effluent in the sea. These problems are not unconnected and the new Master Plan must take an integrated approach. A ToR will be released for tender later this year.

As in many areas in Water management in Egypt, senior staff at SPA and CoRi have visited the Dutch DeltaPlan and praised their relationships with the Delta Alliance and Deltares.

Also due for tender later this year is construction work at the Rosetta promontory. There are a few local contractors with experience working a seashore, but not more than the work that has been done over the last years between Port Said and Matruh. We see an interesting opportunity for a Dutch specialist to establish a joint-venture like relationship with a local partner.

Construction work on Egypt’s shores is still fairly basic and innovative solutions may be employed to gain better protection at lower costs. For example, asking around about Interbeton’s Xbloc86, a robust and easy to install breakwater armour system, we received little recognition.

Considering that Egypt’s contractors do more and more work in neighbouring countries and the Gulf, it may be worth a concerted effort to bring Dutch shore technology to a larger market.

86

http://www.xbloc.com/about-xbloc/why-use-the-xbloc Xbloc is a kind of 6-legged crowfoot, executed in concrete. On positioning, Xblocs “feet” interlock, a process enforced by wave movement forming a very stable dike armour layer.

Xbloc is an innovative Dutch product

43

5.2 Urban Water & Wastewater treatment

As explained above, nearly the entire potable water and wastewater infrastructure is the responsibility of Ministry of Housing, through the Holding Company. Operation is handled by the Affiliate Companies and constructed, resp. modernised and rehabilitated by a number of specialised departmental organisations.

The emphasis on foreign funding in the previous chapter may have led to the incorrect impression that Egypt relies on the foreign community for its infrastructure needs. While bilateral and multilateral contributions are important, Egypt funds over 90 % of its investment and maintenance needs from the national budget.

The capacity need calculations above deserve further explanation. MHUDD and its Departments design urban water use around norms set in the “Building code87”

Area Type Population Average Daily Consumption (lcd)

Village Up to 50K 100 - 150

50K-500K 150 - 200

Small City 500K - 1M 200 - 250

Big City More than 1M 250 - 280

New Cities

280 - 320

Touristic Villages

350 - 400

The urban design norm for urban water use is 250 lcd with actual use in the 200 litre range88, and while this is a high, probably unsustainable number, it indicates that the present infrastructure may have some inbuilt slack in capacity. Meanwhile, local experts differ strongly over the validity of these norms and voices are heard saying that designing for 150 to 200 lcd is not only a realistic reflection of the available volume of water, it will also drastically reduce short term investment costs.

87 The Egyptian Code for the basis of design and implementation for pipe networks used in Potable

water and Sanitation networks. Code Number (102)/1, Part 1, May 2010, Part 1 Chapter 1 section 1-3. 88

This is nearly twice the North European average

44

Over the last 20 years, nearly US$ 10 billion, including foreign aid, has been invested in water supply, most in water purification plants and backbone pipe networks. Piped water supply now covers 99% of the population in towns and 90% in rural areas despite the explosive growth of the population. The last mile, or municipal distribution networks, is now targeted for upgrading and expansion.

However, only 1/3 of the population is connected to sanitary sewers with potentially serious public health consequences.

Implementing the National Water Resources Plan by 2017 is expected to cost US$ 26 billion, paid for by MWRI, MHUUD, MALR and a fair amount of foreign aid. Today, 2011, the plan is well on the way to 50% completion.

Water is charged (home use) at US$ 0.05 / m389 , which is below operating costs90 , requiring the central government to make up the operation financial shortfalls in the AC’s. These financial problems are exacerbated by non revenue water at 34%, poor operating standards, low or non-existent maintenance and over-capacity operation when part of the plant is out of order for lack of spare parts.

89

Tariffs are set centrally and are generally the same all over Egypt. Domestic use is charged at a basic tariff is LE 0.29 / m3 or US$ 0.05 in those households where a meter has been installed (still quite low). Else a fixed charge is imposed based on the size of the dwelling. Sewerage is charged as a 35% surcharge on top of the water consumption. 90

Current production costs excluding depreciation

45

Multi lateral and foreign aid has been and still is a necessary support to provide the entire nation with water and sanitation. Over the years, such aid has come to include financing of not only infrastructure and technical assistance but also in promoting sector reform targeting higher levels of cost recovery and more efficient services91. Private sector participation in operating water and sanitation systems has so far been limited to PPP financed and BOT operated projects for large wastewater facilities, mainly in New Cities, where buyers of expensive housing can be relied on to pay regularly for water and sewage.

Egypt Governorates

Current Donor co-funded Projects are:

- The Integrated Sanitation and Sewerage Infrastructure Project (ISSIP I) is a US$ 200 million (part) World Bank financed initiative to improve sanitation, environmental conditions and water quality in selected drainage basins92. The project includes components of institutional development and capacity building. The Netherlands is part of the program as a grantor. The project is

91

USAID for example, makes institutional cooperation a condition for the building of infrastructure. 92

Assiout, Sohag, Sharqeia, Menyoufia Governorates

46

presently executed under HCWW and NOPWASD supervision. See also in the section Agriculture: the IIIMP project, which covers irrigation improvements in the same region of the Delta.

- ISSIP II, a US$ 200 million follow-on program was approved by the WorldBank in August 2011. With the project, and additional 1.2 million citizens in the same governorates are expected to get better access to improved sewerage and sanitation systems. ISSIP II will be jointly carried out by NOPWASD, the Holding Company and 4 AC’s.

- USAID’s WPPR93 (water policy and regulatory reform) which supports MHUUD and EWRA to strengthen the policy, legal and regulatory framework for the water and wastewater sector in Egypt and improve the quality and geographic coverage of water and wastewater services.

- IWSP Improved Water and Wastewater Services is an €300 million EU Water Initiative supported by KfW, EIB and AFDB, where KfW is the lead donor. The Programme has an investment component for improving the water supply and wastewater services in Sharkia, Gharbia, Damietta and Beheira governorates in the Delta region.

- The EU is an increasingly important donor as many European countries shift from direct engagement to the European NIF94 and other programs.

- Bilateral support programs are many with several countries contributing in different ways to W&WW management in Egypt. Examples:

o Netherlands; APP, Beheira, Alexandria, Fayoum and ISSIP as described above.

o France supports IWSP and has made major contributions to the Gabel El Asfar WWTP, partially to direct benefit of Suez Lyonnaise des eaux.

o Germany through KfW provides technical assistance to the Qena and Kafr El Sheikh W&WW companies

o Italy; assistance to Cairo Water; leak detection equipment, training

o Japan; technical assistance to Sharqeia W&WW Company

The potable water infrastructure may be perceived as completed with 99% of all households connected, but there is a pressing need to improve and expand both the purification plants and the piped network in all cities to provide for the growing population and to optimise distribution networks that derive more from ad-hoc expansion works than from a planned design. The resulting problems with low pressure and water quality reduce the return on the very substantial investments made over the years in purification plants. Remedial work is a priority also for public health to stop people from using water from canals which often carries pathogenic contamination.

Low service quality is most immediate in mature informal (squatter) districts where nearly 20% of the population lives. Improvements are both a technical and political

93

http://wprregypt.com/ 94

http://ec.europa.eu/europeaid/where/neighbourhood/regional-cooperation/irc/investment_en.htm

47

imperative. The World Bank financed ISSIP II program is a good example of an aid driven improvement programme.95

Water quality has become a serious problem. The Nile is the major drinking water source and further downstream, quality is often below the minimum standard. A major reason is that only 1/3 of the population is connected to the sewage network and nearly 1.3 BCM of untreated wastewater is released in the Nile with self purification reaching its natural limit.

Wastewater management has now moved from last to first place on the MHUUD budget and numerous projects are in hand to build additional treatment capacity and matching sewage networks. With more than 50% of the required sewage network still to be built, a valuable and urgent discussion is emerging on decentralised WW treatment and the merits and degree of wastewater service clustering. There is obviously a limit to the number of households served and the maximum distance from polluter to treatment plant and clusters on the table range from 5,000 to 100,000 households in size. With technology now offering economies of scale at much smaller volume capacity, new wastewater treatment plants in Egypt tend to fall either in the mega category96 or in smaller clusters with the ideal size a much debated topic.

Dutch companies can contribute much to this issue; with pilots such as the Fayoum UASB97 WWTP providing live examples of lower costs in both investment and O&M costs.

5.2.1. PUBLIC PRIVATE PARTNERSHIPS

SEGMENT Public Private Partnersships (BOT) WWTP

FUNDING Private sector, local and hopefully international banks

BUYERS GoE, through MoF and PPPCU

INFLUENCERS Operating companies, Consulting Engineers, Donors

PPP98 has gone through a rough patch since its inception in Egypt a few years ago, The concept of off-balance sheet financing in exchange for direct periodical payments by consumers for services provided is not entirely new to Egypt with a limited build-operate-transfer contract for wastewater facilities in Gabal el Asfar and a few other tentative efforts by private companies. However, PPP only got serious in 2009 with the announcement of the first PPP tenders; for the New Cairo suburb WWTP and the West Delta Conservation and Irrigation Rehabilitation Project and with a new PPP Law.

95

http://www.water.mottmac.com/waterprojects/?mode=type&id=291914 96

The Gabel El Asfar WWTP, built largely with French aid is Egypt’s largest WWTP located to the Northeast of Cairo, and serves a good part of Cairo’s (East of the Nile) population of 12 million inhabitants. Present capacity is 1.2 million m3/day and expansion to 2 million m3 is in hand. The plant discharges through several drains in Lake Manzala 170 km North of Cairo. 97

Royal Haskoning is providing the final touches 98

In the Netherlands, the same acronym tends to be used to describe public-private partnerships where Dutch government and Dutch private sector join hands to achieve a goal, often overseas, that neither could achieve on its own. In this study we refer to such Dutch initiatives as PPS. See Chapter 6.3.

48

A PPP Central Unit (PPPCU) was established under the Ministry of Finance to manage both the tendering and the execution of PPP projects.99 Law 67 was passed in May 2010, followed by Executive regulations just before the 25 January Revolution.

In all, just a few PPP projects have been started with mixed results.

- The New Cairo WWTP is under construction for completion in 2012

- The West Delta Project did not find enough bidders and was withdrawn.

- PPPCU has announced the resumption of bidding for the Abu Rawash and 6th October City WWTP; a shortlist of bidders has been announced.

The New Cairo Sewage Treatment Plant PPP tender attracted several bidders and was won by a Consortium of Orascom and Aqualia of Spain.

New Cairo WWTP, the only PPP to achieve financial close to date, was not an ideal example of risk-allocation for arguably any of the parties involved. There are several reasons for this, but I will summarize the salient points:

a) The government did not have a legal framework at the time and, consequently, relied on a mish-mash of laws that were not designed for PPP,

b) The government retained foreign legal counsel in order to have a 'brand' name; unfortunately, foreign legal counsel did not retain top quality local counsel, and this lead to a weak understanding of the legal underpinning of the risks involved,

c) The PPP program itself was under constant scrutiny due to its natural sensitivity (you can't really afford corruption when it comes to infrastructure), so many of the decisions made by the PPP CU were politically motivated instead of on sound assessment of the financial, technical and legal aspects (this is always a problem when the government does not have any legitimacy),

d) considering all of the issues outlined above, the bidders and bankers had to price in these additional risks, and this was mainly done via changes to the risk-allocation, and

e) due to the government's policy of restricting payments to EGP, this rightly or wrongly restricted financing competition to banks with EGP deposits - in consequence, there was a reduced amount of competition, bigger bargaining power with the banks who were more risk averse and less experienced than their foreign counterparts. This also contributed to distorting the right risk allocation for this project.

Aly Shalakany, Senior Associate and PPP expert at Shalakany Law Office

All this had, however, little value as legal precedent as the new Law 48 for PPP’s was only passed in May 2010. The first practical test of the new Law would have been the new tenders for WWTP in 6th October City and Abu Rawash, both on the Western fringes of Greater Cairo.

99

Not just WWTP, but schools, hospitals and tollroads

49

Then the 25 January Revolution took place and with it came a popular suspicion100 that all large private contracts with the government had a bad smell. Today, 8 months later, the PPPCU, with a replaced management, has announced that Egypt is back in business; but will the PPP projects be bankable?

As for the PPP program as a whole, I am confident that, despite the mistakes that have been made, it is a vital mechanism for Egypt to improve its infrastructure. The fundamentals have not changed - Egypt needs to build infrastructure and the public sector cannot afford to do so alone. PPP is the only solution available.

In terms of financing, Egyptian banks are very liquid (many would say too liquid) - but if you really want to get a better deal for the government for these projects, you have to introduce foreign banks. Whether or not you want (or can afford) to stick to the policy of restricting payments to EGP is debatable, but there are other solutions for introducing foreign competition. The ones mostly discussed are creating a proper EGP derivatives market and creating infrastructure debt funds. If I were in the PPP CU right now, coming up with a solution to this problem would be my primary objective. Aly Shalakany

As the table of recently shortlisted consortia shows, interest in Egypt’s WWTP PPP’s is global and efforts to sell components or participate in a consortium are best made with the lead companies in their respective countries. When a Consortium announces its intention to bid; the players are usually in place.

Shortlisted bidders for Abu Rawash WWTP below:

Local Foreign partners

Orascom Veolia ( both in Egypt and in Europe)

Aqualia Gestion and Aqualia Infra

Kharafi (Kuwait but has office in EG) EMIT Water Discharge Technology, LLC

Hassan Allam Samsung C&T, Cadaqua

AAW, Arab Contractors Degremont, Miahona

No local partner Accionagua, ICAT, GE, K-Water

Metito Hochtief, PWT

No local partner Samsung, Macquarie, Aktor

100

We have met senior officials in different government departments adamant in their conviction that PPP’s were “bad for the country and the people” Of course, taking the sum of 20 future years of tariff payments for amortization and operations in non discounted values, and comparing that amount with the one time expenditure of building a similar plant using only local inputs, is a typical case of comparing apples and oranges.

50

5.2.2. MHUUD W&WW – STATE FUNDED INVESTMENTS

SEGMENT W&WW treatment and distribution, new, modernisation and maintenance

FUNDING MHUUD funds

BUYERS NOPWASD and CAPWO

INFLUENCERS Local consulting engineers, local contractors

While for many people the attention may be focused on the large PPP or multilateral funded projects, the majority of investment and maintenance work on water and water treatment plants and distribution networks is executed in the daily routine off MHUUD, its building companies CAPWO and NOPWASD and the 24 AC’s of the Holding Company.101

These works cover the full scala of engineering, from simple replacement, to modernisation, to capacity expansion, solving productivity problems or improving process quality. Most of these works are managed by local consulting engineers and executed by a local general contractor, often with an E&M subcontractor.

MHUUD –CAPWO Expansion Works Project for Geziret el Dahab Potable Water Plant (150,000m3/day), General Consultant UTILITIES Company , executed by: Hassan Allam Nasr Contractors, Electromechanical works contractor : United Metito Companies

Overcoming defects contained in notifications ... at Al Menshat surface water filtration station, another similar type station in Nida, a third similar type station in Gerga.

Rehabilitation & consolidation of the potable water networks serving .... City of Sohag,

Overcoming reported performance defects at 3 surface water filtration station at Al Menshat, Nida & Gerga.

Rehabilitation/ replacement of different diameter potable water pipelines (of 225, 450 & 315 mm. diameter) at different subordinated locations under 3 contracts.

Maintenance & raising efficiency of two sanitary drainage discharge lines in El Lagoon & El Roada.

Supply of a high pressure single phase horizontal Case-Split type water filtration unit .... of 450 litres/ second discharge, .... electric automatic butter fly valves of 8 inch diameter .... of electric switchboards & cables for those valves.

101

Investments have averaged LE 15 billion ( US$ 2.5 -3 billion) annually since 2006.

51

Rehabilitation/ replacement of water pumps & chlorine injection instruments for the Chlorine Dozing Divisions at Al Rooda water treatment plant.

Rehabilitation/ replacement of potable water networks .... City of Fayyoum ....

Public utilities .... in Benha including extending of potable water networks, drilling of three artesian wells & equipping them with centrifugal pumps at different water treatment plants in the City, .... extension of sanitary drainage networks, also vertical sanitary drainage water lifting sets at Saad Zaghloul sanitary drainage station.

Supply & erection of the electromechanical equipment .... sanitary drainage water lifting station at Abu Kesheik Village in Markaz Abu Matamir, in Beheira Governorate.

Supply & erection of three vertical sludge pumping sets complete with .... at Mostorod potable water treatment .....

Supply of a standby chlorine dozing instrument, equipment for the maintenance of sanitary drainage stations, ....

Revamping of four reciprocating type sludge lifting units ....

A random selection of tenders published in the last few months

Dutch consultants and suppliers who like to participate in such works are advised to form collaboration agreements with local general contractors or supply arrangements with E&M specialists. In addition, local consulting engineering firms should be kept well informed about the merits and achievements of the Dutch process technology or equipment that is offered.102

Not every settlement or slum has been reached with water supply as demonstrators camping outside the Television building in Cairo want to make clear; “To the ruling Military Council, and the Prime Minister as you are Egypt’s dedicated servants, we are the citizens of Salam City camp [a slum near Maadi], and asking only for a decent life, on Egypt’s land, and ready to give anything in return, we only ask that we don’t live like animals in the streets, half naked, and can’t protect our children!!” June 2011.

102

In all, major contractor and consultants number about 2 dozen. Specialists in E&M are often direct importers of equipment and selection requires careful homework. See the lists in Chapter 11.1.1.7 for details

52

5.2.3. MHUUD W&WW - MULTILATERAL AND FOREIGN SPONSORSHIP

SEGMENT W&WWTP- Government

FUNDING Co-funded by GoE and multi-lateral, sometimes bilateral donors

BUYERS HCWW, NOPWASD, occasionally an AC

INFLUENCERS Donors, HCWW

Multi lateral funded projects are typically larger in size, are more likely to be greenfield103, or at least reasonably independent of existing facilities and come increasingly in a bundle of ‘hard’ infrastructure work and ‘soft’ capacity building and or institutional reform. Current examples were provided earlier in this Chapter.

Most are bundles of GoE co-funding, loans from different banks at different terms and grants for the ‘soft’ elements. It is not uncommon for such funding projects to start with a fairly modest grant from a single country, which acts as a multiplier in attracting much larger sources of funding which allows the project to gain economies of scale, both in its operational economics and in its service to the community.

As such Projects develop, a process that may take some years, would-be participants all have ample chance to propose and promote their preferred technology, even their preferred tech supplier. Dutch suppliers who want to be counted in this process will heed the following basics:

- Presence. As such projects are developed; there is a near continuum of informal information exchanges. Such meetings are not announced and have no agenda. This is not an unusual process and can be seen all over the world. Dutch companies should reflect if they can support and participate.

- Locally proven concept and reputation. Egypt rarely buys a process, a brand or even a simple component without a known and published local history. See Chapter 6 for the several Dutch government incentive plans that can help a Dutch company execute a projects and earn a “successful local pilot” reputation.

- Flexibility. Sooner or later, there will be pressure to source or produce more in Egypt. This is not a black and white process and the success of companies like Nijhuis Water illustrates that a subtle give and take of local production vs. imports can earn years of contracts.

Below a digest of the larger WWTP tenders that can be expected in the immediate future104, irrespective of size and source of funding.

103

There is no absolute without exceptions. For example, the Fayoum, Sanhour WWTP, constructed under the FaPWasd program, started as an upgrade of an existing, old WWTP. 104

From GWI Project tracker

53

105

Source: MEED Projects

Egypt wastewater projects 2010-2011105

Project $ mill Scope Status Client

New Cairo WWTP

464 250,000 cm/d treatment works with expansion to 500,000 cm/d

Under construction by Orasqualia Consortium under PPP

MHUUD

6 October WWTP booster plants

393 12 new pumps at existing 100,000 cm/d wastewater treatment works

Under construction by Orascom and Hassan Allam & Sons

MHUUD

Alexandria wastewater system expansion

113 System upgrade including new treatment plant with capacity for 300,000 population

Under construction by Alexandria Construction Company

Alexandria General Organisation for Sanitary Drainage

Planned

Abu Rawash WWTP

tbc Take over the 1.2 million cm/d treatment plant and upgrade it under a PPP

5 developers pre-qualified; invitations to bid due end Nov 2010

MHUUD

6 October WWTP

tbc New 250,000 cm/d WWTP in 6 October City

8 developers pre-qualified MHUUD

Alexandria West WWTP upgrade

tbc Upgrade of the existing Alexandria treatment works to improve quality standards and raise capacity to 680,000 cm/d

Under client design; Prequalification expected first quarter 2011

MHUUD

Gabal Asfar WWTP upgrade stage II

374 Capacity expansion from 2 million cm/d to 2.5 million cm/d

Prequalification expected first quarter 2011

MHUUD

Gabal Asfar WWTP upgrade stage III

tbc Expand plant to 3 million m3 Procurement process to be launched soon

MHUUD

Agami WWTP 220 145,000 cm/d treatment works in Agami, Alexandria

On hold Alexandria General Organisation for Sanitary Drainage

Kafr El Zayat WTP

tbc expansion 26,000m3/d to 60,000m3/d

International bids to be submitted soon

Helwan WWTP 100 Capacity upgrade to 1 million cm/d

Concept paper under way MHUUD

Nahia WWTP 100 New 200,000 cm/d treatment plant in Giza

Concept paper under way MHUUD

Rural sanitation services contracts

tbc Upgrade sanitation and wastewater infrastructure in rural locations

Under client design MHUUD

3 Smaller WWTPs

total capacity 80,000m3 Not tendered yet – lower priority

54

5.2.4. PRIVATE INITIATIVES AND OVERLOOKED AREAS

SEGMENT PPP styled private W & WWTP initiatives at small scale

FUNDING Creative ideas required

BUYERS NGO’s, Village committees (informal)

INFLUENCERS

There are thousands of small villages with populations below 25,000 people in the Delta and Upper Egypt that have not been included in the current plans; a matter of limited resources and priorities. As things stand, sanitation provisions will not reach these communities any time soon, but there is a new and growing interest from a wide range of ngo’s to provide this on a one by one basis, using a kind of mini-PPP model with the population paying a direct contribution, collected as usual, with their water rates, but received by the private operator or local co-op.

The HCWW open attitude106 towards user contributions in the construction of facilities greatly improves the chances of success.

NGO support for “private” sewerage and sanitation projects tends to be concentrated in Upper Egypt with many organisations all “playing” with the idea. Their fragmentation and limited technical knowledge necessitates the introduction of a professional project manager and technology supplier. Combining –modest- international or bilateral funding with a sound operating model can be a unique opportunity for a Dutch technology supplier with a local manufacturing partner.

When a community has no reliable piped water connections, do-it-yourself solutions rapidly emerge, often supplying water of dubious quality and legality.

The Minigrid is an initiative which cleans and legalises both drinking water and sanitation, presently put together by Toon van Kessel in the Netherlands. He suggests that the HCWW Associate Water Company supplies “official” water just to a water tower and leaves the neighbourhood distribution entirely to the local people using PE hoses or other piping. Official payment takes place at the water tower level while the community sorts itself.

Toon’s project goal is to provide both community credit for the water tower (and optional treatment equipment) and individual micro-credit to pay for individual home connections

107.

Complementary is Toon’s sanitation proposal using Ecosan

108, a waterless toilet. Locally produced from

106

For example; HCWW supplies the pipes, the community digs the trenches. Caveat: this is not formal policy but an indication of what can be productively discussed 107

toonvankessel@hotmail.com 108

http://www.ecosan.nl/

55

recycled PE and PET, this squatting unit separates and collects urine and faeces. Urine is turned small-scale into fertiliser. Faeces are fermented and the remaining sludge is pelletized and pasteurised in compost, again at small scale.

The Sabeel Foundation is a local charity foundation aimed at providing clean drinking water to people who have no access to such water. Besides providing potable water, Sabeel will also carry out a series of social, cultural and economic services to help in the sustainable development of the areas where it serves.

Historically, the provision of water has been a preferred charity venue for rulers and people of power. Yet, the need still remains to this very day. Currently there are thousands of villages without access to clean drinking water.

To approach the masses in Egyptian rural areas and poor communities, pragmatic actions on the ground are needed. Sabeel is a basic method for delivering our thoughts which are centered on modernity, freedom, democracy and respect for the other: an enlightenment corner in every Egyptian village

109.

109

More information from mmghaly@gmail.com

The medieval Sabeel

56

5.3 Desalination

SEGMENT Potable water; public and private sector

FUNDING Own funds, PPP, Donors

BUYERS HCWW, NOPWASD, CAPWO, PPPCU, General Contractors, Communities

INFLUENCERS Donors, Consulting engineers, Contractors

At the current state of technology in Egypt, saltwater desalination almost always means RO – reverse osmosis, typically with multimedia, sand and/or cartridge pre-filtration. Initially the domain of the private sector and entirely focused on the tourist destinations on the Red Sea, desalination has new gone mainstream and the HCWW is developing a roadmap for Egypt and saltwater as a source of potable water110.

A small number of SWRO projects are already in the pipeline;

- Hurghada 25,000m3/d, likely SWRO Awaiting advisory tender

- North Sinai 35,000m3/d, likely SWRO Awaiting advisory tender

- Red Sea, Sinai, Matrouh 5,000-20,000m3/d Pre-RFP stage

- West Gulf of Suez 70,000m3/d, likely SWRO Awaiting advisory tender

GoE is a relative latecomer in the Red Sea desalination scene. Private company Ridgewood111 has been building medium size RO plants for over 10 year. Ridgewood was the first to introduce the BOT concept to its water customers and presently produces some 100m3/day in 40 plants serving mainly hotels in the Red Sea tourist area.

With the increased interest in brackish groundwater, desalination is likely to move into more diverse applications.

110

We endeavour to advise readers when this report has been published. 111

Initially a US-EG JV, now an entirely local private company, Ridgewood has over 40 desalination plants in the Red Sea and South Sinai Governorates, with capacities ranging between 500 and 11,000 M3 serving more than 100 resorts and projects. Total operating and under completion desalination capacity is 42,000 M3/day

UF Membranes; courtesy Pentair XFlow

57

5.4 The uniformed branches

SEGMENT Army, Military Production

FUNDING Own funding

BUYERS MoD, MoI, MMP

INFLUENCERS On request

Little known to most foreigners, a very substantial market is presented by the Egyptian Army and the Ministries of Military Production and of the Interior. Between them, these organisations have more than 1.3 million people in uniform and a nearly equal number of civilian employees.

While a large part of their demand comes from the need to provide drinking water for their own people, mainly with RO based desalination, the sheer size and versatility of these organisations112 provides for a wide variety of needs in components, complete plants in kit-form and more.

- For Army and border guard have camps all over the country which require desalination and other water purification plants ranging from small truck mounted units to constructed plants with a capacity of 30thou m3d.

- The Army has units which work like general contracting companies, building infrastructure and buildings, not just for its own needs, but also for the general population, often in competition113 with civilian contractors. Projects have included W&WWTP’s for populations as large as 100,000 people.

- The Ministry of Military Production and AOI, the Arab Organisation for Industrialisation (several factories) still produce weaponry and other military needs, but a very substantial part of their output goes to civilian buyers, institutional and consumers.

The Army organisations are not only customers but can also be valuable local production partners. Some of the factories visited have an enviable order book, but produce treatment plants to dated processes and while often equipped with good and modern machines, these are not used in the most efficient way.

The Egyptian Armed Forces and the Police do not advertise and do not publish contact information. Contacts by Army personnel with foreigners are subject to national security regulations and are usually arranged by experienced local agents.

Dutch companies with an interest can contact EKN Cairo or the authors for introductions.

112

There are numerous estimates and guesses of the size of the Egyptian military’s role in business; from 10% of GDP and more. For the purpose of this study, suffice it to say that the Army presents a most substantial and solid market. 113

This is not the best choice of words; the Army does not need respond to tenders like the private sector and can accept direct orders.

58

5.5 Agriculture and horticulture

As set out above, agriculture is Egypt’s largest water user consuming 80% of available sources. Often this requires re-using the same amounts of irrigation water twice114. Water is supplied through the canal systems to farming areas under the control of MWRI, which manages the actual irrigation flows through each branch canal. (see Chapter 5.1.4 ) When on private land, water is allocated by Water Users’ Associations. Farmers pay for the service provided at this level: lifting and drainage. Old Lands and New Lands have not only different irrigation systems: flood vs. drip, but also differ in organisation and the way water services are paid for. Details are beyond the scope of this study.

In 2008, IMC115 commissioned consultants Booz Allen & Hamilton (BAH) to produce a number of insightful studies116 on the ways and means to transform the agricultural sector into an agri-business. Much is of course not water related, but some parts, still highly topical, are worth reproducing here:

From Egypt's Agriculture Sector transformation strategy, 2008 SWOT analysis by BAH

114

MALR estimates this today at 20% 115

Industrial Modernisation Centre, under the Ministry of Industry 116

http://www.imc-egypt.org/ListofStudies.asp

59

In this SWOT analysis nearly half the items suggest opportunities to reduce the nett use of water in agriculture through improved management, applied technology and or extended supply chain management. These are all areas where the Dutch agro-water sector can provide excellent value.

Egypt has always exported agricultural products, with onions, cotton and potatoes traditional and well known exports. Over the last years, horticultural products have taken first place with Egyptian citrus fruit, grapes, green beans, snow peas, spring onions, artichokes and fruits like strawberries and melons all a common sight in European shops. Dutch shoppers probably buy more Egyptian produce, season to season, than they realise.

In basic products, like potatoes, forward looking producers have climbed up the value chain, moving into frozen French fries, dried mashed potatoes. This has gone hand in hand with a scientific approach to farming.

60

Farm-Frites Egypt117

is an Egyptian-Dutch potato grower which has successfully moved up the value chain, now producing frozen French fries for McDonald’s Egypt and many export markets. Farm Frites

has over 30thousand feddan under cultivation, most in the Eastern desert. Irrigation water comes primarily from deep wells, mildly saline.

Under the Dutch PESP (now defunct) and the Partners for Water programs, Farm-Frites and Dacom

118 have teamed up to implement an Agri Yield Management system at the Farm-

Frites fields. Today, combining sensor technology, GPS and Internet and scientific knowledge, Farm-Frites can continuously monitor and fine-tune its production process throughout the growing season.

5.2.5. IRRIGATION WATER MANAGEMENT

SEGMENT Field Irrigation & Water Management – Government

FUNDING Multi lateral donors, MALR own funds

BUYERS MALR,

INFLUENCERS Donors, Project Management

Irrigation management, the how and where to distribute each drop of water from the branch canal to the individual plant, is a complex puzzle of farming knowhow, basic and high technology applications and people management.

In the Old Lands, the Delta and the Nile Valley, where flood irrigation is the norm in a densely exploited jigsaw of small holdings, this is in the first place a matter of organising supply and users in a collaborative model. Most international funded projects incorporate this aspect.

IIIMP, the Integrated Irrigation Improvement and Management Project, a € 200+ million project by the World bank, KfW and the Dutch Government is presently run out of MWRI with Euroconsult MottMcDonald as managing consultants. IIIMP addresses management of water resources from the Mahmoudia and the Mit

117

http://www.farmfrites.com.eg/Design12linkst.html 118

http://www.dacom.nl/index_new.php?pid=about&tid=history&lid=en . The project was carried out by a consortium of the Dutch project partners Dacom, The Soil Company and WaterWatch, in cooperation with the Egyptian Ministry of Agriculture Egypt. The activities took place between September 2007 and February 2009. The project was financed in the framework of the programme "Partners voor Water" through the executing agency EVD (the Netherlands).

Dacom precision farming equipment installed on a field in Egypt

61

Yazeed Main Canals in the Nile Delta; not just the provision of infrastructure, but integrated with institutional reform, involving through the Waterboards and Water User Associations. IIIMP tackles fragmented service delivery, user empowerment at tertiary and secondary levels, facilitates private investment and drives institutional reform119. IIIMP is a sister project to ISSIPII which addresses sanitation in the same area. See above.

With agriculture still one of Egypt’s most important income earners and employers, with rampant water inefficiency and the need to feed an ever growing population, programs like IIIMP are likely to be repeated. As in potable and wastewater projects, management jobs go those one knows. Maintaining a close relationship with MALR and the current Funds managers remains the best way to participate in future projects.

Makro, a trading firm in produce and groceries operates in Egypt as a supplier to (associated) Metro Supermarkets, large hotels and many mid sized supermarket chains. Makro has decided to differentiate on the quality of its

daily supply of fresh produce. The company has established a tight work relationships with a few hundred small and medium sized farmers based on an astonishingly simple concept. - Handshake deals, no contracts. Walk away if there is anything you do not like. - Training in farm technology and methods, QA, provided free of charge. - Produce that is farmed to published and transparent standards and quality (basically GAP) will be bought at today’s market price. Substandard produce is not accepted, not even at a lower price. - No direct involvement in the finance / purchase of seeds, pesticides or fertilisers. - Leader farmers handle the collection / delivery to the Makro collection centre. - Leaders bubble up as community leaders; no elections, no appointments, no salaries Dutch government provides financial support to carry the overhead under the PSI facility. Next years; Supply chain improvement, cold chain

119

http://iiimp-eg.org/ . IIIMP is co-financed by GoE Own funding- LE 575 million (amounting to 32% of the total) Worldbank Loan- US$ 120 million KfW Loan- € 38.8 million KfW Grant- € 2 million Netherlands Grant- € 20 million, mainly for technical assistance

62

5.2.6. IRRIGATION AND FARMING

SEGMENT Field irrigation and farm equipment, know-how

FUNDING MALR, private sector, cooperatives

BUYERS MALR, importers, trading companies

INFLUENCERS Agents, distributors, MALR research Institutes, UPEHC,

Al-Ahram Beverages has barley grown in reclaimed desert lands at East Owaynat using pivot irrigation

Farmers at the field level range from small scale fellahin120, tilling less than a feddan to huge modern concerns with thousands of feddan under management. The need for equipment and knowhow is universal throughout the segment with numerous agents and distributors the main link between market and producers. See the contact list in Chapter 11.10 and 11.

- Large farms concerns typically procure their own needs - Farming Cooperatives, a holdover from the Nasser period, still exist but

have become increasingly less popular or effective. - The Water Users Associations begin to take on roles beyond water

allocation. - MALR operates an enormous short term equipment rental operation,

providing tractors, combines and other expensive items on day contracts. - UPEHC, a public-private interest group, unites most horticultural producers

and functions in the market as a bulk buyer of seeds, training provider and

120

The traditional word for the Egyptian farmer. Family owned plots can be as small as ½ feddan or just 2,000m2

63

more recently as owner-manager of a modest collection centre with (planned) cool room and packaging facility.

Demand for equipment and knowledge encompasses a wide range of products.

- Laser field levelling equipment and training - Irrigation equipment; low pressure and perforated drainage pvc and pe

pipes121, gated pipes, valves, regulators, pumps - Pivot irrigation equipment, complete drip and bubble irrigation systems - Precision farming equipment and services; sensors and monitoring, training

Dutch brewer Heineken and a local investor co-own Al-Ahram Beverages, Egypt’s single brewer and distiller. The company employs 2,300 people and its annual tax and excise contributions amount to 0.2% of GoE’s annual revenue. The company operates 6 plants where it pre-treats its own product water.

Beer is a water intensive product, not just in the brewery, but first to grow barley. To optimise this process, brewer Al-Ahram has also become a farmer. In East Owaynat, some 400 km East of Lake Nasser, barley grows on circular pivot irrigated fields, 125 meter across, in a Dutch hi-tech environment where Heineken contract farmers thrive to shorten growth cycles and irrigation days and increase yield per drop. Precision farming, where each m2 is continuously monitored is the norm.

5.2.7. WATER SERVICES TO THE FOOD INDUSTRY

As Egyptian farmers go up the value chain, food processing has become a true industry with a large appetite for water. For the more general considerations, see below under Industry.

Two specific examples:

- Potato processing requires 6m3 of water per ton product. With all other functions, this comes to some 2,000m3 per day for companies like Farm-Frites which re-uses water 3 to 4 times and deploys a treatment plant before it releases any effluent. Further optimising of water use is an important target for all vegetable processing firms in Egypt.

- Egypt produces 2 million Mt of poultry and smaller quantities of beef and mutton per year. There are numerous slaughterhouses, many still very primitive with little in water management or treatment. To eradicate bird flu, GoE plans to establish many new slaughterhouses during the next three years. To encourage the private sector to invest in this industry, GoE has signed a joint agreement with a Kuwaiti fund to provide $90 million in credit facilities. This sub segment of water treatment equipment runs primarily through local agents and VAR’s. Dutch water tech companies can benefit from Dutch leadership in this business – most slaughterhouses are imported from the Netherlands- by teaming up with a Dutch company in the slaughterhouse business122.

121

Local production of plastic pipes a.o. by EPADP, does not provide a full range. 122

This concept holds true for all application industries. Joining forces with a Dutch supplier of industry specific technology and offer the customer a more complete solution – water pre and post treatment included- is a classic example of a win-win model through synergy.

64

5.2.8. AQUACULTURE

More Egyptians eat fish, nearly 14kg/c/yr and growing, 1 million Mt annually. 10% is imported: canned tuna and sardines, maatjes haring, smoked salmon and the like. 30% is free catch from lakes and the sea which have reached their upper limits. The growth has to come from fish farming which in Egypt is still exclusively in ponds on land. MWRI does not allow the first use of fresh water by fish farms and ponds are forced to take their water from agricultural run-off, drainwater123 which depresses yields and has totally stopped exports.124 Unsurprisingly, the first use prohibition is often ignored and many ponds use a mix of fresh surface water, shallow groundwater and drainwater.

While many farmers maintain a small pond at the end of the farm, the true centre of fish farming is in Kafr el Sheikh governorate, the area just south of Lake Burulus. This is a heavily farmed and populated area and there is not much space for expansion of ponds. Other important areas are Fayoum and of course the Nile Valley.

Necessity is the mother of invention and nowhere more than in hard pressed fishfarms. Dr. Ismal Radwan of the Egyptian Aquaculture Centre in Kafr El Sheikh Governorate treats his water for re-use using a bio-film system constructed in an old shed using Coke bottle crates and spiral rolled plastic mesh. Pumps financed under a Dutch assistance program keep the circulation going.

However, continuing the present practice using polluted or illegal water limits growth for fish farming. Opportunities lie in several apparently unconnected ideas and initiatives.

- Free catch in the Nile, Canals and the coastal lakes has reached its limits. The lakes are increasingly polluted and cage fishing in the river is now officially forbidden –a shipping hazard- with unpleasant confrontations between police and fishermen.

- First use of irrigation water and acknowledging that fish excrement in the water serves well as natural fertiliser for the fields irrigated from the fishpond. This will require a change in Egypt’s Water Law, something where objective data gathering such as surface evaporation rates, will be very useful.

- Brackish water fish farming using groundwater from, for example, the Western Desert aquifer in the Wadi Natrun125 area. There are experimental ponds at work which show promising results.

- On-shore mariculture126 in the coastal lakes. Two initiatives are worth mentioning;

123

The disagreement about first use has been around for a long time with Ministries taking opposing sides. Agriculture wants fish to be farmed in –better quality- first use water where their excrement is excellent fertilizer for the next use: irrigating crops. Water Resources disagrees, stating that fish pollution poses a health hazard on the land and also as absorbed by crops. In addition, Water Respources maintains that evaporation from fish ponds is high, higher than can be justified for high quality water. There seems to be no simple answer. 124

The proscription to farm in used water runs counter to an EU quality and public health rule. 125

On the desert road from Cairo, about 100km south of Alexandria 126

Aquaculture with (mare) seafish, on-shore as in this example or off-shore in floating cages

Harvesting tilapia in Kafr Sheikh

65

o A UNDP sponsored successful trial to create artificial wetlands as a filter between urban (part treated) effluent and the coastal lake Manzala to provide better lake water for fish farming.127 Regrettably, despite successful result of the pilot projects, funding for large scale implementation has not yet been found.

o A new UNDP proposal to dig artificial salt water ponds in the immediate coastal region to act as a water buffer against further saltwater intrusion in the Nile Delta. These lakes would lend themselves very well to mariculture.128

- Off-shore mariculture, particularly shrimp. While Saudi Arabia has a thriving industry on its side of the Red Sea, in Egypt it seems that both Ministries of Defence and Tourism are less keen on a coast line full of cages. Nevertheless, sea cage pilot farms, many with support from EKN, are coming on stream. It is hoped that the legislature will follow with a framework to further enable this industry.129

- Integrated shrimp, seafish, biofuel and afforestation projects like the one proposed by NewNile Co130. Regrettably, such a large project requires large upfront investments.

- Finally, there is considerable experimentation going on and fresh ideas emerge constantly, such as the desert aqua culture concept shown in the sketch on the right.131

127

Some 10 years ago, artificial wetlands were created near Lake Manzala and very effectively filtered the WWTP effluent that came through the drains from Cairo. At a pilot scale of 10 feddan, the project can treat 25thousand m3/day of part treated sewage effluent http://erc.undp.org/evaluationadmin/downloaddocument.html?docid=1734 128

http://adaptation-fund.org/sites/default/files/AFB.PPRC_.2.5%20Proposal%20for%20Egypt.pdf 129

Water Mondiaal countries Indonesia and Vietnam have been growing fish in sea cages for generations and “kelongs” are a common sight along SE Asian shorelines. An opportunity to “share know-how” in an even broader sense? 130

http://www.newnileco.com/ 131

http://beta.irri.org/news/bulletin/2007.17/PDFs/CDPDF2007.1.Suloma,A.pdf

Kelongs, or seacages, are a common sight along all South East Asian shores and cultivate a rich array of fish and seafood. A true Water Mondiaal challenge to enable Indonesian know-how in an Egyptian setting.

66

5.2.9. SUPPLY CHAIN IMPROVEMENTS

Agricultural yield per feddan may be high in Egypt, but as much as 40% of Egypt’s horticultural crops perish in post harvest losses. Tomatoes and grapes are the most vulnerable. The weakness of the local supply chain: transport, handling and storage, negates much of the effort made on the field.

Arguably the biggest impact on water efficiency can be made with loss reduction improvements in the supply chain ensuring that more of the harvest reaches paying end-users, ideally adding value along the way.

Substantial improvements can be made in the areas of cleaning and washing, packaging, transportation, storage, cool chain management, reaching export goals and working EU regulations (Egypt’s main export market for agri-products. The BAH reports, mentioned above, concur, as shown in the table on the next page.

Why, however, is so little of these recommendations made 4 years part of today’s reality? We venture that while the high level approach of the report sets a good framework, it takes private initiative and investment to buy trucks, build cool rooms and deliver the consistent quality in product and delivery that solidifies export into a sustainable branch of business.

And indeed, private entrepreneurs are taking the lead:

“The Egyptians, Belco in particular, have proven during many years of collaboration that they are serious and reliable suppliers open to change and innovation.

Even during the difficult period during and just after the 25 January Revolution, did our Egyptian suppliers manage to satisfy demand without interruption." Frank Brinkman, Sourcing Manager at Bakker Barendrecht (a major Dutch importer and distributor of fresh produce)

The BAH study, mentioned earlier, comes up with specific suggestions for supply chain improvement.

67

Egypt's Agriculture Sector transformation strategy, 2008 (Booz Allen & Hamilton)

The 4 focal directions shown above provide a good big picture starting point, and several opportunities can emerge in the public and private sectors.

- Product quality improvements in horticulture; GAP, Euronorms - Crop specific irrigation methods and growing know-how - Precision farming (real time soil data, humidity, weather forecast etc.) not just

for large operations, but also in cooperative form for groups of small holdings. - Real time weather, market and other online data provision. In addition to the

collection and publication of data, this requires some IT literacy training among smaller farmers.

68

- Cool chain; from concept to execution; cleaning and prepping, retail packaging, precooling units, coolrooms, data logging, certification, export markets exploration

- Transportation chain; cooltrucks, temperature management, reefers, just in time supply management

Most of the large farm operations such as FarmFrites, Belco, Ragab, Keram, Maba already use different forms of technology to improve outputs.

At the smallholder level, UPEHC, a public-private interest group, manages supply chain efforts with limited funds. An interesting example; later this year, with support under the Dutch CBI program132, a website will provide real time market information.

5.2.10. AGRICULTURAL PRODUCT RE- SELECTION

Different crops use different amounts of water with different levels of efficiency. A dialogue is taking place in Egypt today, to determine which crops to drop. Thirsty crops like rice, cotton and sugar cane are meant to be replaced by more water efficient alternatives. This topic is outside the scope of this study.

132

Chapter 6

69

5.6 Industry

SEGMENT Private and public sector industrial factories

FUNDING Own funds, EPAP

BUYERS Factories

INFLUENCERS Local agents, VAR

Further and better industrialisation is the cornerstone of Egypt’s economic future but cannot follow this path without major adjustments to the environmental degradation that has followed it in the past. This must include better use of resources (water) in all productions processes, increased qualitative and quantitative treatment of industrial wastes, reduction and control of health hazards posed and restoring the quality of the Egyptian natural environment. Egypt’s industrialisation started in the 50’s with State controlled heavy industry; chemicals, food, metal products and textiles, predominantly in the Nile Valley and in Cairo and Alexandria. For years, these factories produced with little regard for the environment: a patient river Nile flushed everything to the Northern lakes and the Mediterranean. When President Sadat’s “Open Door Policy” in 1980 encouraged a nascent private sector, factories mushroomed both in the traditional industrial areas and in new industrial centres such as Sadat City and 10th Ramadan City. Over the last decade, with the revelation that untreated industrial wastes of more than 350 factories were discharged directly into the Nile and the Mediterranean, came the realisation that the natural system was at a breaking point and that urgent action was necessary.

From a 2002 local research report133: “Some groups of chemicals, such as carcinogenics,

mutagenics and neurotoxins, are unaffected by the usual methods of water treatment. The threats imposed by chemical discharges comprise contamination of drinking water supplies, phyto- and aquatic toxicity, destruction of agriculture as well as fisheries, bioaccumulation, and biotransformation. Some spectacular threats to water resources and land are now quite obvious, e.g., in Helwan (south of Cairo): air pollution with cement dust, nitrogen and sulfur oxides, carbon monoxide, and other airborne pollutants resulted in the death of almost all the trees. The industrial wastewater discharged from Helwan area amounts to some 45 million m

3/yr. In Shoubra El Khaima (north of Cairo) huge volumes of

untreated industrial wastewater are daily discharged into agricultural drains134

. The textile industries which represents (in 2002) 48% of the total number of industrial plants are the main contributors (almost 52%) to organic load.

133 Water Issue in Egypt: Resources, Pollution and Protection Endeavors, by Hussein I. Abdel-Shafy (National Research Center) and Raouf O. Aly (National Center for Radiation Research and Technology) CEJOEM 2002, Vol.8. No.1.:3.21. 134

Author’s note: In the intervening years, the Gabel El Asfar WWTP has been built. With a present capacity of 1.5 million m3/day, soon to be 2 million, the plant treats most of Cairo’s urban liquid waste at the primary level and releases effluent in the Bahr el Baqar drain which ultimately discharges 3 million m3/day in Lake Manzala. See Chapter 5.2.8 on the experiments with artificial wetlands to further filter this waste stream.

Type of load Misc. Oil, soap Starch, yeast, glucose

Pulp,

paper

Metals Plastic, rubber

Textile, dyeing

Total load

COD (kg /day) 1366.9 7006 3239.4 2322.3 11676.3 236.7 26372.3 52219.9

BOD5(kg /day) 244.9 4568 1148 661.7 1257.7 77.9 8533.9 16492.1

Organic load contributed by the various industrial sectors in Shoubra El-Khaima. Based on El-Gohary (1994)

70

The metropolitan area of Alexandria accommodates a multitude of industries close to surface waters, e.g., in Amiria at Lake Marriotta, near the Mahmoudia Canal. Out of 1243 industrial plants 57 were identified as major sources of marine pollution. Paper, textile and food industries contribute 79% of the total organic load. As might be expected, the mid-stream conditions of the Nile are still, on an average, at a fairly clean level owing to dilution and degradation of the pollutants discharged. The riverbanks, however, are much more polluted. Inefficient production in some industries (e.g., oil and soap) generates waste that contains raw material as well as products, a costly burden to the national economy and the consumer. Obviously, cleaner production is the unique answer for the industrial pollution in Egypt.”

In the last 10 years, enormous progress has been made and while far from solved, environmental pollution of surface and ground water is now a problem that is pro-actively managed.

- All-encompassing legislation now covers environmental protection from standards to prevention to correction. The guiding principles are to make the polluter clean up his own mess and prevent the return to the Nile of any water that is acceptable.

- Many of the worst polluters (the examples in Helwan and Alexandria above) have been made to reduce emissions. As the majority of these factories were State or Army owned, the process has been internal and did not get much publicity. Nonetheless, while far from perfect, these polluters have been reigned in.

Much remains to be done, however, and as industry struggles with the cost of business interruptions in the wake of Revolution, environmental improvements sink lower and lower on agendas.

- There is much criticism of the environmental legislation as unrealistic. The requirement that water discharged to the system must have BOD135 not higher than 6 and COD not higher than 10 means that in most cases water treatment plants must add a tertiary or polishing phase, which is disproportionately expensive. For many factory owners, the difference between being fined for dumping untreated effluent and being fined for dumping treated effluent that does not reach the legal standard, boils down to the question: “why invest if they make you pay anyway?”

- Environmental protection enforcement has never been strong or consistent under the previous regime, where a phonecall to a friend in high places usually got rid of a bothersome inspector. Today, while the Revolutionary ethos definitely values Egypt’s natural habitat and the imperative to provide clean water for future generations, law enforcement is not yet strong and there is little practical incentive to spend money that will not show an immediate return.

- Industrial water is more expensive to buy than heavily subsidised water at home, but it does not cost enough to be significant in the overall production cost. At first glance, treating and re-using water makes no financial sense.

As with so many other important shifts in attitude in Egypt, the real change may again come from individuals on the ground.

- On a very practical level; export consumers demand that their purchases are grown and produced in a sustainable manner136. Initially just agricultural

135

Biological oxygen demand, Chemical oxygen demand; see Chapter 10 136

See Good Agricultural Practices as much used standards. http://www.fao.org/prods/gap/

71

export product, but increasingly more products sell better in foreign and local markets if the producer can show that water and other environmental inputs and outputs have been responsibly used.

- Less widespread, but gaining currency, is the Water Footprint concept developed at Unesco IHE and the University of Twente137. The Footprint helps consumers understand how much water was used to produce their choice of food or drink en accordingly make considered purchasing decisions.

Some global averages as an illustration:

Beef 1kg 15,500 liters of water Beer 1 glass 75 liters of water Cotton 1 T-shirt 2,700 liters of water Rice 1kg 3,400 liters of water Leather 1kg 16,600 liters of water

- Many industries are located in the new industrial zones in what once was the desert and rely on piped Nile water. A supply that faces uncertainty as demand outstrips supply on all fronts. Reducing water use through re-use looks more and more like good business.

- A new, younger generation of owners and managers is taking over. Better educated, they realise that tighter production processes which rely on smaller inputs produce better quality at a lower cost. Buying water may not cost much, but wasting water is proving to cost more.

Protagonists of sustainable production and respect for the environment find an unexpected ally in modern Islam. Preacher Sheikh Abdallah al-Khouly:

“The Quran teaches that the environment is God’s creation, and disrespecting it is like disrespecting God. It also teaches of maintaining balance in life, and that what is taken must be replaced and that by spending time in nature, human awareness and our understanding of God can be developed.” “It is every sheikh’s duty to urge people to protect the environment through Friday preaching and weekly lessons/meetings. The message in the mosques is meant to convey the essence of the Quran in a way that serves humanity with all its concerns, and the environment is no exception.”

138

Industrial water use in Egypt is not completely documented. Nett use139 for industry, excluding cooling water for power plants, amounts to some 3Bcm/year, about 6% of the total supply and is likely to increase steadily. Roughly one half is water abstracted directly from the Nile and the Canals, 30% comes from the potable water network and rest from groundwater, usually the shallow Nile aquifer. Of this,

137

http://www.waterfootprint.org/?page=files/home 138

Interview http://www.almasryalyoum.com/en/node/475482 139

Water drawn from the potable network + surface/ groundwater – seepage and treated / untreated returns

Industries and common pollutants (NWRP 2017)

72

nearly one half is cooling water, a very small component product water and one half process water.

Different centralised WWTP solutions have been implemented, most of which have been “too little, too late”. The problems derive partially from the fast growth of many industrial areas, but mainly from the erroneous concept to have a single WWTP handle a wide variety of industrial pollution. Accepted wisdom in industrial waste water treatment is to deal with pollution as close to the source as possible in order to apply the optimum solution to just a single problem. One size fits all WWTPs simply cannot handle the wide variety of pollutants. A recent fact finding visit to Quesna, North of Cairo and home of the country’s tannery industry illustrated this well. A small overflowing treatment plant and multicoloured sludge flowing in most streets.

Egyptian industry is fragmented with the State and the Army as the two largest owners, many multinationals and a bewildering array of large and small private owners all pursuing individual strategies. Nearly all purchase industrial equipment through medium sized specialised consultants, often value added importers. See the Chapter 11.11 for a list of such companies.

Whatever the buyer’s rational to purchase a solution to make better use of water in production, the seller still has a hard job in a culture where the cost-to-own is traditionally overshadowed by the price ticket.

In our experience, many such requests for a quotation begin as an attempt to mitigate the direct pollution from waste effluent and tend to focus exclusively on a cleanup job, which, if one wants to comply with the current legal standard, will often be hard and expensive to realise. A more successful approach is to extend consultancy to cover the entire manufacturing process, aiming for a zero-liquid discharge end result. While this is much more work and requires expertise not always in the toolkit of the average Dutch WWTP engineer, the economics of reduced water input, less equipment damage (treated re-used water can be soft and free of contaminants present in piped water such as chlorine), reduced quality variability and no dumping fees or fines make compelling reading for any Egyptian CFO.

Dutch companies are recommended to build strong relationships with several value added importers, invest in capacity building with such partners and extend their process know-how to cover what happens between purifying process water and cleaning waste water.

Valuable financial support is now available for Egyptian factories that plan to invest to move from environmental non-compliance to compliance. The EPAP II program of the EEAA140 provides loans with a 20-30% grant component to help finance industry make improvements to improve performance and comply with environmental regulations. The programs (one for Cairo and Alexandria, another for the Governorates) are financed by the WorldBank, EIB, KfW and others.

Applications must be made by the Egyptian factory through selected local banks, but the foreign supplier has an obvious role in supporting the technical side of such an application.

140

http://industry.eeaa.gov.eg/

73

5.7 Home Consumer market

Egypt has a substantial market for consumer water products. As we have received no inquiries or expressions of interest for such markets from any Dutch firms, just a brief overview.

- Bottled water sells in ½ liter and 1½ liter bottles and is available nearly everywhere. Most brands (Nestle, CocaCola and many others supply tapwater that has been extensively filtered and taste enhanced. The exception is Siwa, which provides water from the natural wells at Siwa oasis. There is no price differentiation.

- Most bottled water companies also sell the 20 liter bottles for dispenser units.

- Home filtration units, often with a small RO membrane and carbon filter, priced from €80 to €350, find a ready market. Most of the equipment is American, Taiwanese or Chinese, who engage in what is no more than a battle of price attrition.

5.8 Water education

Education in the Netherlands, for a very long time a purely national affair, has become an export product and water education is no exception. At the tertiary level , Dutch Universities accept a steady stream of foreign students in water related subjects; undergrad to PhD level.

Wageningen University and Research Centre (WUR) is the Netherlands’ traditional source of knowledge in matters agricultural and of course, water. Wageningen UR trains specialists (BSc, MSc and PhD) in life sciences and focuses its research on scientific, social and commercial problems in the field of life sciences and natural resources. In the field of agricultural science, the university is considered world-class. Although modest in number, Egyptian Wageningen graduates make a growing presence. Bursaries from Nuffic, selected UN organisations and possibly the EU, though not easy to obtain, are available141.

Specialised in Water is the IHE-UNESCO142 Institute for Water Education. The Institute, located in Delft, is the largest water education facility in the world, and the only institution in the UN system authorised to confer accredited MSc degrees. In addition to following one of the many Degree courses, Egyptian students can also follow a double-degree program in Hydro-informatics at Ayn Shams University (Civil Engineering), which is taught partially in Cairo, partially in the Netherlands. Regrettably, the cost of the Course and the stay in the Netherlands are beyond the means of most Egyptian water specialists and without further bursaries or fellowships the number of students from Egypt will remain limited.

A recent development is a new EU Water Sector Loan for Egypt which is based around a capacity building component. One of the objectives is to jointly establish an education program in Cairo for Egyptians and other nationals from Nile riparian countries with both short Courses and a Masters Course. The new program must be accredited by both the University of Cairo and by IHE-UNESCO. Students will still

141

Selection criteria and details are too diverse for this general publication. Interested parties are advised to contact EKN for more details (Chapter 11.1) 142

http://www.unesco-ihe.org/

74

have to follow part of the curriculum in the Netherlands. Considering the cost and the fact that the new loan pays for course development, not for students, the future uptake is uncertain.

Nuffic143 is a Dutch, non-profit organization and supports internationalization in higher education, research and professional education in the Netherlands and abroad under the NICHE program of the Dutch government. Nuffic finances education projects and awards the work through tender. As Egypt requires substantial support in vocational training, Nuffic will be interested to work with Dutch private and semi-public sector companies to add more practical experience in the course.

Some examples of current Nuffic tenders for Egypt:

- Regional Institute for River Transport - Capacity Building Programme for HCWW; Improve the quality of the

educational offer of 3 technical schools and 3 training centres to provide relevant and practical teaching in a sustainable way.

5.9 Getting in touch and finding partners

Business in Egypt is rarely done between just the buyer and the seller, certainly not when one comes from a different country. As explained in more detail below, finding the right agent, distributor or business partner is arguably the most important part of making a deal in Egypt. In Chapter 11, we list a large number of different organisations and contacts to help the Dutch companies start finding and selecting such a partner. This is not a simple process.

The Egyptian business world is dynamic, companies come and go; product focus changes and personal bonds and relationships on which many of these companies rely can vanish overnight. Then, there is the sheer size of the country: few if any agent can reliably cover an entire market segment.

In Chapter 11, we have listed over 300 organisations with, where relevant, their specialisations, but are reluctant to recommend individual players in preference over others. Finding a long term partner for good business in Egypt is more than matchmaking. Invest the time in getting to know the people you are going to work with.

143

http://www.nuffic.nl/home/about-nuffic

75

6. About money

6.1 Cost base Holland: Expensive!

The Netherlands is a country where things get done well, very well, but at a price. Average manufacturing labour cost now amounts to €75 / hour in the workshop, more on site and double this if the site is overseas. This converts to LE630, a very good weekly wage in Egypt.

The counter argument that Dutch quality and efficiency are superior is both true and irrelevant to a buyer of a simple solution. Most water solutions in Egypt are solid installations using tried and tested technologies with IT employed only to improve process quality, never to reduce the payroll. There is little point in trying to export Dutch labour hours to a country that can do the same thing at 10% of the cost.

Says Naglaa Haidar, joint-venture partner of Nijhuis Water Technology Egypt Ltd

144, “For the first years, we were agents, passing on our principal’s work

without changing a word. Now, as partners, I take everything that comes from Holland and check it carefully against local supply alternatives. A pump from another foreign source but with a local service network, something we can manufacture in our own workshop or over-engineered quality that is just not needed. We are solid with a continuous order book.”

In our interviews with Dutch companies, we found a stalemate when it came to joint operations and part manufacturing in Egypt. Many larger and older firms, sometimes to keep the in-house factories going, were highly sceptical of what was called an erosion of competitive value, “giving the farm away”.

Many others, though, are confident that with the right local partner and a joint focus on getting more business, everybody’s advantage can be served in a production structure that takes account of and optimises comparative advantages. Considering Egypt’s regional position, the MENA and African markets can be well served from such a base.

6.2 Usual business not as usual

In the world of international business, open credit is the exception, not the norm and sales to Egypt must be secured in some form. We mentioned earlier that Dutch SMEs 145 like to negotiate at least 50% pre-payment; something that is workable in small, incidental jobs. However, in larger and more structured projects, such becomes difficult and the international banking system needs to provide the tools to do business. Traditional methods like LC’s allowing partial deliveries, revolving LC’s and of course confirmation of LC’s by a prime bank in beneficiary’s country were all created a long time ago to facilitate business over great distances. It appears that Dutch banks, risk shy after the crises of the last years, are sometimes reluctant to “oil” trade.146 Dutch survey respondents felt that if the established finance system is shy of doing its core job, then a government keen to promote exports to developing countries should step in to help.

144

http://www.nijhuis-water.com/home.aspx 145

MKB 146

One of our interviewees recounted how a 100% cash covered LC, issued by a prime Turkish bank proved impossible to confirm by a Dutch bank.

76

One of the suggestions heard in the Dutch survey was to simplify entry and expand existing export credit insurance options. Services offered by insurers like Atradius147 are perceived as expensive, complicated and just too much work for an SME. Consulting firms and other larger firms work with export credit insurance as a rule.

There is presently no Dutch bank with a branch or rep office in Egypt, but both Egyptian and foreign banks offer a full range of services. Most Egyptian banks have international correspondents but such relationships can be affected by the post-revolution uncertainty. Dutch sellers are advised to contact the Dutch correspondent bank of the buyer’s Egyptian bank and check very specific on details such as l/c confirmation.

Egyptian private companies will typically have accounts with both local banks and a local branch of an international bank. Shortly after the Revolution, the Ministry of Finance imposed limits to foreign outbound transfers, but these have since been lifted. Generally speaking, Egyptian buyers with ready funds to purchase can arrange all normal payments and guarantees. Commercial credit, though, is still hard to come by for Egyptian businesses.

Most Dutch businesses operating in Egypt may prefer to work with a branch of an international bank. For example, NSGB and HSBC148 have excellent personal and commercial banking services, supported by large branch networks.

Dutch companies interviewed, told us that they are less interested in fancy programs and more in expanding “ordinary” banking facilities. One suggestion was to support bank credit for eligible transactions with a (partial) State guarantee similar to the existing BBMKB facility and to create a credit facility like the Innovatiebox for companies that engage in market and product development for Water Mondiaal countries. Specific funding to support water came up several times in the Dutch interviews. Again, the thinking is to expand existing stimuli to cover water exports to countries like Egypt.

The Dutch tax, subsidy and business support system already offers a myriad of initiatives to drive various goals like “Innovation” and can be expanded with little trouble to cover “water”. Similarly, much needed collaboration in the sector can be rewarded when companies form consortia and joint-ventures to drive water exports. A detailed review is outside the scope of this “scan”, but, as has been shown in innovation, the tax system can be turned into a positive driver for companies by encouraging “more controlled risk for higher returns”

More on this below.

147

http://www.atradiuscollections.com/uk/debt-collections-products/debt-collections.html?language=en-UK&gclid=CMbVudWlg6sCFQdO3godhCU00w 148

Nationale Societe General Bank (see Chapter 11.1.5) and HongKong and Shanghai Banking Corporation

Janneke Hadders - Dacom: “A simple credit insurance facility would be a blessing and open many doors now closed to Dacom”

77

6.3 Dutch development collaboration: a new chapter

Over the last decade, the Netherlands has spent 0.8%149

of GDP on development collaboration worldwide, amounting to some € 5 billion in 2010. The prime goal of Dutch development collaboration is to combat poverty by providing structured and sustainable support in the beneficiary country. In principle, only countries with a sound social economic policy are eligible. Disbursement goes through different channels.

- A good 1/3 goes to bilateral support for projects in 36, soon to be 15 “partner” countries.

- Another 1/3 as contributions to multilateral project support such as the World Bank or EIB. In the case of Egypt, such funding often comes in the form of grants which provide a degree of discretionary influence on detailed spending allocation. ISSIP I and IIIMP are a case in point.

- The remainder flows through the “private sector funding channel” which includes commercial companies, ngo’s and knowledge institutes. International investment subsidies for Dutch private sector companies amounted to about € 350 million in 2009.

Current policy in the Netherlands towards international development collaboration has changed in recent years. Where the original driving force was once the support for the less fortunate in other parts of the world – moral responsibility- development aid has become development cooperation. Donors consider beneficiary countries and organisations as partners of equal value and the interests of both donor and beneficiary can now be taken into account.

Entrepreneurs and business create jobs and help grow prosperity in developing countries and Dutch programs increasingly aim to stimulate and support private sector involvement in the expectation that a strengthened economy will lessen

reliance on foreign support150. Such programs may include directs subsidies to developing countries or participation in EU and other multilateral funds. Dutch water technology is one of the priority areas.

In stimulating business in developing countries, the Dutch Government can work in partnership with Dutch companies and ngo’s. This is called a “publiek-privaat

samenwerkingsverband” 151 or PPS152 of which some 50 have been established today.

- Collaboration only if no PP partner can attain the set goal on its own - Collaboration with private business and open to join by knowledge

institutes, ngo’s and private organisations for international development assistance.

- The Government of the recipient country is involved - Risks and responsibilities are shared by all partners

149

This puts the Netherlands at the top of the global list and well above the European and UN recommended norms. (with Norway, Denmark, Sweden and Luxemburg) . The 2012 National Budget intends to reduce this to 0.7% 150

http://www.rijksoverheid.nl/onderwerpen/ondernemen-in-ontwikkelingslanden/sterk-bedrijfsleven-in-ontwikkelingslanden. NWP is a good example of a PPS 151

http://www.rijksoverheid.nl/bestanden/documenten-en-publicaties/brochures/2010/01/01/handreiking-publiek-private-partnerschappen/handreiking-publiek-private-partnerschappen.pdf 152

Commonly described in the Netherlands as a Public Private Partnership or PPP. To avoid confusion with the internationally understood concept of PPP’s described in Chapter 5.2.1, we’ll refer to the Dutch Publiek Private Samenwerking as PPS

78

- Long term sustainable objectives - Focus on “Partner” countries

A PPP (PPS as we call it here), says the Dutch Ministry of Foreign Affairs, is a partnership between government and business ( in many cases with ngo’s, labour unions and or knowledge institutes) where the partners agree to collaborate towards a common goal or to execute a specific task, while sharing risk, responsibilities, means and competencies.

Existing Dutch PPS’ with international scope are working on objectives as wide

apart as the sustainability of international supply chains153

, safe, renewable and

affordable electricity154

in Africa, coffee planting in Colombia, vaccine development

and immunisation155, solar energy156 and healthcare insurance157 in Africa. Extending the concept to Egypt’s need in water management and sanitation is a challenge that can be realised by some good “out of the box thinking” by a Dutch water player.

More traditional support from the Dutch government: subsidies, co-investment, tax breaks a.o. remains available for projects that make economic sense to both the Dutch and the Egyptian parties.

All projects to support the private sector business in developing countries aim to ease the business climate by removing or lowering barriers to business entry and improving knowledge and skill sets.

- Ease access to export markets, as a member of WTO and through European

Economic Partnership Accords158

. - Access to credit and financial services, partly by strengthening local

financial service providers with capital and technical assistance.159

- Advise and reform in missing or limiting legislation160

- Co-investment in physical infrastructure such as transport or

telecommunication, typically in multilateral funding projects161.

- Support for technical and vocational education162.

- Several programs, detailed on the following pages163 provide funds to strengthen skills and knowledge.

- Support for local producer organisations.

153

http://www.duurzamehandel.com/en/about-idh 154

http://www.nuon.com/company/Sponsorship/fres.jsp 155

http://www.gavialliance.org/ 156

http://www.nuon.com/company/Sponsorship/fres.jsp 157

http://www.ifhafund.com/ 158

Under an EEPA, developing countries gain access to European markets without the counter obligation to open their domestic markets. 159

See FMO, later in this Chapter 160

Ref. the “Doing Business” reports from the world Bank 161

In this context, also see ORIO, later in this chapter. 162

See 5.8 below, water education 163

PSI, PUM, MMF, CBI

79

6.4 Funding: a line-up of Dutch Government programs

Even though most Dutch survey respondents were understanding about the need to reduce government spending in these days of economic crisis, many expressed the opinion that such would not make a big difference with subsidies and other government support for export oriented Dutch businesses. Most plans, they said did not “hit the spot”; too complicated in application, not effective in execution.

Several respondents in The Netherlands indicated that some of these facilities were virtually unknown in the industry and that P4W or the NWP could do a good job “advertising” what is already on offer. We provide a brief line-up. Note that most of these facilities are not cumulative. In other words, the same event provides for a tax advantage only once.

6.3.1. PARTNERS VOOR WATER- SPRINGBOARD FOR INTERNATIONAL AMBITIONS 164

The Partners for Water programme provides support to Dutch commercial and non-profit organisations that work together to realise their international objectives in the field of water. Partners for Water acts as a springboard for organisations that have the courage to venture into a new region, for example, by applying a new technology or approach, or those with innovative projects overseas. In doing so, they create international opportunities that have potential both for themselves and for the Dutch water sector as a whole165.

In order to support the realisation of the Dutch “National Water Plan”, Partners for Water has a focus on the five Delta Countries. The Dutch broad water sector will, through public tenders, propose specific identified projects in these countries.166 As an example, Jakarta Resilient167 aims to develop a strategy to for the Coastal defence of North Java. NWP informs us that the call is out for “business case” proposals in Egypt, which can be the first step towards development of eligible projects.

6.3.2. INNOWATOR GARANTIEFACILITEIT168

The Innovation program Water technology offers private companies, SME and large and knowledge Institutes support to innovate. The program aims to shorten time to (export) market for new technologies in W&WW. The programme enables companies to quickly prove their innovative product in the Dutch domestic market.

The innoWATOR guarantee facility is meant to accelerate the first rollout of a water innovation. Often, with a brand new product, early customers want the product to operate according to their specifications, something that requires costly modifications. The guarantee facility provides the innovator with part-restitution (to 35%) of the cost of such a modification to a limit of € 500,000. We suggest that NWP engages Agentschap NL to ensure that this facility can apply to the building and operation of pilot or proof of concept projects.

164 http://partnersvoorwater.nl/index.cfm/site/Partners%20voor%20Water/pageid/B399E45D-FA99-ED9E-81B9CE7146415AC7/index.cfm/partners%20voor%20water%20in%202011 165

http://www.waterland.net/index.cfm/site/Partners%20voor%20Water/pageid/B3AA2C64-B629-06DA-F113DAF21808AAFE/index.cfm/subsidieregeling%20wereldwijd%20werken%20met%20water. 166

http://www.waterland.net/index.cfm/site/Partners%20voor%20Water/pageid/B399E45D-FA99-ED9E-81B9CE7146415AC7/index.cfm/partners%20voor%20water%20in%202011 167

http://partnersvoorwater.nl/index.cfm/site/Partners%20voor%20Water/pageid/8295B6F8-EE66-558F-45EB7A94B3976E54/index.cfm 168

http://www.agentschapnl.nl/programmas-regelingen/innowator-garantiefaciliteit

80

There are presently no Egyptian examples, but the story of the water meters in South Africa is inspiring.169

6.3.3. ORIO- THE FACILITY FOR INFRASTRUCTURE DEVELOPMENT 170

ORIO is funded by the Dutch Ministry of Foreign Affairs to encourage public infrastructure development in developing countries. ORIO contributes to the development, implementation (construction and/or expansion), operation and maintenance of public infrastructure in developing countries. The official application must come from the Egyptian government. ORIO encourages the involvement of Egyptian and Dutch businesses in the development and realization of infrastructural projects, in order to make optimum use of the expertise of the private sector. The central government can, in this case, submit the project proposal together with the private initiator. In Egypt, accepting an ORIO grant requires parliamentary approval.

Orio is not very popular in the Dutch SME world due to its complex procedures, lengthy approval period and the requirement that the actual execution job (the preliminary study contract can be directly contracted to the Dutch project driver) must go out to international tender. We venture that a Project worth ORIO financing involves probably more than a single SME can handle. A professional joint-venture or consortium can muster the qualified manpower to manage and steer an application.

Larger companies like Damen and IHC have done well by ORIO. In Egypt, the Pharos project is an ORIO Project with Alexandria University, Medical Faculty.

6.3.4. PSI- THE PRIVATE SECTOR INVESTMENT PROGRAMME171

PSI is a subsidy programme of the Dutch Ministry of Foreign Affairs / Development Cooperation that supports innovative investment projects in emerging markets, with the aim to strengthen economic growth, employment and income generation. The PSI program is open to any sector in the economy. The PSI project in Egypt is an investment project, implemented by a Dutch company and a local partner, with whom a sustainable relationship will be established. The PSI grant can amount to 50% of the investment to a maximum of € 1.5 million. The project partners are to provide the other 50% themselves. Over the years, at least 25 PSI projects have been successfully completed in Egypt, an indicative list:

- Makro farming collaboration. Quality controlled logistics & distribution of high quality fresh vegetables & fruits for the domestic urban market in Egypt

- Farm-Frites – Dacom precision farming as described above - Winter-capsicums from Egypt - Pilot production of grafted vegetable seedlings - Development of a high quality, organic export chain for Egyptian herbs - MABA Retail: J-V for retail-packing and distribution of ware potatoes in Egypt - Sinai integrated chain project for freezing and drying of herbs - Growing radishes in the Egyptian desert for the EU and CEE markets - High quality piping production in Egypt

169

http://www.agentschapnl.nl/programmas-regelingen/slim-watersysteem-voor-zuid-afrika 170 http://www.agentschapnl.nl/en/programmas-regelingen/facility-infrastructure-development-orio 171

http://www.agentschapnl.nl/en/programmas-regelingen/private-sector-investment-programme-psi

81

The preponderance of agricultural projects in this list is not a bias built in PSI, but the direct result of the enthusiasm and perseverance of individuals on the spot.

6.3.5. PUM- NETHERLANDS SENIOR EXPERTS172

PUM provides Technical Assistance in various fields to Egyptian SMEs. PUM advisers are volunteers and are selected on the basis of their many years of experience and superior knowledge. They are independent and receive no financial reward for their services. PUM pays for international travelling expenses and the other costs of missions while Egyptian companies requesting assistance pay for local travel and accommodation costs. Some recent examples:

- Port Said production of Gouda and Edam cheeses and butter.

- Production improvement for manufacturer of wrapping paper and cardboard from recycled paper

- Furniture production: machine routing in the new larger production area - Port Authority, assistance in the launch of new operations, including a

stevedoring business, modern - techniques for container processing, and inland transport - New JV for Egypt-based plant to produce protein and egg yolk used by

bakeries and the food industry.

6.3.6. MMF- MATCHMAKING FACILITY173

Egyptian companies looking for reliable business partners in The Netherlands. MMF puts those companies in touch with Dutch businesses. The goal is to stimulate joint business relations (investment, trade, knowledge transfer) that will strengthen the private sector in developing countries and upcoming markets. The MMF is used regularly by Egyptian companies and has often resulted in a PSI project.

6.3.7. CBI- CENTRE FOR THE PROMOTION OF IMPORTS FROM DEVELOPING COUNTRIES174

Undertakes Export Coaching Programmes, for enterprises wishing to export to the European Union, conducts Training Programmes on exporting to the European Union for exporters and maintains a database of Egyptian companies. CBI has coached several Egyptian companies to become competent exporters to the European Union.

In a current project with UPEHC, market prices and other vital information for horticultural farmers will be available online from November this year.

172

www.pum.nl 173

http://www.agentschapnl.nl/en/programmas-regelingen/matchmaking-facility-mmf 174

http://www.cbi.eu/

82

6.3.8. BOCI- DOMAIN INTERNATIONAL COOPERATION175

Domain International Cooperation is an agriculture focused programme that aims to contribute to economic development and poverty reduction in developing countries, with special attention to the strengthening of sustainable agriculture and production chains, and nature management. The programme implements a demand-driven approach in which the research agenda is determined jointly with governments, research partners, NGOs and the private sector in the South. Administered through WUR and EKN, current BOCI projects in Egypt include research work in:

- Integrated fish farming - Brackish fish farming - Lake Burulus - Recycling of rice straw - GAP for small farmers, - Transboundary animal diseases.

6.3.9. DECP DUTCH EMPLOYERS’ COOPERATION PROGRAMME176

A public-private partnership of Dutch employers and the Ministry of Foreign Affairs with the aim of strengthening the position of employer organisations in developing countries. DECP wants to strengthen the capacity of business organisations in developing countries by transferring knowledge and experience, by cooperating with national and international organisations and through financial contributions to programme activities.

- fostering sustainable socio-economic development; - formulating and influencing policy (national and international); - defending the interests of members; - providing services to members and attracting members.

6.3.10. FMO- FINANCIERINGS MAATSCHAPPIJ VOOR ONTWIKKELINGSLANDEN177

Although not a provider of subsidies and with no specific objective to assist Dutch companies grow export business, we list the FMO here in response to questions from Dutch companies.

FMO is a public-private development bank with the Dutch State and large Dutch banks as major shareholders. FMO co-invests in ventures in developing countries, not always with Dutch investors and never as a majority holder and only if the commercial prospects of the venture are promising. Water infrastructure is not an area of specific focus, but is part of the Infrastructure Development Fund178.

The FMO MASSIF179 program: “Financial Services for All”, targets small companies and micro-entrepreneurs who deliver financial products and services to clients in their direct vicinity. While they underpin the local economy by creating employment, training personnel, generating wealth and growth, they also face great challenges in accessing capital, savings and payment services. Massif contributes to the development of financial services for small businesses and micro-

175

http://www.boci.wur.nl/UK/ 176

http://www.decp.nl/web/show/id=122524 177

http://www.fmo.nl/ 178

http://www.fmo.nl/smartsite.dws?id=396 179

http://www.fmo.nl/smartsite.dws?id=394

83

entrepreneurs (SMEs) by increasing financial resources available to them and by strengthening the financial intermediaries.

6.3.11. NBSO- NETHERLANDS BUSINESS SUPPORT OFFICES180

NBSOs support Dutch businesses in their international activities and are particularly effective in supporting SMEs. NBSOs have no diplomatic status, are dedicated exclusively to the promotion of Dutch trade and investment and their activities are coordinated by the local embassies. The services provided by the NBSOs, trade requests, market scans, missions, trade promotion, identification of market opportunities and more are free of charge.

At the moment, there is no NBSO in Cairo, but EKN has a large and extremely active trade and development section.

6.5 From Innovation support to Water support

Early this July, the Dutch Cabinet announced its intentions to support the Arab Spring region to help with sustainable transition to:

- Democracy: particularly fair and free elections.

- Restoration of the Rule of Law and protection of Human rights, with particular emphasis on gender equality, religious freedom and protection for minorities.

- Economic growth, through (re)building infrastructure, including the promotion of employment opportunities.

In addition to the already substantial amounts that the Netherlands provides through multilateral channels, a bilateral program shall be created through which the Netherlands can contribute in specific and focused ways to support the development of the region. Such a bilateral program does not need to be created from scratch. The Netherlands has a complex tax and subsidy system, with numerous special facilities, created initially to promote innovation in industry which can be applied to the promotion of water technology exports, which is an equally important national objective.

6.4.1. INNOVATIEBOX181

The InnovationBox is a tax reduction facility for profits derived from patented innovations, developed in-house. Profits from water-exports and or export collaboration projects could be taxed at a similar concessionary rate.

6.4.2. BMKB- BORGSTELLING MKB KREDIETEN182

Innovative SMEs that need to borrow more from a commercial bank that they can mortgage their assets for, can ask the Dutch Government to help with a

180

http://www.hollandtrade.com/matchmaking/dutch-representatives/nbso/ 181

http://www.belastingdienst.nl/zakelijk/vennootschapsbelasting/vennootschapsbelasting-51.html#P537_40546 182

http://www.agentschapnl.nl/programmas-regelingen/borgstelling-mkb-kredieten-bmkb

84

LoanGuarantee to a maximum of €1.5 million.Eligible for such guarantees are SMEs that start a new venture, setup abroad or work on technological innovation.

Expansion abroad is hard to finance for SMEs as the assets that form security for the loan are often in a different country subject to a different legal system. The Dutch Government provides such a guarantee to help enterprising companies with international ambitions obtain the required bank financing.

6.4.3. WBSO- LAW FOR THE PROMOTION OF R&D183

Innovative companies can ask to be awarded an R&D-certification which entitles them to tax advantages on the salary costs of R&D. The certification applies to firms involved the development of new products or processes, technical research or a technical feasibility study. The certification is equally important for those looking to benefit from the facilities under the InnovatieBox or the BMKB, above.

6.4.4. GROEIFACILITEIT – GROWTH FACILITY184

When a financier is ready to provide venture capital to a firm to support fast growth, a take-over or overseas expansion, but feels uncertain about the degree of risk, the Dutch government can issue a state-guarantee to 50% of the investment value. This lowers the downside risk threshold for the financier. Obviously, the business opportunity must make commercial sense and should not be constructed to replace another form of credit. The facility is not available for projects in agriculture or aquaculture.

6.4.5. GARANTIE ONDERNEMINGSFINANCIERING (GO)185

The guarantee for enterprise financing is a similar arrangement for commercial banks which lend to business. The GO is the government’s answer to the difficulties commercial firms experience when trying to obtain a bank loan or bank guarantee. The facility is not available for projects in agriculture or aquaculture.

6.4.6. INNOVATIEKREDIET186

When innovative ideas with good potential for market traction find commercial finance hard to come by, the InnovationCredit can be made available to SMEs and Startups. The focus is on promising innovative projects that can quickly lead to new products, like technical R&D or clinical trials for a new drug: projects with substantial technical risk but of great importance to the firm.

The focus on innovation in all these facilities is a focus of choice, the political desire to promote and drive technological innovation in industry. Given the will, the same thing can be achieved for water and Water Mondiaal exports. It takes little effort to enable the same facilities for “water” objectives.

183

http://www.agentschapnl.nl/programmas-regelingen/wbso 184

http://www.agentschapnl.nl/programmas-regelingen/groeifaciliteit 185

http://www.agentschapnl.nl/programmas-regelingen/garantie-ondernemingsfinanciering-go 186

http://www.agentschapnl.nl/programmas-regelingen/innovatiekrediet

85

7. Working in the Egyptian market place

The preceding pages will have illustrated that Egypt is a market where Dutch products and know-how are welcomed, but only if the price is right. Approaching this from a cost to buy- cost to own concept makes rational sense, but is still a hard sell in Egypt for several reasons:

- Egypt’ s manufacturing capacity is getting better by the day and local companies increasing feel that many imported products might as well be produced at home at much lower input costs.

- There is enormous reluctance to pay for services, consultancy and other “soft” items; such are supposed to be embedded in the hardware product or are to come in the form of people actually seen to do work on site.

- The time-value of money is a highly theoretical concept in a country where time is flexible, ROI is often measured in a near monopolistic environment and where the presence of the equipment often counts more than its output.

- Maintenance is usually not preventative but reactive and is done with a strong belief in the local capacity to “fix” things. This in contrast to the Dutch approach of replacing parts before they break.

Hence, short of trying to force an entirely “made-in-Holland” expensive product on a reluctant customer, a number of potential strategies come to the fore:

7.1.1. TARGET THE RIGHT CUSTOMERS

This refers in the first place to the complex jig-saw of consultants and contractors, prevalent both in the W&WW and the industrial sectors. Good local intelligence can save the Dutch seller enormous amounts of time in avoiding window-shoppers and enabling quick technical pre-assessments, so opportunities are only pursued where the seller’s value-add is actually wanted. From a different angle: if your product or expertise is a component, do not waste time looking at the big tenders. Ensure that you have become a trusted source to the local contractors who regularly bid (and win) these tenders.

In this context a word on GoE as a customer. Many Egyptian private sector contractors can be heard to say that they will not work with a public sector customer, as too difficult, too cheap and taking too much time. While there may be some truth in these statements, we suggest accepting such only with big reservations. By our estimate, organisations like MWRI, NOPWASD, MALR and many others account for more than 80% of the water market and their business gets done, year in year out.

7.1.2. EDUCATING THE MARKET

Water is a technology market and while the basics are no rocket science, specific competitive advantages come to those who apply new technology at the right local spots. That requires a local voice with a broad background in technological development, a predilection for “out of the box” thinking and a jump from technology to money and backwards. Egyptians are very good in the last two, but in the absence of a continuous learning culture, new technical hard facts come from

86

visiting international specialists. This provides unique opportunities to help set direction and standards.

7.1.3. JOIN FORCES

Export business is expensive business with a lot of costs up-front. Still, most Dutch companies, as we saw in the survey, believe that sending their own people to Egypt is the best way to start overseas business187. It simply takes time to truly understand a new market and between them, all these travelling Dutch salesmen create a lot of redundancy. It makes sense for non competing Dutch companies to share market info, to let one salesman handle several complementary product lines or to share local services.

7.1.4. FOCUS ON CUSTOMER NEEDS AND IMPROVE THE EMBEDDED ADDED VALUE

This is the story of the RFQ (request for quotation) for a Mercedes at a Volkswagen budget. Just countering a written inquiry with a written quote is a seemingly futile exercise. Instead, meeting with the customer (contractor or end-user) provides the deeper insight and unearths which market pain the project aims to solve. Even better is to engage the end customer, often a government organisation, early on and be part of project creation process. Understanding what the customer truly needs and re-engineering the product-service bundle to respond to this, creates an answer to the question that is really on the table. This is where a join-up of equipment supplier, experienced water operator and knowledge institution can forge a true Dutch Joint Strike force. With a structure like the JSF and supported by the Dutch Government with programs like GO and BMKB, answering to customer needs can be a true winner.

7.1.5. ENHANCE THE PERCEIVED VALUE

Value is a tricky thing with competing elements like brand perception, product utility, the opportunity cost of alternatives and very personal like, like-not sentiments all confusing the hard value-for-money equation. Engineers who speak “engineer language” are often non-plussed. “Why do they not understand that this is the much better solution?” In Egypt everybody can read the notes, mais c’est le ton qui fait la musique. Identifying where true customer value lies, and which buttons to push, is learning not what the customer wants, but why he wants it.

Turning an impediment into an advantage, pilot projects are proving a very effective way to get started with a new technology or process. As a rule, Egypt does not buy anything that has not been proven to work in a real-life environment in Egypt. Taking advantage of the many forms of Government support outlined in the previous chapter, Dutch companies can build a demo installation, maybe even at commercial scale at a fraction of the cost. Beware however, a pilot project is understood to prove that a proven concept works in Egypt; it is not a trial and error ground.

187

Not everybody flies C-Class and stays in 5-star hotels, but a typical 1-week trip to Egypt easily costs €3,000, or €500 per customer meeting, irrespective of outcome and not counting opportunity costs.

87

7.1.6. MAKE YOUR LOCAL PRESENCE COUNT

Egypt is no country where a seller can walk in, drop a brochure and continue by email. Building relationships, deepening understanding and developing mutual trust is all part of the equation for success. And, as a growing realisation of win-win over a zero-sum game gains ground, a true two-street of commercial advantages must be created. Commission-only deals tend to be short lived and highly mercenary.

Selecting the right local business partners is only the beginning. This should be followed by product and value-added sales training, joint project development (focusing on these customer value buttons) and objective market research. Activities that help turn the hired help in a true partner. Collaboration with a local man can be highly productive if properly enabled.

One of the most valuable contributions a local partner can make is to identify over-quality. Cost items in the product or service that can be right in a European market but which cannot justify the price premium in Egypt. 188

For those who nonetheless prefer to go it alone, EKN Cairo has a large and well informed Trade information section which, however, must serve all Dutch companies with designs on Egypt. Do not expect tailor-made service on-demand.

7.1.7. REDUCE PRODUCTION COST

Local production and sourcing in Egypt is considerably cheaper and quite do-able. The country has numerous private workshops that do an excellent job in steel construction, tank welding, fibreglass, assembly and of course civil works. Then, international household names189 in electro-mechanical equipment all have local branches and purchasing a pump or a switch is just as easy as it is back home, minus the requisite overhead.

Taking together, the high cost of European labour, the overhead loading, shipping, import duties and the inevitable double work make made-in-Holland hardware expensive to be unsellable.

NEM190

is a Dutch manufacturer of custom made solutions in the field of Heat Recovery, Industrial and Utility Steam Generators and related equipment serving a global market. The company had been twice around

the world, searching for a location without the high labour costs of homebase Leiden. Outsourcing production was no option as NEM wanted to keep its hand in production details and maintain the asset value of practical experience.

Its successful Egyptian joint-venture.191

Al-Hashemiah came from a chance site meeting. Says Arie Dorrepaal, Director of Manufacturing: “The young welding foreman showed an innate sense of organisation and quality awareness. He has proved to be a valuable factory manager and trusted partner”. NEM does not deploy a large Dutch crew in Egypt; a single engineer fulfils liaison and QC functions, while Al-Hashemiah develops its own style of management and strong competitive advantages.

188

The list is long and covers restrictions and obligations derived from European Health and Safety Acts, a different take on site access, during construction and during operations (in Egypt, the first thing built is usually a brick perimeter wall) different climate and weather damage risks, local material costs ( a tank in enameled steel or polyester) land conditions (excavation in rock or sand), slurry disposal rules and so forth. 189

ABB, Schneider, GE, Merlin Gerin, Grundfoss and many more 190

http://www.nem.nl/EN/welcome/859/ 191

http://www.al-hashemiah.com/ NEM owns 80% and has invested some €5 million

88

Starting local production begins with a fair degree of upfront trust. And that is hard. Construction drawings on the table, many product details are out in the open and traditional manufacturers are worried about the risk of losing trade secrets. No business is entirely without risk and the clever Dutch partner can dose the information he provides upfront in small parts which do not have to include the “black box magic” of his core technology.

7.1.8. THE RIGHT PARTNER AND LOCAL SETUP

There are no two ways about it. Foreign companies that want to do business in Egypt must have a local buddy. Of course, an Egyptian buyer can place his order directly in the Netherlands after the hard work of the visiting Dutch salesman, but that is a one-off. And forget about on-line business unless you’re in the consumer market.

To build business, a brand and continuity, a foreign company must put its name plate on a building somewhere. The options:

- Agents. Typically non-exclusive either way, this is the most common but mercenary relationship. Surely, there are numerous examples of Dutch companies192 with brilliant agent relationships, but you will not hear of the failures. Agents are driven by commission and their priorities may not always align with those of the Dutch principal. This is a good reason to hire professional help in drafting an agency contract. On the flip side, agents cost nothing up front; commission gets paid only on paid sales.193

For nearly 20 years, Nijhuis Pumps has been building hi-quality, hi-reliability pumps for many Nile hydraulic applications and water

treatment plants in Egypt. Raymond Kamp, Commercial director; "We had a great start supplying under Dutch bilaterally funded programs; the opportunity to demonstrate that we make the best pumps in a real-life environment. Over the years, we have built our reputation, jointly with our local agent, who's total involvement and support is proving crucial till this day."

- Distributors and VAR (value-added resellers), are not very common in Egypt. More often, inventory will be held by local rep. or branch offices or by a joint-venture local installer.

- For those who desire a heavier presence, setting up a local rep office is not complicated or expensive.194 What is not that easy is to justify the high cost of a permanent payroll195, certainly if an expat Dutch manager is to be part of the team.

192

Nijhuis Pumps, Landustrie, Wavin, Norit, van Leeuwen Pipes, Duivelaar Pumps, Hubert Stavoren, Amafilter, Aerzen and many others 193

Legally, an agent must be a local company registered as a foreign agent with the Ministry of Economy and Foreign Trade. Note that in nearly all jobs where the buyer is the government, a registered local agent must represent the foreign (Dutch) exporter. 194

Chartered accountant Mahmoud Adlan can help Dutch companies get established with a local representative office at a budget of US$2,000. http://www.abdallaadlan.com/ 195

Like anywhere else, you get what you pay for. Monthly budget for a small local office: Rent and overheads; €2K, general office staff €500, good sales engineer €1,500, good local manager (incl. perks)

89

- A joint venture196 is just as easy in formalities but the wise Dutch businessman gets serious professional legal assistance to draft a truly sensible “marriage contract”.

Whichever engagement model suits the business at hand, it will work only if all parties see a benefit in the collaboration.

7.1.9. PRESENCE MEANS BEING PRESENT

In a country where personal relationships matter more than a long international reference list or a cool corporate website, companies that matter are present, through a senior executive, when decisions are made. Agents, even when they are also established industry consultants, cannot sit at the table as an equal when decisions are made that require the participation by a Dutch company.

In this context, it is worthwhile to consider working with EKN, APP, NWP and other Dutch (semi)public or private organisations to engage Egyptian senior policy and project makers at an early stage.

7.1.10. BUSINESS IN EGYPT, CUSTOMS AND THE LAW

The decision to go to Egypt and do business is easily made, but the devil is, as always, in the detail. Egypt is a complex country with a business culture and environment very different from the Netherlands. That may seem obvious, but many Dutch businessmen experience disappointments when a little forethought and preparation could have made all the difference.

Time is a different commodity and meetings may not only start beyond the scheduled time, there is no guarantee an agenda will be followed or that firm decisions and action items will follow. It is also not unusual to discover at the start of a meeting that the senior executive supposed to be there passed on the burden to a subordinate. It is not unusual, if a meeting concludes with an invitation to meet again, a few days later. Walking in with an order form is very optimistic and a little naive. That is problem for short term visitors with a return ticket and their mind set on the coming weekend.

Some of this has to do with the strict hierarchical structure of Egyptian public and private organisations which has little room for delegation of authority. So, unless you are dealing with the true “boss”, the essence of the meeting will have to be discussed higher up before a decision can be made. Similarly, signing an order or contract does not lead automatically to an opened Letter of Credit.

All this comes wrapped in a warm cloak of hospitality and bonhomie.

“Separate the hospitality from the negotiation: your counterpart does so too and is a master at both.”, Mauritius Wijffels, Dutch Advocaat and Business Adviser, practicing in Cairo.

197

€4K, Dutch (young) expat representative / manager €6K, cost of living allowance for same €2K. Annual budget typically € 150K minimum. 196

J’V’s that work in real life have a clear majority partner. Constructing the Egyptian venture in layers, for example, production and sales where only a the production layer is included in the JV, helps to weight each component appropriately. 197

http://www.melba-legal.com/

90

Early negotiations are a subtle game of building and managing expectations. Different people will have different takes on the same facts.

- Egyptian companies and their CEO’s pride themselves on the number of people they employ and have no experience with the Dutch patchwork of collaboration networks between small companies and individual specialists. In all such collaborative cases, it pays to agree on a single organizational presentation before leaving the Netherlands, flying under a single brand name. Legally, this can be backed up in a simple Letter of Intent, just between the Dutch parties; on the outside, the Egyptian buyer has the comfort of seeing an organisation with a number of people, physical assets, a manufacturing facility and the like.

- Mind what you promise. Statements will be taken at face value, so the promise to provide technical information to assess local manufacturability must be just that. Scrabbling backwards in a belated uncertainty whether intellectual property may not be jeopardized is a deal killer.

There is always a tendency among business people to “get on with the job” and leave the details for later, if at all. Nowhere is this more foolhardy than in Egypt where, if things go bad, a foreigner without a written contract finds himself in a most unenviable position. As long as all goes well, as we all hope, nobody looks at the contract document, but as and when “it happens” the investment in time and money pays off. Here are a few key issues that should be worked out in advance.

- Do a due diligence search. In the absence of formal credit rating agencies working in Egypt, checking around in the industry and finance network to unearth the entire history of your friendly host and future business partner is often the most effective way. This is a hard act for the visiting foreigner and is best left to local business advisors. Budget for this expense from day one.

- Don’t fall for the myth that business in Egypt is a matter of good relationships. It’s true, of course, but it does not stop there. Discussing and firming joint plans and writing a contract that covers the good and the bad times is just common sense. If a future partner counters rhetorically: “don’t you trust me?”, there is even more reason to write it all down.

- It is true that the legal protection of intellectual property in Egypt is weak and that Egyptians see little harm in appropriating ideas and technologies. Joint venture investors must make a choice between what to reveal in detail and what must remain a “black box”.

- Whatever the nature of the deal you make, build in sureties for obligations that fall due when things go wrong. Selling on open credit to a new buyer is foolish, investing with somebody you met just weeks ago without a rock solid contract is foolhardy.

- If a joint venture of sorts is in the plans; a decision making framework is vital. 50-50 arrangements do not work anywhere in the world and it is good to decide from the onset who will be boss.

- This study is no substitute for good legal advice, which we strongly recommend for anybody who wants to do more in Egypt than a one-off LC deal, but a contract should at the very minimum contain clauses about payment terms, limitation of liability and conflict resolution.

91

- Fighting a legal battle in Egypt is not recommended. A prior agreement to resort to arbitration in a third country does not solve the problem, but makes finding a settlement less painful.

- For Dutch investors and joint-venture actors, tax advice is also worth the money charged by a professional consultant. There is a corporate tax double tax treaty between the Netherlands and Egypt, but application requires preparation.

It is all too easy to get caught up in the enthusiasm of the new venture and forget that it’s still business198. It is very important to find partners that “click” in the professional and personal sense, remember that the “best laid plans ..”

“Your homework will prove your best investment”, Mauritius Wijffels

7.1.11. NEGOTIATING A PRICE

No price is fixed in Egypt and haggling is a way of life with its own rules. Rather than theorising, we share with you the hilarious and insightful experience of journalist Joris Luyendijk199, negotiating the rent for his apartment: “Haggling in Egypt goes like this: whatever price you mention -as a buyer- becomes the instant minimum; you won’t get lower! So, when asked how much you can afford to pay, you reply: Such excellent tea and pastry. Egyptian hospitality is beyond praise! By the way, how much did the previous tenant pay? Cultivate pity and sympathy. No money, problems at home, expensive flight ticket .... Meanwhile, you praise the product. Most Western tourists do it the other way. With a “you can’t fool me” face, they criticise the low quality, which cannot justify the high price, the product isn’t really all that attractive and not really worth having. Wrong! Keep it nice and praise the product and politely ask the seller to reduce his price, not because that price is too high, but because you cannot afford to pay it. Remove the inequality between buyer and seller and you both maintain your dignity. He is grateful for the business, you for the lower price.

7.1.12. BUSINESS ETIQUETTE IN EGYPT: WHAT YOU WON'T FIND ON THE INTERNET

Much has been written about local mores and the do’s and don’ts a Westerner should mind when doing business in Egypt and the Arab world. Rather than repeating what is ubiquitously available200, we’ll focus here on the faux pas most Dutch businessmen have been observed to make with regularity.

Accept that behaviour is measured with two yardsticks; one for the Egyptian, one for you, the khawaga, the foreigner.

- Khawaga is not insulting and to be addressed with “ya khawaga” is more a term of endearment, a bit familiar, but a sign of relaxing the formalities.

198

A realistic budget is €5,000 for due diligence on your new partner and legal advice on the new venture. Of course, more complex deals require more advisory work. 199

Een goede man slaat soms zijn vrouw, by Joris Luyendijk, 1998 Uitgeverij Het Podium 200

http://www.communicaid.com/access/pdf/library/culture/doing-business-in/Doing%20Business%20in%20Egypt.pdf

92

- Egyptians are hospitable, fun and suave, they’re great people to be with. They’re also very clever traders and business people and they’re on their own home ground. Do not get taken in, it’s business.

- Egyptians can be late and usually are: “the traffic, you know”. You will have to be on time, though.

- All men shake hands, some women do not. It is best not to initiate handshakes with women and leave the first step to them. Not shaking hands is ok. The Dutch concept of sexism is totally alien to Egypt.

- Not many Egyptian businessmen have beards, but a 3-day shadow is common and socially acceptable. You as a Westerner will have to shave, as the scruffy look does not become your image.

- The Dutch uniform of jeans, sneakers and a sports jacket is a no-no. In Egypt business people wear suits. T-shirts are underwear.

- There are shoeshine boys on every street corner. Spend 5 pounds and look presentable.

- Egyptians love titles and in the world of water, you will meet few plain Misters. Mohandes, Besh mohandes or Doktor followed by the given name or the surname is the common and correct form of address201.

- If you must cross your legs sitting down, do not show the sole of your shoe, and never, never point your sole at anybody. It is really very insulting but many Dutch men seem to find this the only way they can sit on a chair.

- If ever possible, do business with the top man or woman and stick to that level. Never fall in trap of behaving familiarly with your counterpart’s employees. Swapping jokes with the junior engineer means that he will be your contact from there on.

- Similarly, realise there is a thin line between friendliness and familiarity. Do not cross it, particularly not with junior employees. Not so long ago a foreign visitor was accompanied to the pyramids by a nice young English speaking engineer, who used the occasion to complain about his work and salary, fishing for a job. The foreign guest had no job to give away, but frustrated in not moving forward fast enough, he was all understanding and commiseration. This ended up, of course, in a black and white version, with his host. Similarly, do not assume that an Egyptian who is not vocal in English does not understand a word. The company driver who kindly takes a guest back to the hotel understands enough when you summarise meeting his boss on your mobile to your boss.

201

Besh Mohandes Tarek is Senior Engineer Tarek. Dr Mohamed Mahmoud Abdel Kader will be called Doktor Mohamed or Doktor Abdel Kader, depending on the social setting and the age difference. Remember that in 9 out of 10 cases the word Abdel comes with a 2

nd word following. Abdel is almost

never used in isolation. Haj is an honorary title often used for older men who have made the pilgrimage to Mecca.

93

8. Action

June 2011 saw a very successful Egyptian-Dutch Water Week in Cairo. Nearly 300 participants discussed the future of water in Egypt, the policies, the hurdles, the technologies. Important was the strong presence of the Egyptian private sector. The challenge now is to keep the momentum going202 and to turn all the good intentions in real business.

Here, after 90 pages of analysis and opinion, we list, in no particular order, some practical ideas that can be realised quickly without a call for big budget. The thinking here is to provide a continuity of Dutch presence in Egypt, to ensure that the Water Week was no “flash in the pan” and that information continues to flow in both directions.

In the long run, action must come from those who have most to gain from a strong market position in Egypt: the Dutch private sector. Larger companies and institutions may choose to go it alone, but it will be obvious that joint action will yield better results. Companies can choose to make an effort on an ad-hoc basis, like being present at the next Water Week , to join hands with other Dutch companies for a campaign or joint marketing or may decide that a permanent private sector presence is required in Egypt: a Cairo based organisation that works exclusively for those Dutch companies that wish this and pay for the service.

It is not clear at this day to what extent the substantial services and goodwill provided by EKN (with a team of 9 people) and APP can be continued in the years to come. What must be clear though, is that an Embassy must serve all Dutch companies that ask for help, putting pressure on available resources and that there must be limits to the extent to which EKN can promote individual interests on either the Dutch or the Egyptian side.

Marketing is a tough job which requires constant presence, a clear focus on markets and segments and a realistic budget. Fragmentation; be it in execution or in the way the Egyptian customer perceives the Dutch offering, is a losing proposition. Unity makes strength and Dutch companies, often small by global standards, need all the help they can give themselves.

Flying the flag in Cairo is important and it will be worthwhile to compare the merits of the current presence against a PPS, an. NBSO or a pure private initiative.

Most action ideas below are based on providing a continuum after the Dutch Egyptian Water Week and should be seen against that background. Several can be put in effect by EKN, NWP or by a private dedicated organisation.

202

NWP lists IWW Amsterdam in November as the next follow-up event. A straw poll conducted during the Water week in Cairo indicated that Egyptian attendance to this overseas event may be limited.

94

Events and networking

- Make the Dutch Egyptian Water Week in the format of last June an annual event.

- Organise monthly half-day events focused around a single technology or branch of the water sector; presenting just 2 or 3 Dutch companies. Take these events to the Governorates and New Towns, particularly if industry is the target.

- Broaden the current connections with MWRI and MALR to include the younger generation of Egyptian civil servants.

- Guest lectures at the local universities by visiting (sales) technical specialists from Dutch companies / knowledge institutes.203

- Masterclass on a single technical topic that cuts across industries and GoE organisations. Such classes are meant to be highly technical and focus exclusively on “local experts”.

- Presence of the Dutch Water Sector at shows and events of industries that use large amounts of water (agriculture, food processing, natural stone, industry, etc. Such a presence can be modest en aims to reinforces market understanding that the Dutch have “water answers”

- Establish a Dutch University alumni204 organisation and build a network of business ambassadors. A “join” button on the EKN website.

- Promote and organise internships with Dutch companies and student exchanges.

- Donate old equipment to universities and schools as “learning models”.205

Sales and marketing, production

- Assist smaller Dutch companies in complementary, non competing product and service ranges to coordinate their sales efforts, share efforts, information.

- Encourage Dutch water companies to join forces with other exporters of industry specific technology206 and offer the end customer a more complete solution – water pre and post treatment included- is a classic example of a win-win model through synergy

- Consider and act on the cost advantages of local manufacturing and assembly. Help Dutch companies assess the risks and gains towards real action.

- Lodging with EKN of target specific company and product brochures. Providing Embassy staff with short focused briefs on what the company wants to offer Egypt. Admittedly, this usually takes place when a Dutch company rep visits the Embassy, but the process in not structured.

203

Dutch company staff with good tech knowledge , in Egypt for business, can donate an evening. With just a few weeks notice, a rewarding guest lecture or workshop is easy to organise. 204

Between IHE-Unesco, WUR, Delft, Maastricht B-school and many other schools; Egyptian alumni must number over 1000 205

Old does not mean junk. An obsolete pump or valve will not sell anymore, but a “cut-open” unit is a great help in education and displays the brand name continuously 206

Mentioned above, slaughterhouses, glasshouses, industrial plants etc.

95

- Extend the EKN website with shortcut links to websites of companies that want to do business in Egypt.

- Collecting and publishing business cases. These include both past successes and new “it would be nice if” scenarios where a Dutch organisation offers conceptual thinking and invites Egyptian parties to join at the execution level. This can function well with the current NWP call for business cases.

- Join in some of the many Entrepreneurship Promotion events and offer Dutch technology as the basis of a Business plan, competition or new business.207

At Dutch government, Water Mondiaal and industry level

- Enable and fund a transition solution where the private sector gradually establishes (and funds) a Cairo based organisation that can provide a de facto rep. office for participating Dutch companies, ensuring objective and continuous information, non biased priority identification and high level mediation in cases where local agents fail to entirely serve the Dutch company’s interests. This will adequately answer wishes expressed in the Dutch survey to help in negotiating sustainable win-win terms of engagement and in matchmaking to strengthen the quality of the Dutch participant(s) offering.

- Pro-actively continue to “twin” waterschappen and water companies with the ACs in each Governorate.

- Review the potential of extending the “Innovatie” tax breaks described above to water exports.

Whichever the initiative, some basic realities hold true. APP, EKN and Water Mondiaal are government organisations and can be asked to support Dutch business in Egypt. What they cannot be asked is to do the business in Egypt. Dutch companies will have to work on their own intelligence and promotional efforts, set aside rivalry and optimise “bang for the euro” by working together, showing the Egyptian markets through action that the Dutch are here to stay.

Tahia Masr

207

Presently, two initiatives are reviewed. The Infrastructure Hackathon organised by the WorldBank for action in Q4-2011 and a concept to organise a Business plan competition for small scale sanitation projects based on the technology of different Dutch companies as part of the events under Global Entrepreneurship Week , also in Q4

96

9. Acronyms & translations

AC Affiliate company (under HCWW)

AfDB African Development Bank

APP Advisory Project Panel

B2B Business to business

BcM Billion cubic meters

BOT Built, operate, transfer

CAPWO Cairo and Alexandria Potable water organisation

CBI Centre for the Promotion of Imports from Developing countries

CMRI Channel Maintenance Research Institute

CoRI Coastal Research Institute

CSP Concentrated Solar Power

EEAA Egyptian Environmental Affairs Agency

EIB European Investment Bank

EKN Embassy of the Kingdom of the Netherlands

EMWIS European Mediterranean water Information system

EPADP Egyptian Public Authority for Drainage Projects

EU European Union

EWRA Egyptian Water Regulatory Authority

Feddan 0.42 ha or 4200 m²

Fellah farmer (plur. fellahin)

FMO Financierings Maatschappij voor Ontwikkelingslanden

G2G Government to Government

GDP Gross Domestic Product

GoE Government of Egypt

HCWW Holding company for Water and Wastewater

IIIMP Integrated Irrigation Improvement and Management Project

IMC Industrial Modernisation Centre

IMF International Monetary Fund

ISSIP Sanitation and Sewerage Infrastructure Project

IWSP Improved Water and Wastewater Services Project

JICA Japan International Cooperation Agency

JSF Joint Strike Fighter

KfW Kredit Anstalt fur WiederAufbau

Lc Letter of Credit

Lcd Liter per capita per day

MALR Ministry of Agriculture and Land Reclamation

97

ME Middle East

MED Multi Effect Distillation

Mesqa tertiary irrigation level, managed by individual farmers

MHUUD Ministry of Housing, Utilities and Urban Development

MoHP Ministry of Health and Population

MSEA Ministry of State of the Environment

MSF Multi Stage Flash

MWRI Ministry of Water Resources and Irrigation

NGO Non Government Organisation

NOPWASD National Organization For Potable Water and Sewage

NWP Netherlands Water Partnership

NWRC National Water Research Centre

NWRP National Water Resource Plan

ODA Overseas development assistance

OOC Occidental Oriental Consult

PESP Programma Economische Samenwerking Projecten (defunct)

PPP Public Private Partnership

PPPCU Public Private Partnership Central Unit

PPS Publiek Private Samenwerking ( PPP in Dutch)

PSI Private Sector Investment programme

RO Reverse osmosis

SME Small Medium Enterprise

SPA Shore Protection Authority

SWRO Salt Water Reverse Osmosis

UNDP United Nations Development Programme

UPEHC Union of Producers and Exporters of Horticultural Crops

VAR Value added reseller

W&WW Water and wastewater

WMES Water Mondiaal Egypt Study

WPRR Water Policy and Regulatory Reform

WUA Water User Association

WWTP Waste water treatment plant

98

10. Environmental legislation

Maximum effluent concentrations set by law (all subject to a valid license)

Law 48’82 Decree 8’83

Law 93 ’62 Decree 9’89

Allowable discharge to fresh water

Allowable discharge to brackish surface water

Allowable discharge to public sewer

Ph 7-8.5 6-9 6-10

TDS 500 2000 2000 mg/l

Temp 5°C above normal 35°C 40°C

BOD 6 ≥ 60ppm 400 ppm

COD 10 ≥ 80ppm (dichromate) 700ppm (dichromate)

40ppm (permanganate) 400ppm (permanganate)

Oil grease 0.1 ≥ 10ppm 100ppm

99

11. Names

NB. The icons below serve to help find specialised consultants, contractors or businesses. However, in view of the sheer volume of names and the dynamic nature of business, the absence of an icon does not indicate that the company does not do this kind of work.

The organisation has Dutch connections

The organisation is involved in general contracting work

The organisation has a specialisation in W&WW

The organisation has a specialisation in coastal protection

The organisation has a specialisation in Agriculture & irrigation

The organisation has a specialisation in aquaculture

The organisation has a specialisation in pumps and valves

The organisation serves the home-appliances market

Numbers and email addresses are correct at the time of print, but in Egypt such details can change quickly.

Many professionals use web-mail addresses (hotmail, yahoo) next or instead of their employer’s domain address, as these tend to be reliable.

Phone numbers are displayed as follows:

+ Country code =20, Area code = (0)**, space, number

Telephone numbers are always 7-digit, except Cairo (+202) which has now 8-digits. Some websites and documents still display the old 7-digit numbers. Usually, adding a pre-fix (2, 3 or 4) makes a working number.

Mobile phones use codes +2010, 11, 12, 14, 16, 17, 18, 18 and 150, 151, 152

100

11.1 Professional business advisors

EKN Embassy Kingdom of the Netherlands

Zamalek, Cairo

+202 2739 5500

http://www.hollandembassy.org.eg/

Dr.Ir. Hans van der Beek

Counsellor Office of the Ministry of Economic Affairs, Agriculture and Innovation

kai-lnv@minbuza.nl

Dr.Tarek Morad

Dty Head Economic & Development Coop

kai@minbuza.nl

Abdalla Adlan Public Accountants

Zamalek, Cairo

+202 2735 5903

http://www.abdallaadlan.com/

Mr.Mahmoud Adlan

Public Accountant

armon_00@hotmail.com

Melba Group Legal Advisors

Mohandeseen, Cairo

+2016 835 4646

www.melba-legal

Mr.Mauritius Wijffels

Chairman, Advocaat

mauritius@melba-legal.com

Occidental Oriental Consult

Downtown, Cairo

+2010 7818 593

Den Haag

+316 5321 9965

www.oo-consult.com

Eric Zoetmulder MA MBA

Consultant

eric@oo-consult.com

Egbert Ottevanger MSc.

Consultant

egbert@oo-consult.com

Shalakany Law Office

Zamalek, Cairo

+202 2728 8888

www.shalakany.com

Mr.Aly Khaled EL Shalakany

Senior Associate

Aly.Shalakany@shalakany.com

Zaki Hashem Partners

Downtown, Cairo

+202 2393 3766

www.hashemlaw.com/

Mr.Loay El Shawarby

Attorney at Law

loay.elshawarby@hasemlaq.com

101

11.2 Egyptian government, Water related (semi-) government organisations

MWRI Ministry of Water Resources and

Irrigation

Imbaba, Giza

+202 3544 9447

http://www.mwri.gov.eg/En/contactus.htm

HE Dr.Hussein El Atfy

Minister

Dr.Mohamed Abdel-Motaleb

Head of the Planning Sector

motaleb@mwri.gov.eg

+202 3544 9456

Dr.Tarek Kotb

Project Director IIIMP

thskotb@yahoo.com

+202 3544 9489

MWRI EPADP Egyptian Public

Auth.Drainage Projects

Giza, Giza

Dr.Hussam El‐Din S. Fahmy

Chairman

hussam.fahmy@yahoo.com

+202 3573 8039

MWRI RGBS Reservoirs and Grand Barages

Sector

Imbaba, Giza

Dr.Ibrahim Farrag Abd El Khalek

Head of RGBS

RGBS-abp@mwri.gov.eg

+202 3544 9552

MWRI SPA Shore Protection Authority

Shubra, Cairo

Eng.Amaal Mohmed Ali

Chairman

amalmohamed_ali@yahoo.com

+202 4444 3406

NWRC National Water Research Center

Shubra, Cairo

http://www.nwrc-egypt.org/nwrc/

Prof. Dr.Shaden Abdel Gawad

Chairperson,

nwrc@nwrc-eg.org

+202 4444 3533

NWRC CMRI Channel Maintenance

Research Institute

Elqanatir El Khairiya, Qalyubia

Dr.Tarek ELSamman

Director

cmri-director@hotmail.com

+202 42189596

NWRC CORI Coastal Research Institute

El-shalalat, Alexandria

Dr.Ibrahim Elshennawy

Head

coriegypt@gmail.com

+203 484 4615

NWRC DRI Drainage Research Institute

Elqanatir El Khairiya, Qalyubia

Dr.Alaa AbdelMotaleb

Head

drins@idsc.net.eg

+202 4218 9841

102

NWRC ECRI Environment and Climate

Research Inst.

Elqanatir El Khairiya, Qalyubia

Dr.Ahmed Fahmy

Head

ah_fahmi@ecri-eg.com

+202 4218 2070

NWRC HRI Hydraulics Research Institute

Elqanatir El Khairiya, Qalyubia

Prof.Fathy EL Gammal

Head

info@hri-egypt.org

+202 4218 8268

NWRC NRI Nile Research Institute

Elqanatir El Khairiya, Qalyubia

Dr.Medhat Aziz

Head

nri@starnet.com.eg

+202 4218 4229

NWRC RIGW Research Institute

Groundwater

Elqanatir El Khairiya, Qalyubia

Prof. Dr.Nahed el Arabi

Director

elarabinahed@yahoo.com

+202 4218 2117

NWRC WRRI Water Resources Research

Institute

Elqanatir El Khairiya, Qalyubia

Ms.Asmaa Medhat Yousif Kamel

Research Engineer

eng_semsem1001@hotmail.com

+202 4218 9437

MHUUD Ministry of Housing Utilities and

Urban Devpt

Down Town, Cairo

+202 27934499

www.moh.gov.eg/en/en_design/Default_en.aspx

Eng.Mohamed el Alfy

Deputy Minister of Housing for International Cooperation and Head of the Egyptian Water Regulatory Authority

malfy@mhousing.gov.eg

MHUUD EWRA Egyptian Water &

Wastewater Regulatory Agency

Down Town, Cairo

+202 2920 1748

www.ewra.gov.eg

Mr.Mohamed A. Abdelghany

Environmental IT Engineer

mohamed.abdelghany@ewra.gov.eg

Dr.Mohamed Hasan Mostafa

Head of Technical Regulations

mohamed.hasan@ewra.gov.eg

CAPWO Cairo & Alexandria Potable Water

Org.

Downtown, Cairo

+202 2579 9481

Eng. Zeinab Mounir

Projects Sector Head

capwegypt@yahoo.com

NOPWASD Nat’l Authority Potable Water

& Sewage

Mohandeseen, Giza

+202 3345 3507

proj_sect@yahoo.com

Eng.Samia Saleh

Vice President for Planning and Projects

Eng.Mahmoud Mokhtar

Potable Water Projects Head

Eng.Ezzat Saleh

Design Manager

103

HCWW Holding Company for Water and

Wastewater

Rod-elfarag, Cairo

+202 2458 3590

http://www.hcww.com.eg/En/Default.aspx

Eng.Mamdouh Raslan

Deputy Chairman

mraslan@hcww.com.eg

Dr.Ahmed Moawad

Head Technical Planning Sector

ahkamal_moawad@yahoo.com

Assiout Water & Waste Water Co.

Assiout, Assiout

http://www.hcww.com.eg/ar/Companies/Subsidiaries.aspx?ID=23

Mr.Adel Ashour El Mahdi

Chairman

ascww_2@yahoo.com

+2018 800 0070

Aswan Potable water and waste water Co.

Aswan, Aswan

http://www.hcww.com.eg/ar/Companies/Subsidiaries.aspx?ID=14

Eng.Ezzat El Sayad

Chairman

+2097 230 6246

Beheira water & Drainage company

Beheira, Beheira

www.bwadc.com.eg

Eng.Safwat Rageh

CEO

info@bwadc.com.eg

+2045 333 2672

Beni Suef water & waste water Co.

Beni Suef, Beni Suef

http://www.hcww.com.eg/ar/Companies/Subsidiaries.aspx?ID=13

Eng.Mohamed Mohamed Abou El Khair

Chairman

info@bswas.com

+2082 232 7239

Damietta Potable water and waste water Co.

Damietta, Damietta

http://www.hcww.com.eg/ar/Companies/Subsidiaries.aspx?ID=7

Eng.El Sayed Mahmoud Abdallah Rabee

Chairman

+2057 223 4572

Daqahlia Water & waste water Co.

Mansoura, Dakhlia

http://www.hcww.com.eg/ar/Companies/Subsidiaries.aspx?ID=9

Eng.Ahmed Amin Hassan Abdein

Chairman

dkwasc@dkwasc.com

+2050 221 9531

Fayoum Drinking water & sewage water co.

Baghos, Fayoum

http://www.hcww.com.eg/ar/Companies/Subsidiaries.aspx?ID=11

Eng.Mahmoud Abu Zeid

Chairman

fdwasc@fdwasc.com

+2084 630 3312

Gharbya Potable water and waste water Co.

Tanta, Gharbeya

http://www.hcww.com.eg/ar/Companies/Subsidiaries.aspx?ID=6

Eng.Mohamed Osman

Chairman

ghwsc@yahoo.com

+2040 341 8616

104

Giza water & waste water Co.

Giza, Giza

http://www.hcww.com.eg/ar/Companies/Subsidiaries.aspx?ID=17

Eng.Amro Ahmed Wahsh

Chairman

Amro_wahsh@yahoo.com

+202 3542 4761

Greater Cairo for water Company

Cairo, Cairo

http://www.gcwc.com.eg/main/Index_lg_en.jsp

Eng.Moh.Ahmed AbdEl Rahman Abdelati

Chairman

moabdelrahman@hotmail.com

+2010 180 3687

Greater Cairo Sanitary Drainage Company

Down Town, Cairo

http://www.gcwc.com.eg/main/Index_lg_en.jsp

Eng.Mohamed Ahmed Abd El Rahman Abdelati

Chairman

tech.cwc@hotmail.com;projects.cwc@hotmail.com

+202 2574 3025

Kafr El Shaikh water & waste water Co.

Kafr el Sheikh, Kafr El Shaikh

http://www.hcww.com.eg/ar/Companies/Subsidiaries.aspx?ID=5

Mr.Mohamed Fouad Abd El Rahman

Chairman

Info@kwsc.com.eg

+2047 321 1084

Luxor water & waste water Co.

Luxor, Luxor

http://www.hcww.com.eg/ar/Companies/Subsidiaries.aspx?ID=18

Eng.Khaled Hussein Nasr Hussein

Chairman

lcww@lcww.com.eg

+2095 228 4141

Matrouh Potable water and waste water Co.

Matrouh, Matrouh

http://www.hcww.com.eg/ar/Companies/Subsidiaries.aspx?ID=21

GeneralYousry Henry Azer

Chairman

+2046 494 2227

Menia water & waste water Co.

El Miniya, Miniya

http://www.hcww.com.eg/ar/Companies/Subsidiaries.aspx?ID=12

Eng.Radwan Fathy Ibrahim Khalifa

Chairman

mona@mdwsc.com.eg

+2086 237 9862

Menoufya Potable water and waste water Co.

Menofeya, Menofeya

http://www.hcww.com.eg/ar/Companies/Subsidiaries.aspx?ID=19

GeneralAyman Abd El-Kader

Chairman

mcww@mcww.com.eg

+2048 226 9385

105

North and South Sinai Potable water and waste water Co.

Ismailia, Ismailia

http://www.hcww.com.eg/ar/Companies/Subsidiaries.aspx?ID=20

Dr.Ibrahim Khaled Gabr

Chairman

+2064 375 1317

Qena Potable water and waste water company

Qena, Qena

http://www.hcww.com.eg/ar/Companies/Subsidiaries.aspx?ID=16

Eng.Mahmoud Zaki Mahmoud Assaad

Chairman

+2096 522 6410

Red Sea Potable water and waste water company

RedSea, Red Sea

http://www.hcww.com.eg/ar/Companies/Subsidiaries.aspx?ID=24

Eng.Nageh Ibrahim

Chairman

+2065 355 8798

Sharqia water & waste water Co.

Zagazig, Sharkeya

http://www.hcww.com.eg/ar/Companies/Subsidiaries.aspx?ID=10

Eng.Mohamed Moustafa Soultan

Chairman

info@shapwasco.com.eg

+2055 230 2532

Sohag water & waste water Co.

Sohag, Sohaq

http://www.hcww.com.eg/ar/Companies/Subsidiaries.aspx?ID=22

Mr.Ezzat Ibrahim El Sayyad

Chairman

sohag.chairman.office@gmail.com

+2093 230 1290

106

11.3 Government – Agriculture, Environment, Finance

MALR Ministry of Agriculture

Dokki, Cairo

www.agr-egypt.gov.eg

HE Dr.Ayman Farid Abou Hadid

Minister

Prof. Dr.Mohsen Elbatran

Head of Economic Affairs Sector

KarimElbatran@gmail.com

ARDC Agricultural Research and Dvpt.

Council

Dokki, Giza

www.agr-egypt.gov.eg

A. Aboul Naga

Senior Advisor ARDC

abdelmaboulnaga@hotmail.com

MALR EALIP Exec Auth. Land Improvement

Projects

Dokki, Giza

www.agr-egypt.gov.eg

Prof.Mohamed Samir M. Abo Soliman

Chairman

m_abosoliman@yahoo.com

+202 3761 3993

SWERI Soil Water & Environment Research

Inst.

Dokki, Giza

http://www.arc.sci.eg/InstsLabs/ResDetails.aspx?OrgId=1&lang=en&ResID=70980

Dr.Hamdy Khalifa

hekhalifa@yahoo.com

+202 3572 0608

EEAA Egyptian Environmental Affairs Agency

Maadi, Cairo

http://www.eeaa.gov.eg/English/main/about.asp

Prof.Moustafa M Fouda

Director Nature Conservation Sector, Dty Minister

eeaa@eeaa.gov.eg

+202 2525 6452

MoF PPP Central unit

Nasr City, Cairo

http://www.pppcentralunit.mof.gov.eg/pppcusite/content/home/default

Eng.Atter Hannoura

Director

atter@mof.gov.sg

+202 23421283

107

11.4 International Organisations

APP Egyptian Dutch Advisory Project Panel

Water Management

Delta Barrage, El Qanatir, Qalyubia

http://www.app-wm.org/Default.aspx

Dr.Samia El Guindy

Director

app@link.net

+202 4218 3326

AWC Arab Water Council

Nasr City, Cairo

http://www.arabwatercouncil.org/

Mr.Mahmoud Abu Zeid

President

president@arabwatercouncil.org

+202 4024 3079

CEDARE Center for Environment and

Development for the Arab Region and Europe

Heliopolis, Cairo

http://www3.cedare.int/

Prof. Dr.Khaled Abu Zeid

Regional Water Resources Program Manager

kabuzeid@cedare.org

+202 2451 3921

EU Delegation of the European Union to Egypt

Mohandeseen, Giza

http://eeas.europa.eu/delegations/egypt

Ms.Ahlam Farouk

Program Manager Tech & Voc Education

ahlam.farouk@eeas.europa.eu

+202 3749 4680

EU EMWIS European Mediterranean Water

Information system

Cairo, Cairo

http://www.emwis.org/

Dr.Hesham Mostafa

Coordinator NFP for EMWIS

minister@mwri.org.eg

+202 3544 9480

FAO

Dokki, Giza

www.fao.org

Mr.Mohamed el Ansary

Asst. FAO Representative

mohamed.elansary@fao.org

+202 3331 6000

GTZ German Technical Cooperation

Imbaba, Giza

www.gtz.de

Dr.Joachim Lehmann

Programme Director Water Resources Mgt Reform

joachim.lehmann@gtz.de

+202 3545 6794

Mr.Paul G. Weber

Irrigation Agronomist

gpaul.weber@gtz.de

+202 3335 3349

North South Consultants Exchange

Zamalek, Cairo

http://www.nsce-inter.com/En/index.aspx

Dr.Magda Ghonem

Program Manager

mghonem@nsce-inter.com

+202 2735 1045

108

North South Consultants Exchange

Zamalek, Cairo

http://www.nsce-inter.com/En/index.aspx

Ms.Silvia Ramses

Business Development Manager

sramses@nsce-inter.com

+202 2735 1045

UNDP

Cairo, Cairo

www.undp.org

Eng.Mohamed Bayoumi

Environment Specialist

Mohamed.Bayoumi@undp.org

+202 2578 4840

WHO World Health Organization

Nasr City, Cairo

Dr.Susan Watts

Social Scientist

wattss@emro.who.int

+202 2276 5560

CH2MHILL (Chemonics int, USAID Egypt)

5th District, New Cairo, Cairo

www.wprregypt.com

Mr.David Osgood

Country Manager

david.osgood@wprregypt.com

+202 2929 7868

WPRR Water Policy and Regulatory Reform

project - USAID

5th District, New Cairo, Cairo

+202 2929 7868

www.wprregypt.com

Mr.Alan Bright

USAID Water & Wastewater Sector Support Program

alan.bright@wprregypt.com

+202 2929 7868

109

11.5 Financial Institutions and multilateral donors

AfDB African Development Bank, Egypt

Heliopolis, Cairo

+202 2256 3790

www.afdb.org

Mr.Tarek Ammar

Private Sector Specialist

t.ammar@afdb.org

DrYasser Elwan

Senior Water Engineer

Y.Elwan@afdb.org

Citadel Capital

Garden City, Cairo

+202 2791 4440

http://www.citadelcapital.com/

Mr.Ahmed El Sharkawy

Principal

asharkmail@yahoo.com

EEAA Eg. Environmental Affairs Agency EPAP

Maadi, Cairo

+202 2526 1419

http://industry.eeaa.gov.eg/

Mr.Philip Jago

Team leader

ind_unit@eeaa.gov.eg

EIB European Investment Bank

Dokki, Cairo

+202 3336 6583

www.eib.org

Mrs.Jane Macpherson

Head Cairo regional office

macphers@eib.org

IFC International Finance Corporation

Cairo, Cairo

+202 2461 9140

http://www.ifc.org/ifcext/mena.nsf/Content/Egypt

Mrs.Nada Shousha

Principal Country Officer

nshousha@ifc.org

KfW

Zamalek, Cairo

+202 2736 9525

http://www.kfw.de

Mr. Detlef Gielow

Programme Manager Water and Waste Water Sector

detlef.gielow@kfw.de

NSGB

Downtown and Mohandesseen, Cairo

+202 27707084

www. socgen.com

Ms. Mina Maged

Supervisor – Corporate Finance

mina.maged@socgen.com

World Bank

Boulak, Cairo

+202 2574 1670

http://data.worldbank.org/country/egypt-arab-republic

Mr.Mr. Hany El Saadani

Water Resources Engineer

helsadanisalem@worldbank.org

110

11.6 Knowledge Institutes

Ain Shams University

Abbasia, Cairo

http://agr.shams.edu.eg/

Mr.Amr Mossad Abdel Maksoud

Ass. Lecturer

amr_abdelbari@agr.asu.edu.eg

Prof Dr.Yasser E. Arafa

Associate Prof. of Agriculture Eng.

arafayeh@yahoo.co.uk

Mr.Peter Riad

Associate Lecturer- Irrigation & Hydraulics Dept

ph4318@yahoo.com

Ain Shams University, Faculty of Engineering

Abbasia, Cairo

http://eng.shams.edu.eg/

Dr.Ahmed Refaat

Sanitary Engineering

refat_a31@yahoo.com

AUC Desert Development Center

New Cairo, Cairo

http://www.aucegypt.edu/research/ddc/Pages/ddchome.aspx

Mr.Hassan M. Husseiny

Irrigation Manager

hhuseiny@aucegypt.edu

+202 2613 9929

Ms.Tina Jaskolski

Research Coordinator

tinajas@aucegypt.edu

+2012 733 5294

Desert Research Center

Cairo, Cairo

http://www.aucegypt.edu/research/ddc/Pages/ddchome.aspxn

Prof.Ibrahim Nasr

President

imnasr@yahoo.com

+2012 733 5294

ETRACE Agriculture & Agro-Industries

Technology Ctr

Mohandessin, Cairo

http://www.etrace-eg.org/

Mr.Mohamed Nabil

info@etrace-eg.org

+202 3748 4142

EWP Egyptian Water Partnership

Heliopolis, Cairo,

http://www.egyptianwaterpartnership.org/index.aspx

Prof. Dr.Khaled Abu Zeid

Managing Director

kabuzeid@egyptianwaterpartnership.org

+202 2451 3921

GIZ International Services

Heliopolis, Cairo

+202 2418 1578

www.med-enec.eu

Ms.Florentine Visser

MED-ENEC Key Expert Low Energy Building & Urban Planning

florentine.visser@giz.de

+202 2418 1578

111

National Institut of Oceanography and

Fisheries

Garden City, Cairo

+202 2792 1341

http://www.niof.sci.eg/

Mr.Fekry Ashour Mourad

Researcher

mourad_niof@yahoo.com

Prof. Dr.Mohamed Attia Shreadah

President

m_shreadah@yahoo.com

Nil Basin Discourse - Egypt

Helwan, Cairo

http://www.nilebasindiscourse.org/

MrEssam Nada

National Programme Coordinator Egypt

Egypt@NileBasindiscourse.org

NRC National Research Center; Housing and

Building

Dokki, Giza

Prof. Dr.Maha Moustafa El Shafei

Director of Sanitary and Environmental Engineering Iinst

m_elshafai@yahoo.com

+202 3762 9204

NRC National Research Centre

Dokki, Giza

Prof. Dr.Fatma El Gohary

Professor of Water Pollution Research

fgohary@hotmail.com

+202 3335 1573

RCTWS Regional Centre for Training and

Water Studies

6th October City, 6th October City

http://www.rctws.com/Index.html

Dr.Maha Mohsen Tawfik

Chairperson

info-r@rctws.com

+202 3833 2691

Regional Water Demand Initiative, Mid East & North Africa Office (WADImena)

Giza, Giza

http://publicwebsite.idrc.ca/EN/Regions/Middle_East_and_North_Africa/Pages/default.aspx

Hammou Laamrani

Project Coordinator,

hlaamrani@idrc.org.eg

+202 3336 7051

112

11.7 Consultants and consulting engineers

AAW Dr. Ahmed Abdel Warith - Consulting Engineers

Dokki, Cairo

+202 3761 7737

https://www.aaw.com.eg/

Eng.Yehia Gamal M Moussa

Vice President Techical Affairs

ygamal@aaw.com.eg

ACE Engineering Consultants Moharram Bakhoum

Dokki, Cairo

+202 3337 7120

http://www.ace-consultants.com/

Eng.Bahaa Afif

Project Manager

gabal@ace-consultants.com

Active Brains Consulting Group (ABCG)

Dokki, Giza

+202 3749 2778

www.activebrains.net

Dr.Sherif Abd El-Baki

Managing Director

sherif.baki@activebrains.net

Al Amar Consulting Group

New Maadi, Cairo

+202 2517 7670

http://www.alamargroup.com/index.php

Ms.Shaimaa A. Al Zayat

Business Development Manager

shaimaaelzayat@gmail.com

Aqua Egypt Chemical Engineering

Zamalek, Cairo

+202 2736 3319

Eng.Mostafa Hedayah

General Manager

m_hedayah@yahoo.com

CEC El Saie Engineering Consultants

Mansheit El Bakry, Cairo

+202 2257 9533

http://www.elsaie-engineering.com/fixed.php?id=9

Dr.Yehia El Saie

General Manager

elsaie@tedata.net.eg

Chemonics Egypt-Ahmed Gaber & Partners

Dokki, Cairo

http://www.chemonicsegypt.com/

Dr.Ahmed Gaber, Chairman

chemegy@chemonicsegypt.com

+202 3760 0764

Eng.Ghassan F. Nakad

Teamleader USAID W&WW Program

GNakad@Chemonics.com

+202 3336 0918

Consulting Office for Environmental & Civil Engineering

Nasr City, Cairo

+202 2260 5401

Eng.Gamal Taher

Director

gamaltaher1@hotmail.com

113

CTB Consulting Trading Bureau

Heliopolis, cairo

+202 2291 1330

http://www.ctbegypt.com/

Mr.Wassef Naguib Wassef

President

wwassef@ctbegypt.com

Dar Al-Handasah

Mohandessin, Giza

+202 3344 9680

http://www.dargroup.com

Mr.Ahmed Said Hassaballah

Senior Infrastructure Engineer

ahmad.shassaballah@dargroup.com

Darwish Consulting Engineers

Heliopolis, Cairo

+202 2638 2209

http://www.dce-ltd.com/cms/index.php

Eng.Mohamed Raouf Darwish

CEO

info@dce-ltd.com

Delft Environment

Cairo, Cairo

+2010 7333 465

http://www.delft-environment.net/index.html

Dr.Moustafa Samir Moussa

Environmental Consultant

m.moussa@delft-environment.net

ECG Engineering Consulting Group

Nasr City, Cairo

http://www.ecgsa.com/

Eng.Ahmed Mohamed Gamgoum

Proposal Manager, Bus Dev. Division

ahmed.gamgoum@ecgsa.com

+202 2274 4740

Dr.Tarek Ismail Sabry

Consultant

tarek_sabry@unitedconsultants-eg.net

+202 2670 1041

EcoConServ - Environmental Solutions (ECS)

Zamalek, Cairo

+202 2735 9078

www.ecoconserv.com

Dr.Tarek Genena

President

genena@ecoconserv.com

ECORD

El Asafra Kebly, Alexandria

+203 324 0587

http://www.ecord1.com/En/services.html

Dr.Radwan Mostafa Kamal

General Manager

radwan@ecord1.com

Euroconsult Mott MacDonald

Imbaba, Cairo

+202 3543 3945

www.ecbmb.nl

Mr.Wicher Boissevain

IIIMP

boissevain@link.net

EWW Egyptian Water Works

Zamalek, Cairo

+202 2736 4121

Eng.Ahmed Fahmy

Sales Manager

afahmy@ewwoilandgas.com.eg

114

Future Consulting

Cairo, Cairo

+202 3336 5013

http://www.futureconsult-eg.com/

Eng.Ahmad Abu-Deif

Exec. Direc.& D.M

info@futureconsult-eg.com

GIG Consultancy, Green Industrial Gateway,

Cairo, Cairo

+202 2417 8360

www.gig-consult.com

Eng.Mustafa Ibrahim Afify

Owner

mustafa.afify@gig-consult.com

GP General Process

6th October City, Cairo

+202 3830 4081

www.gpwatertreatment.com

Eng.Hatem Hussein

PM

info@gpwatertreatment.com

Green Group

Giza, Cairo

+202 3302 1487

www.green-group.info

Eng.Mahmoud Badr

Technical Director

m.badr@green-group.info

Kamel Consultants & Research

Downtown, Cairo

+202 2393 1969

Dr.Basel Ahmed Kamel

Principal consultant

basilkamel@gmail.com

Misr Consulting

Haram, Giza

+202 3385 1462

http://www.mce.eg.com/

Eng.Mohamed Refaat

Projects Head

oasis@tedata.net.eg

Ossama Abdel Ghaffar & Associates

Alexandria, Alexandria

+203 574 1281

Mr.Ossama Abdel Ghaffar

President

o.ghaffar@gmail.com

Rehab for Projects & Trade

Nasr City, Cairo

+202 2261 2596

Dr.Moustapha El Shazli

Project Manager

moustapha_elshazli@live.com

Royal Haskoning Group/Egypt

Fayoum, Fayoum

+2084 6302 064

www.royalhaskoning.com

Mr.Herrie Heckman

Team Leader

h.heckman@royalhaskoning.com

Sabry Corp- nano technology consultants

Heliopolis, Cairo

+202 2414 6493

Dr.Mohamed Abdel Mottaleb

Chairman

mohamed.abdel-mottaleb@sabrycorp.com

SEECO

Mohandessin, Giza

+202 3304 2082

Dr.Medhat Saleh

Managing Director

mabdelmsaleh@yahoo.com

115

System Technique

Mohandessin, Cairo

+202 3303 6935

www.systemtechnique.com

Eng.Ahmed Saleh

Cairo & Alex Branch Manager

office@systemtechnique.com

Talaat-Imam

Mohandessin, Giza

+202 3346 1888

http://talaat-imam.a2zdecor.com/en/Default.aspx

Eng.Hane'a Ismail Ibrahim

Head of Design

tice@talaat-imam.com

Utilities Consulting engineers

Mohandeseen, Giza

+202 3344 2272

Eng.Mostafa Ashmawy

General Manager

mashmawy95@yahoo.com

116

11.8 Contractors

Agritech Egypt for Engineering & Trading

Hadayek El Qobba, Cairo

+202 2487 1056

Eng.Nabil Sharaf

Owner

nobel1953@yahoo.co.uk

Al Eman Engineering Co

Mansoura, Mansoura

+2010 280 8466

www.al-emanco.com

Eng.Ahmed Ismail

Partner

ahmed.ismail@al-emanco.com

Amy Land Modern Irrigation Systems & Agriculture Systems

6th October, 6th Of October City

+2010 231 7789

Eng.Ayman Nassem

Owner

aymanneseim@yahoo.com

Aqua Maint Water Technology & Environment

Cleopatra Al Soghra, Alexandria

+203 522 3889

Mr.Mohamed Akram

Accountant

aquamaint_1@hotmail.com

Aqua Misa Trading & Water Treatment

Sidi Beshr Kebly, Alexandria

+2012 164 3866

Eng.Ibrahim Ali

Owner

aqua.misa@yahoo.com

Arab Contracting Drilling (A.C.D.C.)

Heliopolis, Cairo

+202 2620 0048

http://www.omegaeg.net/introduction.htm

Eng.Mohamed Gamal Hano

Vice Chairman

hano205@yahoo.com

Arab Contractors

Cairo, Cairo

www.arabcont.com

Eng.Ibrahim Mahlab, Chairman

info@arabcont.com

Mr.Morsi AbdelHamid

Advisor to the Manager Electromechanical Div.

eng_morsi2010@yahoo.com, +202 2403 6784

Mr.Ahmed Mohamed Ahmed Hussein

Director General, Electromechanical Affairs Div.

ahmed.hussein@arabcont.com, +202 2263 7732

Mr.Samir Mohamed Mahmoud

Head Sector and Dty Manager Mech & Elec. Dep.

samh.emprojects@gmail.com +202 3817 5959

117

Arab German Company for Waste and Environmental Technology (AGET)

Gharbia, Tanta

+2040 329 8690

www.mabroukegypt.com

Eng.Mohamed M. Mabrouk.

Chairman

info@mabroukegypt.com

Canal Harbour & Great Projects

Ismailia, Ismailia

+2064 3396525

www.chp-eg.com

Eng.Hamed Abouel Fottoh

Chairman

chairman@chp-eg.com

Comet for Trade & Engineering Works

Almaza, Cairo

+202 2417 5042

www.cometegy.com

Eng.Ashraf Kamel

CEO Deputy

sales@cometegy.com

Eastern Engineering & Trading

Dokki, Cairo

+203 338 5647

Eng.Said Abd El Mohsen

sharcogroup@link.net

Egyptian Arab Contracting

Haram, Cairo

+202 3583 6211

Eng.Soliman Abu Basha

Chairman

hyz14@yahoo.com

Eng.Hesham El Zayat

Civil Engineer

t.office_eac@yahoo.com

Egyptian Basic Structure

Mohandessin, Cairo

+202 3345 2002

Mr.Salah Khalil

Accountant

project@access.com.eg

Egyptian for Operation & Management

Maadi, Cairo

+202 2520 3077

Eng.Reda El-Fransawy

Owner

ecom@ecom.eg.com

Egyptian Wells Drilling Services

Mohandessin, Cairo

+202 3347 6664

MajorHamdy Hassan

CEO

el.masrien.drilling@hotmail.com

El Talkhawy Star Water Treatment & Boiler

10th of Ramadan, Sharkeya

+2015 354 477

www.eltalkhawygroup.com

Eng.Ashraf El Talkhawy

Owner

info@eltalkhawygroup.com

118

Engineering Contracting & Mechanic Constr.

Dokki, Giza

+202 3760 2034

www.trydon.com.eg

Mr.Ossama Abdallah

General Manager

osamaa@osman.org;trydon@trydon.com.eg

Mrs.Nahed Hasanein

Office Manager

trydon@trydon.com.eg

Engineering Modern Operations

Nasr City, Cairo

+202 2261 2118

www.emocoegypt.com

Eng.Ahmed Mostafa

Office Manager

emoco@emocoegypt.com

Eurodrip Egypt S.A.E

Sadat City, Menoufeya

+2048 260 1202

http://www.eurodrip.gr/Default.aspx

Eng.Maged Morcos

General Manager

eurodrip@link.net

Fine Peak

Nasr City, Cairo

+202 2270 2315

http://www.finepeak.com/contacts.html

Eng.Mohamed Abdullah Abdelrahman

General Manager

chairman@finepeak.com;info@finepeak.com

Future Water Treatment

Kafr Abdou, Alexandria

+203 542 5699

Eng.Islam Mohamed Abo Salama

Owner

future_watertreatment@yahoo.com

GEAK Gemka Engineering & Contracting

Helwan, Cairo

+202 2550 0870

www.gemkagroup.com

Eng.Gamal Abd El-Nasr

Owner

gew@engineer.com

Grl. Co. Land Reclamation and Reconstruction

Dar El Salam, Cairo

+202 2320 3430

http://www.gclr.com.eg/EN/Contact/default.asp

Eng.Mokhtar Morgan

Chairman

info@gclr.com.eg

General Electric Company

Heliopolis, Cairo

+202 2414 2204

Dr.Mohamed Heikal

General Manager

mheikal2000@hotmail.com

119

General for Engineering & Contracting

Nasr City, Cairo

+202 2287 4971

Dr.Mofeed Hazmy

Owner

mofeed_f@yahoo.com

Hassan Allam & Sons

Heliopolis, Cairo

+202 2266 6917

http://www.allamsons.com/contact.htm

Eng.Ahmed Kafory

Head of Business Development

ahmedkafouri@allamsons.com

Hassan Allam Nasr

Abbasya, Cairo

+202 2685 8063

http://www.ngcc-allam.com.eg/

Eng.Abdel Ghany El Baz

Head of Projects Sector

Mr.Montaser Zahran

Head of Project Sector Eng

sfcegypt@yahoo.com

Hawary Investment & Development

Haram, Giza

+202 3779 5831

www.hawwarydrill.com

Eng.Mohmed El-Hawary

Owner

eg.hidco@yahoo.com

Horse Engineering Works Alex (AMA)

Mohandessin, Giza

+202 3762 2170

Eng.Mohamed Raffat

Technical Engineer

info@horsealex.net

Hydrogeen Land Scape & Irrigation Networks

Heliopolis, Cairo

+202 2267 6166

www.hydrogrp.com

Eng.Fakhry Younan

Owner

fyounan@hydrogrp.com

ING Kreis

Nasr City, Cairo

+202 2262 5996

Eng.Mahmoud Salah

Project Manager

ingkreis@yahoo.com

Inter Group

Dokki, Cairo

+202 3749 7891

Eng.Shehab Ryad

Construction Manager

shiried@hotmail.com

Int'l Agricultural Trade & Development

Haram, Giza

+202 3382 0088

Eng.Mahmoud Wagieh

Sales Manager

itc.elharam@gmail.com

Int'l Contracting & Trading

Heliopolis, Cairo

+202 2290 8856

Eng.Wael Abo El Wafaa

Financial Manager

waelaboalwafa@yahoomail.com

120

Iten for Electrostatic Water & Soil Conditioning

Obour, Cairo

+202 4610 1050

www.iteneg.com

Eng.Mona Abo El Magd

Sales Manager

info@iteneg.com

Modern Tech Water & Sewage Treatment

Agouza, Giza

+202 3303 4501

www.motwaset.com

Mr.Sherif

Accountant

maher@motwaset.com

Moukhtar Ibrahim - SEC

Mohandessin, Giza

+202 33471529

http://www.moukhtar.com/

Eng.Shehata abu Senna

Head of Project Sector

mktr1000@moukhtar.com

Newtco Water Treatment

Kafr el Sheikh, Kafr el Sheikh

+2047 251 2824

Eng.Ehab Shalaby

General Manager

ihab2sh@yahoo.com

Noor Trading & Contracting

Nasr City, Cairo

+202 2261 0890

www.elnoor.com.eg

Eng.Abd El Lateef Abd El Hameed

Technical Office Engineer

a.latef@elnoor.com.eg

Orascom Construction Industries

Shubra, Cairo

+202 2461 1111

http://www.orascomci.com/index.php?id=contact

Eng.Hussein Marei

General Counsel

Hussein.Marei@orascomci.com

Mr.Sherif Sharobeem

Deputy Manager of Business Development

sherif.sharobeem@orascomci.com

Orasqualia Orascom Construction Industries

New Cairo, Cairo

www.orascomci.com

Eng.Khaled El Degwy

Concession Director

khaled.eldegwy@orascomci.com

+202 2461 1036

Projects Dvpt Agriculture & Land Reclamation

Maadi, Cairo

+202 2525 6692

www.prodecegypt.com

Mr.Ramy Mohamed

Accountant

ronney2010@yahoo.com

Pure Tech For Water Treatment Technology

Heliopolis, Cairo

+202 2266 8291

Eng.Ali Hassan Hassouna

CEO

alihassouna@yahoo.com

121

Ridgewood

Heliopolis, Cairo

+202 2268 0026

www.ridgewoodegypt.com

Eng.Zaki Y.Girgis

Chairman

zgirges@ridgewoodegypt.com

Saad Hanna Sons Trade & Contracting

Heliopolis, Cairo

+202 2633 5109

www.shsco.net

Eng.Amir Aniees

Commercial Director

sales.f@shsco.net

SAC for Industrial System S.A.E

Down Town, Cairo

+202 2588 1082

www.sac-systems.net

Eng.Wael Samy Amin

Technical Director

sales@sac-systems.net

Samcrete

Haram, Giza

+202 3384 8484

http://www.samcrete.com/

Eng.Yasser Zohny

Study Sector Head

yzohny@samcrete.com

Techno Land

Haram, Cairo

+202 3586 5962

Mr.Wagieh Fawzy

General Manager

technoland@link.net

Universal Agencies

Mohandessin, Giza

+202 3761 6230

Eng.Hany Said

Accountant

univag1@link.net

Veolia Water

Maadi, Cairo

+202 2378 6532

www.veoliawaterst.com

Eng.Hussain Samy

Commercial Director

hussain.samy@veoliawater.com

Wataneya Modern Irrigation System

Wadi El Natroun, Beheira

+2045 3550 530

Eng.Khaled Morsy

Owner

khaledmorsy4@yahoo.com

Water Services

Manial, Cairo

+202 2362 4253

www.idandwt.com

Ms.Youmna Hossam

Management Assistant

youmna@idandwt.com

Water Works Technology & Contractors

Haram, Giza

+202 3742 9945

Mr.Ahmed Sobhy

Financial Manager Deputy

a.sobhy@watcoegypt.com

Wazzan Engineering & Trading

Hadayek el Kobba, Cairo

+202 2453 4502

Ms.Gihan Philip

Office Manager

wazzan@wazzan.wetco.com

122

11.9 Manufacturers of Equipment

Al Hashemiah Int'l Co.

Mansoura, Dakhlia

www.al-hashemiah.com

Eng.Abd Alhalim Abd Alkader

Managing Director

hcc@al-hashemiah.com

+2050 223 3618

AOI - Arab Organization for Industrialization- Aircraft Factory

Helwan, Cairo

http://www.aoi.com.eg/aoiarab/aoi/aircraft_web/index.html

Major Eng.Ali Abdel Ghany Baheeg

Chairman

acfaoi@link.net

+202 2556 0114

Ms.Abeer Kamel Abdel Rahman

Manager of Research Divison - Design Sector

AbeirKamel2000@yahoo.com

+202 2548 0130

Arab Contractors , Workshop

Shubra, Cairo

www.arabcont.com

Mr.Mohamed Allam Mohamed

Vice President for Shubra Mechanical Workshop

acsshobra@hotmail.com

+202 4475 8025

Future Pipe Industries (S.A.E.)

MaaDI, Cairo

http://www.futurepipe.com

Eng.Saad Elkhadem

Managing Director

s.elkhadem@futurepipe.com

+202 25285880

Foundation Agriculture Technology

Sadat City, Menoufeya

http://tag2day.com/default/index.php

Eng.Yasser Taha

Owner

yaser652003@yahoo.com

+2011 2711 020

Grundfos Egypt

Sheraton, Cairo

www.grundfos.com.eg

Mr.Ehab Eshak

Dty. General Manager

eeshak@grundfos.com

+202 2696 5676

Hyma Plastic

Nasr City, Cairo

www.hyma-plastic.com

Eng.Samy Fahmy

samy-fahmy@hyma-plastic.com

+202 2401 3949

Waterman Industries of Egypt (WIE)

Giza, Cairo

www.waterman-industries.com

Eng.Mohamed Ashmawy

Executive Manager

sales@waterman-industries.com

+202 3386 6163

123

11.10 Agricultural producers and large farms

Al Ahram Beverages Company -Heineken

El Obour City, Cairo

+202 4614 1206

www.alahrambeverages.com

Mr.Habib George

Agriculture Manager

hgeorge@alahrambeverages.com

Mr.Henk van Klompenburg

Supply Chain Director

hvanklompenburg@alahrambeverages.com

AL-HAMZA GROUP OF COMPANIES

Mohandesseen, Giza

+202 3761 1730

http://www.alhamzagroup.net/

Mr.Magdy Hamza

Managing Director

magdy.hamza@hamzagroup.net

BELCO

Zamalek, Cairo

+202 2735 7213

http://www.belco.com.eg/

Mr.Mohsen El Beltagy

General Manager

mohsen.elbeltagy@belcofarms.com

Mr.Mohamed Gad

QA , R&D Manager

mohamed.gad@belco.com

BioEgypt

Sadat City, Menoufeya

+2048 260 1521

http://www.bio-egypt.com/eng_docs/front_eng.asp

Dr.Mahmoud Abbas Zaki

Chairman

mahmoud.abbas.zaki@gmail.com

Chamber of Food Industries - CFI

Cairo, Cairo

+202 2574 8627

http://www.egycfi.net/newFCIEN/

Mr.Yasser Mansour

Technical Officer

yasser@egycfi.de

CI-Agri Pick Fresh

Manshiet Elbakrey, Cairo

+2012 316 5425

http://www.ci-agri.com/

MsShahira Fouad

shahira@ci-agri.com

Dar Elgouda for Development & Projects

Fayoum, Fayoum

+2084 633 8383

Mr.Mohamed Gouda Elsayed

Chairman

mgouda1956@yahoo.com

Egyptian German Company for Agricultural Production

Sharkia, Sharkia

+2055 914 4006

http://www.egygerman.com/main.htm

Mr.Aly Muhamed El Rafie Toba

Planning Manager

info@egygerman.com

124

Farm Frites - Egypt

10th of Ramadan City, Cairo

+2015 411 431

www.farmfrites.com

Mr.Walid El Hennawy

Managing Director

Whennawy@farmfrites.com.eg

Fish Basket - Multi Trade Group

Kafr ElSheikh, Kafr ElSheikh

+202 2690 4263

Eng.Mostafa Allam

Engineering Department Director

mostafa.allam@multitradegrp.com

Fish Farming Training and Research Centre

Kafr el Sheikh, Kafr el Sheikh

+2047 913 5636

Eng.Ismail Radwan

Director

somaa_97@hotmail.com

Fresh Fruit Farms

Dokki, Giza

+202 3761 9995

Mr.Sherif El Naggary

Managing Director

ffruit@infinity.com.eg

MABA Potato farms & Agricultural Consultants

6th Of October, 6th Of October

+202 3835 5544

http://www.maba-eg.com/product_potatos.html

Mr.Mokhtar Abou Basha

Chairman

mokhtar@maba-eg.com

Makro Egypt Noubareya farms

Maadi, Cairo

+202 2768 8240

www.makro.com.eg

Mr.Stephane Maurin

Purchasing and Merchandising Food Director

stephane.maurin@makro.com.eg

New Nile Co

Maadi, Cairo

+203 480 0655

www.newnileco.com

Mr.Tamer Nassar

Managing Director

tnassar@newnileco.com

Sekem (Isis brand)

El-Horreya,, Cairo

+202 26564140

www.sekem.com

Mr.Helmy Abou Eleish

helmy.abouleish@sekem.com

The Fish Producers and Exporter Association

Fayoum, Fayoum

+2010 5384 215

Mr.Salah Taher

Board member

salahtaher@gmail.com

125

UPEHC

Dokki, Giza

+202 3337 2402

http://www.upehc.org/

Dr.Assam Shaltout

Chairman

mail@upehc.org

Mrs.Afaf El-Saghir

Director, Export Service Dept. & Intl Linkage

afaf_saghir@hotmail.com

126

11.11 Egyptian companies in water equipment business, agents

A.H. Moderna Industrial & Export Modern Irrigation System & Agricultural

Haram, Cairo

www.freewebs.com/modernaegypt

Eng.Ehab Karam

General Manager

ash_eha@intouch.com

+202 3586 9758

ACG Egypt Air Compressors Group

10th of Ramadan, Sharkeya

www.acgegypt.web.com

Akmal Taha

Owner

acgegypt@yahoo.com

+2015 361 834

Advanced Water Treatment

Nasr City, Cairo

+202 2402 0395

Mr.Said Mohamed

Sales Manager

awt@tedata.net.eg

+202 2402 0395

Agrico Trade & Import

Haram, Cairo

+202 3583 3940

Eng.Magdy Ramzy Souwiha

President

agrico_co@yahoo.com

+202 3583 3940

Ahmed Daoud & Co. Engineering & Trade Agencies

Down Town, Cairo

http://www.ahmeddaoud.com/index2.html http://www.nijhuis.com/

Eng.Mohamed Ahmed Daoud

Chairman

mohameddaoud@ahmeddaoud.com

+202 2392 1550

Mr.Adel Ibrahim Elias

Managing Director

adelelias@ahmeddaoud.com

+202 2392 1550

Al Farid Pump Co.

Boulak, Cairo

http://www.al-farid.com/

Mr.Ahmed Fathi Ahmed

Head of Pump Department

ahmed.fathi@al-farid.com

+202 2205 6267

Mr.Mohamed Soliman Gowailly

Pumps Dept Manager

m-gowaily@sonfarid.com

+202 2575 1544

Al Raed Jet Masters

El Haram, Giza

http://www.alraed.com.eg/

Eng.Hazem Shawky

Board Member, Commercial Manager

h.shawky@alraed.com.eg

+202 3976 7005

127

Alfa Beta

Nasr City, Cairo

www.alphabetagroup.us

Mr.Shady Mohamed

Teamleader

info@alfabetagroup.us

+202 2275 8514

Alfa Plus

Nasr City, Cairo

Ms.Aya Ahmed

Office Manager

alfaplus_com@yahoo.com

+202 2671 7530

Allweiler-Farid Pumps

Cairo, Cairo

10th Ramadan City

http://www.allweilerfarid.com/

Eng.Haithem Saber

Sales Manager

haithem@allweiler.com

+2015 360 425

Mr.Samer El Beshouty - MBA

Marketing Manager

samer@allweilerfarid.com

+202 2439 1817

Ament, Emad El Din Taymour & Co.

Dokki, Giza

www.ament-egypt.com

Eng.Ahmed Tawfik

Vice Chairman - Environment, Water & Wastewater Treatment Projects

ahmed.tawfik@ament-egypt.com

Eng.Ayman Yacout

Marketing Director

ayman.yacout@ament-egypt.com

+202 3760 2904

Anwar Keddis Babawy Sons

Down Town, Cairo

Eng.Wael Anwar Keddis

Owner

anwarkeddis@yahoo.com

+202 2590 1981

Aqua Cairo Water Treatment Tech

Shorouk City, Cairo

Eng.Ammar Ismail

General Manager

aqua_cairo@yahoo.com

+202 2687 0811

Aqua Fine Water Treatment Systems

Abbasseya, Cairo

Eng.Hamed ElDesouky

General Manager

aquafine@gmail.com

+202 2486 3594

Aqua Nile

Dokki, Giza

http://www.aquanileg.com/

Eng.Refaat Abu Elela

Owner & Chairman

Refaat.abuelela@aquanileg.com

+202 3762 5617

128

Aqua Sana for Water Treatment Technology

Heliopolis, Cairo

Mr.Mohamed Metwally

Purchasing Manager

aquasana@intouch.com

+202 2290 3896

Aqua Trust For Water Treatment

Nasr City, Cairo

http://www.aquatrust.netfirms.com/

Eng.Faiza Abu Zeid

General Manager

aquatrust@yahoo.com

+202 2270 2341

Arab Contractors Mechanical & Electrical

Engineering

Heliopolis, Cairo

www.arabcoeg.com

Eng.Atef Hosny Tadros

Managing Director

at.tadros@arabcoeg.com

+202 2415 5388

Arab Water Treatment & Bottling, Aqua Tap

Heliopolis, Cairo

www.aquatap.com

Mr.Helmy

Technical and Adminstative Manager

aquatap@link.com.eg

+202 2414 4004

Arab Trade

Mohandessin, Cairo

www.waterarab.com

Eng.Moaemen Kamel

Owner

gm@waterarab.com

+202 3304 8870

Arabia Dripping Irrigation Technology

Haram, Giza

www.adritec.com

Eng.Mohamed Zakaria

Owner

adriegy@yahoo.com

+202 3387 9311

Arabian Solar Energy & Technology Co (ASET)

Cairo, Cairo

www.asetegypt.com

Eng.Ahmed Shalabi

Owner

akram.shalabi@asetegypt.com

+202 2392 9744

Aydon Consultants Ltd

Heliopolis, Cairo

www.aydon-consultants.com

MrHaitham Diab

CEO

Hd@Aydonegypt.com

+202 2291 2972

Baramos Engineering & Trading

Nasr City, Cairo

http://www.homburg-holland.com/

Eng.Edward Shawky

Owner

baramostrading@yahoo.com

+202-2275 4871

Baron Trading Co.

Garden City, Cairo

http://www.landustrie.nl/

www.aerzen.nl

Mr.Youssef Said Soliman Director

develop@internetegypt.com

+202 2792 0100

129

CEG Commercial Engineering Group Ltd.

Nasr City, Cairo

+202 2272 9769

Eng.Ayman EL-Banna

Sales Manager

ayman.elbanna@ceg-egypt.com

+202 2272 9769

Chema-Star for trading & Distribution

El Sheikh Zayed, 6th Of October

www.chemastar.com

Dr.Ali Abu-Hussien

Director

info@chemastar.com

+202 3850 2820

Chemix Scientific & Industrial Services

Amriya, Alexandria

www.chemix.com.eg

Eng.Osama Samir

Owner's Son

chemix@chemix.com.eg

+203 484 7802

Consukorra for Trade Agencies & Technical Consultation

Down Town, Cairo

www.consukorra.com

Eng.Mohamed Ayman Korra

President

CSK@consukorra.com

+202.2593 0001

Eng.Adel Lateef

Sector Executive Manager

csk@consukorra.com

+202 2591 0903

Delta Egypt Trade & Contractings

El Qalaa, Cairo

http://www.delta-egypt.com/

Eng.Mohamed Abd El Moaty

CEO

info@delta.egypt.com

+202 25072980

DIG Development International Group Ltd

Cairo, Cairo

www.dig-world.com

www.vanleeuwen.nl

www.ameron-fpg.nl

Mr.Tarek Hegazy

Managing Director

d.i.g@ie-eg.com

+202 2403 9396

EEA Egyptian Engineering Agencies

Down Town, Cairo

www.dp-pumps.com

www.eea-egypt.net

Eng.Ekrami El Khamry MBA

Pumps and Boilers Div Manager

ekrami@eea-egypt.com;eea@eea-egypt.com

+202 2591 3277

Eng.Medhat Hamed

Head of Pump Systems

m.saad@eea-egypt.net

+202 2591 6282

130

EEIS Engineering Establishment For Industrial Services

Maadi, Cairo

Eng.Yasser Awad

General Manager

iesco2008@yahoo.com

+202 2702 8578

EETCO Egyptian Engineering & Trading-Mohamed El Deghidi & Co.

Down Town, Cairo

Eng.Osama Tawfeek

Sales Manager

eetco@link.net

+202 25757636

EGY-Holland Import & Export

Heliopolis, Cairo

Mr.Saleh Abul Saud

Managing Director

info@egyco-egypt.com

+202.2294 9160

Egyptian Arab Pumps Co. Al Farid Pumps (member Ahmed Daoud Group )

El Sahel, Cairo

http://www.al-farid.com/home.aspx

Eng.Mohamed El-Rokh

Sales Director

mohamed.elrokh@al-farid.com

+202 2205 6267

Egyptian Engineering Co.

Manial, Cairo

http://www.i.adelgroup.com/cu.htm

Eng.Tarek Ibrahim

General Manager

info@i.adelgroup.com

+202 2362 0285

Egyptian Engineering Services

Mohandessin, Giza

Eng.Ahmed Gad

Owner

osetco@gmail.com

+202 3749 2960

Egyptian for Agencies & Industry

Down Town, Cairo

Ms.Ahlam Yousry

Office Manager

ch.ghali@link.net

+202 2592 1199

Egyptian Supplies & Trade Co.

Nasr City, Cairo

http://www.egstco.net/

Eng.Hanna El Maqdes

General Manager

hanna@egstco.net

+202 2274 2437

Egyptian Trading Enterprise

Nasr City, Cairo

Ms.Eman

Office Manager

magdiyoussef@gmail.com

+202 2417 7494

El Amana Co. Chlorination & Dosing Systems

Mohandessin, Giza

http://www.elamanaco.com/

Eng.Ahmed Soliman Hamza

Head of Technical Dept

info@elamanco.com

+202 3304 1762

131

El Farid for Manufacturing & Marketing Engineering Equipment;

Shubra, Cairo

Eng.Mohamed Mostafa El Rookh

Sales Manager

info@al.farid.com

+202 2205 6269

Ensol , Engineering Solutions Group

Maadi, Cairo

www.ensol.eg.com

Eng.Soliman Aly Emara

Chairman

ensol-ensol@yahoo.com

+202 2526 9880

Etco Trading, Engineering & Commercial Agencies

Daher, Cairo

Eng.Mohamed Fathy

Sales Manager

egyptetco@yahoo.com

+202 2590 0915

Eximco for Int'l Trading

Mohandessin, Giza

Eng.Nader Mohamed Youssef

Executive Manager

eximco_group@yahoo.com

+202 3338 3570

Fahim Ragab Sons Pumps Industry

Shoubra El Khaymah,, Cairo

www.fahimragabsons.com

Eng.Assem Fahim Ragab

Vice Chairman

info@fahimragab.com

+202 4444 1460

Farouk Kamel Boulos

- Aerzen

- Akerboom Marine

- Asselberg Nachenius

- Hubert Stavoren

- ITS

- Jongia

- Kemper en van Twist

- Polva

- Romacon

- Tricom

Roushdy, Alexandria

Mr.Farouk Kamel Boulos

Chairman

faroukk@link.net

+203 543 8779

Fouad Mahmoud Younes & Associates Consulting

Zamalek, Cairo

Mr.Fouad Younes

Managing Director

younesco@soficom.com.eg

+202 2736 6097

132

Globe Well water Treatment & environmental Technology

Nasr City, Cairo

www.globewellegypt.com

Mr.Sherif Al-Madani

General Manager

Sales@globewellegypt.com

Mr.Ossama Salah ElDin

Deputy Chairman

osama@wateregypt.com

+202 24051290

Golden Trade

Nasr City, Cairo

www.goldentradeco.com

Ms.Sheren Gad

Sales Manager

info@goldentradeco.com

+202 2272 4979

Green for Modern Agriculture

6th October, 6th Of October City

Eng.Abd El Rahman Abd El Tawab

Sales Manager

green_scape@yahoo.com

+202 3836 9320

Handaseya Water Services

6th October, 6th Of October City

Eng.Ahmed Abd El-Gaeed

Owner

raed.waterstone@hotmail.com

+202 3836 1379

Hayat Manufacturing & Development

Ramleh, Alexandria

www.mansourgroup.com

Ms.Nadira Anwar

Head of Follow up Dept.

Nevein.Elkhawaga@mansourgroup.com

+203 505 1600

Houseman Egypt For Water Treatment

Maadi, Cairo

http://housemanegypt.com/site/products.php

Mr.Ahmed Amin

General Manager

techadmin@housemanegypt.com;

+202 2359 7233

Hydrotech Engineering & Technical Services

Heliopolis, Cairo

http://www.hydrotech-egypt.com/

Eng.Ahmed Mostafa

Sales Representative

info@hydrotech-egypt.com

+202 2268 6200

Hydrotek For Trade & Supplies

Heliopolis, Cairo

www.hydrotekegypt.net

Ms.Nermeen

Executive Secretary

info@hydrotekegypt.net

+202 2268 6250

Hy-Tech Aqua Design

Nasr City, Cairo

www.hytechaquade.com

Ms.Mena

Executive Secretary

hy_tech@link.net

+202 2273 2714

133

Image T.R.V Group

Heliopolis, Cairo

www.imagetrvgroup.com

Eng.Yasser El-Ady

Owner

imagegro@intouch.com

+202 2620 1258

Ingersoll Dresser Pump Services

Heliopolis, Cairo

www.flowserve.com

Ms.Hagar

Executive Secretary

m.hosny@flowserve.com

+202 2291 9238

Intech International Environmental Technologies Co.

Heliopolis, Cairo

Eng.Hazem Kamal

Chairman

intech@gega.net

+202 2418 3813

Integral Engineering & Trade

Nasr City, Cairo

Mr.Yousry Moussa

General Manager

integral@link.net

+202 2270 9106

Int’l Desalination & Water Treatment L.L.C.

Nasr City, Cairo

http://www.idandwt.com/Home.html

Omar El Maraghy

Managing Director

oem@environ-egypt.com

+2012 174 4183

Int'l Co. For Contracting & Water Treatment

Haram, Giza

www.icwatert.com

Ms.Shaimaa Mohamed

Office Manager

icwatert@icwatert.com

+202 3383 3795

Int'l Consultants for Agency & Trade

Dokki, Cairo

www.icat.com.eg

Ms.Noha Ameen

Executive Secretary

icat@icat.com.eg

+202 3749 5533

ITI Water - Int'l Trade & Investment & Water Treatment

Nasr City, Cairo

www.itiwater.com

Eng.Fawzi Mostafa

Owner

fawzi@itiwater.com

+202 2262 5659

ITS Integrated Technical Services Group

Dokki, Giza

http://www.itsgroup-co.com/products.html

Mrs.Noha Essam

Customer Service Dept.

info@itsgroup-co.com

+202 3337 8374

IWTE Int'l for Water Technology & Environment

6th October, 6th Of October City

www.aqualifechimie.com

Ms.Rabaa Basiouny

Office Manager

info@aqualifechimie.com

+202 3832 3787

134

Kheir Group, Ezzat Kheir & co.

Nasr City, Cairo

www.kheirgroup.com

Eng.Hatem Kheir

General Manager

kheir@link.net

+202 2405 0618

Labbad for Marine Equipment & Supplies

Smouha, Alexandria

www.ellabbad.com

Mrs.Zeina Hamza

Office Manager

ellabbad@ellabbad.com

+203 425 1820

M.E.I.T.CO. Middle East Int’l Trading Co.

Cairo, Cairo

http://www.mastenbroek.com/

http://en.shakaintco.com/herder-en.html

Mr.Ali Fikry Mohamed

info@mastenbroek.com

sales@herder.nl

+202 2575 8851

Masria For Electrical & Mechanical Workings

6th October, 6th Of October City

www.ewmcairo.com

Eng.Mahmoud Saad

Sales Engineer

mahmoud.saad@ewmcairo.com

+202 2405 4990

METITO Water Treatment SAE

Haram, Giza

www.metito.com

Eng.Alaa Gobba

Business Devpt Manager

alaa.gobba@metito.com.eg

Mr.Yasser Salman

Senior Executive Plant Sales Engineer

yasser.salman@metito.com

+202 3536 8278

MidWater - Middle East Water & Wastewater Technology

Cairo, Cairo

www.midwatertech.com

Eng.Samir Hanafy

Sales & Proposals Mgr

samir.hanafy@midwatertech.com

+202 2517 1566

Mymsa Lab equipment

Maadi, Cairo

http://www.mymsa-eg.com/PL/StaticPages/Home.aspx

Ms.Hossna Said

Office Manager

mymsa@mymsa-com.eg

+202 25261888

Naqaa For Water Treatment Systems

Damanhour, Beheira

Eng.Khaled Hendawy

Owner

khaled_elfar@yahoo.com

+2016 6264 433

Nesco National engineering Services

New Maadi, Cairo

http://www.nesco-egypt.com

Eng.Mohamed Hesham

Marketing Manager

marketing@nesco-egypt.com

+202 2704 8740

135

Nijhuis Water Technology Egypt – ltd

Giza, Giza

+202 3336 7235

www.nijhuis-water.nl

Mrs.Naglaa Haidar

General Manager

nijhuis_egypt@link.net

+202 3336 7235

Nozzle Water Treatment

Heliopolis, Cairo

http://www.facebook.com/pages/Nozzle-Water-Treatment-Co/191715670876340?sk=photos#!/pages/Nozzle-Water-Treatment-Co/191715670876340?sk=info

Mr.Abdallah Ahmed Maher

Chemical Engineer

nozzletreatment@hotmail.com

+202 2241 3225

Pacific Water Technologies

Mokattam, Cairo

Eng.Ahmed Sharawy

ahshaarawy@pacificwater.net

+2010 1516 628

Plant Systems Development Cooperation

Nasr City, Cairo

www.dacom.com

Mr.A. Hakiem El Wagieh

Managing Director

hakiem1@link.net

+202 2267 9260

Pure-Pro Water Corp - Sprankelen Group

Sharm El Sheikh,, South Sinai

http://www.sprankelen-group.com/

Mr.Martin van Voorthuizen

martin@sprankelen-group.com

+2011 0898 089

Red Sea Pipes Industry & Its Fitting

6th October, 6th Of October City

Eng.Essam Abd El Raheem

Sales Manager

assem_mossalem@yahoo.com

+2010 1753 341

SAW For Trade

Dokki, Cairo

Eng.Ahmed Amin

General Manager

saw@soficom.com.eg

+202 3760 4995

Scientific International Co.

El Haram, Giza

http://www.lifecheme.com/

Mr.Maged

Chairman

maged@lifecheme.com

+202 3771 5862

SCIS Scientific Center for Industrial Services

Ramleh, Alexandria

www.scisegypt.com

Ms.Mai Magdy

Office Manager

mai@scisegypt.com

+203 5853 934

SFCegypt

Nasr City, Cairo

Mr.Montaser Zahran

sfcegypt@yahoo.com

+202 2418 5541

136

Shamaa For Contracts & Water Treatment

Saray El Koba, Cairo

Eng.Alaa ElDin Shafeeq

Projects Manager

shamaa33@hotmail.com

+202 2452 4099

Shark Engineering & Agencies

Down Town, Cairo

www.elshark.net

Eng.Ashraf Mansour

Sales Hall Manager

info@elshark.net

+202 2589 1736

Sons of Farid Hassanen & Co.

Boulak, Cairo

www.sonfarid.com

Eng.Khaled Marei

Sales Manager

sonfarid@sanfarid.com

+202 2575 1544

Systems & Technology

Dokki, Cairo

www.sat-eng.com

Eng.Mohamed El Sharkawy

General Manager

sales@sat-eng.com

+202 3335 3664

TAM For Desalination (Tam company for water desalination)

Zamalek , Cairo

http://www.tamoilfield.com/contact.html

Ms.Randa Mohamed

Office Manager

mahmoud.shaaban@tam.es.com

+202 2736 4529

Target Water Treatment Specialists

Smouha, Alexandria

www.targetwater.com

Eng.Hossam Mosaed

Sales Representative

info@targetwater.com

+203 4249 688

Techno Install

Nasr City, Cairo

+202 2261 6347

Eng.Hany Kamal

General Manager

technoinstall@yahoo.com

+202 2261 6347

TEG Tiba Engineering

Nasr City, Cairo

www.tibaeng.com

Eng.Mostafa Khedr

Sales manager

info@tibaeng.com

+202 2270 7067

World Engineering Trading

Nasr City, Cairo

Eng.Mohamed El Ogeil

Executive Manager

wetcoegypt@hotmail.com;

+202 2402 0251

WWWS Egypt

Nasr City, Cairo

www.wwbt.net

Eng.Mostafa Fadlalla

General Manager

info@wwbt.net

+202 2405 0973

137

ZYMAG Co

Azarita, Alexandria

http://www.norit-ac.com/english/

Dr.Mohamed Abdel Gelil

Chairman

zymag@link.net

+203 426 0240

11.12 Home appliances

Aqua Chiara Egypt for Water & Environmental Treatment Technology

Nasr City, Cairo

www.aquachiaraegypt.com

Mr.Mohamed Nagah

IT Manager

mohamed@aquachiara.com

+202 2260 7413

Aqua Loui

Benha, Qaliubeya

+2013 322 1971

Eng.Sherif Mabrouk

Sales Manager

aqua.loui@yahoo.com

+2013 322 1971

Aqua Pure Alfa Trading & Agencies

Tanta,, Gharbeya

Ms.Mai Khalil

Office Manager

botamore@yahoo.com

+2040 9115 351

Future Int'l Mohamed Tohamy

Heliopolis, Cairo

http://www.purewater-egypt.com

Eng.Mohamed Abd El Salam

Sales Manager

info@purewater-egypt.com

+202 2415 8667

Gabtic Engineering & Supplies

Garden City, Cairo

www.gabtic.com

Ms.Nada Abd El Reheem

Office Manager

info@gabtic.com

+202 2794 8270

Nile Int'l (Entenile)

Heliopolis, Cairo

+202 2620 5230http://entenile.com/

Eng.Ahmed Hossam

Technical Engineer

info@entenile.com

+202 2620 5230

Nile Water Systems

El gouna, Red Sea

http://www.nile-water.com/

Mr.Niels Hojfeldt

Managing Director

info@nile-water.com

+2065 358 0280

138

Soteer Group

Garden City, Cairo

http://www.soteer-group.com

Ms.Kresteen Wagieh

CEO Secretary

soteergroupfortrading@yahoo.com

+202 26637400

Water City Technology

Haram, Cairo

www.watercity-eg.com

Eng.Saber Tawfik

Owner

info@watercity-eg.com

+202 3570 2477

Watermust Co

Mustafa Kamel Side, Alexandria

www.watermust.com

Eng.Mustafa El saied

Technical Manager

watermust@gmail.com

+203 5228 552