Partner, Amereller Rechtsanwälte PmbB

Egypt is a key market for international companies active in the infrastructure sector with a plethora of mega-projects, spanning from the construction of new cities to railways, ports and power stations. Navigating the market, however, can be challenging, in particular when dealing with the Egyptian public sector. Infrastructure contracts with the public sector (so-called “administrative contracts”) are subject to a special legal regime. Many of the mega projects are managed by entities of the military that play a key role in the Egyptian economy. Public budgets, furthermore, have been constrained in recent years. This article discusses the relevant legal, economic and political frameworks. The author argues that understanding the specific governance structures and adapting contract structures and dispute resolution mechanisms to local conditions is key to success in Egyptian infrastructure projects.

Egypt is a key market for any international company active in the field of infrastructure: a plethora of mega-projects offer business opportunities that do not exist in mature European markets.2 This includes the construction of the New Administrative Capital east of Cairo and the New El-Alamein at the Egyptian North Coast,3 the privatisation and upgrading of container ports including Port Said, Damietta and Alexandria, and the construction of a 2,000 km high-speed train network spanning the country from north