1

Dr. Alaa Ezz

www.ceeba.org

View from the Private Sector Enhancing Trade & Investment in the Arab

Region in Support of Sustainable Development

Dr. Alaa EzzSecretary General, FEDCOC & CEEBA

2

“Don’t throw a stone in the holy Nile, don’t throw your waste in front of your neighbor’s house, … don’t build your house blocking the sun or the wind from that of your neighbor; for if you did, the gods shall have no mercy, and will abolish your wealth and shall not escort you on your final eternal trip”

the book of the dead, 4500 BC

Dr. Alaa Ezz

Today, its still the same

the Carrot and the Stick

3

Dr. Alaa Ezz

Today, the Stick is Spearheaded by

Legislative: Law 4/1994

Administrative: EEAA, TDA, capacity building of enforcement bodies

Resources: Grants, loans, human resources

Public-Private-Partnership: NGOs, PVOs

Awareness: Global, regional and national

Dr. Alaa Ezz

and, the Carrot is Spearheaded byCorporate Social Responsibility

Eco-efficiency: waste minimization, reuse, recycling, energy efficiency ..etc.

Trade Barriers: restrictive standards

Green Consumers: local and international

Awareness: at all levels

Lubricants: T.A., grants, soft loans

4

Dr. Alaa Ezz

SMEs

Standards

Financial Institutions

Public Sector

Donors

Legislations

Technology

Taxes and Regulations

WTO/GATT/TRIPS

Regional Ass

FTA’s

Regulations

Larger Enterprises

Business Associations

Governments

Dr. Alaa Ezz

Both Carrot & Stick, have created a funded market in Egypt alone of over $2.9 billion annually in the fields of:

Consultancy (audits, EIAs, ..etc.)

Certification (eco-labeling, ISO14000, vehicles, .etc.)

Mainstream (cleaner technologies, machinery & equipment)

Waste Management (Urban, Industrial & Hazardous)

Local Manufacturing & Assembly Renewable Energies (photo-voltaic, solar and wind)

Coastal Zone & Oil Spill ManagementConservation of Cultural Heritage

5

Dr. Alaa Ezz

Market Segment US$ million

1992

1997

2005 estimate

2007 forecast

Water & Wastewater Treatment

350 685 600 – 800 700 – 800

Waste Recycling (Services/Equipment)

5 9 8 – 10 350 – 370

Industrial Waste Treatment 9 135 100 – 150 200 – 250

Air Pollution Control N/A 141 100 – 150 250 – 270

Water Purification Systems 40 67 60 - 80 160 – 180

Municipal Solid Waste N/A N/A N/A 900-1,000

Renewable Energy (excluding wind farms)

12 28 30 80 – 100

Mobile Source Air Pollution 0 11 20 30

Air & Water Monitoring & Testing

6 18 20 220 –2 30

Environmental Consulting 15 40 50 60

Total Estimated Environmental market Excluding mainstream

technologies and Equipment

430 1,104 990 - 1,310 2,950 – 3,290

Env

ironm

ent M

arke

t Siz

e

Dr. Alaa Ezz

Market Segment Growth Opportunityfor Foreign business

Opportunityfor Local Private Sector

Near Term

Market

Long Term

Market

Water & Wastewater Treatment Medium Best Medium Best Best

Waste Recycling Services & Equipment

Best Best Medium Best Best

Industrial Waste Treatment Best Best Low Medium Best

Air Pollution Control Best Best Low Best Best

Water Purification Systems Medium Best Medium Best Best

Municipal Solid Waste Best Best Low Best Medium

Renewable Energy Best Best Medium Medium Best

Mobile Source Air Pollution Best Medium Low Best Medium

Air & Water Monitoring & Testing

Best Best Low Best Medium

Environmental Consulting Best Best Best Best Best

Mainstream Technologies & Equipment

Best Best Low Best Medium

Mar

ket P

rosp

ects

6

Dr. Alaa Ezz

Yet FundedFinancial Institutions (soft loans)

Development Banks: WB, EIB, JBIC, KfW, USExim, KExim..etc Local Banks: AB, CIB, NBE

Donor Projects (Grants & TA)EU: IMP, SWSP, Netherlands: PSOM, PESP, ORET, Denmark: PSDP, IFU, EKF, PSD, MCPGermany: KfW, GTZ SMEPP, GTZ ET&S, Japan: JICA, NEDO, JCCME Switzerland: SOFI, NAED, ESDF, PEPMENAItaly: SIMEST, CAP, JVFUN: GEF, ECP

BOOT’s, ESCO’s & Self Fundingand naturally Polluter Pays Principle

Dr. Alaa Ezz

The Arab World, the cross-road of trade

located in the Middle of all Trade Routs Free Trade Areas (for manufacturing & Subcontracting)

l COMESA FTA (100% custom exemption, 35% local content)

l Greater Arab FTA “PAFTA”l Bilateral Free Trade Agreements

Large EU Market with NO Customs on Manufactured GoodsEasy Access to Regional MarketsModern Free Zones & Transit Facilities

7

Dr. Alaa Ezz

The Arab world poses an excellent opportunity for foreign Companies to:Increase Exports to the Arab Marketl Large market for technologies, machinery & productsl Lines of credit & Grantsl Modernization Needs

Increase Arab Exports to Third countriesl Added value subcontracted assembly or formulationl To benefit from Free Trade Agreements

Use the Arab world as a Transit Trade Hub for the Regionl Fast and Easy Access to Regional Marketsl Utilize Arab Modern Free Zones & Transit Facilities

Trade, the two way approach

Dr. Alaa Ezz

Arab CountryTechnology, Components, CKD, Inputs, Licenses, Training, QC, ..etc.

Arab CountryAssembly, Formulation, Installation, support, ..etc.

The RegionCOMESA COMESA & & AFRICAAFRICA

PAFTAPAFTA

EU27EU27Royalty

8

Dr. Alaa Ezz

2a. InfrastructureEgypt’s Mega ProjectsNew Infrastructure Projects on BOOT l Water & Wastewaterl Energy (3 under construction, 15 to follow)

l Telecommunication (2 operating, 1 to follow)

l Toll Roads (3 awarded, 4 to follow)

l Ports (2 awarded, 2 to follow)

l Airports (3 awarded, 1 to follow)

Modernization of Existing InfrastructureAnd the SAME in all Arab Countries

Dr. Alaa Ezz

Infrastructure in the Past 10 Years:

ROADS 300% INCREASE

RAILWAYS 150% INCREASE

AIRPORTS 200% INCREASE

METRO 2 NEW LINES (Egypt)900 MILLION PASSENGER / YEAR

9

Dr. Alaa Ezz

Water and Waste WaterEgyptWater & Wastewater projects for 3000 villages (each over 10,000 inhabitants with limited land) and 22 large projects serving over 2 million in main cities. Tunis25 years BOT $100 million waste water plant in Tunis West (TBA)

LebanonBOO Water: Awali ($200 million), Kesrouan ($60 million) - BOO Waste Water: Tripoli ($135 million) Kesrouan ($53 million) Tyre ($60 million) KuwaitBOT Sulaibiya $390 million waste water ProjectQatarIWPP Ras Laffan 750 MW & 40 million gallons of Water

Dr. Alaa Ezz

BOOT power Plants

Algeria2000 MW Program

LebanonExtension of low & medium voltage distribution network ($270 million)

10

Dr. Alaa Ezz

Egypt’s power Plant Projects

Name and Type Capacity(MW)

Announcement Commissioning

Suez Gulf P.PEl-Koreimat Solar/ Gas P.PEl-Tafriea East Steam P.PTotal

Sharm El Sheikh Steam P.PToshka Steam P.PTotal

Safaga Steam P.PZafrana Wind FarmTotal

El-Daba’a Steam P.PTotal

El Nubaria Combined Cycle P.PTotal

Cairo North Combined Cycle P.PTotal

Kafr El-Dawar Gas p.pExtension of Cairo West Steam P.PDelta North Combined Cycle P.PTotal

Extenstion of El-Daba’a Steam P.PAttaqa Pumped Storage P.PTotal

Total Capacity

2X3251X1502X3251450

2X3252X3251300

2X325300650

2X325650

4X3001200

2X300600

3X1002X3252X3001550

4X3252X3251950

9350

1998

1999

2000

2001

2002

2003

2004

2005

2002/20032002/2003April 2003

2003/20042004/2005

2004/20052004/2005

2005/2006

2006/2007

2007/2008

2007/20082008/2009

2001/20102010

Dr. Alaa Ezz

Installed Capacity“MW”

Annual Power Generated“ Billion “kWh”

yearlaneriod

Red Sea EastOwinat

TotalAddedduringperiod

CumulativeAdded byend ofperiod

End ofPeriod

TotalAddedduringperiod

Cumulative annual

1997-2002 400 0 400 400 1.4 3.50 3.50

2002-2007 1000 0 1000 1400 4.9 15.75 19.25

2007-2012 2000 0 2000 3400 11.9 42.00 61.25

2012-2017 3000 600 2600 6000 21.0 82.25 143.50

Wind Energy Plan of Egypt

11

Dr. Alaa Ezz

بور سعيد كفر الشيخ العريش

الزقازيق السماعيلية ا

المنصورة

طنطا

القاهـرالسويس ة

االسكندرية مرسى مطروح

السلوم سيدي براني

الجيــزة

الواحات البحرية

الواحات الداخلة الخارجة

أسيوط

المنيا

بنى سويف

الفيوم

سوهاج

دمياط

قنـا

أســوا ن

القصير

الغردقة

سفاجا

رأس غارب

رفـح

شرم الشيخ

سيوة

واحة الفرافرة

قنـا

طنطا اإلسماعيلية

الفيـومالعياط

دمياط

FREEWAY NETWORK>4000 KMLE 22 Billion30 years

Dr. Alaa Ezz

Roads & BridgesLebanon$ 160 million 65 KM road to Damascus - $100 million Beirut Urban Transport Project

Algeria$220 million Suspended Bridge

Egypt$250 million Nile crossing 8 bridges - $280 million 3 roads of a total of 2050 km - $120 million BOOT Tunnel under Suez Canal - $280 million developments for existing 3009 roads.

12

Dr. Alaa Ezz

RAILWAYS

Dr. Alaa Ezz

RailwaysLibya$ 470 million 191 KM (1st phase of 2000 km) Libya Desert Railway linking Tunisian and Egyptian Borders Followed by 1000 KM from Sirte to Sebha

Egypt$75 million Eltebeen railway; $268 million Ismailia Rafah railway; $230 million Elsaloom railway - 2 Subways (Alexandria 1 and Cairo 3) - 3 Bullet Train BOOT projects to link Cairo with industrial cities of Sadat, 6th of October and 10th of Ramadan.

13

Dr. Alaa Ezz

Future Network

Dr. Alaa Ezz

MARITIME TRANSPORT

14

Dr. Alaa EzzBOT Ports

Al-Sukhna Port

East Port Said

Dr. Alaa Ezz

AIRPORTS

15

Dr. Alaa Ezz

Marsa Alam

Al-Alameen

Ongoing BOT projects

Dr. Alaa Ezz

Borg El-Arab

Sharm El-Sheikh

Hurgada

Luxor

Assuit

Aswan

16

Dr. Alaa Ezz

Privatizationof Public Enterprises & Utilities

Strategic InvestorStock Exchange TakeoverPurchasing Minority - Selling Know-HowTechnical RestructuringLeasing of Production CapacityBuy-Back Agreement

Dr. Alaa Ezz

ManufacturingJoint VenturesCo-Manufacturing & LicensingModernization of Key Industries SubcontractingFeeding Industries (automotive, electronics, ..etc.)

Buy-Back and Re-export SchemesTechnology TransferManagement & Vocational TrainingQC, QA and certification

17

Dr. Alaa Ezz

Agriculture & FisheriesInfrastructure (canals, pumping stations, ..etc.)

Land Reclamation (South Valley, Sinai, ..etc.)

Agro-Machinery & EquipmentResearch & DevelopmentAgro-Produce Processing & ExportModernization of Fishing FleetFish FarmsFish Processing & Export

Dr. Alaa Ezz

Free Flow of Information

Networking and alliances

An Arab Charter of Enterprise for Corporate Social responsibility

So what is Missing???

18

Dr. Alaa Ezz

All these world leaders and many many more, evaluated the rest to invest in the best:

ABB; Abbot; Babcock & Wilcox; Bayer; Birla; Boehringer; BMW; Cadbury; Carrier; Daimler Chrysler; Daewoo;

Danieli; DOW Chemicals; Du Pont; Eveready; General Motors; General Motors; Henkel; IBM; Johnson &

Johnson; LG; Microsoft; Moulinex; Nestle; Nissan; Otis; Otsuka; Peugeot; Pfizer; Philips; Proctor & Gambel; Roussel Uclaf; Samsung; Sandoz; Siltal; Sumitomo;

Suzuki; Technocar; Toshiba; Unilever; Westinghouse; Xerox; YKK; ..etc.

They Came to the Arab world, the land of opportunities .

We Invite You toguide your companies on the path of these

pioneers who are reaping the fruit of their early arrival

19

Come to the Arab World, in a tradition that is summarized in the following words of ancient Egyptian wisdom:

“Rig your Boat, travel near and far, look for a wise partner, knock his door, seek his knowledge,welcome him in your home,this is how your people will prosper”

Amenophet, 2,500 B.C.