Egypt Prepares for Second Phase of Strategic Warehouses Project Worth US$160 Million

Egypt is moving ahead with the second phase of its public-private partnership (PPP) strategic warehouses project, which will include the construction of three food warehouses across three governorates, with a total investment of US$160 million.

The facilities will be built under a Design, Build, Finance, Operate, Maintain, and Transfer (DBFPMT) model over 25 years. The Internal Trade Development Authority, under the Ministry of Supply and International Trade, will serve as the off-taker.

Phase 2 is expected to cover Greater Cairo, Kafr El-Sheikh, and Ismailia. These new warehouses will help store 25 essential food commodities in dry, cold, and frozen conditions, ensuring the supply chain for six months. Atter Hannoura, Director of the PPP Central Unit, Ministry of Finance, stated that the first phase of the project, covering governorates like Suez, Fayoum, and Luxor, is already underway, with three out of four warehouses awarded and financial close achieved.

“These warehouses are currently under construction and are expected to begin operations next year,” Hannoura revealed at the PPP MENA Forum in Dubai. The ministry is also working on a broader pipeline of PPP projects, including six wholesale markets across different governorates, set to be procured under the DBFOMT model for 25 years.

Feasibility studies for these wholesale markets are underway, with a pilot project planned in Ismailia governorate over an area of 100 feddans, although the final investment cost is yet to be determined.

Read More: Egypt's shipping and logistics market hits US$14.6 billion in 2024