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Egypt: Airports Development Project


Read more about the project 


The Airport Development Project (ADP) in Egypt was completed by the end of FY 2009. Under this project the government of Egypt received a total of $335 million of IBRD financing (plus an additional financing of $40 million) for the construction of the third terminal at Cairo International Airport (“CAI” with investments of $285 million), the new terminal at Sharm El Sheikh Airport (“SSH”, with investments of $42 million), and consultancy services for both airports at about $8 million.

The outcome of the project’s three components is considered to be highly satisfactory. Component 1, the construction of Terminal Building 3 (“TB3”), has more than doubled the capacity of CAI to 11 million passengers annually. The total built up area is 209,274 m3, including the associated buildings are the power plant, sewage plant, water tank of 18,000 m3 and apron control tower. The terminal is equipped with an advanced IT system, and latest technology in baggage handling system. The project meets the ICAO standards as well as Egyptian seismic codes. Inaugurated on December 18, 2008, the terminal was partially opened for traffic in April 2009 for a ramp up period which ended in July 2009, with all Egypt Air flights and its partners in Star Alliance moved to TB3.

Component 2, the construction of the new terminal building in Sharm El Sheikh Airport which can accommodate 4.5 million passengers per year, is bringing the capacity of SSH airport to a total of 7 million passengers. The first domestic flight landed on April 16, 2007 under a trial period and the official inauguration took place on May 24, 2007 with the full opening to commercial flights on June 11, 2007.

The new terminal TB3 is recognized as a modern and efficient airport infrastructure handling up to 11 million passengers. Component 3 had as objective the strengthening of sector operations and environmental management. In accordance with the project liberalization study, the following measures were taken:

  • International charter flights are permitted to all Egyptian airports,
  • Competition law which provides protection and prevents monopoly was introduced,
  • 40 licenses were awarded for passenger transport and 5 licenses were awarded for cargo transport,
  • Gradual liberalization is ongoing with 25 bilateral agreements signed, and negotiations ongoing for 42 additional agreements, and
  • Pricing policy of airports fees was modified and the Civil Aviation law of 1981 was amended.

In terms of airport management capacity building, the following results were achieved:

  • The Egyptian Holding Company for Airport and Air Navigation and its subsidiaries’ organization charts are improved,
  • Human resources procedures manual and bylaws, as well as the payroll rates of employees are revised, and
  • The average salaries have increased 269% since 2003.

Furthermore, studies on the national strategy of developing air cargo, the national airport master plan, and the environment management review were also completed as planned.

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