The consulting team conducted initial meetings in Egypt from March 18-29, 2004 to begin the water and wastewater feasibility study for private sector participation in Alexandria. They met with USAID officers, WWSPR project staff, and local professionals. In Alexandria, the team met with the Governor and utility leaders and received support for private sector involvement. The team proposed adjustments to the scope of work and a project implementation schedule outlining deliverables and meetings through November 2004 to complete the study within the estimated timeframe.

1. March 27, 2004
To: Mr. Tyler Holt / Mr. Mohamed El Alfy - CTOs USAID Cairo
From: SEGURA/IP3
Re. Contract AFP-I-00-03-00035-00 Task Order # 800
Water & Wastewater Feasibility Study for PSP in Alexandria, Egypt
Deliverable No. 1 - Project Implementation Schedule
SEGURA/IP3 is pleased to submit to USAID Cairo this first project deliverable,
summarizing the initial consulting team activities and proposing a Project
Implementation Schedule, as described below
Project Start-up
The consulting team undertook its initial mission to Egypt in connection with this project
from March 18 to 29, 2004. Expatriate team members present were:
• Jorge F. Segura - Managing Partner
• Guillermo Yepes- Team Leader
• Bernardo Gómez - Financial Analyst
• Terence Driscoll - Utility Expert / Engineer
To begin the project, team members had a meeting with USAID technical officers in
order to review the general framework of mission assistance to the Water & Wastewater
sector, discuss prior and ongoing project work of relevance to this Task Order, and to
benefit from the CTOs perspectives on the critical aspects surrounding its
implementation.
In addition to a prior study obtained before the team's mobilization, an initial set of
documents was requested from the mission. During the course of our visit, such
documents have begun to be received by the team and are currently under review. The
mission also arranged a meeting with the Chief of Party and staff of the USAID funded
WWSPR project, to provide us with an important overview of WW sector reform efforts
currently underway. Present was Dr. Beyaly, Executive Director of the Central Dept. for
Private Sector Projects (CDPSP) of the Ministry of Housing & Urban Communities. This
assistance by the mission is very much appreciated.
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2. The team also held meetings with local professionals with sector knowledge, including of
course the Cairo based local consultants in our team, Mr. Farrouk Hussein (Financial
Analyst) and Dr. Ahmed Amin Hassan (Legal Advisor).
Meetings in Alexandria
The team mobilized to Alexandria and had an extremely positive reception by the
authorities. The meetings held, arranged with the support of our Senior Policy Advisor
Dr. Schaker Helmi, included:
• Meeting with the Governor of Alexandria, who expressed the Governorate of
Alexandria's commitment to undertaking PSP and his total support
• Discussions with Mr. Mohamed Bassiony, Secretary General Governorate of
Alexandria, including their views surrounding PSP perspectives and policy
framework
• A presentation by the team organized by Mr. Bassiony at the Governorate for the
top management of the WW utility companies, AWGA and AGOSD, to introduce
the team, describe the scope of work and solicit their cooperation in the execution
of the study
• Visit to AWGA (Ms. Aida Mahargy, Head of Administration and Financial
Affairs and Mr. Mohammed Gamal, Head of Administration1) to gain a basic
understanding of current situation and initiate data collection
• Visit to AGOSD (Chairman and management team of the utility) to initiate a
dialogue, data collection and form an opinion about the condition of thesanitation
sector in Alexandria.
Adjustments to Scope of Work
As noted earlier, the team had received a copy of the Alexandria Water & Wastewater
PSP Options Study prepared by consultants Nathan and Deloitte in 2002. This study
highlighted three potential PSP options and recommended a concession.
It is too early in the project to venture any comments about this recommendation or to
assess whether or not the conditions are currently appropriate for this type of PSP.
However, in our initial exchange with the Governorate's top management we established
the convenience of providing them with a "policy decision making matrix", a short and
focused document aimed at clarifying some of the key implications of the different PSP
options, in preparation for the "Governorate Policy Statement Paper" (Deliverable No. 2).
Although this initial document is not specifically in the SOW, the team believes it will
enhance the discussions and the definition of the framework and model for WW PSP in
Alexandria.
1
On this opportunity the team could not meet the Chairperson of AWGA, who was on travel at the time of
our visit.
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3. Project Implementation Schedule
In the attached timetable and notes, we present an initial chronogram of project activities.
The dates proposed alter somewhat the original targets for submission of deliverables, as
estimated in our technical proposal. Nevertheless, it is important to note that the overall
completion of this study remains within the estimated period of completion i.e. by
November 30, 2004.
It is also noteworthy that the dates indicated in this timetable refer to the presentation of
deliverables to the USAID mission, in English. We anticipate that there will be some
variation in regard to the submission of final reports to the Secretary General of the
Governorate of Alexandria, in Arabic.
Next Steps
The team has initiated the establishment of a project office in Alexandria and has
prepared the list of data collection to be presented to AWGA and AGOSD in the
immediate future. Our Egyptian team members will be working with their corresponding
expatriate counterparts in obtaining and analyzing the technical, financial and
legal/institutional information (see list attached).
The key objective for SEGURA/IP3 is to satisfy the vision of the Governorate of
Alexandria and USAID Egypt, preparing for an "implementable" PSP transaction, as
explicitly expressed by the authorities.
We look forward to working with USAID/Egypt and the Governorate of Alexandria on
this very important project.
Very truly yours,
Jorge F. Segura
Managing Partner
SEGURA / IP3 Partners LLC
cc: Mark Karns, USAID/W
cc: Tyler Holt – Mohamed El Alfy, USAID/Cairo
cc: Matt Hensley, IP3
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4. Alexandria Water & Wastewater PSP Study
Project Implementation Schedule
Activity Time in weeks
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38
March April May June July August September October November D
TASK 1 (Policy Statement)
Initial visit xx x
Data collection and validation xx xx xx xx xx xx xx xx xx xx xx xx xx xx xx
Considerations for main policy decision making
* Report 1 >> >> >> >> >>
Policy Statement
* Report (2) >> >> >>
* Team visit xx xx
* Workshop (1) >>
TASK 2 (Needs Assessment)
* Report (3) >> >> >> >> >> >> >> >> >> >> >> >> >> >> >>
* Team visit - needs assessment discussion- x xx
TASK 3 (Feasibility Study)
* Feedback from GoE, oficials on reports 1 & 2 >>
* Report (4) >> >> >> >> >> >> >> >> >> >> >> >> >> >> >> >> >>
* Team visit x xx
* Workshop (2) >> >>
TASK 4 (Transaction & Implementation Plan)
* Report (5) >> >> >> >> >> >> >> >> >> >> >> >> >> >>
* Final report (6) >> >> >> >> >> >>
* Presentation and next steps
Religious holidays (Ramadan) -Oct 29 - Dec2 - aprox-
Notes: 1. Weeks start on Sundays, from March 21/04
2. Schedule shows deliverables, workshops and expatriate visits only
3. Draft reports submitted to USAID, Cairo (in English); final reports ( Arabic & English) inmediately follow after receiving comments
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