Date of Submission to Coordination Unit:
14 April, 2015
A. GENERAL INFORMATION
1. Activity Name
Enhancing the Investment Climate in Egypt, through Equal Access and Simplified Environment for
Investment (EASE) and Fostered Investment Policy, Legal and Institutional Framework
2. Requestor Information
Name: Eng. Mohammed Hammam
Title: Assistant to Minister of International Cooperation
Organization and Address: Ministry of International Cooperation, Cairo, Egypt
Telephone: (202) 2391 2815
Email: [email protected]
3. Recipient Entity
Name: Ashraf Abdel Tawwab Salman
Title: Minister of Investment
Organization and Address: Ministry of Investment, Cairo, Egypt
Telephone: + 202 240 55 408
Email: [email protected]
Name: Dr. Hassan Fahmy
Title: Executive Director
Organization and Address: The General Authority for Investment & Free Zones (GAFI), Cairo, Egypt
Telephone: + 2 0122 373 8722
Email: [email protected]
Name: Eng. Ismail Gaber
Title: Chairman
Organization and Address: The Industrial Development Authority (IDA), Cairo, Egypt
Telephone: + 2 0100 685 2840
Email: [email protected]
Name: Tarek Hamza
Title: Executive Director
Organization and Address: ERRADA, Cairo, Egypt
Telephone: + 2 0100 560 0099
Email: '[email protected]'
4. ISA SC Representative
Name: Franck Bousquet
Title: Senior Regional Advisor, MNAVP
Organization and Address: World Bank Group, 1818 H Street NW, Washington D.C., USA
Telephone: 1 202-473-0309
Email: [email protected]
Name: Andreas Schaal
Title: Head of the Sherpa Office
Organization and Address: OECD, 2 rue André Pascal – 75775 Paris Cedex 16
Telephone: +33 1 45 24 93 88
Email: [email protected]
5. Type of Execution (check the applicable box)
√
Type
Country-Execution
√
Joint Country/ISAExecution
Endorsements
Attach written endorsement
from designated ISA
Attach written endorsement
from designated ISA
Justification
The World Bank supervised activities will be
Country-executed. The OECD activities will be
ISA-executed at the request of the Minister of
Investment of Egypt.
The Minister of Investment of Egypt would like
to benefit from technical assistance from the
OECD in “i) supporting the continuing
informed revision of the investment policy and
legal regime, including business-related laws,
ensuring legal coherence and streamlining
institutional coordination, ii) assessing Egypt’s
international investment agreements, and iii)
improving dispute settlement prevention,
settlement and management.” (letter dated 23
March 2015)
ISA-Execution for Country
Attach written endorsement
from designated ISA
6. Geographic Focus
x
Individual country (name of country): Egypt
Regional or multiple countries (list countries): N/A
7. Amount Requested (USD)
Amount Requested for direct Project Activities:
(of which Amount Requested for direct ISAExecuted Project Activities):
Total
$6,484,000
(of which $5,000,000 for WBG Country-Executed Activities)
(of which $1,484,000 for OECD ISA-Executed Project Activities)
Amount Requested for ISA Indirect Costs: 1
$559,400
(of which $459,400 for WBG ISA Indirect Costs)
(of which $100,000 for OECD ISA Indirect Costs)
$ 7,043,400
Total Amount Requested:
8. Expected Project Start, Closing and Final Disbursement Dates
Start Date:
July 1, 2015
Closing Date:
July 1, 2018
End Disbursement Date:
December 1, 2018
Pillar
Primary
9. Pillar(s) to which Activity Responds
Pillar
Primary
(One only)
Secondary
(All that apply)
(One only)
Investing in Sustainable Growth.
Enhancing Economic Governance.
This could include such topics as
This
could
include
areas
such
Secondary
(All that apply)
as
ISA indirect costs are for grant preparation, administration, management (implementation support/supervision) including staff time, travel,
consultant costs, etc.
1
innovation and technology policy,
enhancing the business environment
(including for small and medium-sized
enterprises as well as for local and
foreign
investment
promotion),
competition policy, private sector
development strategies, access to
finance, addressing urban congestion and
energy intensity.
transparency,
anti-corruption
and
accountability policies, asset recovery,
public financial management and
oversight, public sector audit and
evaluation,
integrity,
procurement
reform,
regulatory
quality
and
administrative simplification, investor
and consumer protection, access to
economic
data
and
information,
management of environmental and social
impacts, capacity building for local
government
and
decentralization,
support for the Open Government
Partnership, creation of new and
innovative government agencies related
to new transitional reforms, reform of
public service delivery in the social and
infrastructure sectors, and sound banking
systems.
X
Inclusive Development and Job
Creation. This could include support of
policies for integrating lagging regions,
skills and labor market policies,
increasing
youth
employability,
enhancing
female
labor
force
participation, integrating people with
disabilities, vocational training, pension
reform, improving job conditions and
regulations,
financial
inclusion,
promoting equitable fiscal policies and
social safety net reform.
X
Competitiveness and Integration.
X
This could include such topics as logistics,
behind-the-border
regulatory
convergence,
trade
strategy
and
negotiations, planning and facilitation of
cross-border
infrastructure,
and
promoting and facilitating infrastructure
projects, particularly in the areas of urban
infrastructure,
transport,
trade
facilitation
and
private
sector
development.
X
STRATEGIC CONTEXT
10. Country and Sector Issues
A momentum for investment reforms
Egypt, after having suffered from an uncertain and difficult economic situation, has announced its intention to
embark on a wide number of economic and political reforms as well as in the launch of numerous investment projects
to support the country’s growth and job creation. Restoring a favorable investment climate has been a key priority
of the government over the last months. The announcements follow the significant fall of domestic and foreign direct
investments (FDI) during the period 2010-2014. While FDI grew from less than USD 1 billion a year at the beginning
of the 2000s to USD 11.6 by 2007, it started a declining path after the global financial and economic crisis and the
2011 revolution. After reaching disinvestment levels, FDI inflows have recovered halfway from their 2007 level, i.e.
USD 6 billion in the fiscal year 2013-14. Gross capital formation (a measure of domestic investment) has been equally
affected, shrinking from over 20% of GDP during 2007-2008 to 17.1% after the 2011 revolution and an even lower
14% in 2013.
As noted in the 2014 OECD publication on Business Climate Review of Egypt, Egypt has a national and international
legal investment framework which protects basic investors’ rights. However, contradictions and overlaps are found
in the legislative and regulatory instruments and implementation is lagging behind, with the de jure provisions and
de facto practices not always aligned. Preliminary reforms were conducted with a short-term review of the
Investment Law, but further efforts are needed to formulate a new investment policy to be translated into actionable
legal terms – a unified investment law. A more predictable and transparent environment, efficient institutions,
streamlined procedures, improved communication and a structured dialogue with government institutions and the
private sector, are also elements that should accompany reforms.
A difficult and deteriorating business environment. The business environment in Egypt suffers from multi-layer
administrative compliance burdens, which represent a serious obstacle to doing businesses in Egypt, and
significantly affects small businesses. In the Ease of Doing Business 2015 Report, Egypt ranks 112 out of 189
countries (as a comparison, Morocco ranks 71 and Tunisia 60). In the WEF Competitiveness Index 2014 Egypt ranks
118/148. Complexity and uncertainty in acquiring an industrial license exemplifies the problems faced by investors.
Uncertain times and the need for a private-led economic rebound. The revolutions that started in Egypt in
January 2011 led to a tumultuous period marked by instability, stagnating growth and per capita incomes, rising
unemployment and poverty, and setback in growth rates. Egypt went through two regime changes and presidential
elections in just three years, with periods of unrest, uncertainty, insecurity, and violence that have left the population
eager for stability and direction. With a new constitution adopted in January 2014, a new President elected in May
2014 and parliamentary elections expected in May/June 2015, the political landscape has evolved quickly while the
economy is only just beginning to show signs of recovery. The Egyptian economy had achieved high growth rates
during 2004-2008, however, the global financial crisis of 2008, followed by the unrest and uncertainty associated
with the 2011 revolution, led to a slowdown in economic activity. Overall social conditions have been deteriorating,
in tandem with the economic downturn since 2011. The unemployment rate reached 13.3% during the last quarter
of FY14 (April-June 2014), marginally lower than the rates recorded since the beginning of FY14. Out of the 3.7
million currently unemployed, some 70% are between 15 and 29 years old, making youth unemployment a key
challenge for economic inclusion and stability. The latest poverty data indicate that 26.3% of the population has been
living below the national poverty line in FY13, with poverty rates reaching 50% in rural Upper Egypt. The loss of
formal employment has been a key reason for households falling into poverty. This increases the vulnerability of
women, youth and rural Egyptians, since they are the most likely to be unemployed.
A complex and unlevelled business environment that favors a few and limits competition. Throughout its
fluctuating economic performance, the structure of the Egyptian economy remained broadly the same over the past
decade. Formal business entry and growth is muted, and investments have been skewed towards small number of
large, capital-intensive firms that do not create enough jobs, that coexist with a vast majority of micro firms – with
limited development of a small or medium scale business sector. This lack of dynamism, particularly in the
manufacturing sector is fostered by weak governance and a complex regulatory environment that fosters an
unlevelled playing field as privileged (large) investors and incumbents have a competition edge as they often can
influence bureaucratic outcomes, get things done more easily or have better access to (often subsidized) inputs like
land, capital or energy. These factors have contributed to limited economic opportunities, an underdeveloped private
sector, and have ultimately hindered job creation. According to the WBG Worldwide Governance Indicators,
government effectiveness, regulatory quality, and rule of law rankings for Egypt have all declined in the past few
years. Policy and institutional reforms to boost investment, and hence job creation have become one of Egypt’s
priorities. Building on progress prior to 2011, the political will is to create a better business and investment climate
with a view to enhance the development of the private sector, attract higher levels of FDI inflows and ultimately lead
to the creation of more and better job opportunities. A sound and conducive business climate will also contribute to
higher economic growth that can help Egypt to meet its potential for development.
This WBG-OECD joined project aims to enhancing the investment framework and addressing these
regulatory, institutional, policy and governance issues.
11. Alignment with Transition Fund Objective
The proposed project is aligned with the overarching goals of the Transition Fund of strengthening
governance and public institutions, fostering sustainable and inclusive growth by developing, and advancing
country-owned programs through supporting transformational reforms. Specifically, it encompasses the four
themes, namely: (i) inclusive development and job creation, by expanding the outreach of services to lagging regions
through the automation and enhanced connectivity of the General Authority for Investment’s (GAFI) One Stop Shops
as stipulated in the new Investment Law and by supporting a new investment policy and a clear articulation with
business strategies; (ii) investing in sustainable growth, which will be achieved by creating a more enabling and
conducive business environment, through improving the legal, regulatory, and institutional, framework for industrial
SMEs and investors, with the ultimate goal of spurring productive investment; and (iii) enhancing economic
governance, which will be achieved by supporting regulatory reforms that reduce discretion and enhance
transparency and predictability for the private sector by providing support to the Egyptian Regulatory Reform and
Development Activity (ERRADA) and Industrial Development Authority (IDA), as well as supporting the government
in formulating a new investment policy, enhancing the legal and institutional investment framework, improving legal
coherence and coordination of business-related laws and jurisdictions of investment institutions, strengthening the
international investment regime and enhancing investment dispute prevention and settlement; and (iv)
competitiveness and integration, through capacity-building to negotiate international investment agreements (and
the link with trade agreements), and the overall project’s objective to foster private sector development.
12. Alignment with Country’s National Strategy
New strategies for ambitious reforms. In its March 2015 Economic Development Conference in Sharm El-Sheikh,
the Government of Egypt (GoE) announced its “Five-Year Macroeconomic Framework and Strategic Plan” to restore
its macroeconomic imbalances, address its social inclusion priorities, and achieve high, well-diversified and
sustainable economic growth. The government’s key objective is to create a productive, efficient and ultimately more
dynamic economy and to ensure that future growth is high, sustainable and inclusive. While several elements of the
reform agenda have already been put into effect, the government recognizes that much more must still be done in
the coming years to fully restore the economy to health.
The GoE is reengineering the economy through coherent policies, programs and projects that together will serve as
a catalyst to drive growth that is sustainable as well as robust enough to generate jobs and bring about material
improvement in living conditions for Egyptian citizens. The government’s economic policy rests on three
fundamental principles: a growth model based on a constructive partnership with the private sector, an approach
that strikes the balance between fiscal consolidation and social justice objectives, and prudent macroeconomic
programs that will be developed alongside long-term developmental projects with high-labor intensity and concrete
efforts to improve the quality and accessibility of services offered to the public.
During 2014, the GoE has made clear strides toward regaining confidence in the economy through serious and
comprehensive reforms while moving steadily to improve the domestic environment for investment and to re-attract
significant FDI inflows. Egypt’s Cabinet recently approved amendments to the Investment Law. It is an important
step in the direction to improve the business climate and level the playing field for investors, but only a phase in
reforming the investment climate over the next five years, as stated by the authorities. Egypt needs to formulate a
new investment policy in line with its new economic policy recently announced. This new investment policy should
serve Egypt’s long-term objectives of growth and inclusion, and would eventually enable the drafting of a unified
investment law.
Effective implementation of the amended law will be essential, and the WBG is preparing this technical assistance
project to support the Ministry of Investment and the General Authority for Investment (GAFI) to implement their
mandates under the new law. GAFI aims to reducing stifling bureaucracy and room for discretion in the licensing and
permitting process and land allocation for new investments. Most importantly, the law aims to empower GAFI to act
as a one-stop-shop (OSS) for investors and to empower it to seek the necessary approvals from various agencies that
investors need to obtain.
The need to focus on binding business environment constraints: industrial licensing, land and regulatory
governance. The current government’s agenda aims at sending a strong signal to investors by engaging on an
ambitious plan to address the deep-rooted problems of unequal treatment of businesses. Among these top priority
areas are industrial licensing, access to land and construction permitting, which are among the most severe
constraints to industrial growth. The agencies with the mandates for the relevant roles are all actively engaged on
the reform agenda. GAFI is the principal governmental authority concerned with facilitating investment through its
network of OSSs and aims at easing and decentralizing business entry, licensing and operations. The Industrial
Development Authority (IDA) is the principal authority mandated to regulating the industrial sector and allocates
land for industrial projects, while The Egyptian Regulatory Reform and Development Activity (ERRADA), which was
revived with Prime Ministerial Decree No. 1038 of 2014 and is currently supervised by the Minister of Industry,
Trade Small and Medium Enterprises (MITSME) is mandated to catalyze and support reform implementation. The
Minister of MITSME assigned ERRADA to focus on industrial licensing, land allocation and construction
permitting as priority focus areas for reform.
Furthermore, The WBG is preparing a Country Partnership Framework (CPF), for FY15-19 with Board
presentation early next year. The first round of CPF consultations identified the improvement in the Business
environment as one of four priority topics. The CPF focuses on two key drivers to increase shared prosperity and
reduce extreme poverty: (i) supporting economic stability and improved governance; (ii) creating opportunities for
sustained income generation by promoting private sector policies to level the playing field.
The findings of the recently completed Strategic Country Diagnostic (SCD) for Egypt also indicate that
reforms such as phasing-out of energy subsidies and large-scale public investments in infrastructure will
produce inclusive growth and jobs only if the complexity, discretion, and uncertainty that businesses face in
complying with regulations and accessing services and factors of production are significantly reduced. This
is consistent with the findings of the recently published “More Jobs, Better Jobs: A Priority for Egypt”2 which shows
that the main constraint to private sector growth is a business environment characterized by complexity, uncertainty,
and unequal treatment which have led investments to be skewed towards large, capital-intensive businesses that
created few jobs. What fundamentally constrains the growth of a smaller-scale business sector is the complexity of
the regulatory environment, the unequal access to regulatory services and (subsidized) inputs and factors, and the
uncertainty this imposes on businesses. The myriad of regulatory barriers facing businesses provide an advantage
to those who enjoy unproductive skills like political or bureaucratic connections to get around those barriers. This
uncertainty and unpredictability in the interaction with government agencies and the unequal and arbitrary
treatment to which businesses are subject, extends to areas like access to land, energy subsidies and even credit.
These issues trickle down at the local level and in all areas of government-business interaction, and are not limited
to favors to connected large investors. They are particularly harmful to small businesses that do not have connections
and resources to shield them from this uncertainty and help them get around complex regulatory requirements. The
disparity also has a spatial component, where businesses in non-metropolitan areas suffering from an even weaker
business environment, despite some attempts to decentralize government functions and authority.
This project aims at addressing the issues identified in the SCD and other recent analytical work, starting
with regulatory areas that are most constraining to businesses (land allocation and licensing): it aims to
support reforms of the institutional set-up for the delivery of licensing through GAFI and improving the
process of regulatory reform for more inclusivity and consultations via ERRADA. If not addressed, the same
issues of uncertainty and discretion in the business environment that have muted or distorted the private sector
response to previous waves of reforms may again limit the impact of current reforms and large public investment
projects. The 2004-2006 wave of macroeconomic and microeconomic reforms, including in the tariff and tax areas,
have been successful at increasing private investment rates, FDI and growth. But these investments mostly happened
in large, capital intensive industries and were limited in the small scale manufacturing or services sectors. Few jobs
were created and informality grew. For the same reasons, the ongoing reforms and investments may have the same
disappointing impact in terms of formal job creation and SME growth if the core issues of uncertainty and
arbitrariness in regulatory compliance and state-business interaction continue to prevail and to benefit a few. These
same issues will also continue to limit the impact on job creation and business growth of other policies and
interventions, including in the infrastructure, skills and financing areas. To reap the jobs benefits of the ongoing
reforms and public investment projects, the priority for the Government of Egypt should be to profoundly and
credibly reduce the complexity and uncertainty in business-government interaction, which is the focus of this project.
B. PROJECT DESCRIPTION
13. Project Objective
To improve the regulatory environment for investors through simplified industrial licensing and transparent land
allocation processes and to support the government of Egypt in designing a new investment policy and legal framework,
and in strengthening its international investment regime.
2
World Bank report issued in June 2014
14. Project Components
The project is comprised of three components supported by the World Bank Group and one component supported
by the OECD:
A. WORLD BANK GROUP SUPPORTED COMPONENTS:
Component 1: Facilitating accessible and transparent investor services (GAFI)
The Project aims to support GAFI become the national platform facilitating business entry, licensing, and access to
investor information at the sub-national level through its One Stop Shops and GAFI Information Portal. This would
entail addressing GAFI’s processes and interfaces with all the involved regulators, including primarily IDA, but also
other line ministries and local authorities involved in licensing, developing an IT system to deliver business entry,
licensing services, and investor information, and capacity building and technical assistance to enable and support
GAFI in this enhanced client-facing role, particularly of its OSSs. This component will also include supporting GAFI in
developing the necessary implementation instruments and action plan that would enable it to carry out its mandate
in light of the new Investment Law. This component will also include project management activities to be undertaken
by the Project Management and the Project Implementation Units.
Subcomponent 1.1: Develop and Implement Online System for Investor Servicing at GAFI
GAFI currently provides one-stop services for business registration which covers business entry procedures but
stops short of business licensing. GAFI has been developing and extending its OSS capabilities, and has documented
the procedures for obtaining 479 different licenses and permits required from any of 78 different government
agencies, depending on the nature of the business investment. The Project will support development of the following
activities within GAFI:
a) Mapping of the business entry procedures (major changes are not expected, as this process is already fairly
straightforward) and link this to the mapping of the industrial licensing procedures (which will be mapped
and re-engineered under Component 2) in preparation for automation.
b) Procurement, configuration and deployment of a customer relationship management (CRM) system at GAFI
HQ and its four OSSs. The CRM will provide online business entry services and act as a platform for hosting
the licensing processes of other agencies, starting with IDA.
c) Develop and enhance the GAFI information portal to provide comprehensive investor information, including:
i. Information on the procedures and requirements for the 479 licenses and permits from 79
different agencies.
ii. Information on access to land through showcasing all land available for investment under the
jurisdiction of the Industrial Development Authority (IDA), on GAFI’s website.
Subcomponent 1.2: GAFI Capacity Building and ICT Upgrading
This sub-component will cover IT system upgrading for GAFI and the OSSs and capacity building of staff,
including:
a) Further e-integration of the OSS network, including e-archiving and electronic connectivity between OSS
branches to enhance quality of service provided by OSS.
b) The Project will also support required upgrades to GAFI’s ICT infrastructure to support deployment and
operation of the two systems.
c) Training of GAFI staff in the use of the CRM system.
Subcomponent 1.3: Project Management
This sub-component will cover the costs of the Project Implementation Unit including additional staff needed (to be
hired as consultants on the project) and incremental operating costs. The complementary consulting staff to be
hired is to be determined, but may include an M&E specialist and an additional procurement officer (to assist on
the procurement packages).
Component 2: Industrial Sector Regulatory Reform (IDA)
The Project aims to support IDA in focusing on its strategic roles of regulation and development and transform its
approach to implement risk based regulation principles. This component will focus on the two primary functions of
IDA, industrial licensing and industrial land allocation. The IDA is currently engaged in mapping its industrial
licensing processes in collaboration with ERRADA and with World Bank Group support. The project will build on this
work by supporting a fundamental restructuring of the IDA’s role in industrial licensing as well as the reengineering
of underlying processes for administering the industrial license. The redesigned process will then be deployed in IDA
branches and GAFI OSSs. On industrial land allocation the project will support developing a “wholesale” model of
land development (through reforming the developer concession agreements) and developing and deploying an
online industrial land allocation system. This component will also finance IDA staff training, workshops, and ICT
upgrading needed to implement these activities.
Sub-component 2.1: Process re-engineering and automation of industrial licensing
IDA, in collaboration with the ERRADA program and with the support of the World Bank, is currently engaged in
mapping out its industrial licensing procedures. This preparatory work will be completed as part of this project to
re-engineer these processes and deploy the reformed processes through an automated system. The activities to be
supported are:
1.
2.
3.
TA to complete the assessment of the process, diagnose bottlenecks, and re-engineer the processes
involved in producing an industrial license. This will include work eliminating technical evaluations and
inspections as a precondition for industrial registration and perform inspections/evaluations on riskassessment basis utilizing professional, accredited private practitioners,
TA to develop and establish the accreditation system of private sector entities to perform industrial
technical evaluations on a risk-management basis which will be overseen by the IDA.
TA to IDA and other involved agencies to re-design the industrial register process to return it to its original
policy objective as a data collection function, and delink import/export and other permits from the
industrial register.
Development of the software systems and equipment and installation of a new industrial licensing
administration system (ILAS). The Industrial Licensing Administration System (ILAS) will be developed
and deployed in the IDA headquarters, 22 branch offices as well as in GAFI’s headquarters and four
regional offices. This system will be designed with the following capabilities
Sub-Component 2.2: Implementing a New Approach to Industrial Land Management and an Online Land
Allocation System
One of IDA’s core functions is to help companies and private sector zone developers identify, purchase/lease, and
develop land, and assist them in their dealings with local and national administrations. The project will support IDA
in its effort to adopt primarily a transparent wholesale industrial land allocation process rather than the focus on the
“retail” land allocation by setting and administering policies and procedures for industrial land allocation and
introducing best practice contracting instruments with private developers. Furthermore, IDA has signed an MOU
with the New Urban Communities Authority (NUCA) to transfer the role of land allocation for industrial use from
NUCA to the IDA. To implement this MOU, the project will support IDA to work with land owners (primarily cities
developed under New Urban Communities) to compile and maintain on-line information of land available for
industrial development.
Accordingly, this sub-component will comprise the following activities:
1.
2.
TA to design the approach for wholesale land allocation and developer concession agreements and
support implementation of reformed system.
Development of the software and information system for industrial land allocation , which would include
ownership, location, offsite infrastructure, target industries and excluded industries, price, contact
details, and any location-specific incentives that may be offered.
Sub-Component 2.3: IDA Capacity Building and ICT Upgrading
The project will support IDA’s technical and administrative capacity at the governorates’ level to enable
decentralization of regulatory decision making and deployment of the ILAS to be deployed through existing OSSs.
Accordingly, this component will include:
1.
2.
ICT Infrastructure Upgrading, including upgrade of existing LAN infrastructure in IDA HQ as well as
dedicated internet connections to the branch offices through a government-owned internet service
provider and purchase of computers and other equipment.
IDA staff training in the use of the ILAS and to support decentralization of decision-making.
Component 3: Capacity building for managing regulatory reforms (ERRADA)
The Project aims to strengthen the capacity of the GoE regulatory reform program (ERRADA). The project will focus
on supporting ERRADA around a set of “horizontal” (cross-cutting) reforms that target constraints affecting firms in
all sectors of the economy. It will in particular focus on reforms that promote transparency and predictability of the
regulatory environment. It will also support “vertical” reforms in priority areas like industrial licensing and land
allocation that complement components 1 and 2.
Within the horizontal reforms, the project will support ERRADA in:
a) completing a comprehensive inventory of business related formalities/administrative procedures;
b) process mapping and re-engineering of the most relevant/frequent formalities/administrative procedures
with the objective of streamlining and simplifying them;
c) establishing an informational portal of business related administrative procedures rendering all information
related to the requirements of these procedures accessible to the general public in a simple and
comprehensive manner;
d) putting in place a public consultation and review mechanism to secure that all business related legislative
proposals are properly reviewed and consulted with the stakeholders, including the private sector.
B. OECD-SUPPORTED COMPONENT:
The component supported by the OECD responds to a request for technical assistance from the Minister of
Investment in relation to the activities carried out by the Ministry to enhance the investment framework. All activities
are inter-linked and contribute to a more favorable investment environment. Therefore, the provision of the subcomponents will take place in parallel with a well-defined sequencing.
This component will be implemented in co-ordination with other international organizations and support
institutions active in the area. In particular, the World Bank Group supported components will complement, support
and build on the OECD-supported component. Regular coordination will ensure the articulation and
complementarity of the activities (e.g. between component 3 of the World Bank Group (support to ERRADA) and subcomponent 2 of the OECD (legal coherence of business-related laws)).
Component 4: Support the government of Egypt in designing a new investment policy and legal framework
and in strengthening its international investment regime
Sub-component 4.1: Investment policy and legal regime
Early 2015, Egypt conducted a short-term review on its 1997 Investment Guarantees and Incentives Law, which
resulted in promulgating an amendment that will serve as a preliminary step in reforming the investment climate for
the next five years. However, Egypt is in a dire need to formulate a new investment policy that is consistent with the
new national economic policy, which was announced in the March 2015 Economic Development Conference. This
new investment policy would serve Egypt’s long-term economic policy and would eventually enable the drafting of a
unified Investment Law, which will translate the policy into actionable legal terms. The new investment policy will
need to be supported by research and analysis to identify the types of investment most needed for the economy, the
optimum mechanisms for attracting the identified investments and the accompanying tools to improve spillover
effects and impact of investments on inclusion (support to job creation, territorial development, MSMEs…), while
ensuring a right balance between rights and obligations of investors.
The OECD, in consultation with the GoE, will conduct analytical work, comparative studies and field research to
generate data that will support a clear and precise investment policy. Based on this policy, the OECD will assist the
GoE in unifying and streamlining the legal framework for investment through a completely new, modern, and stateof-the-art investment law. Already in 2014, the GoE has committed to work toward “a unified law on investment that
includes all provisions regulating different investment systems and coordinating between them, including local
investment, free, private, investment, and industrial zones, and other legal frameworks accumulated over the years”. 3
The OECD Business Climate Review (BCR) also suggests that Egypt proceeds with an informed revision of its
investment legal regime to improve transparency, predictability and openness, streamline investment-related
legislations, enhance implementation of the legal framework to ensure that de jure provisions and de facto practice
are better aligned, and simplify the rules and regulations administering Free Zones, Special Economic Zones and
Industrial Zones. The BCR has also noted that Egypt should improve clarity on its restrictions to foreign investment.
Specific activities include:
3
1.
FDI statistics and compliance with international recommendations: improve data collection on
investment, in particular on FDI statistics through implementation of international guidelines for compiling
FDI, including the OECD Benchmark Definition of FDI. A statistics review will be conducted with a view to
assess compatibility of FDI statistics with international recommendations, data sources and evaluation
methods, and feasibility of compiling additional resources. The review will contain recommendations to be
implemented. Implementation will comprise capacity-building for officials in implementing international
norms and compiling FDI statistics. Reliable investment data will inform the investment policy.
2.
Stocktaking and preliminary analysis of the investment policy: Review Egypt’s current investment
policy, obstacles, restrictions, as well as the legal framework (including the amended 1997 Investment
Guarantees and Incentives Law, other investment-related legislations and international commitments). This
activity will be followed by a workshop with the Egyptian authorities with a view to prepare the investment
policy.
3.
Assistance in the drafting of the investment policy and road map for reforms: draft a policy paper with
key recommendations for the new investment policy and a road map sequencing the reforms, including the
improvement of the investment legal regime. A validation workshop with the authorities will be organized
with a view to support the government in the formulation and adoption of the new investment policy and
the prioritization of the implementing reforms.
4.
Comparative assessment of the Egyptian legal investment regime against good practices and with other
countries in the region and countries which situation can be relevant to Egypt. Findings of the assessment
will be discussed with the authorities, as well as with the wider business community to identify and validate
the needed improvements.
5.
Technical assistance in the drafting of the new law: Based on the investment policy and
recommendations, the GoE will draft a revised Investment Law. The OECD will assist the GoE in this task by
monitoring the process and giving recommendations upon request, with a focus on protection and
guarantees, and supporting the Parliamentary process. This work will be carried out in conjunction with ongoing activities undertaken by the GoE (i.e. Ministry of Investment, GAFI and the new Centre for investment
development and promotion) or other support institutions (e.g. cost-benefit analysis of incentives,
evaluation of the investment promotion institutional framework…). This activity will include the update and
revision of the list of restrictions published in 2007 under the OECD National Treatment Instrument, with
possible streamlining and improvements, and subsequent revision of Egypt’s ranking in the OECD FDI
Restrictiveness Index comparing 60 countries.
6.
Public-private dialogues: throughout the process, organize dialogues with key stakeholders, the private
sector and civil society (constitution of a public-private platform/task force, 2 consultations, and surveys)
with a view to build awareness on the reform process and benefit from exchange of ideas and practical views.
Egypt, Minister of International Cooperation, Report: Egypt’s Economy in Six Months – 8 January 2014.
As beneficiaries of the actions, the private sector will be encouraged to contribute to and validate the
proposed improvements.
7.
Consultations, awareness-building and communication: the GoE will ensure that all relevant
governmental bodies are duly consulted during the revision process. The OECD will assist in supporting the
organization of consultations with key public authorities (to ensure institutional co-ordination) and
briefings to parliamentarians (to ensure adoption of the new law) (2 events). Once the law is enacted, the
GoE will adopt a communication strategy to ensure that adequate information is made available to all
stakeholders (public-private). This can take the form of an implementation manual for public entities,
brochures and investor’s guide for the private sector, and web tools. Promotional tools will be available in
several languages. The OECD will assist the GoE in developing communication tools by providing guidance
and comments.
Sub-component 4.2: Business-related laws, jurisdictions of investment institutions and legal coherence
While the GoE identifies the need to revise a number of business and investment-related laws in addition to the
investment legal regime (amendment to the Companies Law n°159 of 1981, Public Procurement Law n°98 of 1989,
Mortgage Law n°148 of 2001, Real Estate Law n°114 of 1946, PPP Law n°67 of 2010 and drafting of new laws for
Insolvency and for Secured Transactions), it is essential to ensure coherence and harmonization of all legislations
from a broader perspective. The business legal framework should also be reviewed and assessed against
international standards and best practices. Once the laws are harmonized and enacted, the GoE should also ensure
efficient implementation of the revised legal framework for businesses.
In addition, proper implementation of the legal framework also implies efficient institutional co-ordination with roles
of each institution clearly identified. A key finding of the OECD Business Climate Development Strategy (BCDS) was
the “high degree of institutional overlap. […] There is evidence of governmental institutions competing with each
other in the same area, as well as insufficient coordination between them”. 4 In this context, the GoE identified the
need “to conduct a comprehensive review of the competences and authorities granted to different public authorities
supervising economic activities in order to rid them of overlapping and conflicts, and to facilitate procedures taken
by those involved in various economic activities and investors before these authorities.”5 Improving institutional coordination and efficiency will contribute to a more streamlined and conducive business environment through
facilitated procedures for the private sector and improved dialogue. This will also contribute to reduction of red tape
and corruption and revitalize sense of duty and responsibility in governmental agencies. The project proposes to
review the jurisdictions of the institutions in charge of investment-related issues to avoid overlaps in their mandates.
Specific activities include:
4
5
1.
Interactions assessment and legal harmonization: Verify the interactions between the investment law
and business-related laws, as well as between the national investment framework and international
obligations to ensure coherence. A report assessing the interactions will be drafted and discussed with the
relevant authorities (one workshop).
2.
Technical assistance for the revision of business-related laws: the GoE will revise the laws taking into
account the possible interactions identified in the report. Upon request, the OECD will provide technical
assistance on specific issues in relation to the interactions with the Investment Law.
3.
Revision of jurisdiction of investment-related institutions: review the mandate and jurisdiction of the
various institutions dealing with investment-related issues, focusing on overlaps and complementarities.
Define clear flow chart, task assignments, delegation of authorities in co-operation with the GoE. A workshop
with the relevant institutions will be organized to discuss and agree on mandates and division of tasks.
OECD (2010), Business Climate Development Strategy.
Egypt, Minister of International Cooperation, Report: Egypt’s Economy in Six Months – 8 January 2014.
The GoE will be responsible for implementing the reforms. It will proceed with the necessary reorganization
including through by-laws and reallocation of resources and staff, develop management and co-ordination tools and
develop tools to help navigate the institutional framework for businesses, such as guides and websites.
Sub-component 4.3: International investment agreements
Egypt has signed more than 100 bilateral investment treaties (BITs) – 30% not ratified, some of them being
inconsistent with each other and some may be incompatible with the new Egypt’s investment policy. In collaboration
with the Ministry of Investment (MoI), the OECD will assess the existing network of international investment
agreements signed by Egypt and their interactions (including with trade agreements), identify the recent
international best practices in the field of international investment treaty drafting, and will make recommendations
on policy options, in particular with a view to reduce the negative impact of international arbitration. The main
objectives of this collaboration will be to identify the priority of the real economic interests in concluding BITs,
attaining consistency between Egyptian BITs, achieving balance between the investor’s and state’s interests,
asserting the role of BITs in attaining sustainable development for Egypt and its partners, reinforcing the links
between trade and investment provisions in international agreements, and reducing the number of treaty-based
disputes.
Specific activities include:
1.
Review and assessment: the OECD will conduct an assessment of the commitments made by Egypt under
international investment treaties, with a particular focus on investment protection and recourse to
international arbitration. The assessment will look at the legal interactions between the BITs themselves
and the BIT network and the national framework. Attention will be brought to the 2013 amended Investment
Agreement of the Arab League which recently entered into force with the ratification of five members, and
in particular to the Arab Investment Court which status have also been revised in 2013 and which could
become a more effective and used investment arbitration mechanism in the region.
2.
Recommendations: the OECD will provide an analytical report reflecting latest trends and best practices in
international investment law, giving recommendations on how to reduce legal inconsistency, and discussing
policy options for the possible revision of the Egyptian model BIT.
3.
Capacity-building on international investment agreements: based on the recommendations, the OECD
will provide capacity-building to the Egyptian civil servants dealing with BITs and other investment-related
agreements (2 workshops).
Sub-component 4.4: Investment dispute settlement
Following the 2011 events, Egypt is confronted with an increased number of disputes between the State and
economic actors, including foreign investors – 12 cases of investor-State disputes have been filed under the auspices
of the International Centre for Settlement of Investment Disputes (ICSID) since 2011. In addition to the costs involved
for the government, the existence of these disputes sends a negative signal to the business community and involves
a timely settlement.
The GoE is tasked to “propose a comprehensive program for settling economic disputes between the state and
investors so as to realize economic stability and confidence, yet without waiving the state’s general rights or its right
fight corruption, in addition to developing the operation system of the existing investment dispute settlement
committees.”6 The GoE has created several mechanisms and bodies in the past to deal with the issue and more
recently, in the amendments to the 1997 Law, a Contract Committee for “reconciliation” cases involving public funds
and a Governmental Group for the Settlement of Investment Disputes. The 2015 amendment to the Investment Law
also contains provisions to enhance predictability for foreign investors in relation to contract’s challenging by third
6
Egypt, Minister of International Cooperation, Report: Egypt’s Economy in Six Months – 8 January 2014.
parties. However the role of the various bodies and the access procedures are unclear and they do not operate as
expected. The BCR Egypt also recommends clarifying the respective roles of the Committees and operationalizing
their work in a timely, consistent and transparent manner involving MoI/GAFI in a leading role; ensuring due process
of law; and setting clear framework for procedures with timelines to deal with disputes involving foreign investors
and the State and State agencies.
Specific activities will focus on dispute prevention, settlement and management and will include:
1.
Assessment: assess the role and the effectiveness of the existing and new bodies dealing with investment
disputes, as well as the procedures, and draw lessons from experiences of previous cases. Examine existing
dispute prevention means, the use of alternative dispute resolution mechanisms, in particular mediation,
available to investors and the GoE, as well as arbitration procedures in light of good practices.
2.
Consultations: organize a consultation with relevant ministries and agencies interacting with foreign
investors, as well as with foreign companies themselves and other private sector representatives, to discuss
investment disputes avoidance and settlement.
3.
Manual of procedures: draft a manual or handbook on procedures for dispute prevention, mediation and
management for government officials of various levels of government, addressing existing mechanisms,
institutional co-ordination, communication, awareness and capacity-building for government officials in
charge of prevention, settlement and management of disputes.
4.
Communication: based on the assessment and the consultation, the government should set up an internal
electronic information platform to ensure proper information and communication flows between public
agencies at both the central and governorate levels, as well as an early-alert system to bring investors’
problems to the immediate attention of the responsible agency. The government should ensure awarenessraising among investors. The OECD will support this initiative by showcasing examples from other countries.
5.
Capacity-building: organize capacity-building activities for the officials in charge of preventing and settling
disputes, and managing arbitration processes (including through mock cases). These activities will also
sensitize government agencies, governorates and free-zone authorities to commitments made towards
foreign investors, ways to respond to grievances, alternative dispute resolution (ADR) mechanisms and tools
to handle disputes (2 workshops).
15. Key Indicators Linked to Objectives
Progress towards achieving the project’s development objectives will be measured by the following indicators:
World Bank Group supported components:


Average Duration of Licensing Process
Number of land allocation requests processed through the reformed land allocation system
OECD-supported component:


An efficient national investment framework: A new investment policy and a unified investment law, a more
coherent business legal regime, better articulation of investment-related institutions,
An effective international investment regime: Assessed network of bilateral investment treaties, enhanced
capacities to (re)negotiate agreements and to prevent and manage investment disputes.
This project corresponds overall with the Transition Fund Cross Pillar 5 Development Objective and Outcome
Indicator 5.1 “Improved enabling environment and government capacity.” Section E (Results Framework and
Monitoring) identifies the project’s key indicators and progress measures of intermediate results.
C. IMPLEMENTATION
16. Partnership Arrangements (if applicable)
The main beneficiaries of the project are the governmental institutions in charge of investment issues, the Ministry
of Investment, the General Authority for Investment and Free Zones (GAFI), the Industrial Development Authority
(IDA) and the ERRADA programme. The Ministry of International Cooperation will support the overall coordination
of the project from the government side. Indirect beneficiaries and relevant institutions for the implementation of
the project comprise the Ministry of Industry, Trade and Small and Medium Enterprises, the Ministry of Supply and
Internal Trade, the Ministry of Justice (including the Egyptian Law Suit Authority), the Ministry of Finances and the
Central Bank.
Business associations, such as the Federation of Chambers of Commerce (FEDCOC), Federations of Industries,
bilateral chambers, the Confederation of the Egyptian European Business Associations, the Alexandria Business
Association, the Egyptian Business Association and Junior Businessmen Association will be consulted among others,
as well as potential and established, local and international entrepreneurs and investors.
As implementing agencies, the WBG and OECD will be in charge of the management and implementation of the
project. Transfer of best international practices, training of governmental staff, consultations and communication
(portals, manuals…) will ensure project sustainability.
17. Coordination with Country-led Mechanism/Donor Implemented Activities
The project is fully aligned with the economic development strategies of the government, in particular the “Five-Year
Macroeconomic Framework and Strategic Plan”. It will contribute directly to the existing efforts of the authorities to
enhance the regulatory, legal and institutional framework for investments and businesses.
The Project team has been coordinating with several donors and international organizations (European Commission,
United States, Germany and GIZ, France and AfD, the Austrian Fund, the UAE Egypt Task Force, AfDB, EBRD…) to
ensure complementarity and coordination and to avoid overlapping of scope or duplication of activities. In particular,
the Austrian Fund has earmarked funds for supporting the drafting of the implementing regulations for the new
Investment Law, which sets among other areas, the framework for GAFI’s OSS mandate. The EU and the World Bank
Project Team are also coordinating on supporting ERRADA to maximize its benefit.
Given the scope and objectives of the project, the World Bank Group and the OECD are carrying out joint
implementation with a clear division of tasks under the four components, based on respective expertise and on-going
and past activities in the country. The complementarities of the components will be well articulated to maximize the
impact of the project at the benefit of the Egyptian authorities. The project will also benefit from successful
experiences that the OECD and the World Bank Group have in jointly implementing Transition Fund projects on
investment-related issues (the Jordan Competitiveness and Investment project and the Tunisian Investment
Authority project).
18. Institutional and Implementation Arrangements
For the Country-Execution components supported by the World Bank Group:
MoI and GAFI are the principal government bodies regulating and facilitating investment in Egypt. GAFI is also a lead
agency in the facilitation of business registration, licensing and investment policy formulation. A Project
Implementation Unit (PIU) will be implemented under GAFI. MoI and GAFI currently have a strong professional cadre
at the senior management and officer levels that in turn has a good track record with the World Bank.
MITSME and IDA are the principal bodies concerned by regulating industry in Egypt. IDA’s mandate includes
regulatory functions with respect to both establishment and operations of industrial activities and industrial land.
IDA has not previously implemented projects with the World Bank. GAFI would execute the IDA component on behalf
of IDA along with the procurement of the IT systems, which will be undertaken by GAFI for the entire project. A
second Project Implementation Unit (PIU) will be established to implement this component.
ERRADA’s mandate is the support the government’s efforts in building a regulatory management system, based on a
dialogue between public and private institutions, aiming at increasing efficiency, competitiveness and creating more
job opportunities. Prime Ministerial Decree No. 1038 of 2014 assigned the Minister of Industry, Trade & Small and
Medium Enterprises the supervisory role over the ERRADA program. This component is a catalyst to the rest of the
project, and is secondary to the project main components related to GAFI and IDA. Most of the activities under this
component are related to capacity building.
The management of the Egypt EASE components will be governed by two management levels:


A World Bank Project Steering Committee (PSC) will be established by GAFI, IDA and ERRADA. Its
principal role will be to review and advise on project performance at the levels of output and outcome
and issues related to inter-governmental, public-private dialogue and donor coordination issues;
2 Project Implementation Units (PIUs) team under the supervision of the PSC will act as the execution
arm for the project components. The PIU comprises Project Officer in addition to technical
implementation team in procurement, finance and accounting and M&E. The PIU’s function would be to
i) execute purchase requests, ii) perform the accounting and finance functions for the project and issue
periodical reports to the PSC, and iii) periodically measure results according to the project Results
Framework and report to PSC. The principal role of the PIU will be on technical performance at input,
output and outcome levels and related budget management and strategic communications issues
pertaining to the project; GAFI and IDA will assign technical staff to support the PIUs on implementation
activities.
An Operational Manual will be prepared and agreed upon with project partners defining roles and responsibilities of
the PIU teams, principles and procedures related to procurement, finance and accounting functions of the project
and relevant fiduciary requirements.
For the ISA-Execution component supported by the OECD:
The Ministry of Investment (MoI), the main counterpart for the OECD-supported component, is articulating and
implementing the investment strategies and policies of the country. It has recently proposed amendments to the
Investment Law which were enacted. It was a first step in reforming the investment climate. The objective is now to
reformulate a new investment policy that would eventually enable the drafting of a unified investment law. The MoI
also has a major role in the negotiation of international investment agreements and in dealing with existing and
potential investor-State disputes. Indirect beneficiaries will be GAFI, as well as other governmental entities in charge
of investment-related issues (e.g. the Egyptian Law Suit Authority at the Ministry of Justice).
An OECD Project Steering Committee (PSC) will be established. It will be composed of the OECD, the WB,
government representatives to be nominated by MoI in consultation with relevant ministries and institutions, as well
as representatives of private sector. The OECD Project Steering Committee will meet regularly and will provide
advice and recommendations on overall guidance to the project.
An OECD Project Management Unit (PMU) (composed of senior and technical OECD staff) will work in consultation
with senior and technical MoI staff. The PMU will ensure the implementation of the project and will regularly inform
the PSC. It is also envisaged that a secondee detached from the MoI will work on the outputs of the components and
ensure co-ordination between the MoI and the OECD while benefitting from capacity-building (subject to the
signature of a separate agreement between the MoI and the OECD).
The World Bank and OECD Project Steering Committees will organize regular joint meetings (at least once a year) to
ensure efficient coordination of the activities and overall guidance to the project.
19. Monitoring and Evaluation of Results
Regular and in-depth monitoring of progress and evaluation of results and outcomes is essential for the
success of the project. The ISAs will be responsible for the overall monitoring and evaluation of the project with the
support of the technical experts and the Project Steering Committees. The M&E system will be consistent with the
reporting requirements of the MENA Transition Fund.
For the WBG supported components, a Mid-Term Review (MTR) will take place 12 months after the Egypt
EASE project is made effective in accordance with the terms of reference agreed upon by the government, WBG
and other relevant donor partners. The PIUs will prepare the mid-term report detailing implementation progress
under all WB components and identifying implementation issues. This report will be submitted to the WB not later
than two months prior to the mid-term review. During the mid-term review, implementation progress and solutions
to identified implementation issues will be discussed and agreed on and, if required, project redesign will be
undertaken.
D. PROJECT BUDGETING AND FINANCING
20. Project Financing (including ISA Direct Costs7)
Cost by Component
Transition
Fund
(USD)
Country CoFinancing
(USD)
Other CoFinancing
(USD)
Total
(USD)
A. WBG Supported Components
Component 1: Facilitating accessible and
transparent investor services (GAFI)
(a) Sub-component 1.1: Develop and Implement
Online System for Investor Servicing
(b) Sub-component 1.2: GAFI Capacity Building and
ICT Upgrading
(c) Implementation Support
Component 2: Supporting industrial sector
transformational reforms (IDA)
(a) Sub-component 2.1: Process re-engineering and
automation of industrial licensing
(b) Sub-component 2.2: Implementing a new
approach to industrial Land Management and an
Online Land Allocation System
(c) Sub-component 2.3: IDA capacity building and
ICT upgrading
(d) Implementation Support
Component 3: Capacity building for managing
regulatory reform (ERRADA)
Total Cost for WBG Supported Components
$2,250,000
$2,250,000
1,500,000
650,000
100,000
$2,250,000
$2,250,000
1,000,000
550,000
600,000
100,000
$500,000
$500,000
$5,000,000
$5,000,000
7 ISA direct costs are those costs related to the ISA’s direct provision of technical assistance within the project. Also see Paragraph 47 of the Operations
Manual.
Cost by Component
Transition Country CoOther CoTotal
Fund
Financing
Financing
(USD)
(USD)
(USD)
(USD)
B. OECD Supported Component 4: Support the government of Egypt in designing a new investment policy
and legal framework and in strengthening its international investment regime
Sub-component 4.1: Investment policy and legal
$579,000
regime:
Data Collection, FDI statistics and compliance
with international recommendations
Stocktaking and preliminary analysis of the
investment policy
Assistance to the drafting of the investment
policy and road map
Comparative assessment of the Investment
Law
Technical assistance in the drafting of the new
law
Public-private dialogues
Consultation/awareness-building
communication
154,000
Sub-component 4.2: Business-related laws,
jurisdictions of investment institutions and legal
coherence:
$232,000
1.
2.
3.
4.
5.
6.
7.
1.
2.
3.
Interaction
assessment
and
legal
harmonization
Technical assistance for the revision of the
business-related laws
Revision of jurisdiction of investment-related
institutions
Sub-component 4.3: International investment
agreements
1.
Review and assessment and 2.
Recommendations
3. Capacity-building on international
investment agreements
Sub-component 4.4: Dispute settlement
1.
2.
3.
5.
Assessment
Consultations
Manual of procedures and 4. Communication
Capacity-building
84,000
49,000
58,000
61,000
78,000
95,000
100,000
54,000
78,000
$202,000
93,000
109,000
$231,000
49,000
47,000
39,000
96,000
Secondee from the Ministry of Investment
109,000
Implementation support, coordination and M&E
131,000
Total Cost for Component 4
$1,484,000
$1,484,000
$6,484,000
$6,484,000
Total Cost for WBG + OECD Joint Components
21. Budget Breakdown of Indirect Costs Requested (USD)
Description
For grant preparation, administration and implementation support (WBG):
WBG preparation budget
WBG supervision budget
WBG grant administration budget
For grant preparation, administration and implementation support (OECD):
Total Indirect Costs
Amount (USD)
$459,400
$50,000
$350,000
$59,400
$100,000
$559,400
(e) Results Framework and Monitoring
PDO: To improve the regulatory environment for investors through simplified licensing and transparent industrial land allocation processes and to support the
government of Egypt in designing a new investment policy and legal framework and in strengthening its international investment regime.
MENA Transition Fund Cross
Pillar 5 Indicators
Output 5.1.1: Documents Produced
and Endorsed
Output 5.1.2: Decrees Issued or
Structures Established
Output 5.1.3: Staff Trained
PDO Indicators
Av. Duration of Licensing Process
Number of land allocation requests
processed through the reformed land
allocation system
Unit of
Measure
#
#
Cumulative Target Values
Baseline
0
0
#
0
Unit of
Measure
Baseline
Day
#
Frequency
YR1
320
0
111
2
25
YR2
267
12
95
YR3
YR4
501
Target
501
24
24
145
145
Cumulative Target Values
YR1
250
0
YR2
180
750
YR3
75
2000
YR4
Target
75
2000
Annually
Annually
Data Source/
Methodology
Progress Report
Progress Report
Data Collection
Responsibility
Description
PIU
Number of roadmaps,
frameworks, procedures,
licensing requirements,
regulatory reform documents
produced or endorsed
designed to enhance the
business enabling environment
PIU
Number of laws, policies, or
regulations endorsed and
number of units and systems
established through capacity
building or TA activities to
enhance the business enabling
environment
Number of public sector staff
receiving training in the client
agencies to improve capacity
for enhanced service delivery
to investors
Annually
Progress Report
PIU
Frequency
Data Source/
Methodology
Data Collection
Responsibility
Annually
Annually
Progress Report
Progress Report
Description
PIU
Corresponds with Transition
Fund Outcome Indicator 5.1
“Improved enabling
environment and government
capacity”
PIU
Corresponds with Transition
Fund Outcome Indicator 5.1
“Improved enabling
environment and government
capacity”
Effective investment policy, legal and
institutional framework and sound
international investment regime
#
#
no
no
yes
N/A
Annually
Progress Report
PMU
Corresponds with Transition
Fund Outcome Indicators 3.1
“improved good governance in
the public sector” and 5.1
“Improved enabling
environment and government
capacity”
Intermediate Results Indicators
Component 1 (WB) - Facilitating Accessible and Transparent Investment Services (GAFI)
Y/N
-
Y
-
-
Y
Annually
Progress Report
PIU
Corresponds with Transition
Fund Output 5.1.1
“Documents produced and
endorsed”; (Yes is equivalent
to 1 roadmap)
CRM Platform Operational in OSSs
#
0
0
2
5
5
Annually
Progress Report
PIU
Corresponds with Transition
Fund Output 5.1.2 “Structures
established”
Sectors licensing requirements
consolidate/published on GAFI Portal
#
0
100
250
479
479
Annually
Progress Report
PIU
Corresponds with Output 5.1.1
“Documents produced and
endorsed”
Capacity Building workshops for GAFI
OSS staff completed
#
0
2
5
10
10
Annually
Progress Report
PIU
Number of GAFI OSS staff trained in
workshops
#
0
10
35
50
50
Annually
Progress Report
PIU
Corresponds with Transition
Fund Output 5.1.3 “Staff
trained”
PIU
Corresponds with Transition
Fund Output 5.1.1
“Documents produced and
endorsed”
Mapping/Simplification of Entry
procedures completed
Component 2 (WB) – Industrial Sector Regulatory Reform (IDA)
Mapping/Simplification of Licensing
sub-processes completed
#
0
4
4
4
4
Annually
Progress Report
Risk based approach for industrial
technical evaluation applied
Y/N
-
Y
-
-
Y
Annually
Progress Report
PIU
Corresponds with Transition
Fund Output 5.1.1
“Documents produced and
endorsed”; (Yes is equivalent
to 1 Risk based framework
endorsed)
Industrial Licensing System (ILAS)
Deployed in IDA Branches
#
0
2
5
10
10
Annually
Progress Report
PIU
Corresponds with Transition
Fund Output 5.1.2 “Structures
established”
Online industrial land allocation
system designed/deployed
Y/N
-
-
Y
-
Y
Annually
Progress Report
PIU
Corresponds with Transition
Fund Output 5.1.2 “Structures
established” (Yes is equivalent
to 1 system established)
Corresponds with Transition
Fund Output 5.1.1
“Documents produced and
endorsed”; (Yes is equivalent
to 1 land allocation framework
deployed)
Industrial Developer land allocation
framework designed and deployed
Y/N
-
-
Y
-
Y
Annually
Progress Report
PIU
Capacity building workshops for IDA
branches staff completed
#
0
2
5
10
10
Annually
Progress Report
PIU
Number of IDA staff trained in
workshops
#
0
10
35
50
50
Annually
Progress Report
PIU
Corresponds with Transition
Fund Output 5.1.3 “Staff
trained”
Corresponds with Transition
Fund Output 5.1.1
“Documents produced and
endorsed”
Component 3 (WB) – Capacity Building for Managing Regulatory Reform (ERRADA)
Regulatory reforms proposed
#
0
5
10
15
15
Annually
Progress Report
PIU
Private Sector consultation on
regulatory reform mechanism applied
#
0
5
10
15
15
Annually
Progress Report
PIU
Capacity building workshops for
ERRADA staff completed
#
0
2
5
10
10
Annually
Progress Report
PIU
Number of ERRADA staff trained in
workshops
#
0
5
10
15
15
Annually
Progress Report
PIU
Corresponds with Transition
Fund Output 5.1.3 “Staff
trained”
Component 4 (OECD) – Support to the government in designing a new investment policy and legal framework and in strengthening its international investment regime
Reliable FDI statistics, compliant with
international recommendations
Y/N
-
no
yes
yes
N/A
Annually
Progress Report
Adoption by the government of a new
investment policy and a revised
investment law
#
#
no
no
yes
N/A
Annually
Progress Report
FDI restrictions revised and improved
ranking in the OECD FDI
Restrictiveness Index
#
#
no
no
yes
N/A
Annually
Progress Report
PMU
PMU
PMU
Corresponds with Transition
Fund Output 5.1.2 “Decrees
issued”; (Yes is equivalent to 1
law/policy adopted)
Corresponds with Transition
Fund Pillar 4 “improved
competitiveness and
integration”
Business-related laws harmonized
with Investment Law, jurisdiction of
investment-related institutions
approved
#
7
0
4
3
7
Annually
Progress Report
Number of workshops/consultations
#
7
3
3
1
7
Annually
Progress Report
BIT network and dispute settlement
bodies and procedures assessed
Y/N
-
no
yes
yes
N/A
Annually
Progress Report
Number of Egyptian officials trained in
negotiating BITs and in preventing and
managing investment disputes in
workshops
#
30
0
15
15
30
Annually
Progress Report
Number of investor-State dispute
settlement cases reduced
#
#
no
no
yes
N/A
Annually
Progress Report
PMU
PMU
Corresponds with Transition
Fund Output 5.1.2 “Decrees
issued”;
Corresponds with Transition
Fund Output 5.1.3 “Staff
trained” (unit: events)
PMU
PMU
PMU
Corresponds with Transition
Fund Output 5.1.3 “Staff
trained”