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 Institutional Reform of Egyptian Ministry of Water Resources and Irrigation (Restructuring, Decentralization, Privatization, Private Sector Participation, and Public-Private Partnerships): The Inception Report 

Country and Location: Cairo, Egypt.
Name of Client: GTZ (Germany) and Netherlands Government.
Address: Institutional Reform Unit, Ministry of Water Resources and Irrigation, Ministerís Office, MWRI Main Building, 11th Floor.

Start Date


September 2003

Completion Date


June 2004

Narrative Description of Project:


This project is directed towards preparing the inception report for the institutional reform of the Ministry of Water Resources and Irrigation. The reform is based on five directions: restructuring, decentralization, private sector participation/public-private partnership, privatization, and regulations/legislations. The action plan for institutional reform was prepared, including the participation of water usersí organizations, capacity building, and awareness. Aspects related to the reform such as sustainability of water usersí organizations, risks and mitigation analysis, and cross-cutting issues (gender, participation and water quality) are investigated.  

The institutional reform directions has been identified in the report to include the following aspects:  

i) Decentralization including Delegation to Lower Administration Levels.
ii) Restructuring including establishing Integrated Water Management Units and changing Ministry Organization Structure.
iii) Enhancing concerned Stakeholdersí Participation.
iv) Privatization and Public-Private Partnership including establishing Holding Companies.
v) Enhancing Private Sector Participation.
vi) Modifications of Legislations and Deregulations.
vii) Establishing Water Usersí Organization, including Joint Management and Irrigation Management Transfer.


IRU Work Plan is directed to achieve the following five results:  

  1. The principles of institutional reform in the fired of water management are elaborated.

  2. The institutional reform process has been discussed and agreed upon with the main stakeholders.

  3. The awareness about institutional reform in water management is enhanced among the major stakeholders and other concerned groups.

  4. Important projects for institutional reform process in water management have been initiated.

  5. The impacts of the reform process in water management are followed up, measured, and the important results are affected in the decision-making process.

Description of Actual Services:


The service provided is of consulting nature where all institutional reform aspects were compiled in one volume and used as the guiding plan for reform of the Ministry. The inception report was discussed by all key Ministry personnel, related stakeholders and donors and obtained their approval as a road map for reform implementation.


In general, the major products of the IRU has been identified through the Inception Report as follows:


  • Identifying Visions on Institutional Reform.

  • Coordinating preparation of ToR for IR activities

  • Supervising assessment of the consequences of IR on the various levels and different parties/stakeholders, including the MWRI. Impact on the national economy will be quantified. Other effects (social, environmental, etc.) will be included.

  • Guiding the development of an integrated policy and a Work Plan for the IR in water management with both short and long-term milestones.

  • Facilitating setting up a financial and legal system for decentralization and PSP.

  • Stimulate designing a Monitoring and Evaluation system for privatized services.

  • Advising on selecting a mechanism for transferring the Operation and Maintenance to PS and water users. The supervisory role of the MWRI will have to be maintained.

  • Co-coordinating the establishment of an institutionalized water management structure.

Supervising awareness campaigning for all partners, stakeholders and the public of the outcomes of institutional development.