Audit of sustainability of USAID/Egypt"s infrastructure projects

Audit covers a period ending 12/94 and 13 projects in the water, power, telecommunications, and local development sectors. Projects are valued at around $2 billion and comprising almost two-thirds of the Mission"s active and completed infrastructure projects. Completed projects are being sustained by the benefits being generated, and projects not yet completed are moving toward sustainability. Water sector projects have been operating at near capacity and are meeting water and effluent quality standards, and the power projects are providing a reliable source of power. USAID/Egypt is also designing projects at both the project and sector levels to address continuing concerns about sustainability. Targets are being set to hold the Government of Egypt (GOE) accountable for policy reforms needed to overcome obstacles to sustainability. Design strategies in project papers specify how sustainability can be achieved. Sector-related actions include creation of staff units to focus on sustainability issues, design of sector-wide projects addressing sustainability, and use of financial leverage to ensure that policy-related actions are implemented by the host government. The Mission"s efforts toward sustainability started several years ago and have progressed to the point where (1) constraints to sustainability have been identified; (2) solutions have been sought and implemented; and (3) further funding of infrastructure is conditional upon adoption of policy reforms and tariff increases by the GOE.