EGYPT

	FY 1998 Actual	FY 1999 Estimate	FY 2000 Request
Economic Support Funds	$815,134,475	$775,000,000	$715,000,000
Child Survival and Disease	$ 1,288,000	$ 483,000	---

Introduction

Egypt plays a pivotal role in U.S. foreign policy in the Middle East. In the past year, there have been increasing tensions in the region and a stable Egypt is vital to the advancement of U.S goals in the Middle East. Continued stability in Egypt requires rapid, sustainable and equitable private sector-led economic growth to generate jobs and enhance quality of life. To create the levels of jobs, personal income and services required to increase the quality of life for Egyptians, Egypt must advance as a global economic player.

The Mission Performance Plan (MPP) for Egypt emphasizes economic growth and development as essential to our relationship with Egypt. The bulk of U.S. economic assistance supports broad-based economic growth, open markets and expanded U.S. exports. These objectives are included in the International Affairs Strategic Plan. The remainder of USAID assistance is directed at health, population and environmental objectives which are essential to sustainable economic growth.

The Development Challenge

Despite significant progress over the last 20 years, Egypt still faces significant challenges in completing a successful transition to an efficient, business-friendly, and open economy. More than 500,000 jobs must be generated annually to absorb new job market entrants. Continued legal and regulatory reforms are critical to attract more private sector investment and expand exports. Investments in human resource development (health, family planning and education) are needed to improve the quality of skills available in the workforce. Participatory, accountable governance and a strong non-governmental organization (NGO) community are also important for supporting economic growth.

In FY 1999, Congress reduced the Egypt Economic Support Fund earmark, which had been in place since the signing of the Camp David Accords. USAID is preparing a new strategy to reflect the reduction and to better accommodate the U.S. Egyptian partnership’s objective of moving from an aid-based relationship to a more mature relationship based on trade. The new strategy will likely focus on promoting an open market economy, job creation, human resource capacity building, environment, health and family planning services and accountable governance.

With USAID assistance, the Egyptian Government has privatized 100 state-owned enterprises since 1991. However, attracting foreign and domestic investment for private sector opportunities is still difficult. One approach, learned from the Asian financial crisis, is to strengthen regulation of the nascent securities market. On a more micro level, USAID’s small and micro-enterprise program, through 360,000 loans with a value of almost $300 million, has created approximately 100,000 jobs since 1988 and has improved the lives of many poor Egyptians. In 1998, this program processed 72,000 loans valued at $60 million for nearly 23,000 borrowers. USAID is expanding this program's geographical coverage to increase its impact.

Building the foundation for a modern industrial economy, USAID power and telecommunications infrastructure investments have contributed to developing 40% of the country's total power capacity and improving access of five million Egyptians to reliable international telephone services. USAID has vigorously supported policy and institutional reforms. As a result, the Egyptian Government has begun to privatize power generation. The Egyptian Government has recently contracted with a private sector firm to build and operate a 650-megawatt power station; and has opened electric company divisions to private investment. Most value-added telecommunications services are now in the private sector, i.e., two cellular phone companies, pay phones, internet service providers, and paging.

Agriculture still accounts for almost a quarter of Egypt’s GDP. USAID-assisted agricultural reforms have increased real farm incomes, increased food crop production, increased high-value horticulture crop exports, removed direct state controls and price interventions, privatized agricultural input distribution and sales, and liberalized the cotton sector. This program has significantly improved the lives of many Egyptians who depend on agriculture for a living.

With USAID assistance, Egypt has increased access to sustainable water and wastewater services, reduced air pollution affecting millions of Egyptians, and improved coastal and marine resource management. Water and wastewater infrastructure improvements have benefited almost one in three Egyptians. Institutional reforms and service improvements have strengthened local utilities' capacity to deliver and sustain improved services. To reduce air pollution, USAID assistance will continue to address mobile air pollutant sources in Cairo, develop self-compliance pollution reduction models and encourage environmental policy and institutional reform. Targeted reforms have helped Egypt promote sustainable management of its Red Sea coral reefs.

Girls' access to education remains a constraint to development. Women’s literacy at 36% still compares unfavorably to that of men at 63%. USAID’s program focuses on increasing access to quality primary education, targeting regions where girls' enrollment is lowest. School construction and training for 10,000 teachers and technicians have helped to increase enrollment to 74% for females and 84% for males.

Through USAID assistance, more than 500 Egyptian NGOs have improved their capacities to provide development services and increase local participation. USAID is also addressing policy and technical constraints to NGOs trying to strengthen civil society.

Egypt has made significant progress in family planning. With USAID assistance, the total fertility rate declined from 5.3 children per family in 1980 to 3.3 in 1997. The annual population growth rate dropped from 2.9% to 2.1% since 1988. Also, the improved birth spacing from family planning has reduced infant and maternal mortality. The challenges over the next 10 years are to improve regional and national impact and achieve financial sustainability. USAID’s health program is providing technical assistance to Egypt to diversify and develop both public and private revenue sources, strengthen human resources, and modernize and decentralize management systems.

Egypt's child survival program has successfully prevented more than 80,000 deaths annually over the last 15 years. With USAID help, infant and child mortality rates fell by 41%and 48%, respectively, from 1983 to 1997. More than 90% of Egyptian children are immunized. Due to the widespread use of oral rehydration therapy, diarrhea is no longer the principal cause of child death in Egypt. However, maternal and neonatal mortality is unacceptably high and significant regional disparities exist. The child malnutrition rate has remained constant over the last decade and acute malnutrition is rising. More than two-thirds of the population has no health insurance. Emerging infectious diseases, such as hepatitis C, are pernicious. Non-communicable diseases contribute increasingly to death and disability.

Other Donors

Egypt receives large amounts of bilateral and multilateral aid. In 1996, the donor community provided Egypt $2.2 billion. At least 38 donors work in Egypt, but the United States remains the largest donor with the most comprehensive program. Other major donors include Canada, France, Germany, the Netherlands, the Nordic countries, Japan, the European Union, the World Bank, the United Nations Development Program (UNDP), the Arab Fund, and the African Development Bank. A very active donor assistance group meets monthly to discuss donor coordination and related issues.

FY 2000 Program

USAID requests $715,000,000 economic support funds to support these Agency priorities: $460 million for economic growth and agriculture; $56 million for population and health; $143 million for environment; $12 million for democracy; and $44 million for human capacity development.

EGYPT

FY 2000 PROGRAM SUMMARY
(in thousands of dollars)

Mission Director: Richard M Brown

USAID Strategic & Special Objectives	Economic Growth & Agriculture	Population & Health	Environment	Democracy	Human Capacity Developmnt	Humanitarian Assistance	TOTALS
S.O 1. Accelerated Private Sector-led, Export-oriented Economic Growth -ESF	459,725	---	---	2,000	21,297	---	483,022
S.O. 2, Increased Participation of Girls in Quality Basic Education -ESF	---	---	---	---	16,395	---	16,395
S.O. 3. Increased Citizen Participation in Public Decision- making -ESF	---	---	---	10,000	1,250	---	11,250
S.O. 4. Reduced Fertility -ESF	---	22,000	---	---	1,210	---	23,210
S.O. 5. Sustainable Improvements in the Health of Women and Children -ESF	---	25,000	---	---	2,250	---	27,250
S.O. 6. Increased Access to Sustainable Water and Wastewater Service -ESF	---	9,200	82,800	---	552	---	92,552
S.O. 7 Reduced Generation of Air Pollution -ESF	---	---	44,000	---	487	---	44,487
S.O. 8. Natural Resources Managed for Environmental Sustainability -ESF	---	---	16,000	---	814	---	16,814
SpO. A. Increased Use of Egyptian Universities in Quality, Demand-driven Applied Research -ESF	---	---	---	---	44	---	44
SpO. C. Improved Civil Legal System -ESF	---	---	---	---	21	---	21
Totals - ESF	459,725	56,200	142,800	12,000	44,275	0	715,000

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ACTIVITY DATA SHEET

PROGRAM: EGYPT
TITLE AND NUMBER: Accelerated Private Sector-led, Export-oriented Economic Growth, 263-SO01
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCES: FY 2000: $483,022,000 ESF
INITIAL OBLIGATION: FY 1996 ESTIMATED COMPLETION DATE: FY 2001

Summary: The greatest threat to Egypt's stability and, thus, its leadership in the Middle East is its continued high level of poverty among its people. Increased employment, necessary to reduce poverty, requires accelerated economic growth. This strategic objective's purpose is to double the rate of broad-based economic growth from 2.9% in 1994 to 6% by 2001. Direct beneficiaries include private sector businesses and employees who produce goods and services for export and domestic markets. Other significant beneficiaries are from the country's poorest--the four million small farmers, landless laborers and women who produce and process horticultural and agricultural commodities, and the three million non-agricultural informal sector micro-entrepreneurs.

Key Results: To achieve the purpose, five key results are necessary. One, a policy environment must exist which creates the conditions for the private sector investment climate to change from being "mostly unfree" to "mostly free." Two, agricultural productivity as measured by the value of agricultural production per 1,000 cubic meters of water needs to increase from the equivalent of $117 in 1995 to $138 in 2001. Three, exports must increase by $297 million per year in targeted sectors--fresh and processed agriculture, spinning/weaving, leather products, furniture and software. Four, financial markets need to be strengthened and privatization accelerated. This involves expanding private sector available credit to the equivalent of $38.5 billion per year and increasing the cumulative total value of firms privatized since 1991 to the equivalent of $5.2 billion. Five, access to reliable power and telecommunications services must continue to expand, increasing annual energy sales to the business sector to 4,539 million kilowatt hours and the cumulative number of telephone lines installed for business to 900,000.

Performance and Prospects: Performance has been better than expected, with the real gross domestic product (GDP) growth rate increasing from 2.9% in 1993/94 to 5.0% in 1996/1997.

Sector Policy Reform, a USAID-funded cash transfer program, focuses on the areas of trade, regulation, privatization and the fiscal and financial sectors that are needed to create an open, competitive, market-oriented economy. The program has been controversial due to slow disbursements and Government of Egypt (GOE) concern with the large number of policy benchmarks. However, GOE policy reform performance improved over the past year, leading to large disbursements that significantly reduced the pipeline.

The Agricultural Policy Reform Program emphasizes reforms in five categories important for increasing agricultural sector productivity: prices, markets and trade; private investment and privatization; efficiency of agricultural land and water resources utilization and investment; agricultural support services; and food security. GOE reform performance has continued to meet expectations in these areas and agricultural productivity, as measured by real value per hectare and agricultural revenue per unit of water, has increased by 7.0% and 6.2%, respectively.

Agriculture Technology Utilization and Transfer assists the Egyptian private sector to increase profitability and export earnings from high-value horticulture commodities. Growth Through Globalization activities enhance the competitiveness of Egyptian firms worldwide and increase private sector exports. Overall performance in promoting non-traditional exports has met expectations. Private sector non-petroleum exports rose from $750 million in 1994 to $1.7 billion in 1998.

USAID's commodity import program, privatization activities and small- and micro-enterprises (SME) activities have performed well and a new capital markets activity is off to a good start. Since 1986, the Private Sector Commodity Import Program has stimulated productive investments through financing the importation of approximately $2 billion worth of products from the United States. During 1997 the program financed 713 commercial transactions totaling $205 million. Privatization Support and the new Partnership for Competitiveness finance activities critical to creating a policy environment supportive of privatization and completing sales of state-owned enterprises (SOEs). Since 1991, 68 SOEs have been sold or transferred to employees and 26 have been liquidated. Working through non-governmental organizations, the Small and Emerging Business activity expands access to credit for SMEs. USAID assistance has helped create about 100,000 jobs in Egyptian SMEs since 1988. In 1998, the programs yielded 72,000 loans valued at $60 million made to approximately 23,000 borrowers. The Capital Markets Development project has begun to support the GOE in promoting improved capital market efficiency and transparency.

Power Sector Support II and Telecommunications Sector Support II target policy and institutional reforms and infrastructure development. Amounting to over 40% of the total generating capacity of the county, these and earlier successful USAID programs have financed the installation of over 2,500 megawatts of electricity generating capacity and the rehabilitation of an additional 2,500 megawatts of capacity. Through the telecommunications activities, USAID has helped provide reliable telephone services, including international connections, to over five million Egyptians.

Possible Adjustments to plans: To address implementation issues with the Sector Policy Reform Program, the GOE and USAID will develop a new policy program focusing on fewer reforms.

Other Donor Programs: USAID is the single largest donor in Egypt. Other principal donors include the International Monetary Fund (IMF), the World Bank, the European Union, and the United Nations Development Program. USAID coordinates its policy reform efforts closely with the IMF and World Bank to maximize policy impact. Egypt received nearly one billion dollars in financial assistance from several other donors over the past 10 years, mostly in the form of soft loans and/or supplier credits (e.g., France, Germany, Austria, Japan, Italy and Greece) for telecommunications. The GOE contributes an annual local currency equivalent of between $300 and $400 million.

Principal Contractors, Grantees or Agencies: Nathan Associates works on trade and regulatory reform. Chemonics International, the Center for International Private Enterprise and the International Executive Service Corps work to strengthen private sector market institutions. Barents and the International Business and Technology Consultants, Inc. support privatization. The National Cooperative Business Association, Agricultural Cooperative Development International and Environmental Quality International assist with SME programs. RONCO and the Universities of Florida and California (Davis) support horticulture technology transfer. Development Alternatives International, Abt Associates, the International Food Policy Research Institute, DATEX, the International Resources Group, Winrock International, the Academy for Educational Development, Harza Engineering and the Food and Agricultural Organization support agriculture policy reform. General Electric, Westinghouse Electric, the International Resource Group, Babcock and Wilcox, General Telephone and Electronics, AT&T, and Booz, Allen and Hamilton provide equipment and services for power and telecommunications.

Selected Performance Measures:

	Baseline 1994	Target 2000	Target 2001
Real GDP growth rate	2.9%	5.5%	6.0%
Private Sector share of GDP	61.7%	67.2%	68.2%
Value of private sector non- petroleum exports ($ billions)	0.75	2.2	2.5

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ACTIVITY DATA SHEET

PROGRAM: EGYPT
TITLE AND NUMBER: Increased Participation of Girls in Quality Basic Education, 263-SO02
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCES: FY 2000: $16,395,000 ESF
INITIAL OBLIGATION: FY 1996 ESTIMATED COMPLETION DATE: FY 2003

Summary: Program implementation began in early FY 1997, building on an earlier USAID Basic Education project that constructed almost 2,000 schools. Access to education for girls remains a problem. Only 64% of rural girls attend school and the literacy rate of 36% for women compared to 63% for men clearly shows the disparity between female and male access to education. An estimated 1.6 million school-aged girls are not enrolled. To deal with these problems, the Government of Egypt (GOE) has declared female education to be one of its highest priorities. The purpose of this USAID program is to increase girls' participation in quality basic education.

Key Results: Three key results are necessary to achieve this objective: (1) increased number of classrooms in which constraints to girls' education are removed; (2) increased demand for girls' education; and (3) improved national policy environment.

Performance and Prospects: To achieve these results, USAID is addressing three necessary conditions: (1) appropriate supply of facilities, curriculum and teaching methodologies; (2) an increased demand (awareness of the importance and appreciation of quality) for girls' educational services; and (3) an improved policy environment that supports quality, flexibility and other incentives to girls' attendance.

To date USAID has: (1) provided full scholarships for 4,800 girls over three school years and financial assistance to another 9,845 children (80% for girls); (2) given life skills training to 2,021 adolescents; (3) trained 20 small-school teachers and 100 teacher trainers; (4) started an urban school pilot for disadvantaged areas in Cairo; (5) launched a pilot for preparing the first systematic assessment of the small primary school models in Egypt; and (6) begun production of an Egyptian "Sesame Street" educational television program.

Technical assistance under the strategy is assisting with the reformulation of the primary school curriculum for multi-graded classrooms, emphasizing problem-solving and analytic skills, and training of facilitators/teachers and school administrators.

Finally, because high drop-out rates are attributable to uneducated parents and their children's inadequate school readiness, USAID has provided a grant to the Children's Television Workshop to develop an Egyptian version of the "Sesame Street" educational television program. An Egyptian consultative committee has defined special educational objectives (importance of education for girls, health and environmental awareness, and tolerance) for the series. An Egyptian production partner has created three Egyptian puppet characters, designed the set, and will soon begin production of episodes for an initial season beginning in late 1999.

Possible Adjustments to Plans: USAID is amending its community school strategy somewhat to match solutions better to local needs. These solutions may include: construction of appropriately sized new schools; teacher training; and community mobilization in support of girls' education.

Other Donor Programs: Donor coordination in education is strong, with monthly donor meetings to discuss programs and priorities. USAID is the third largest donor in basic education. The World Bank and the European Union have initiated a complementary $200 million Basic Education program including teacher training and educational technology and selected activities to increase access to primary schools. The World Bank, the German Bank for Reconstruction and Development and the multi-donor supported Social Fund are financing school construction. Canada and United Nations Children’s Fund (UNICEF) are collaborating on an innovative community school program in geographic regions complementary to USAID's. The GOE contribution approximates $3.5 million annually to complement USAID activities.

Principal Contractors, Grantees or Agencies: Save the Children (girls' scholarships); Center for Development and Population Activities (adolescent life skills activities); Plan International (urban school pilot); Academy for Educational Development (curriculum and teacher training); and Children's Television Workshop (Egyptian "Sesame Street").

Selected Performance Measures:

	Baseline	Targets (2000)	Target (2003)
Percentage of girls (aged 6-10) in rural Upper Egypt enrolled in school	54 (1996)	69	75
Girls receiving quality basic education through USAID interventions	0 (1997)	225,000	300,000
Girls receiving literacy and life skills training	0 (1997)	40,000	55,000
Pre-school children better prepared for school by Egyptian "Sesame Street"	0 (1998)	1,500,000	4,000,000

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ACTIVITY DATA SHEET

PROGRAM: EGYPT
TITLE AND NUMBER: Increased Citizen Participation in Public Decision-making, 263-SO03
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCES: FY 2000: $11,250,000 ESF
INITIAL OBLIGATION: FY 1996 ESTIMATED COMPLETION DATE: FY 2004

Summary: To sustain Egypt's economic development it is important to increase the Government of Egypt's (GOE) responsiveness to public needs and priorities. The purpose of this SO is to increase citizen participation in the formal decision-making process by increasing the effectiveness of civil society organizations (CSOs). USAID-supported technical assistance, training and sub-grants will reach local CSOs that represent millions of citizens. Grants to CSOs have already reached over 35,000 direct beneficiaries, 48% of whom are females.

Key Results: USAID has identified three key results that are important to achieve this objective: (1) increased CSO participation in public decision making: the number of CSO actions designed to increase public participation needs to increase; (2) reduced restrictions on CSOs: CSOs and donors need to agree on a common agenda for reform of the GOE Law 32 that governs CSO actions; and (3) incremental devolution of authorities to the local level: procedures to ensure devolution of authority need to be adopted and long-term mechanisms for financing rural development need to be accepted by the GOE and used by local village entities.

Performance and Prospects: Achievements to date have been mixed. USAID successfully increased the capabilities of CSOs and, with other donors, made progress towards the reform of Law 32. However, the USAID-assisted GOE program to devolve authorities to local committees did not meet important policy reform benchmarks.

To increase CSO participation in public decision-making, the Private Voluntary Organization (PVO) Development and the new Non-governmental Organization (NGO) Service Center programs provide support to strengthen CSO capabilities and finance CSO activities. The PVO Development activity was amended in FY 1998 to increase grants to U.S. PVOs and Egyptian CSOs to implement initiatives with a greater focus on advocacy in their sectors, including credit and micro-enterprise, community development, environment, health and population. The new NGO Service Center activity focuses on groups with interests in advocacy. The GOE, CSOs and USAID have agreed to address these objectives through grants to U.S. PVOs and Egyptian CSOs: (1) improve the capacity of Egyptian CSOs to network with one another and with government agencies at the local, regional and central levels; and (2) provide operational support and grants for activities that contribute to citizen involvement in public decision-making. The PVO Development amendment resulted in 22 new advocacy-related activity grant awards for a total of $3.6 million to 10 U.S. PVOs and 31 Egyptian PVOs. In addition, 539 Egyptian PVOs benefited indirectly as counterpart agencies to U.S. and Egyptian PVOs receiving direct grants and 62 Egyptian PVOs received training and technical assistance to improve their planning and management capabilities.

USAID, with other donors, succeeded in encouraging wider dialogue between the GOE and CSOs on the reform of the restrictive Law 32. New GOE leadership has opened the process and involved CSOs directly in drafting the new law.

Policy reform benchmarks necessary to empower local authorities were not met under the Participatory Rural Governance Program and a planned $10 million cash transfer was not disbursed. This program terminated at the end of 1998 and will not be renewed.

Possible Adjustments to plans: USAID is considering alternative approaches to encourage decentralized governance under its new transition strategy.

Other Donor Programs: USAID is the lead donor in this area. Multilateral donors include UNICEF, UNFPA, the European Union, and the World Bank. An Egyptian/Swiss Development Fund supports employment generation and environmental and social services projects. Other donors working in rural participation activities include the United Nations Development Program, the World Health Organization, the Netherlands, Canada, Britain, Italy, Denmark and Switzerland. Under the PVO Development activity, PVOs contribute at least 25% of costs from their own funds or from GOE contributions, private contributions or other bilateral and multilateral donors.

Principal Contractors, Grantees, or Agencies: USAID implements activities through the National Council of Negro Women, a U.S. PVO. Two firms, Management Systems International and Development Associates, assisted in the implementation of the policy reform program.

Selected Performance Measures:

	Baseline (1998)	Target (2000)	Target (2004)
Significant, well-planned actions taken by CSOs to influence public decision-making -- e.g., public information and education campaigns, media events, community awareness programs.	14	30	350

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ACTIVITY DATA SHEET

PROGRAM: EGYPT
TITLE AND NUMBER: Reduced Fertility, 263-SO04
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCES: FY 2000: $23,210,000 ESF
INITIAL OBLIGATION: FY 1996 ESTIMATED COMPLETION DATE: FY 2001

Summary: The purpose of this program is to reduce the total fertility rate from 3.9 in 1992 to 3.01 in 2001 in support of the Government of Egypt (GOE) goal of reaching replacement fertility by the year 2015. Egypt has made substantial progress in its reproductive health and family planning services with USAID technical and financial assistance. Contraceptive prevalence was 54% in 1997, up from 48% in the early 1990s and double the 1980 rate. Improvements in the quality of service reduced the extended-use failure rate from 10% in 1992 to 7% in 1997. The total fertility rate declined from 5.2 children per family in 1980 to 3.3 in 1997, and the population growth rate has decreased from 2.9% per year to 2.1% over the past ten years. Improved birth spacing resulting from the family planning achievements has also helped reduce infant and child mortality.

To achieve this objective, USAID assistance will help increase the national impact of the Egyptian population program, consolidate national institutions, and improve financial sustainability. Program leadership and human resources need to be strengthened and management systems need to be modernized and decentralized. The national program also needs to become more financially sustainable by developing strong, predictable revenues from public and private sources. USAID estimates these objectives can be achieved in 10 years.

Key Results: Two key results are necessary to achieve this objective: (1) increased use of family planning services: the contraceptive prevalence rate should increase to 58% by 2001; and (2) strengthened sustainability of family planning systems: the GOE contribution as a percentage of the total budget of the Egyptian family planning program should increase to 48% by 2001.

Performance and Prospects: The USAID population program is meeting its objectives. Total fertility rates have declined from 3.6 live births per woman in 1995 to 3.3 births per woman in 1997, and contraceptive prevalence (the percentage of married women of reproductive age currently using contraception) reached 54% in 1997, up from 48% in 1995. Institutional capacity for management and service provision in both the public and the non-governmental and commercial private sectors has grown significantly through USAID assistance, establishing a solid foundation for program sustainability. Information activities have produced near universal awareness and approval of family planning among married women of reproductive age. The policy environment strongly supports voluntary family planning and fertility reduction.

USAID activities are successfully meeting, or exceeding, projections for quality family planning and reproductive health service provision throughout Egypt. The next phase will put more emphasis on assisting the population/family planning/reproductive health sector in strengthening sectoral strategies and sustainable management systems. USAID will focus on health and population policy reforms that provide a more attractive environment for private sector participation, as well as implement strategic interventions. This will enhance institutional capacity and sustainability, improve the performance of health care systems and ensure financial self-sufficiency. More emphasis will be given to human resource development to strengthen middle and upper level management skills throughout the system.

The program concentrates on achieving Egyptian program self-sufficiency by reducing external technical assistance, phasing out USAID-donated contraceptives and promoting sustainable commercial services. Another emphasis is increasing the quality of care provided to Egyptian families by upgrading facilities, improving counseling and community outreach, and expanding the mix of contraceptives and range of service providers available to clients.

Possible Adjustments to Plans: Non anticipated at this time.

Other Donor Programs: USAID is considered the lead donor in population/family planning. Among other donors, the United Nations Fund for Population Activities is also an important supporter of the Egyptian program, followed by the International Planned Parenthood Federation. The World Bank provides a loan in the population sector, principally for non-governmental organization demand-generating activities. The Netherlands and German Governments and the European Union provide limited assistance. Donors meet periodically in a working group on population and effectively coordinate their activities. The GOE contributed approximately 24% of project costs for the terminating Population/Family Planning III Project in cash and in-kind, including salaries and benefits, travel and other costs for participant training, and air time for television and radio.

Principal Contractors, Grantees or Agencies: The new contractor, expected to be engaged by February 1999, will provide a range of technical and management support to GOE implementing agencies.

Selected Performance Measures:

	Baseline (1992)	Target (2000)	Target (2001)
Total Fertility Rate	3.90	3.09	3.01
Contraceptive Prevalence Rate	47.00	57.8	58.90
GOE contribution as a % of total budget of the Egyptian family planning program	39.72%	47.00%	48.00%

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ACTIVITY DATA SHEET

PROGRAM: EGYPT
TITLE AND NUMBER: Sustainable Improvements in the Health of Women and Children, 263-SO05
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCES: FY 2000 $27,205,000 ESF
INITIAL OBLIGATION: FY 1996 ESTIMATED COMPLETION DATE: FY 2001

Summary: Egypt has made impressive gains in health with USAID assistance. USAID-funded health and population programs have decreased morbidity and mortality nationwide. For example, infant and under-five child mortality rates declined by 45% and 53%, respectively, from 1983 to 1995. The child survival program has been successful in improving the health of young children, preventing more than 80,000 child deaths annually. The immunization program has maintained average child immunization coverage rates above 90%. Diarrhea is no longer the principal cause of child deaths in Egypt because of widespread knowledge and use of oral rehydration therapy. These are impressive strides but important challenges remain.

Maternal and neonatal mortality are still unacceptably high, 174 per 100,000 and 29 per 1,000, respectively, and antenatal care coverage is poor. Emerging infectious diseases are not well controlled -- e.g., Egypt has the highest known prevalence of hepatitis C worldwide. Non-communicable diseases are responsible for a growing proportion of death and disability and are driving up health care costs. Finally, improvements in the Egyptian health care system are needed to sustain achievements.

Regional disparities between Upper and Lower Egypt and rural and urban areas exacerbate health sector problems. For example, infant mortality ranges from 28 per 1,000 in major urban areas to 95 per 1,000 in rural Upper Egypt and maternal mortality ratios are 132 per 100,000 in Lower Egypt versus 217 per 100,000 in Upper Egypt. Similar disparities exist in nutritional status. Chronic malnutrition of children has not declined over the last decade and acute malnutrition has worsened. Inequities also exist in service coverage among regions, and more than two-thirds of the population, primarily in the most vulnerable groups, is not covered by health insurance.

To help Egypt overcome these problems, USAID assistance aims to improve the quality and availability of child and reproductive health services, control emerging infectious diseases and ensure the sustainability of improved systems through health sector policy reform.

Key Results: Three key results are necessary to achieve the program objective: (1) improved quality and increased utilization of maternal, perinatal and child health services; (2) new tools and approaches to combat selected endemic and emerging diseases developed and disseminated; and (3) improved environment to plan, manage and finance sustained maternal and child health systems.

Performance and Prospects: USAID child survival programs continue to help Egypt reduce the infant mortality rate and the under-five child mortality rate. Efforts to eradicate polio by 2000 have reduced reported confirmed cases from 584 in 1992 to nine in 1997. Reported cases of tetanus among newborns dropped from 1,823 in 1992 to 380 in 1997. Applied research has helped reduce the prevalence of schistosomiasis from 40% to 10% in rural Egypt. However, child survival gains cannot be sustained without a national policy environment that prioritizes resources for these programs.

The Health Policy Support Program aims to enhance the capacity of the Ministry of Health and Population to plan, manage, finance and monitor health services. The World Bank, the European Union and Denmark have joined this collaborative effort. As a result, the ministry has now embarked upon a comprehensive health sector policy reform program.

Targeted to high-risk areas of Upper Egypt, the Healthy Mother/Healthy Child activity is developing a basic package of essential reproductive care and child health services, including activities to prevent female genital mutilation. As the primary providers of health for themselves and their families, mothers are the focus of efforts to increase knowledge and improve health behavior in vulnerable households. Strengthening the curricula in medical and nursing schools, combined with practical pre-service training, will further improve the quality of essential child and reproductive health care. Ensuring that safe delivery care is available to all is the top priority and will save the lives of hundreds of mothers and newborns each year.

USAID also supports research to combat emerging diseases, such as hepatitis C, and to prevent the re-emergence of schistosomiasis, as well as activities to keep HIV/AIDS prevalence low throughout Egypt.

Possible Adjustments to Plans: None anticipated at this time.

Other Donor Programs: Fourteen other donors support health activities in Egypt, at an average $22 million annually. USAID is currently the largest donor for health programs although both the World Bank and the European Union began major health sector programs in 1998. The Egyptian Government contribution to USAID activities approximates $119.2 million in cash, salaries and operational expenses. Donor cooperation is effective in support of the national health reform program and primary health care.

Principal Contractors, Grantees, or Agencies: U.S. implementing organizations include John Snow Inc., Maximus, Abt Associates, the U.S. Centers for Disease Control and Prevention, PATH, and Wellstart International. UNICEF is also an implementing agency. Grants are planned to U.S. PVOs to promote Egyptian non-governmental organization involvement in community health.

Selected Performance Measures:

	Baseline	Target (2000)	Target (2001)
Infant mortality rate	97.4 (1985)	49	48
Under-five child mortality rate	130.1 (1985)	62	60
Maternal mortality ratio1	74.0 (1992)	NA	146

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ACTIVITY DATA SHEET

PROGRAM: EGYPT
TITLE AND NUMBER: Increased Access to Sustainable Water and Wastewater Services, 263-SO06
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCES: FY 2000: $92,552,000 ESF
INITIAL OBLIGATION: FY 1996 ESTIMATED COMPLETION DATE: FY 2004

Summary: Significant progress has been made in increasing urban access to piped water (90%) and wastewater services (56%). Sewerage networks have expanded to serve about 50% of urban areas. Yet, sanitation services in small towns and rural areas remain inadequate, serving only approximately 5% of the rural population. There also is a 54% gap between the percentage of population with access to safe water and to sanitary drainage facilities. The Egyptian Government's ability to raise financial resources to meet demand is now critical; only one dollar of each five required is available from the central government budget. Nor does the government have the resources to assure that funds will be available to continue operating and maintaining systems as planned, as well as finance expansion to meet current unmet demand and keep pace with urban growth. Thus, USAID assistance since 1996 has focused on expanding sustainable water and wastewater services in urban centers of economic growth where the maximum number of people can benefit. The purpose is twofold: to increase Egyptians' access to improved and sustainable potable water from 22.3 million Egyptians in 1995 to 23.1 million in 2004 and to increase access to wastewater services in selected urban areas from 18.6 million in 1995 to 21.1 million by 2004. The direct beneficiaries will be the additional 2.5 million Egyptians connected to improved sewerage systems and the one-half million with access to improved water supplies.

Key Results: Three key intermediate results are necessary to achieve sustainability in expanding water and wastewater delivery in Egypt: (1) improved sustainability for selected water and wastewater utilities through the coverage of full operations and maintenance costs by generated revenues; (2) improved decentralized utility management, measured by the increases in independent decision-making on personnel policy, budget and revenue retention; and (3) improved capacity to deliver utility services through improved systems and qualified staff. USAID assistance is supporting a shift away from central government responsibility for planning, constructing, and financing basic services towards local utility autonomy and responsibility for operating on a commercial basis responsive to consumer needs.

Performance and Prospects: Over the past 20 years, USAID has provided approximately $2.7 billion for the water and wastewater sectors, resulting in new or enhanced water and wastewater services for about one in three Egyptians. Steady progress continued over the past year, expanded service coverage, improved operations and maintenance, and increased cost recovery. By 1998, completed investments achieved the following results: (1) two million residents in several poor Cairo neighborhoods have been connected to sewage collection lines, and the overall system has benefited from numerous new or rehabilitated wastewater pumping stations and treatment plants; (2) wastewater conveyance and treatment for more than three million people in Alexandria is being provided by two new treatment plants; (3) more than one million residents of Suez, Ismailia, and Port Said are connected to new wastewater treatment plants; (4) three water treatment plants in Fayoum, Beni Suef and Minia now provide improved water supplies and pressure to more than 700,000 residents; and (5) three major potable water reservoirs began operations in Cairo, providing improved water supplies and pressure to three million people. Targeted utilities have improved their revenue collections by 200% through improved metering and billing systems, stricter fiscal controls and improved accounting procedures. Progress on achieving utility autonomy was more modest, with the greatest gains in smaller urban centers and with the Cairo water authority and the Alexandria wastewater authority.

Possible Adjustments to Plans: None anticipated at this time.

Other Donor Programs: USAID remains by far the largest donor in the sector. Other donors include the European Union, Great Britain and Italy in Cairo; Denmark in Aswan and Qena Governorates; and the Netherlands in Fayoum. Cooperation with other donors is excellent, but particularly with the programs in the Aswan and Fayoum Governorates in Upper Egypt where other donors provide institutional strengthening support complementing USAID activities. USAID also implements activities in close cooperation with numerous Egyptian agencies, including nine economic utility organizations, 12 governorates and the Ministry of Housing and Public Utilities. The Egyptian Government is expected to contribute more than $500 million in cash and in kind to complement USAID investments in this sector. The bulk of the support is for construction and engineering costs.

Principal Contractors, Grantees or Agencies: USAID implements the program through eight major U.S. firms: ABB Susa, Morrison-Knudsen Co., Black & Veatch International, Camp Dresser & McKee, CH2M-Hill, Harza Engineering Co., Metcalf & Eddy Inc. and Chemonics. Subcontracts with other U.S. firms and private-sector Egyptian firms help strengthen services delivery and improve the Egyptian management, design and construction supervision capabilities in the sector.

Selected Performance Measures:

	Baseline (1995)	Target (2000)	Target (2004)
Estimated population connected to improved sewerage systems (in millions)	18.6	19.5	21.1
Estimated population with access to improved water supply (in millions)	22.6	22.8	23.1

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ACTIVITY DATA SHEET

PROGRAM: EGYPT
TITLE AND NUMBER: Reduced Generation of Air Pollution, 263-SO07
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCES: FY 2000: $44,487,000 ESF
INITIAL OBLIGATION: FY 1996 ESTIMATED COMPLETION DATE: FY 2002

Summary: Limited data show that levels of particulate, sulfur dioxide, nitrogen dioxide, and lead in urban and industrial areas in Egypt (especially Greater Cairo and Alexandria) generally exceed international ambient standards. Industrial pollution is the central threat to Egypt's urban environment, and fossil fuel combustion is a primary contributor to air pollution problems. Open burning of trash contributes to high levels of particulate matter in the air, and inadequate collection of solid waste is often reported by Egyptians to be the primary environmental concern. Serious health problems resulting from air pollution include respiratory illnesses, birth defects, neurological damage and blood lead poisoning.

Collaborating with the Egyptian Government, USAID has implemented activities related to air pollution reduction for several years. USAID assistance has helped improve energy use efficiency and encouraged widespread pollution prevention in industry, including the introduction of a model of industrial self-compliance in one large industrial city. USAID assistance aims to achieve a sustainable reduction in the generation of air pollution through policy, regulatory and institutional reform, supported by successful pilot activities and new technology applications. Pollutants targeted include airborne lead, total suspended particulates, carbon monoxide, nitrogen oxide, and sulfur oxide. Improved environmental management is helping to enhance the health of Egyptians, especially urban dwellers. Individuals most vulnerable to the negative health effects of air pollution, such as the very old and very young, women, asthmatics and those with unusual occupational exposure, will enjoy special benefits. Egyptians in general stand to gain long-term economic, social and health benefits from the reduced generation of air pollution.

Key Results: Three key results are important to achieve this objective: (1) cleaner and more efficient energy use through increased fuel efficiency, accelerated use of natural gas in place of oil, and greater use of cleaner fuels; (2) reduced industrial pollution through increased industrial compliance with applicable pollution regulations; and (3) improved solid waste management through the development of a comprehensive and sustainable nationwide municipal solid waste management policy framework, with national guidelines and local, private sector-led implementation.

Performance and Prospects: USAID assistance focuses on reducing airborne lead and particulates through the introduction of new technologies, public awareness campaigns and technical training. The Cairo Air Improvement Project directly addresses air pollution issues by demonstrating technologically and economically viable environmental solutions. Activities include the introduction of compressed natural gas (CNG) fuel technology for Cairo's municipal bus fleet; implementation of a lead smelter action plan to reduce lead emissions; a city-wide vehicle tune-up, emission inspection and certification program; air quality monitoring and analysis; public awareness and communications campaigns; and dialogue on other urban air pollution problems. The five CNG-fueled buses have arrived in Egypt and are being used to demonstrate this alternate fuel technology, the vehicle emissions and testing program has been launched, and the air quality monitoring and analysis system is operating. A major smelter is being relocated outside of central Cairo where it will operate with state-of-the-art emission reduction technology. Assistance is also being provided to upgrade the technologies and emission controls of smaller operations.

The Egypt Environmental Policy Program encourages and supports jointly agreed-to policy and institutional reforms aimed at removing obstacles to sound environmental management. This effort builds on USAID past experience in areas such as energy efficiency, industrial pollution, public awareness, private sector and non-governmental organizational cooperation and environmentally sustainable tourism. It reflects the increasing commitment and capability of the Egyptian Government to undertake needed and difficult reforms. The program supports a combination of policy reform initiatives, technical support, institutional strengthening, selected pilot activities and a comprehensive public awareness program to inform and motivate stakeholder target audiences and customers to support environmental reform.

The U.S.-Egyptian Partnership for Economic Growth and Development serves as a forum for the setting of jointly agreed-to Egyptian Government and USAID environmental agenda. The April 1998 meeting of the Partnership's subcommittee on the environment resulted in agreement to focus efforts on global climate change, public-private partnerships for compliance with the new Egyptian environment law, a strategy for increasing the level of investment in the environment sector, and improved air quality in Cairo.

Possible Adjustments to Plans: None anticipated at this time.

Other Donor Programs: USAID is the largest donor focusing on reducing air pollution and gives high priority to donor coordination in the sector. A sector donor group meets regularly to discuss activities and approaches to environmental problems. Other donors include: Finland, Denmark, Canada, the European Union (EU), France, Germany, Japan, UNDP, the World Bank and Great Britain. Selected other donor initiatives complementing the achievement of USAID air pollution objectives include: UNDP's new energy efficiency program of UNDP, the EU's regional solid waste landfill activities, Denmark's environmental finance and environmental quality monitoring activities, Great Britain's pollution prevention and regional environmental management devolution efforts, and Canada's industrial pollution and government capacity building project. USAID also enjoys a collaborative relationship with several Egyptian ministries involved in the environment and with regional governorates. The Egyptian Government provides more than $75 million in cash and in kind in support of environmental activities, including facilities, equipment, and staff.

Principal Contractors, Grantees, or Agencies: USAID presently implements this activity using: Chemonics International, and the International Resources Group, Inc.

Selected Performance Measures:

	Baseline (1997)	Target (2000)	Target (2002)
Pollutants reduced (in tons):
Lead	519	1497	1,594
Particulate Matter	256,000	891,000	1,060,000
Carbon Monoxide	44,962	443,778	739,674
Sulfur Oxides	44,472	378,223	669,726
Nitrogen Oxides	36,681	308,460	571,535

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ACTIVITY DATA SHEET

PROGRAM: EGYPT
TITLE AND NUMBER: Natural Resources Managed for Environmental Sustainability, 263-SO08
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCES: FY 2000: $16,814,000 ESF
INITIAL OBLIGATION: FY 1998 ESTIMATED COMPLETION DATE: FY 2002

Summary: Egypt has one of the fastest growing tourism industries in the world, based largely upon two key assets: its rich cultural heritage and the spectacular coral reefs of the Red Sea and the Gulf of Aqaba. However, rapid tourism growth contributes to uncontrolled, accelerated development along the Red Sea coast and to increased diving and fishing that threaten the extensive coastal reef ecosystem. The purpose of the strategic objective is to foster sustainable management of coastal and marine resources by addressing the policy and institutional weaknesses that allow uncontrolled, non-sustainable tourism growth to threaten the natural resources base. The Egyptian public and private sectors stand to gain long-term economic benefits from sustainable tourism development.

Key Results: Measurable stabilization and improvement of the condition of the reefs and coastal habitats hinge upon an expanded and fully operational Red Sea Marine Park, better management and construction practices in the tourism sector, public and private sector adoption of improved technologies, institutional development for government agencies charged with environmental management, and strengthened non-governmental organizations, supported by growing public awareness.

Performance and Prospects: In collaboration with the Egyptian Environmental Affairs Agency and the Tourism Development Authority (TDA), USAID has supported a pilot program to help preserve and protect the natural and cultural environment along the Red Sea coast through promoting environmentally appropriate tourism activities. Key accomplishments are: (1) the development and implementation of the environmentally sustainable tourism strategy for the Red Sea coast; (2) development of a management plan for the Red Sea Marine Park; (3) installation and maintenance of 400 mooring buoys in the new Marine Park Protectorates area; (4) implementation and dissemination of best practices guidelines for hotel facility construction and management on the coast; and (5) training for the newly established ranger corps, as well as boat crews and captains. In 1998 the general health of 70% of the Red Sea coral reefs currently visited by tourists either showed no further degradation or improved as a result of the ongoing mooring buoy installation program and very active management by Red Sea Marine Park ranger staff trained under the pilot program. Five islands in the Red Sea, previously closed to tourism, are again open and mooring buoys are in place. In addition, TDA has initiated a program requiring all tourism investors to complete environmental impact assessments for their facilities.

Based on the successful pilot, USAID initiated the Egyptian Environmental Policy Program which helps Egypt implement reforms to promote sustainable management of Red Sea coast resources. The program encourages nationwide policy reform and provides technical assistance to help achieve sustainable tourism development along the Red Sea coast. The assistance addresses: cross-cutting policy issues that constrain effective environmental management; policies that adequately protect Red Sea coral reefs and islands and critical coastal zones; the establishment and implementation of the Red Sea Islands National Park management plan; sound development of Red Sea properties; improved environmental analysis and management capacity for selected Egyptian Government institutions; management training for the tourism sector; and policy reforms to allow national park to raise and retain revenues for site maintenance and operation. USAID funds also support activities to strengthen linkages among non-governmental organizations and the public and private sectors.

Possible Adjustments to Plans: None anticipated at this time.

Other Donor Programs: USAID collaborates closely with the European Union (EU) to replicate in the Red Sea and coastal areas the EU-funded marine park system developed for the Gulf of Aqaba. The Egyptian Government is contributing staff (park rangers), salaries, housing, basic training and operational expenses for the new marine park system.

Principal Contractors, Grantees, or Agencies: The International Resources Group Inc. provides technical support for the activities.

Selected Performance Measures:

	Baseline (1997)	Target (2000)	Target (2002)
Percentage of sites where Coral Reef Index does not degenerate		90%	90%
Percentage of sites where environmental safeguards are undertaken to eliminate coastal alteration practices which threaten reefs and mangroves	5%	40%	80%
Revenues collected from Egypt's marine parks and allocated to fund in full park operations and maintenance costs	5%	50%	100%

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ACTIVITY DATA SHEET

PROGRAM: EGYPT
TITLE AND NUMBER: Increased Use of Egyptian Universities in Quality, Demand-driven Applied Research, 263-SpO A
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCES: FY 2000: $44,000 ESF
INITIAL OBLIGATION: FY 1996 ESTIMATED COMPLETION DATE: FY 2001

Summary: The valuable resources of Egyptian universities are not properly utilized in the solution of Egyptian development problems due to the absence of a relationship between applied research end-users and the universities. The purpose of this effort is to improve and increase the utilization of Egyptian universities in solving key developmental and technological problems, through joint, demand-driven applied research activities with counterparts from U.S. universities. The beneficiaries are the different end-users whose problems will be addressed by funded applied research activities. These include ultimate beneficiaries such as individuals in a health or education research activity or intermediate beneficiaries, who disseminate the results and recommendations of research. Secondary beneficiaries include the implementing agency of the grant system whose capacity to implement a research grant system will be enhanced. The Egyptian researchers participating in applied research are also secondary beneficiaries, as their research capacity will be enhanced through joint applied research activities.

Key Results: The key results that are necessary to achieve this objective are: (1) increased end-user demand for university research services: 50% of the research grants need to be implemented with significant end-user cost sharing; (2) strengthened/expanded cooperative relationships between Egyptian and U.S. universities and Egyptian end-users, especially from the private sector: 75% of research grants need to be judged to have met high quality standards; and (3) Egyptian development problems solved by Egyptian university researchers: 25% of grants need to have an internal rate of return exceeding 30%.

Performance and Prospects: An external assessment of the predecessor phase indicated the project has responded to end-users' needs and has also resulted in new respect for, and confidence in, the ability of Egyptian university scholars to solve "real world" end-user problems.

The project strengthens and institutionalizes the process of utilizing university researchers and encourages long-term relationships between participating Egyptian and U.S. universities. It also develops and sustains a strong relationship between Egyptian universities and end-users by a demand-driven research process, actively involving these end-users in each stage of the applied research process. The project emphasizes assistance to private sector end-users and solving problems related to private sector growth and development.

USAID provides technical assistance in project and financial management, technical assistance from U.S. universities to help Egyptian counterpart universities with the design and conduct of applied research addressing Egyptian end-user problems in various sectors and procurement of needed laboratory equipment. Achievements to date include the establishment of a project and financial management system for operating the grants system and the award of 48 linkage grants funded at $ 7.9 million to nine Egyptian universities and 35 U.S. universities. Seventeen of these grants are with nine historically black colleges and universities.

Possible Adjustments to Plans: None anticipated at this time.

Other Donor Programs: No other foreign or international donors are involved in this area. The Government of Egypt (GOE) and Egyptian end-users benefiting from the research are contributing an average of 40% of the local currency costs of the activity.

Principal Contractors, Grantees or Agencies: The main contractor providing technical assistance is Mendez-England and Associates, which provides assistance in financial and project management to the principal implementing agency and the Foreign Relations Coordination Unit of the Egyptian Supreme Council of Universities. The grantees are the Egyptian and U.S. universities receiving applied research grants. One third of the grants are devoted to linkages with historically black colleges and universities.

Selected Performance Measures:

While most indicators below measure success of research activities and will be measurable only after these grants are implemented in 1999 and 2000, an assessment of work in progress will be conducted in early 1999. If necessary, the targets will be modified when baseline data is available.

	Baseline	Targets
		(1999)	(2000)
Full Grants		60	75
Number of successful research projects undertaken to solve Egyptian development problems.	N/A	75% of a sample of funded research grants judged successful by external expert evaluation panel (based on evaluation criteria)	50%
Number of implemented research grants with significant end-user cost sharing.	N/A	50% of a sample of implemented research grants meet cost-sharing requirements	50%
Number of high quality research products: full proposals (technically and economically feasible), adequate research designs and research findings and recommendations collaboratively produced by tripartite linkages.	N/A	Research products of 75% of a sample of implemented linkage grants are judged to be of high quality by expert evaluation team	75%
Economic benefits accruing to end-users implementing research findings and recommendations. Increases in efficiency, productivity, cost savings.	N/A	25% of a sample of funded/completed grants exhibit significant internal rates of return on USAID investment in the research grant of 30% or more	25%

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ACTIVITY DATA SHEET

PROGRAM: EGYPT
TITLE AND NUMBER: Improved Civil Legal System, 263-SpO C
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCES: FY 2000: $21,000 ESF
INITIAL OBLIGATION: FY 1996 ESTIMATED COMPLETION DATE: FY 2001

Summary: The Egyptian judicial system is unable to be fully supportive of the expanding private sector because delivery of justice is slow and judicial personnel are not fully briefed on new laws and regulations affecting the private sector. The system is unable to provide efficient legal services to support private sector-led economic growth. It is set up to serve a centrally planned socialist economy and is burdened with delays and backlogs, making it susceptible to corruption. Litigation costs are unreasonably high, and commercial users neither have fair access nor extensive confidence in system quality. This objective aims to improve the civil/commercial legal system by improving the efficiency of two pilot court systems and providing training to help judges become more knowledgeable of Egyptian civil law. Direct beneficiaries are staff of the two pilot court systems and the approximately 3,000 judges who receive training under this activity. Indirect beneficiaries are the overall civil/commercial legal system as lessons learned in the pilot courts are adopted more broadly. Ultimately, the general public and businesses can benefit from improved rule of law in Egypt.

Key Results: The two key results important for achieving this objective are: (1) improved efficiency of two pilot court systems: case processing time needs to be reduced by 40%; and (2) judges more knowledgeable of Egyptian Civil Law: tested knowledge needs to improve by at least 15%.

Performance and Prospects: After a slow start-up, the activity is now making good progress and direct feedback from judges confirms the significance and effectiveness of the training courses and study tours that have been conducted.

Planned activities under the Administration of Justice Support project include: implementation of streamlined administrative procedures and modern, automated case-flow management system; installation of computerized legal information and case processing system; and provision of modern judicial training programs. Achievements to date include: approximately 500 judges, judicial trainers and court administrators received training in modern legal trends and use of computers; equipment for the automated typing pool court has been delivered and installed; computer literacy lab has been delivered and installed at the National Center for Judicial Studies (NCJS); four commercial code training programs involving more than 100 judges have been implemented; five administrative and management courses were offered; a case bank has been organized with hundreds of cases stored for training purposes; an office automation system has been installed at the NCJS; advanced training programs system benefiting 20 judicial trainers and 50 employees have occurred; reengineered court management systems have been developed and are being implemented for archives, case initiation, case-flow management, organization and training; and 75 computers equipped with legal research software have been delivered for civil judge use.

Possible Adjustments to Plans: The activity may be extended by nine months to compensate for a slower than planned start-up.

Other Donor Programs: USAID is currently the only donor working in this area. The Egyptian Government contributes approximately $780,000 in local currency to fund training, technical assistance and commodities to complement USAID funding.

Principal Contractors, Grantees or Agencies: USAID implements activities through America-Mideast Educational and Training Services, Inc., a U.S. PVO, and the U.S. Information Agency.

Selected Performance Measures:

	Baseline (1997)	Target (2000)	Target (2001)
Documented pilot court system tested and accepted for replication by the Ministry of Justice.	0	0	2
Measurable improvement in lawyers' perceptions toward court operations from less favorable to more favorable.	43%	55%	60%

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