Analysis for European Neighbourhood Policy (ENP) Countries and the Russian Federation on social and economic benefits of enhanced environmental protection Egypt COUNTRY REPORT Samuela Bassi Institute for European Environmental Policy (IEEP) October 2011 www.environment-benefits.eu 2 Citation and disclaimer This report should be quoted as follows: Bassi, S. and Nada, E. 2011. Analysis for European Neighbourhood Policy (ENP) Countries and the Russian Federation on social and economic benefits of enhanced environmental protection - Arab Republic of Egypt Country Report. Contributing authors: Hunt, A (Metroeconomica): Chapters 3.2 Benefits from improved ambient air quality. Larsen, B: Chapters 4.2 Benefits from improved drinking water, sanitation and hygiene, 6.5 Benefits from reducing cropland degradation. Lago, M (Ecologic Institute): Chapter 4.4 Benefits from improving surface water quality. Spurgeon, J (ERM): Chapter 4.5 Benefits from reducing water resource scarcity. Van Acoleyen, M (Arcadis Belgium): Chapters 5.2 Benefits from improving the waste collection coverage, 5.3 Benefits from improving waste treatment and 5.4 Benefits from reducing methane emissions from waste. Ten Brink, P (IEEP): Chapter 6.3 Benefits from forests and reducing deforestation. Acknowledgements: the authors would like to thank the Egyptian civil servants and stakeholders who contributed to this report with their valuable insights during the study mission to Egypt in July 2010, namely: Dr. Emad Adly (General Coordinator – RAED, National Coordinator SGP/GEF), Dr. Wafaa M. Amer (Professor of Botany, Faculty of Science, Cairo University), Mr. Samer El-Mofty (Ex. Secretary General – Desert Research Center), Dr. Diaa El-Quosi (Senior Advisor Ministry of Water Resource and Irrigation - Water Expert), Dr. Mohamed El-Zarka (International Industry Expert), Dr. Moustafa Fouda (Ex Director of Protected Area Department EEAA – Biodiversity Expert), Dr. Tarek Genena (President- EcoConServ Environmental Solutions), Anhar Hegazi (Deputy Executive Secretary, Economic and Social Commission for Western Asia), Dr. Kawsar Hefny Aboul Seoud (General Manager Of Air Quality - Egyptian Environment Affairs Agency), Dr. Essam Hassan (Consultant – Climate Change Unit EEAA), Dr. Laila Iskander (Spirit of Youth NGO, CID Consulting), Dr. Mona Kamal (Head Of Air Quality Department - Egyptian Environment Affairs Agency), Eng. Zeineb Mounir (General Manager – Waste Water Association), Eng. Mamdouh Raslan (Deputy Chairman - The Holding Company for Water and Waste Water), Daniel Weiss (Delegation of the European Union to Egypt). We would also like to thank Wim van Breusegem, Fadi Doumani and Renat Perelet for their useful advice throughout the project. This report has been prepared with all reasonable skill, care and diligence within the terms of the contract with the client, taking account of the resources devoted to it by agreement with the client. We disclaim any responsibility to the client and others in respect of any matters outside the scope of the agreement. We accept no responsibility of whatsoever nature to third parties to whom this report, or any part thereof, is made known. The benefits in this report have been assessed, using available data, the source of which may not be entirely reliable, and with considerable data gaps requiring several assumptions. The results are therefore considered indicative only, providing an order of magnitude. However, the results are considered useful for making benefits of enhanced environmental protection understandable to a wide audience. The contents of this publication are the sole responsibility of the authors and do not necessarily represent the views of countries or of the European Commission. All data used in this report refer to 2008, unless otherwise indicated 3 4 TABLE OF CONTENTS ACRONYMS 13 EXECUTIVE SUMMARY: English / Arabic 15 1 INTRODUCTION 29 1.1 This report 29 1.2 What are environmental benefit assessments? 29 1.3 Aims of the country benefit assessments 30 1.4 Potential users of and target audience for this benefit assessment report 30 1.5 The benefits of an improved environment 31 1.6 Scope of the country benefit assessment 32 1.7 The level of analysis 33 1.8 Assumptions 34 1.9 Structure of this report 36 2 COUNTRY OVERVIEW: EGYPT 37 2.1 Environment, economy and society 37 3 BENEFITS OF IMPROVING AIR RELATED CONDITIONS 41 3.1 Introduction to air quality issues 41 3.2 Benefits from improved ambient air quality 41 3.2.1 Introduction to the issue and approach taken 41 3.2.2 Current state of ambient air quality 42 3.2.3 3.2.3 Potential environmental improvements 43 3.2.4 Qualitative assessment of the benefits of improving ambient air quality 44 3.2.5 Quantitative assessment of the benefits of improving ambient air quality 46 3.2.6 Monetary assessment of the benefits of improving ambient air quality 48 4 BENEFITS OF IMPROVING WATER RELATED CONDITIONS 51 4.1 Introduction to water quality issues 51 4.2 Benefits from improved connection to safe drinking water 52 4.2.1 Introduction to the issue and approach taken 52 4.2.2 Current state of drinking water quality 52 4.2.3 Potential environmental improvements 54 4.2.4 Qualitative assessment of the benefits of improving drinking water quality 55 Egypt-ENPI Benefit Assessment 5 www.environment-benefits.eu 4.2.5 Quantitative assessment of the benefits of improving drinking water quality 57 4.2.6 Monetary assessment of the benefits of improving drinking water quality 57 4.3 Benefits from improving the connection to the sewage network and hygiene conditions 57 4.3.1 Introduction to the issue and approach taken 57 4.3.2 Current state of sewage connection and hygiene 58 4.3.3 Potential environmental improvements 61 4.3.4 Qualitative assessment of the benefits of improving sanitation and hygiene 63 4.3.5 Quantitative assessment of the benefits of improving sanitation, hygiene and drinking water quality 65 4.3.6 Monetary assessment of the benefits of improving sanitation and hygiene and of improving drinking water quality 66 4.4 Benefits from improving the level of waste water treatment 67 4.4.1 Introduction to the issue and the approach taken 67 4.4.2 Current state of waste water treatment 68 4.4.3 Potential environmental improvements 70 4.4.4 Qualitative assessment of the benefits of improving waste water treatment 71 4.4.5 Quantitative assessment of the benefits of improving waste water treatment 72 4.4.6 Monetary assessment of the benefits of improving waste water treatment 72 4.5 Benefits from improving surface water quality 72 4.5.1 Introduction to the issue and the approach taken 72 4.5.2 Current state of surface water quality 75 4.5.3 Potential environmental improvements 77 4.5.4 Qualitative assessment of the benefits of improving surface water quality 78 4.6 Benefits from reducing water resource scarcity 82 4.6.1 Introduction to the issue and the approach taken 82 4.6.2 Current state of water resource use 83 4.6.3 Potential environmental improvements 86 4.6.4 Qualitative assessment of the benefits of reducing water scarcity 87 4.6.5 Quantitative assessment of the benefits of reducing water scarcity 89 4.6.6 Monetary assessment of the benefits of reducing water scarcity 89 Egypt-ENPI Benefit Assessment 6 www.environment-benefits.eu 5 BENEFITS OF IMPROVING WASTE RELATED CONDITIONS 91 5.1 Introduction to waste related issues 91 5.2 Benefits from improving the waste collection coverage 92 5.2.1 Introduction to the issue and the approach taken 92 5.2.2 Current state of the waste collection system 92 5.2.3 Potential environmental improvements 93 5.2.4 Qualitative assessment of the benefits of improving waste collection 94 5.2.5 Quantitative assessment of the benefits of improving waste collection 95 5.2.6 Monetary assessment of the benefits of improving waste collection 96 5.3 Benefits from improving waste treatment 96 5.3.1 Introduction to the issue and the approach taken 96 5.3.2 Current state of waste disposal and treatment 97 5.3.3 Potential environmental improvements 97 5.3.4 Qualitative assessment of the benefits of improving waste treatment 100 5.3.5 Quantitative assessment of the benefits of improving waste treatment 101 5.4 Benefits from reducing methane emissions from waste 102 5.4.1 Introduction to the issue and the approach taken 102 5.4.2 Current level of methane emission from waste 103 5.4.3 Potential environmental improvements 103 5.4.4 Qualitative assessment of the benefits of reducing methane emissions from waste 105 5.4.5 Quantitative and monetary assessment of the benefits of reducing methane emissions from waste 106 6 BENEFITS OF IMPROVING NATURE RELATED CONDITIONS 107 6.1 Introduction to nature protection issues 107 6.2 Benefits from improving biodiversity protection 107 6.2.1 Current state of biodiversity 107 6.2.2 Potential environmental improvements 114 6.2.3 Qualitative assessment of the benefits of improving biodiversity protection 114 6.3 Benefits from forests and reducing deforestation 116 6.3.1 Introduction to the approach taken 116 6.3.2 Current level of deforestation 118 6.3.3 Potential environmental improvements 120 Egypt-ENPI Benefit Assessment 7 www.environment-benefits.eu 6.3.4 Qualitative assessment of the benefits of reducing deforestation 120 6.3.5 Quantitative assessment of the benefits of reducing deforestation 121 6.3.6 Monetary assessment of the benefits of reducing deforestation 122 6.4 Benefits from reducing cropland degradation 123 6.4.1 Introduction to the approach taken 123 6.4.2 Current level of cropland degradation 124 6.4.3 Potential