Mubarak reviews east Port Said devolopment project
Egypt, Economics, 2/10/2000

President Hosni Mubarak yesterday chaired a meeting of the Ministerial Committee for Mega National Projects.

The meeting was attended by Prime Minister Atef Ebeid, Deputy Premier and Minister of Agriculture and Land Reclamation Youssef Wali, Information Minister Safwat Al-Sherif and Minister of Economy and Foreign Trade Youssef Boutros Ghali.

The President listened to a detailed report on the components of East Port Said project which aims at turning the area into a world center for trade, storage and distribution. The project represents a big addition to agricultural production.

President Mubarak reviewed what has been accomplished in other projects, namely Toshka, East Uwainat, Darb Al-Arbayeen and a number of other agricultural projects.

Minister of Information Safwat Al-Sherif said after the meeting, which continued for more than two hours, that the President reviewed two main issues as part of the Presidents follow-up and discussion of the general policies of the various sectors in the State.

The meeting covered projects being carried out by industrial companies and development projects which have been launched and for which land has been allocated.

Minister of Information said that the meeting also centered on the financial position of companies and the situation as regards their payment of the cost of land allocated for them.

The President gave one clear directive in this respect, there should be an overall, full and phased plans for the development of the area allocated.

The rules applied West of Suez should be applied in the port, namely that areas should be allocated to each phase. The companies should define, in the general plan, each phase of execution.

Al-Sherif said that President Mubarak reviewed and discussed the situation as regards the port east of Port Said.

President Mubarak issued several clear decisions, namely

1-Full commitment to the timetable in all phases of this project in accordance with contracts and commitments to build a pivotal port.

2-There should be commitment, as regards the operation of this port, to give priority to the quay of containers which is being built in accordance with plans and offers of building and the offers received from major companies, with which contracts have been signed, to operate the containers quay as regards execution, equipment and management.

3-Priority should be given to utilities - electricity, communications, water and roads for the containers quay.

4-The government shall finance the quay and this should be undertaken by investors.

Sherif said that the building of this quay depends on the economic feasibility study and the size of production in the area which calls for the building of the quay and its economic operation. Present investors have complete freedom to build the quay, at their own expense, if this serves their needs.

5-As regards a project to dig a tunnel under the Suez Canal to serve the area, this tunnel shall be built, according to the BOT system, to serve the area east of Port Said within the framework of rules regulating it and the feasibility study. Egyptian banks will not contribute to its finance except within the contribution of local goods from inside Egypt. Basic finance of companies, under the BOT (build - operate - transfer) system, should be direct finance from outside the country.

6-Full respect of all the rights of the Suez Canal considering that it is a vital utility which serves international navigation. The Suez Canal Authority shall undertake piloting services, in accordance with its rules, in the navigation canal leading to the port.

7-The pivotal port project should not affect the plan to develop the port of Port Said and augmenting its capacities as regards the quays or containers.

8-The government shall carry out recommendations to solve problems of Egyptian seaports and the solutions reached.

Al-Sherif said that President Mubarak approved, in principle, several draft Republican decisions which will be to the Council of Ministers Thursday. They are :

-A draft Republican decree to set up a higher seaports council.

-A draft Republican decree to subject all employees at State agencies, inside the port, from the administrative point of view to the Chairman of the Port Authority.

This is in addition to draft decisions of the Prime Minister which forbid imposition of any tariff or a fee in return for service, under any title, except with the approval of the Higher Seaports Council and the draft Prime Minister's decision that work should continue uninterrupted at seaports for 24 hours for exports and 16 hours for imports.

Minister of Information said that studies which were referred to President Mubarak indicate that all economic feasibility studies, with all their navigational and trade dimensions which were conducted by several consultant firms, indicate that the East Port Said Port has a distinguished position and that the aim of the port project is to serve the free industrial zone within the framework of the general policies of the State to develop Sinai and turn the East Port Said area into an international center for trade, storage and distribution.

A feasibility study conducted by a major international company specialized in transit trade, with which a contract was signed to equip, operate and manage the containers station under the BOT system, with investments totaling $480 million, shows that this port will attract transit trade at high rates which will increase as stages to build and develop the containers quays are carried out and will attract the largest percentage of containers transit to this port.

Sherif said President Mubarak discussed the stages of execution of the project which includes the first stage of the entry canal from the sea to a length of 13 kilometers and a depth of 18 meters. A total of 86 per cent of the work has been carried out.

Sherif said that the Minister of Transport reported at the meeting that contracts have been signed, in accordance with an international tender in July 1999, to build the quay in which work will be completed in September 2000.

The Minister of Information said that the containers station is scheduled to begin operation, under the BOT system, in September 2000 with five giant cranes at a rate of 660,000 containers annually which will rise to 1.7 million in 2007.

The Minister said that feasibility studies indicate that the direct revenues of the containers station will cover the cost of the projects being carried out and the infrastructure, which is estimated at L.E 1.6 billion, in less than 15 years.

Agricultural Policy

Minister of Information said that President Mubarak then reviewed policies of the Ministry of Agriculture.

Youssef Wali, Deputy Premier and Minister of Agriculture and Land Reclamation, presented the policies of the Ministry of Agriculture as regards vertical and horizontal development and the achievements of the Ministry of Agriculture regarding the production of cereals and main agricultural crops.

Sherif said that in spite of the population increase in the reign of President Mubarak, the volume of imported cereals was stabilized as a result of the increase of production and the reclamation of new land.

Toshka Project

Sherif said that Wali reviewed the Toshka project and the situation as regards land allocated to investors and crops which will be planted in this area which suit the soil.

Wali said that the first stage of the main branches at Toshka will lead to an increase of 500,000 feddans.

Wali referred to the East Uwainat project which aims at the cultivation of 2390,000 feddans in the East Uwainat area. A total of 13,500 feddans have been cultivated with high-value crops, part of which has been exported.

President Mubarak stressed that it is important to expand agricultural and to study future transport projects (railways and roads).

The Minister of Information said that President Mubarak lauded what has been achieved in the agricultural sector, the future vision and agricultural expansion in this sector and lauded the sustained cooperation between the Ministry of Agriculture and the Ministry of Water Resources.

Wali reported on the area allocated to foreign companies and the Armed Forces and the fact that chemicals are not used in this area where environment-friendly crops are planted.

The Minister of Agriculture said that 160 tons of cantaloupe have been exported to British markets at high prices in addition to offering 400 tons on the local market.

The Minister of Agriculture said that the East Uwainat area has become an area which attracts foreign investors. The Minister presented to President Mubarak contracts concluded with international investment companies including the Egyptian-Australian Animal Production Company, another seed company and the Anglo-Egyptian Fresh Vegetables Company.

As regards the Darb Al-Arbayeen project, Sherif said that this project aims at reclamation of 12,000 feddans.

President Mubarak stressed that there should be an integrated community at Darb Al-Arbayeen (schools, health units, security) and the local administration should be represented.

Minister of Information said that foremost among the projects presented to President Mubarak were studies on water and land and the possible use of 125 billion cubic meters of water in this area to reclaim 17,000 feddans at the area of 7,000 cubic meters of water per feddan annually.

Wali said that a beneficiary will receive a building, 10 feddans, and a well at a cost of L.E. 8,000. Wali also reported on the Mubarak project for graduates which began in 1983 with 2183 graduates at directives from President Mubarak. A total of 45,000 graduates, of both sexes and all specializations, benefit from the project at present.

The project includes 140 integrated villages and contributes to solving part of the unemployment problem and it is an added value to national economy and agricultural production and sets up new agricultural communities.

Sherif said President Mubarak lauded youth and their initiatives and what is being accomplished in the field of agriculture and the Social Fund and said that the thinking of Egyptian youth is developed and they make initiatives and are optimistic. The President lauded the use of technology and computers.

The Minister of Agriculture said that an area of 250,000 feddans between Rosetta and Borollos are fertile land and can be cultivated without the use of pumps which reduces cost.

President Mubarak said this land will be offered for sale at auctions at current prices. The Cabinet will, at its next meeting, take the necessary decisions to maintain the State ownership of this land in order to complete agricultural expansion projects.

Dr. Wali referred to biotechnology and the genetic engineering institute and cooperation at the international level. A total of 26 researchers are preparing to receive Ph.D. degrees from the United States in this sphere.

He referred to the expected cooperation in this field with the Mubarak Scientific City.

Previous Stories:
  Mubarak reviews development project in Gulf of Suez   (2/9/2000)
  Mubarak reviews national water policy   (2/7/2000)
  A review of Egypt's economic activities in 1999 in different sectors   (12/28/1999)

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