The Cabinet endorses new gas and communication agreements
Egypt, Economics, 9/19/2000

Egypt's Prime Minister Atef Ebeid said investments of the current plan have been amended to include an appropriation of L.E. 1442 million for the development of services in all governorates.

The Cabinet agreed on the results of negotiations which took place between the Ministry of Petroleum and International companies which made gas discovered and with which an agreement was reached nearly 1970s to buy its quota of natural gas on the basis of the price of Suez Gulf crude or fuel oil.

The Minister of Petroleum said that negotiations led to an agreement to amend the method of pricing natural gas with the aim of checking an expected drain on foreign currency and striking a balance between the two parties to the agreement which will be referred to the new People's Assembly.

Sherif said that the Petroleum Minister informed the Cabinet that international companies offered to lower prices as of July 2000. This reduction will realize an annual saving of $ 250 million which can be increased, he said.

Safwat Al-Sherif said that export will be made in two ways. The first is to export liquefied gas on special tankers. The second is to export through a gas line reaching Turkey and is linked to gas lines going to Europe. Foreign partners will bear the required investments to build stations, liquefying factories and the required pipeline.

The Cabinet authorized the Oil Ministry to negotiate to implement dealings internationally applied which are related to the prices of gas and oil of various kinds. The export of surplus natural gas will bring in an annual income of S 545 million.

The Cabinet agreed to offer for sale a tranche of the shares of the Communication Company at a maximum of 20 per cent and a total value of between S 1200-1400 million (the equivalent of LE 4200-4900 million). The shares will be offered for sale at the end of October. A share of 5 per cent will be set aide for the Union of contributing employees according to the rules of privatization, 10 per cent will be offered to organizations and individuals on the Egyptian money market and 10 per cent will be offered on world markets.

The Cabinet approved the evaluation of the assets of the Communications Company which was made by a group of international firms of experience and which put the value at between $ 6-7 billion.

The Cabinet agreed to authorize the Ministry of Communications with the specialized international group to offer shares for promotion and sale to fix a guiding price on which the offer will be made. This price should be referred to the Council of Ministers as soon as it is recommended for approval.

The Cabinet agreed that the proceeds of the share of the said tranche be deposited in the General Treasury. Agreement will be reached on the proper sum to be set by the Ministry of Finance and Communications to finance the supervisory apparatus and regulate performance in the communications utility.

The Cabinet agreed that the company begins to offer mobile telephone services as of December 2002.

Sherif added that the Cabinet agreed to amend the plan of investments for fiscal year 2000/2001 to include 1442 million Egyptian Pounds to be devoted to providing basic services in all governorates according to the priorities which the Cabinet had approved. The Minister of Information said that projects have been defined and execution will begin without delay as of this week.

The Cabinet said that these projects cover all services and will be directed to serve the great majority of citizens and will be directly linked to their daily life. The plan covers 4700 villages, 212 cities, 177 centers and 27,699 hamlets.

Prime Minister Atef Ebeid said that there should be field follow-up of execution by the Ministry of Planning and research teams to evaluate performance. The heads of villages and quarters will be responsible for execution according to the set timetables.

The Cabinet approved a draft Republican decision for a draft law to amend the law regulating prisons which calls for abolishing the punishment of flogging in order to uphold human rights.

Minister of Information said the Cabinet reviewed a report presented by Foreign Minister Amr Moussa on the UN millennium summit and the messages which he had conveyed from President Hosni Mubarak to a number of heads of state and the messages which he conveyed to President Mubarak from these heads of state.

In his report, the Foreign Minister said that the Middle East peace issue was given priority in all exchanged messages. He referred to Egypt's position, which was stressed by President Mubarak in his message to the United Nations, which called for adhering to resolutions of international legitimacy and taking them as the basis of current negotiations between the Palestinians and Israelis to reach a final solution.

The report dealt with ideas offered by the two sides on the concept of sovereignty over Jerusalem and the fact that they had not reached agreement on a formula which preserves the legitimate rights of the Palestinian people.

The Cabinet stressed that it was important to continue negotiations to overcome obstacles which stand in the way of reaching an agreement on Jerusalem, the refugees, borders etc.

The Cabinet said it was important to adhere to resolutions 242 and 338 in addition to the land-for-peace principle and upholding Palestinian sovereignty on East Jerusalem.

Sherif said the Cabinet approved, in principle, a project to set up an industrial tools company which will provide the tools and equipment needed by industrial projects and utilities in addition to developing production and reducing the investment cost of the company which amounts to L.E.40 million. The project will be self-financed.

The Cabinet approved setting up an Egyptian multi-activity joint stock company for investment in industrial and technological development.

The company will contribute to providing advanced industrial technology for the development of Egyptian industry and industrial production by using modern technology. The authorized capital of the company is LE 1500 million and the issued capital is L.E. 500 million.

The Minister said the Cabinet agreed to lay down guidelines for work in the free media zone at October 6 City. It defined the quarters which are authorized to have activities in the as follows: The Egyptian and foreign money companies and their branches, Arab and foreign radio and television organizations and their branches, infrastructure companies and subsidiary companies, Arab and foreign media organizations and their branches.

The Minister of information said that the following activities would be permitted in the free media zone:

- Television and radio space transmission via satellites.

- To set up television, radio and information channels of all kinds.

- To produce radio and television material and film works and all artistic works.

- To set up printing houses and to produce all instruments and equipment necessary to exercise these activities in the service of media, advertising, public relations, arranging permanent exhibitions of world and local companies which produce communications technology equipment.

The Minister of Information said that the rules include the method of management in the free media zone under a board which will consider applications to exercise activity in the light of the applied guidelines.

Decisions of the board will not be carried out except after being approved by the Prime Minister.

The Cabinet authorized the Prime Minister to lay down the final form of the guidelines which were discussed by the Cabinet. These guidelines include :

- The board of the free zone should receive the approval of the communications utility of frequencies to be used in addition to those which will be approved.

- No channels with sectarian or party nature or which propagate sex or violence will be allowed to operate in the free media zone.

- The companies shall abide by the media code of ethics.

- Egyptian companies operating in the free media zone shall abide by instructions to be issued by the government in wartime or during natural disasters.

- The board of the free media zone shall ask the operating channels to abide by the guidelines laid down.

- When considering applications to set up projects, the conditions to be considered should include the efficiency of the applicant and to ensure that the capital is appropriate to the activity to be exercised. The capital of specialized channels should not be less than L.E. 20 million as paid capital which will be raised to L.E. 50 million for general channels except economic, shopping and Internet channels.

- The board of the free media zone shall define the formula of the warning to be given and the cancellation of the license in case the violation is repeated.

Previous Stories:
  Egyptian-European Council, modernizing Egypt's industrial sector   (9/16/2000)
  Egypt to become prominent member of technology market   (9/16/2000)
  AIIG praises Egypt's economy   (9/16/2000)

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