National mega projects are right on track
Egypt, Economics, 4/12/2002

Egyptian Minister of irrigation and Water Resources Mahmoud Abu-Zeid denied that the acute currently gripping the Egyptian economy has spilled over onto the country's mega projects

The minister says: "I would like to stress that the economic crisis, with the accompanying liquidity crunch, has not had any impact on the country's mega development projects."

Describing these projects as well timed and strategic, the minister adds: "These giant national projects were initiated at the right time to help the country overcome its problems." Dr Abu-Zeid also explains that the national projects in Egypt are part of an integral development plan that covers the whole country from Toshka and Sharq al-Oweinat in the southwest, to the north, northwest and east coasts. "This national plan basically involves widening the inhabited area of the narrow Nile Valley, which at the moment comprises only 5 per cent of the Whole surface of Egypt," he says. The government is determined to increase the fertile, inhabited area from 5 per cent to 25 per cent.

The minister also rejects suggestions that the huge amount of Nile water pumped on a daily basis into Toshka has negatively affected the crops grown in the Nile Valley. He says that the government is keen to rationalize the use of irrigation water in Toshka. "We are also interested in increasing the amount of underground water used in the irrigation system of the national projects."

Dr Abu-Zeid notes that the delays in national projects in the past were due to budgetary shortfalls. 'This meant that we could not fully exploit the enormous potentials of our country, especially in terms of water, energy and space {for building new residential communities},' the minister continues. We are now invading the desert after making very careful studies. The future outlook is promising and reassuring." The government's ambitions include establishing a new mega project on 265,000 acres of land adjacent to the Cairo-Alexandria Desert Road. 'This project will involve digging a new canal,' he explains.

But the senior irrigation official admits that the Egyptian government is up against two big obstacles. "Firstly, we need further investments in these projects to supplement the state's contributions, he says. Then the Egyptian people should be encouraged to establish and move to new urban communities that are being built." The government hopes that no fewer than 3 million people will start a new life in Toshka in the near future. 'We also want to move other 3 million people to new communities in Sinai," he explains, adding that some 37 new communities are planned for the Sinai peninsula.

According to figures released by the minister, the government has so far 8pent L; E3.2 billion on developing Toshka, while the project's total budget is LE5.7 billion. Development projects in Sinai have so far consumed IE3 billion, inc1uding LE1 billion from the Arab Development Fund, the Saudi development Fund and the Kuwait Development Fund.

Abu Zeid last week wondered why some people have been circulating baseless stories about Saudi Prince alWaleed Ibn Talal cutting off his funds to Toshka "I am astonished by these groundless rumors going around," the minister says. "In fact, the Saudi Prince has recently signed a deal with an American company to market crops produced by his agricultural projects in Toshka. The American company is very enthusiastic about this." The minister regrets that the rumours have frightened Arab investors and businessmen.

Last week he appealed to them to come to Egypt and visit the development projects, so they can see for themselves that the introduction of the bade infrastructure is going according to plans. He told AL-Ahram Al Arabi: 'We {the Ministry of Irrigation and Water Resources} are ready to welcome any number of investors willing to take part in any of our mega projects'.

Abu-Zeid says that Turkey is now selling water to Israel, but warns that the Arab region is also suffering from a water: shortage. "The shortage is serious in Arab Gulf countries, which largely depend on the desalination of sea water to make up the shortfall,' the Minister explains, adding that water is abundant in Egypt, Sudan, Iraq, Syria and Turkey.

"The lack of any agreement from the word go has led to arguments over the water quota among these countries," he says, predicting that everything will be sorted out once an agreement has been drawn up.

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