Executive steps to boost Egypt's mega projects

President Hosni Mubarak recently presided over an expanded meeting by the Ministerial Council to review the financial and executive steps of Egypt's mega projects namely; Toshka, the Suez Gulf, Darb El-Arbeen and East Owainat, East Port Said, Sinai and Aswan.

The meeting tackled achievements which have been accomplished up till now and means of rationalizing government expenditures in the field of investment projects to keep the budget deficit at one per cent for the year 1999. During the meeting, Mubarak affirmed that these projects’ investments mainly depend on the direct investments and not on the local banks.

The meeting also reviewed the positions of companies which have been assigned with reclaiming lands in accordance with plans and timetables of each project.

Toshka

The total investment cost of the project hit L.E.5.7 billion including infrastructure, power, water and communication projects. Total area to be cultivated is valued at 540,000 feddans of which 320,000 feddans to be cultivated by the private sector. Total capital spent on Toshka project up till now hit L.E.2 billion including L.E. 500,000 for the water pumping station dedicated to irrigate 54,000 feddans in Toshka.

It is noteworthy that the infrastructure projects of Sheikh Zayed Canal will be completed in August 2002 besides digging 30 wells, each well is able to cultivate 100 feddans. Moreover, an agreement has been signed with EgyptAir for a regular airline to carry products of Toshka and East Owainat to Cairo as well as establishing a marketing corporation in East Owainat to market Toshka agricultural products.

Sinai

The President also reviewed achievements of East of the Suez Canal and Sinai projects aiming at reclaiming 400,000 feddans to raise the total volume of cultivated area to reach 620,000 feddans of which 220,000 feddans have already been cultivated west of the Canal.

The newly cultivated lands will be distributed as follows: 50 per cent for investors and major companies, 25 per cent for intermediate companies and 25 per cent for small companies.

The total costs of the project hit L.E. 6284 million, the Investment Bank contributes by L.E. 5200 million, the Kuwaiti Fund for Development L.E. 400 million and the Saudi Fund for Development offers L.E. 142 million.

Sinai development scheme aims at placing Sinai on the map of international investment within the framework of the State's policy to consolidate efforts aimed at wide-scale development in Sinai. realizing North Sinai businessmen have already contributed by well-over L.E. 50 million in value of urban, industrial and trade development in Sinai.

Darb El Arbeean & East El Owainat

The President also reviewed Darb El-Arbeen file which includes the cultivation of 12,000 feddans. Moreover, 13,000 feddans have already been cultivated East of El-Owainat in addition to a livestock project established in collaboration with the Austrian side.

East Port Said

Investment cost of the East Port Said industrial area hit L.E. 3,098 billion, and including the establishment of a port, containers and goods station besides an industrial area.

The port's total cost hit L.E. 923 million, the maritime infrastructure will reach L.E. 725 million, roads L.E.75 million, container freight station cost hit L.E. 203 million, container station L.E. 780 million, infrastructure projects 105 million, networks L.E. 57 million, railways lines L.E. 150 million and communications L.E. 11 million.

The first stage of the pivot port will operate in June 2000 to promote exports and containers trade in a bid to serve the industrial area currently under construction.

North West of Suez Gulf

The Council also reviewed a report on the North-West of Suez Gulf Development project whose total investment cost is estimated at L.E. 1,837 billion, of which L.E. 650 million for developing the port, L.E. 792 million for maritime infrastructure projects, power L.E. 1,011 billion, electricity networks L.E. 45 million, railways L.E. 75 million and L.E. 8 million for communications projects.

The first ship with a capacity of 30,000 tons will enter the Gulf of Suez port in December and the first giant ship with a capacity of 120,000 tons as of May 2000.

Aswan Iron Project

The meeting discussed Aswan's iron project and reviewed studies and surveys done by a major investment company on iron, steel and phosphates in this area.

Meanwhile, the Ministry of Planning and International Cooperation has mapped out a report on the financial aspects of these projects and recommended that the government should offer 10 per cent of the finances earmarked for infrastructure works e.g. roads, water, electricity, railways and harbors as the private sector will provide the remaining 90 per cent.