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North Sinai Development Project
North Sinai
Development is a multi-sectoral initiative with land reclamation of
400,000 feddans making up its backbone. Industrial, mining and tourism
projects, however, also constitute major fields of investment and many
investors have already responded to the incentive package provided by the
Egyptian government with a significant amount still in the pipeline. Adding to its
economic contribution, the project also has a social welfare dimension in
terms of an expected population relocation of around 3 million people,
thus, relieving the Nile Valley from an overwhelming population density.
Due to water shortage in
the region, Nile water will be transferred to an area of 400,000 feddans
through the Al Salam/Sheikh Gaber canal to North Sinai and mixed with drainage
water from Al Serw and Hadous drains in a 1:1 ratio. These 400,000 feddans
are an extension of another 220,000 feddans irrigated by the same canal on
the western side of the Suez canal. Collectively, both areas constitute around
17 percent of the 3.4 million feddans projected increase in cultivable
land until 2017. The canal is named Al Salam in the western side of the
Suez canal, whereas its extension in North Sinai is named after Sheikh
Gaber Al Sabah, emir of Kuwait.
The idea of the project
originated in the early 1960s and grew more tenable during the late 1970s after the conclusion of the Camp David peace treaty in 1979.
Actual planning, though, did not start until 1986 when the Ministry of
Agriculture & Land Reclamation identified 250,000 feddans with prospects
of viable reclamation in North Sinai. This area was incorporated into the
1.2 million feddans selected as priority areas in the Land Master Plan.
Three years later, in
1989, the General Authority for Reclamation Projects and the Agricultural
Development Project Preparation Unit, with the assistance of Atkins,
prepared a feasibility study for the North Sinai Agricultural Development
Project (NSADP) for 265,000 feddans. In the same year, the FAO Investment
Center/World Bank prepared a similar report.
In 1990, an additional
135,000 feddans were added to the original 265,000 feddans to increase the
projected reclamation area to 400,000 feddans. This additional area was
added at the request of the North Sinai governorate in Al Serw and
Qawareer plains south of Al Arish City.
Finally, in 1991, upon
the recommendation of a presidential council appointed to supervise the
project, the responsibility for implementing the project was delegated from
the Minister of Agriculture & Land Reclamation to the Minister of Public
Works & Water Resources. Currently, the canal design and execution are
administered by a project design unit, the North Sinai Development
Organization (NSDO), affiliated to the ministry with headquarters in
Qantara Shark.
The report provides an update on recent developments in
the project’s implementation in North Sinai. Its focus, though,
will go beyond the canal and land reclamation, extending to all
reconstruction and industrial development activities in the region
under study. Part I provides an overview of the status of the Al
Salam/Sheikh Gaber canal and the North Sinai region in general,
including its water and land resources. Laying the ground for a
discussion of investment projects, Part II addresses the existing
infrastructure network serving the region with an update on ongoing
reconstruction activities. Part III overviews the administrative
bodies and the legal framework governing investment in North Sinai.
Part IV addresses current and projected investment projects in North
Sinai, stressing on the diversity of investment opportunities in
various economic activities. Finally, recommendations put forth
by government officials, involved investors and specialized international
institutions are presented in Part V to guide implementation in
the coming phases.
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