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South Valley Development Project (Toshka & East Oweinat)

Seeking to relieve population congestion in the Nile Valley, the Egyptian government has embarked on large-scale horizontal expansion projects since the early 1980s. Planning to increase habitable land from the current 5 percent to 25 percent, a comprehensive scheme for developing desert areas was put into motion. The scheme was based on increasing the cultivable land area from the current 8 million feddans to 11.4 million feddans by the year 2017 as an urgent and necessary condition for development. The projected increase is planned through a series of mass land-reclamation projects of which the South Valley Development Project ranks on top in terms of size and goals. With a huge LE 300 billion in investment requirements, this project is the government’s most ambitious development initiative yet.

The South Valley Development Project aims at reclaiming an area of around 1 million feddans in the New Valley governorate in three regions: around the Toshka depression, in East Oweinat and in the New Valley governorate oases. Toshka and East Oweinat are considered the most important phases of the project since, combined, they count for over 750,000 feddans of the total targeted area. With regard to the Toshka project, water will be supplied through a concrete-lined canal connected to Lake Nasser. Due to varying topography, a large pumping station will be installed 8 kilometers north of Khor Toshka, on the western shore of Lake Nasser, to pump an average of 5 BCM per annum at a rate of 300 CM per second into the Sheikh Zayed Canal. Inaugurated in January 1997, all mechanical and construction activities are scheduled to end by 2001. East Oweinat, on the other hand, targets an area of 200,000 feddans in the extreme south of the Western Desert as the stage of large-scale reclamation activities relying solely on abundant underground water. The major objectives of both projects are to develop an agriculture-for-export scheme, create job opportunities and divert investment pools outside the Old Valley to new regions.

Total investment required for developing the region is estimated at LE 300 billion over the coming 20 years until 2017. The government will finance up to 20-25 percent of the total expenses of digging the canal, installing the pumping station and setting up a convenient infrastructure network. The rest will be financed by local and foreign private sector direct investment in five major sectors: infrastructure, construction, industry, agriculture, and tourism.

Overall, the large size of investment in both projects and their unique nature, especially pertaining to their remoteness from the Old Valley, requires policymakers to undertake extensive studies in several interrelated issues. This requires flexible coordination between the government, the private sector, and both Arab and international funding agencies. Such policy coordination is crucial to effectively attain the social and economic objectives of the project and ensure its sustainability.

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