United States Grant to 48 Egyptian Students at AUC Source: U.S. Embassy, Cairo, September 15, 2004
Minister of Education Dr. Ahmed Gamal Eldin Moussa, Minister of Higher Education Dr. Amr Ezzat Salama, and President of the American University in Cairo (AUC) (AmCham Member) (link here) David Arnold joined the Director of the United States Agency for International Development (USAID) in Egypt (link here), Kenneth Ellis, to launch a U.S.-funded scholarship program, valued at LE100 million, which will enable Egyptian students to pursue degrees at AUC.
USAID Director Ellis noted, “The United States is proud to support full scholarships at AUC for talented Egyptian youth from around the country. These young women and men represent the future of Egypt.”
Under the program, a maximum of two students from each Governorate and the city of Luxor will be awarded scholarships annually. Selection criteria include academic excellence, community service, and leadership qualities. This year a total of 48 students from an applicant pool of over 1,000 will receive scholarships. USAID expects that 162 young men and women will be awarded scholarships over the life of the program.
Special Breakfast Meeting with U.S. Delegation Source: AmCham Egypt, September 23, 2004
Members of the American Chamber of Commerce in Egypt (link here) met with a Senior delegation comprising U.S. Congressional Staffers and leading representatives of the Brookings Institution (link here), the Carnegie Endowment for International Peace (link here), the Congressional Research Service (CRS) (link here), the Council on Foreign Relations (link here), and the Institute for Middle East Peace and Development, Georgetown University (link here).
The Event took place at the Cairo Marriott Hotel (AmCham Member) (link here) on Thursday, September 23, 2004. The delegation has been invited to Egypt to attend the National Democratic Party (link here) Convention.
Dr. Ziad Bahaa Eldin, recently appointed as Chairman of the General Authority for Investment and Free Zones (GAFI) (link here) also attended the meeting as a special guest and was invited to speak a few words on his plans for GAFI.
After a brief introduction by Dr. Taher Helmy, AmCham President, Dr. Bahaa Eldin declared that his intention was to make establishing a company in Egypt less of an adventure by reducing the number of steps required and removing red-tape. He also has plans for establishing an Investment Promotion Agency.
Following this, Mr. Clyde Mark, Specialist on Middle Eastern Affairs at the Congressional Research Service (CRS), made a short statement on behalf of the delegation on the purpose of their visit to Cairo and who they had met so far. Mr. Mark declared that the purpose was to evaluate how serious “Reform in Egypt” was and when will it achieve its expected outcome.
He also gave some insight into the issues related to Egypt on the agenda of the Congress. Converting Military aid to economic aid came up repeatedly. Also mentioned was the image of Islam as an enemy in the U.S. in the aftermath of September 11. Mr. Mark stressed on the need to work on removing this misconception of associating Islam with terrorism.
For further information on Egypt-U.S. Relations (Click here)
For latest information on Rebuilding Iraq (Click here)
Nazif Discusses with Microsoft Expanding Smart Village Projects Source: Egyptian State Information Service, September 23, 2004
Prime Minister Dr. Ahmed Nazif received on September 22 the regional director of Microsoft (AmCham Member) (link here), who is currently on a visit to Cairo, to discuss means to expand Microsoft projects set up in the Smart Village (link here).
The Cabinet spokesman said that Nazif, during the meeting that was attended by Ahmed Darwish, Minister of State for Administrative Development, has pointed out that the Egyptian government is encouraging the software projects within the framework of the E-government and management automation initiatives as well as the expansion in software exports in the future.
The Microsoft official, for his part, welcomed the steps taken by the Egyptian government to encourage information technology.
Endeavors Technology Provides On- Demand Software for Education Source: Endeavors Technology, September 27, 2004
Endeavors Technology (link here) announced on September 27, that Volvo Information Technology AB of Sweden (link here) has adopted application-streaming technology as part of its IT Portal outsourced services for schools and colleges. With Endeavors' AppExpress, students enjoy the benefits of software that is delivered to their desktops at the click of a mouse. Application streaming is now a core technology of Volvo IT's IT Portal service.
The first deployment of the on-demand AppExpress platform is in Egypt. It enables students to run Windows-based programs on their desktop computers without assistance from IT and without installing the programs onto their hard disks from CD-ROMs. As a result, Egypt's schools and colleges will be able to simply, easily and cost-effectively stream centrally managed multimedia-based educational content to student desktops and laptops. School administrators will be able to better control licensing agreements with software vendors, monitor software usage in real time, and eliminate piracy.
Volvo IT has been working closely with Endeavors Technology during the past months on school projects in Egypt. The streaming applications capabilities and the highly scalable client-centric architecture of AppExpress complement the many other IT services Volvo IT provides to schools.
Alcatel Launches a New 'Partnership Space' for Local Companies in Cairo Source: AME Info, September 29, 2004
Egyptian Prime Minister, Dr. Ahmed Nazif, and Alcatel (AmCham Member) (link here) Chairman and Chief Executive Officer (CEO), Serge Tchuruk, yesterday inaugurated Alcatel's new regional headquarters for the Middle East in offices located in the Smart Village in Cairo.
At this occasion, they launched the 'Partnership Space', enabling Alcatel to work with local companies to help them accomplish multimedia service projects adapted to the needs of local users.
In the scope of this partnership space, a selection process will be put in place for Egyptian companies wishing to partner with Alcatel. Alcatel will certify these companies after they demonstrate their ability to develop software applications. Alcatel will then be in a position to work jointly with them to create offers for operators, enterprises and administrations in Egypt or elsewhere. The partnering company will remain the rightful owner of its idea and will be responsible for the applications it developed.
The launch of this 'Partnership Space' follows the opening of the first 'Partnership Space' in December 2003, in Tunisia.
"Alcatel's goal is to support the creation and implementation of a maximum number of value-added services running over telecommunication infrastructures. This initiative will contribute to the economic and social development of Egypt, where Alcatel has been for the past 30 years, by developing local skills and creating new jobs in the telecommunications sector," confirmed Serge Tchuruk, Alcatel Chairman and CEO. 'It is also a true incubation center open to anyone with an idea for a project.'
Alcatel has regrouped all its activities in Egypt in its new Smart Village offices in Cairo, as well as its International Service Center and Training Center. Alcatel's regional headquarters for the Middle East, are also located in the same place.
Egypt Expects $100 Billion of Investments Source: MenaReport, September 27, 2004, Al Masry Al Yom, September 27, 2004
The latest steps taken by Egypt of lowering tariffs and customs duties as well as the amendments introduced into the tax system will have a positive effect on the investment sector and the expected growth rate, Egypt's Planning Minister Osman Mohamed Osman said on September 26.
During a news conference, Osman noted that the value of investments was expected to hit $ 100 billion in 2004/2005, compared to $ 81 billion the previous year.
In addition, he expected that the growth rate would reach 5.5% this year, compared to 4.1% in 2003/2004.
According to Osman, Gross Domestic Product (GDP) in 2003/2004 amounted to L.E.474 billion with an increase of L.E.56.9 billion compared to 2002/2003. Thus, per capita income increased from L.E. 6,142 to L.E. 6,843 in 2003/2004. The economy is expected to grow by 5.5% in the financial year 2004/2005 compared to 4.1% the previous year
"The Agriculture sector posted a growth rate estimated at 3.35%, building and construction sector registered a growth of 2%, tourist sector 38% and the convertible industries 3.5%.
Cairo Grasps the Nettle of Reform Source: Middle East Economic Digest, September 24, 2004
The ruling National Democratic Party (NDP) (link here) launched its second annual three-day conference on September 21 with a firm focus on economic reform, capitalizing on a busy fortnight in which a range of reformist legislation has been announced by the new cabinet.
Chief among the reforms are a draft corporate and income tax law, a privatization program, which deals principally with the banking and industrial sectors, and a restructuring of the tariff regime. The flurry of activity comes a week before finance ministers from across the region are due to attend a 1 October meeting on reform in Washington hosted by US Treasury Secretary John Snow.
The draft tax reform bill aims to reduce the standard corporate and income tax rates to 20 per cent from 40 per cent, eliminate existing loopholes allowing tax evasion, and speed up reform of the tax administration system. The preferential 32 per cent tax rate for the industrial sector will also be reduced to 20 per cent; however, the oil sector will remain subject to a 40.55 per cent rate. Partial and full tax exemptions, which principally apply to small and newly established companies, those operating in public free zones and firms operating in target sectors such as agriculture and tourism, are expected to be gradually phased out.
However, it remains unclear whether original proposals to eliminate tax exemption on paid-in capital will remain in the draft law. "We expect the bill to be finalized in time to present it at the new session of parliament in November," says a senior Finance Ministry official. "These are new concepts to be discussed, but we expect it to become law before the end of the financial year [in June]."
The Finance Ministry (link here) estimates a drop in annual tax revenues of LE3,500 million ($565 million) to LE5,500 million ($889 million) in the next three years, but argues that this will be offset by the impact of its fiscal stimulus package. In particular, authorities have taken aggressive steps to relieve the government burden of subsidies, which has been growing since flotation of the currency in January 2003 led to a significant rise in the cost of imports. On 8 September, retail diesel prices were increased by 50 per cent. Direct and indirect energy subsidies cost the government an estimated £E 23,000 million ($3,715 million) a year.
The government in early September also eliminated services fees and import surcharges inconsistent with the General Agreement of Trade & Tariffs (GATT) and reduced the number of tariff classes to six from 27. The move follows the cancellation of customs duties on a range of industrial goods in August, including imports of cement. Ad Valorem tariff rates, which previously reached as high as 3,000 per cent on certain goods, now range from 2 per cent to 40 per cent for the six new classes of products. .
The government has also announced a wide-ranging privatization program, which will include the sale of a number of minority stakes in the banking sector. The Investment Development Ministry on 20 September announced the planned sale of government stakes in 10 other companies: Nasr City Housing & Development, Paints & Chemical Industries (Pachin) (link here), Societe Egyptienne d’Entreprises (Mokhtar Ibrahim), Delta Sugar, Kabo, Medical Union Pharmaceuticals, Misr Mechanical & Electrical Projects (Kahromika), Maamoura Housing & Development, Alexandria Mineral Oils Company and Rowad Misr for Tourism Investment.
AmCham Monthly Luncheon with Dr. Ahmed Nazif Source: AmCham Egypt, September 30, 2004
The American Chamber of Commerce in Egypt (link here) had the honor of hosting newly appointed Prime Minister Dr. Ahmed Nazif on September 28 at the monthly luncheon held at the Grand Hyatt Cairo (AmCham Member) (link here). The event, which was transmitted live via AmCham’s videoconference facilities to personnel at the Smart Village (link here), drew a capacity crowd of 830 members and guests including a number of high-profile cabinet ministers, ambassadors and officials.
Dr. Nazif began on a positive note, affirming Egypt’s position in the world. “We are a strong country… and I do think Egypt has a bright future,” he said, citing Egypt’s four key strengths. Firstly, he noted, Egypt is an emerging market with an annual import bill that tops $20 billion. “Some see this as a weakness,” he said. “I see it as an opportunity.”
Secondly, he went on to point out, Egypt has invested heavily in infrastructure that can support growth. “The infrastructure we have today can provide investors and Egyptian citizens with quality services,” he said. Thirdly, said Dr. Nazif, Egypt’s population offers “a young workforce that is cost effective yet adaptable.” And finally, he noted, “God has given us this strategic meeting point between three continents… and a strategic and secure environment with excellent global relations.”
The prime minister then proceeded to outline a plan for drawing cautious investors to Egypt. “Skeptics do not want to see just a mood change, they want to see action,” he said. His plans included: removing obstacles to business and investment; boosting the competitiveness of the workforce and business institutions; restructuring the social safety net; and redefining the role of the government by launching administrative reforms.
He went on to elaborate on the national plan for drawing investment. “We’re restructuring the government’s interface with investors,” he said, noting that the General Authority for Investment and Free Zones (GAFI) had just elected a new board and would take on more of a promotional role. He added that fast dispute resolution mechanisms should be put in place, existing legislation should be reviewed to eliminate impediments and investor services needed to be centralized into “one-stop-shop” facilities.
In terms of improvements to the business environment, Dr. Nazif pointed particularly to the need for customs reform, tax system revision, banking reform and investment development. He pointed out that banking reform required more than just measures to deal with non-performing loans (NPLs), it should make banks “stronger, bolder and more professional… and more technology-oriented.”
Dr. Nazif encouraged greater cooperation between Egypt and its number one trading partner, the United States. He pointed out that in the first three quarters of 2003-2004, the US accounted for $3.3 billion (26%) of all imports and $2.7 billion (36%) of all exports, as well as $800 million (36%) of all expatriate remittances. He pointed out that Egypt was the second largest recipient of US aid and had received $3.5 billion in total investment to date, mostly in the petroleum sector.
The prime minister concluded by saying he was positive about Egypt’s future.
Egypt Lowers Income Tax Rates Source: Business Report, September 21, 2004
The Egyptian government launched on September 21st proposals to cut income tax and corporate tax by about half, the latest in a raft of economic reforms by the new cabinet.
Finance minister Youssef Boutros-Ghali said the tax cuts, which would reduce income tax and corporate tax to 20 percent, would cost the treasury about $570 million a year.
"It will take about three years to absorb the impact and one to two years to start to see the fruits," he said.
Ministers have previously said the proposals would be submitted to parliament when it reconvenes in November.
Ghali said the government aimed to put an end to years of distrust between the tax authorities and taxpayers.
Executives have complained that the existing system was bureaucratic and complex, leaving businesses uncertain about their tax bill.
"I will assume honesty among citizens. From now on, most tax returns will be accepted as they are. Only 5 to 10 percent of tax returns will be audited. But those in the wrong will be severely punished," Boutros-Ghali said.
The government has already slashed customs tariffs and started to revive a privatization program that ran out of steam in the 1990s. Investors have welcomed the changes, sending the stock market surging to all-time highs in recent weeks.
Egypt Looks to Increase Italian Investment in Export-Oriented Products Source: Noozz, September 27, 2004
Egyptian and Italian Businesspeople have agreed to establish a joint venture for packing vegetables and fruits with a capital of 1 million Euros.
According to Ali Barada of the Egyptian Trade Representation Office, the agreement has been concluded between Egyptian businesspeople and representatives from 7 Italian companies at the Egyptian Businessmen Association's headquarters in Cairo today.
Barada added that Egypt was looking to increase Italian investments in Egyptian export-oriented farm products that mainly target the EU markets.
Italian investments in Egypt stood at LE908 million in 2003, with the bulk being concentrated in the oil and gas sectors, according to data from the Ministry of Foreign Trade and Industry.
Italy is Egypt's largest trade partner in Europe, with Egyptian exports amounting to 1.2 billion euros in 2003-2004 against 995 million euros in the previous year.
Egypt to Let Foreign Firms Manage State Enterprises Source: Trade Arabia, September 25, 2004
Egypt is ready to let foreign companies manage state-owned businesses but will not give up control of those it sees as strategic, President Hosni Mubarak's spokesman said.
"Strategic businesses will remain state property, but in order for them to be well managed and profitable we may have to call on managers from the private sector," Magued Abdel Fattah said following a meeting between Mubarak and the government's economic group to discuss privatization policy.
The Egyptian public sector includes 176 large companies, employing over 400,000 people whose salaries account for 4.5 billion Egyptian pounds (590 million euros, 720 million dollars) of the state budget.
The public-private partnerships would be open to Egyptian, Arab and foreign companies "without exception", Fattah said, although he did not specify which companies were concerned.
The state also has holdings in almost 700 private companies, Fattah said, adding that the government envisaged selling its shares in these companies "according to an as yet undecided timetable".
The reform-minded government of Prime Minister Dr. Ahmed Nazif that took office in July has pledged to turn around Egypt's ailing economy and rein in high inflation, skyrocketing unemployment and a huge debt burden.
Nazif earlier this month announced sweeping reforms of the banking sector, privatizing some state-owned banks and selling off state shares in joint banks.
The state budget for the fiscal year 2004-2005 has a deficit of around 53 billion pounds (7 billion euros, $8.5 billion).
UN Reports Egypt Expected to Attract More Foreign Investment Source: Egyptian State Information service, September 23, 2004
Egypt is expected to attract more foreign direct investments (FDIs) as it hosts now 40 leading international companies a report by UN released on Wednesday said.
The 2004 World Investment Report drawn up by the UN Conference on Trade and Development (UNCTAD) (link here), said Egypt misses out on great potentials that could, if tapped, attract more FDIs, particularly in IT, Bank and trade fields.
Two-thirds of the $ 500 billion flows of FDIs go directly to areas competitive for Egypt. The report added that the FDIs inflows dropped sharply in 2003, scoring only $ 237 million against $ 1.225 billion in 2002.
The General Coordinator of UN Human Development Program in Egypt Dr. Heba Handousa lauded the government's recent decisions on customs duties cuts and going ahead with the privatization program, pointing out that these orientations are competent to attract foreign investors to Egypt.
Egypt Buys 540,000 Tons of Wheat Source: Hi Pro Feed, September 25, 2004
Egypt's main official wheat buyer has bought 540,000 tons of French, US, Australian and Argentine wheat for shipment from October 21-31 and November 1-10.
Mahmoud Abdel-Hamid, vice chairman of the General Authority for Supply Commodities (GASC), told Reuters he bought 60,000 tons of French milling wheat, 120,000 tons of US North Pacific soft white wheat, 120,000 tons of Australian soft white wheat and 240,000 tons of Argentine wheat.
Since the start of Egypt's financial year on July 1, GASC has bought 2.14 million tons of wheat at international tender, with France and the United States the two biggest suppliers so far.
Egypt is one the world's largest importers of wheat. It usually imports about six to seven million tons of wheat a year.
Egypt to Privatize 10 Firms Source: AME Info, September 22 , 2004
Egypt said it would privatize 10 firms, which it owned or in which it held a major stake, part of a raft of reforms by the new cabinet to boost the role of private business in the economy and lift growth.
The Investment Ministry (link here), which did not give a timetable or method for the sales, said in a statement it would use the proceeds to meet commitments in other companies owned by the state.
The firms earmarked for sale in the list issued included a real estate firm, paint manufacturer, pharmaceutical firm and tourism company.
Analysts said the government will face a hefty bill to clean up the balance sheets of many state-owned firms, including several banks which they say are weighed down by bad debts.
Fitch Ratings has said the contingent liabilities in state-owned institutions could amount to 10 per cent of gross domestic product (GDP) or more.
The government has already said it would sell its stake in Misr International Bank and a food company, reviving a privatization program that fizzled out in the 1990s. It has also said it planned to sell one of the big four state banks.
All Change in Egyptian Aviation Source: Middle East Economic Digest, September 17, 2004
General Mohammed Fathi Fathallah has been appointed chairman of Cairo Airport Company (CAC). Fathallah, who as chairman of Egyptian Airports Company (EAC) had been responsible for the country’s regional airports, replaces General Hassan Mohammed Hassan at CAC. EAC deputy chairman Attiya Zamzam takes over as EAC chairman. The changes were announced by Civil Aviation Minister Ahmed Shafiq on 10 September.
The Civil Aviation Ministry is pressing ahead with its World Bank-backed program to restructure the civil aviation sector, with a strong turnout for the advisory contract on the development of cargo facilities at local airports in late August, and the announcement of plans to further liberalize the in-flight services subsidiary of EgyptAir Holding Company. In addition, Egyptian Company for Airports & Air Navigation has issued further invitations to international consultants to express interest in advising on three different aspects of the airport master plan.
At least 30 local and international companies submitted expressions of interest to Egyptian Holding Company for Airports & Air Navigation in late August to advise on the development of a new cargo hub at Cairo International Airport. The project involves developing a national cargo strategy, enhancing the performance of EgyptAir Cargo Company and restructuring and developing the cargo village at Cairo airport to accommodate increased traffic following construction of the planned third terminal. The World Bank will finance the 29-week study, which is due to start on 1 November.
The World Bank is also financing construction of the new terminals at Cairo and Sharm el-Shaikh airports, for which awards on the main construction packages are imminent. The bank is also overseeing the tendering process for the operation and maintenance contracts for the six airports. Eight international companies have submitted bids for the contracts, which are being offered in four packages and are due to be awarded in October
EgyptAir Inflight Services is also understood to be preparing for a capital increase in preparation for a new round of investment. "This section of EgyptAir is to some extent already liberalised as there are already several local companies involved as subcontractors, but these reports are positive as they indicate new ideas are filtering through," says a local aviation analyst. "The real start is bringing in private airport management, and EgyptAir itself has been putting together a business plan which will require major investment in the near future. To do this, you need to tap new markets, particularly the private sector and foreign investors."
Expressions of interest are due on 27 September for three consultancy contracts, which call for the drafting of a 20-year national airport master-plan, advising on liberalization of the air transport sector and building up airport management capacity.
L.E.55 Million for Water Supply to New Investment Projects in Cairo Source: Egyptian State Information Service, September 24, 2004
Cairo Governor Abdul-Aziz Wazir has called for easing the measures for new investments and building infrastructure to new projects.
Some L.E. 55 million are allocated for water supply to new investment projects. Wazir was speaking during a meeting with the Governorate officials on investment and means to facilitate achieving maximum benefit from the vast vacant areas in Cairo to be distributed among investors.
An area of 1781 feddans was distributed among new investment projects at L.E. 5.338 billion.
The meeting dwelt also on solving difficulties facing investors.
French Company Executives to Participate in Construction Event in Cairo Source: NOOZZ, September 29, 2004
Fifty Executives from the French Contractors will participate in the construction and infrastructure fair in Cairo in search for investment opportunities in the Egyptian construction market
According to Hassan Bahnam of the French Embassy in Cairo (link here), the fair will be organized on 8 October this year in cooperation between the French Trade Mission and Egypt's Ministry of Housing and Urban Communities.
"The event will focus on business cooperation between Egyptian and French contractors, and the creation of joint ventures to expand in the local and regional markets," Bahnam said.
Three Egyptian ministers are expected to participate in the event including the Minister of Housing, the Minister of Foreign Trade and Industry, and the Minister of Tourism, in addition to the head of the French Trade Mission in Cairo.
Data from the Ministry of Foreign Trade and Industry suggest that French investments in Egypt recorded 600 million euros in 2003-2004, the bulk of which are concentrated in the energy and oil sectors.
Misr-Misr Merger Approved Source: Middle East Economic Digest, September 24, 2004
The Central Bank of Egypt has approved the merger of Misr Exterior Bank with state-owned Banque Misr (AmCham Member) (link here), making it the first of six local state-affiliated banks to be folded back into their parent companies.
The decision, which takes effect from 26 September, comes a week after the announcement of a five-point strategy for reform of the local banking sector, which will also see the sale of minority government stakes and the creation of a central body to oversee the settlement of non-performing loan (NPL) cases. The five other banks slated for merger are Commerce & Development Bank, El-Mohandes Bank, Islamic International Bank for Investment, Nile Bank and United Bank of Egypt (AmCham Member) (link here).
Cairo has also revived long-delayed privatization plans for the sector. International banks are preparing for the anticipated offer of minority stakes in a number of local banks, including Misr International Bank (MIBank) (AmCham Member) (link here), in which Banque Misr (AmCham Member) (link here) has a stake, and Egyptian American Bank(AmCham Member) (link here).
However, local analysts warn that it may be some time before any sales are concluded. "The government has said there will be a sales process, but at the moment we are waiting for them to clarify it," says an international banker based in Cairo. "Also, it’s a hugely speculative market at the moment and share prices have been rocketing in the last couple of months. Not many of the [government stakes] on offer look terribly attractive at these prices."
ELNG Sounds Out Banks for Train 2 Source: Middle East Economic Digest, September 17, 2004
Egyptian Liquefied Natural Gas (ELNG) is sounding out the banks that participated in the syndication of the commercial debt for its first liquefied natural gas (LNG) train about taking part in the debt package for train 2 at Idku, already under construction by the US’ Bechtel (AmCham Member) (link here).
A total of more than 30 banks joined the train 1 financing, 18 at the mandated lead arranger (MLA) level and about 13 during syndication of the $826 million, 15-year facility. ELNG is understood to be looking at a similar-sized debt package for train 2. Societe Generale (AmCham Member) (link here) is the financial adviser on both trains.
The European Investment Bank (EIB) (link here) is scheduled to decide at its fourth-quarter board meeting whether to provide $300 million in funding towards the project, as it did to the tune of $372 million on train 1. The meeting will also decide on funding towards the LNG project under way at Damietta by Spanish Egyptian Natural Gas Company (Segas)
The UK’s BG (link here) is supplier to both trains and off taker for train 2, while Gaz de France (link here) is the off taker for train 1. ELNG is also soliciting interest from international energy companies for supply and offtake agreements on a third train at the Idku site, which could accommodate six trains
EGPC to Tap Global Markets Source: Trada Arabia, September 26, 2004
State-owned Egyptian General Petroleum Corp (EGPC) (link here) said it was seeking proposals from investment banks to manage and underwrite a placement of debt securities in the international capital markets.
EGPC did not specify an amount or give details of the type of issue in the announcement, published in the Egyptian press.
But bankers said it seemed likely the firm was seeking to issue a bond, which they said would be the first by EGPC.
Egypt has two existing sovereign Eurobonds in the market, running to 2006 and 2011, but the bankers said if EGPC issued a bond it would be first time the corporation had tapped the international or local markets with a bond issue.
They said such a move could be aimed at raising EGPC's profile in the international capital markets.
EGPC is a partner in two major liquefied natural gas (LNG) projects that are under construction on the country's north coast, and which aim to boost Egypt's energy exports as crude reserves dwindle.
"EGPC intends to launch the offering for an amount to be determined (at a) later stage. The purpose of the offering is funding general corporate requirements in addition to ongoing capital expenditures," the announcement said.
The announcement, published in the semi-official Al Ahram daily, called for proposals by October 11.
Among the requirements, it said the lead manager would "arrange and advise on financing, issue size and market capacity of the offering".
It said the lead manger would also be required to advise on alternative financing beyond a straight debt offering.
EGPC and Oil Ministry officials were not available for further comment on the plans.
Another state-owned firm, Telecom Egypt (TE) (link here), is expected to issue a local currency bond soon. Some private companies, such as banks and construction firms, had issued international bonds.
Aggreko Supplies Power to Egypt’s Rig Source: www.Aggreko.com, September 26, 2004
Aggreko (link here), a global leader in providing temporary power and temperature control services, has secured a nine-month contract with Zeitco (East Zeit Petroleum), a company formed to develop the East Zeit Oil Field, located 10 km offshore Egypt in the central southern Gulf of Suez.
The unmanned oilrig, Platform 'A' located at the East Zeit Field retrieves oil through a number of electric submersible pumps (ESP). During planned upgrade of the permanent power supply on board the platform an alternative power supply was required to continue operation.
Aggreko provided a 2MW temporary power package installed on board Platform 'A' to power the entire facility and operate the 3 ESP pumps allowing oil production to continue, said a spokesman.
"The Aggreko power package, consisted of two 1250kVA generators, a purpose built distribution panel, 25 meters of associated cables, and a containerized fuel tank, which was mobilized from the UK, Europe and Dubai and delivered to the Red Sea Port in less than 22 days. As the rig is unmanned, reliability and service was paramount to Zeitco. We provided specialized engineers to install, commission, and maintain the package 24/7 for the duration of the project," he said.
BG to Export LNG from Egypt Source: Trade Arabia, September 26, 2004
Britain's BG Group (AmCham Member) (link here) has signed contracts to export LNG from Egypt, mainly for sale in North America, under a five-year deal starting in the first quarter of 2005, the firm said.
BG signed deals with Egyptian General Petroleum Corporation (EGPC) (link here), Egyptian Natural Gas Holding Company (EGAS) (link here) and Malaysia's Petronas (link here) allowing it to export about 700,000 tons a year of LNG via the SEGAS LNG plant in Damietta, Egypt.
"These agreements once again demonstrate BG Group's ability to create value through the natural gas chain by connecting our assets in Egypt to our market positions in the US and Europe," BG executive Stuart Fysh said.
BG Plans to Drill 25 Wells in Egypt in Rest of 2004/05 Source: Rigzone, September 24, 2004
BG Group (AmCham Member) (link here) said it proposes to drill about 25 wells in Egypt during the remainder of 2004 and 2005.
The figure includes two new production wells that it plans to drill in the Simian field in the BG-operated West Delta Deep Marine (WDDM) concession offshore the Nile Delta. The company said it will accelerate the drilling schedule for these two wells.
The company is hosting a visit for analysts to Egypt on September 27 and 28 when it will update them on its activities in Egypt.
BG said it plans to bring forward the schedule for first gas from Phase 2 of the Rosetta development.
It also said it expects an additional 5 pct capacity expected at Egyptian LNG because of the clearance of bottlenecks.
It expects its Egyptian upstream unit operating costs will be, on average, less than $1.00 per barrel of oil equivalent.
At its analyst presentation it will also provide details of two new proposed exploration concessions in the Nile Delta.
The Damietta Co. for Containers & Cargo Handling
issued a request on September 22, 2004 of international
offers from specialized companies to import two gantry
cranes required for Damietta Containers Handling Station.
The specification fee is $1,000, the bid bond is $300,000.
Deadline for the submission of offers is November
20, 2004.
Equipment & Works
The Cashier of the Ministry of Health Care & Population,
Egypt Population Project, issued a request on September
26, 2004. The request is for offers from eligible
bidders for the supply of IUD instruments for family
planning under finance from International Development
Association (IDA) -. The specification fee is L.E.600,
and the bid bond is L.E.120,000. Deadline for the
submission of offers is November 10, 2004.
Supplies
The General Department for Stores & Purchases of
Al Azhar Al Sharif issued a request on September 25,
2004. The request is for offers for the Supply of
(a) printing paper for the Print shop, (b) printing
raw materials & (c) fire extinguishers. The specification
fees are L.E.500, 200, & 200 and the bid bonds are
L.E.100,000, 20,000 & 20,000 Deadline for the submission
of offers is November 2, 2004.
Medical and Hospital
Equipment
The Contracts & Purchasing Department of the General
Secretariat of the Ministry of Health & Population
issued requests on September 28, 2004 for the supply
of dental instruments. The specification fee is L.E.500.
The bid bond is L.E.140,000. Deadline for the submission
of offers is October 31, 2004.
Printable version
