Efforts to Convert Egypt into Chip Credit and Debit Card Technology Source: Arabic News, August 17, 2004
Credit and debit cards are now using chip technology instead of magnetic strip, allowing cardholders to finalize their transactions via smart I. card. According to Anne Cobb, President of Visa International (AmCham Member) (link here) in the Central Europe, Middle East and Africa (CEMEA) region, Egypt has one of the strongest reasons for switching to visa cards pointing out that Egypt has best Internet infrastructure in the region. She predicted that Egypt will witness a great leap in chip card technology similar to that realized in the communications and mobile services as well as the fast semi- free Internet.
Cobb expounded that one of the main reasons for shifting to Visa cards is because cash and paper money-based systems have variable cost, while the electronic card systems have fixed costs. Besides the multi-function benefits of the smart card, it helps reduce fraud across the globe.
She noted that Egypt realized a 9% growth rate only in volume of card-payment compared 40% in CEMEA region last year.
Although, there are 23 Egyptian banks dealing with Visa International, yet still 97% of Egypt's population depend on cash-payment, according to Tarek El-Housseiny, General Manager of Visa Egypt.
LogicTree Wins Large Contract for Telecom Egypt Source: eMediaWire, August 28, 2004
LogicTree Corporation (link here) announced on August 28, the win of a major contract to provide the voice automation platform for Telecom Egypt’s (TE) (link here) national directory assistance (DA) and automated DA services.
“This deployment will be the largest automated directory assistance system in the Middle East,” said Fred Korangy, president and CEO of LogicTree. “With this win we will become the largest provider of directory assistance systems in the Arabic-speaking world.”
The Telecom Egypt (TE) system will span two call centers in Cairo and Alexandria with 1,500 operators. LogicTree’s VoxLinxä platform will provide voice automation for other call center functions in addition to the DA services. BTSLogic, a division of LogicTree, will provide the DA system and search engine. Ericcson (link here) will provide the switching hardware and call center software. UNITEL (link here), Telecom Egypt’s prime contractor for the project, selected LogicTree over larger speech platform vendors.
“We chose the LogicTree because of its demonstrated record of delivering high levels of automation and cost savings,” said Mohammad Gad, CEO of UNITEL. “We are confident this scalable technology is ‘future proof’ and will grow as our needs change in coming years.”
Empa Sets up Operations in Egypt Source: CPI, August 26, 2004
Components distributor Empa ME (link here) has recently expanded its operations in Egypt to further expand its channel. Rahb Hamiddin, President of Empa ME, said that the country’s ongoing economic reforms have made it an attractive place for investment.
“Egypt has been a major market in the region in terms of population and in terms of the latest government initiatives that have stabilized the economy and the exchange rates,” he said. “Things are looking promising in Egypt.”
Prior to the expansion, Empa has already been conducting its business in Egypt for the past eight years. The decision to establish a local presence in Cairo was necessary to forge closer ties with its clients, said Hamidaddin.
Empa will start its operation in Cairo with a home office set-up. Warehousing and logistics will still be done in Dubai, but the company hopes to be able to set up a local warehouse and hire more staff in the future. At the moment, it has appointed Ola Eldeeb as Country Manager.
Eldeeb has previous experience working with distribution companies in the Middle East. She will be tasked to identify the needs of the local market, address customers’ enquiries and position Empa’s products at competitive prices with minimal overhead.
(See AmCham’s IT Study here and Telecommunications Study here)
Turkey-Egypt Free Trade Area Agreement to be reached by End of 2004 Source: The Egyptian State Information Service, August 28, 2004
Turkish Foreign Trade Minister Kursad Tuzmen said that an agreement to establish a free trade agreement between Turkey and Egypt would be reached by the end of this year.
He added that Turkey is expected to reach similar agreements to establish free trade areas with Lebanon, Algeria, Tunisia and Jordan before the end of this year.
In statements on ongoing talks in Ankara between a Syrian delegation led by Trade Minister Ghassan Rifai and Turkish officials on details of a proposed Turkey-Syria free trade agreement, he said that his country had signed agreements to set up free trade agreements with Morocco and the Palestinian Authority.
He added that the Turkish-Syrian agreement would contribute to increasing the volume of trade between the two countries.
The Turkish and Syrian sides are expected to initial the free trade agreement on Saturday, according to a source close to the ongoing negotiations.
Egypt Reports Increased Activities In Free Zones Source: Mena Report, August 17, 2004
According to a monthly report, released by the Ministry of Industry and Foreign Trade (link here), exports from the Egyptian free zones rose during the first three months of 2004 by 22%, amounting to US$782 million compared to US$642 million during the same period of 2003.
Meanwhile, international imports to the free zones have expanded by 36% in the said period, standing at US$583 million. Imports to the free zones from the Egyptian market went up by US$120 million in the first three months of 2004, compared to US$78 million in the same period last year.
Egyptian-Iraqi Joint Company to be Set Up Source: Egyptian State Information Service, August 28, 2004
Secretary-General of the Arab Investors Union, Gamal Bayoumi said certain measures are taken to set up an Egyptian-Iraqi joint company whose capital amounts to $50 million and works in the transportation and marketing of Egyptian products to the Iraqi market.
Bayoumi added that the new company will start its business next month to meet the needs of the Iraqi people, and is expected to lead to a rise in Egyptian exports to $3 billion a year.
The new company's headquarters will be set up in Cairo with a branch in Amman and another one in Baghdad.
Egypt to Step Up Privatizations Source: BBC News, August 24, 2004
An Egyptian official has reportedly said that six state-run engineering firms are being considered for a sell-off in September. The move is seen as a sign that Egypt's new government is serious about a fresh wave of privatizations.
The chair of Egypt's Metallurgical Industries Holding Company said valuations were taking place, the Middle East News Agency reported.
Investors and international bodies had been hoping for a revival of Egypt's privatization program. The International Monetary Fund (IMF) (link here) has urged Egypt to cut state firms’ loses.
Egypt sold off 190 state-run companies and facilities from the early 1990s to 1997, garnering proceeds of LE17bn ($2.7bn; £1.5bn), according to a report issued by the Ministry of Public Enterprise in mid-2002.
104 Chinese Firms Investing in Egypt Source: Al Bawaba, August 19, 2004
Chairman of Egypt’s General Authority for Investment and Free Zones (GAFI) (link here), Mohamed El-Ghamrawi stated that there are 104 Chinese firms which have investments in Egypt with a total capital of LE 924 million.
At a recent seminar on Egyptian-Chinese investments, El Ghamrawi explained that there are several investment opportunities available for Chinese investors in various sectors. This includes economic projects in the Northwestern Gulf of Suez, as well as agricultural and infrastructure projects, especially in electricity sector.
For his part, the head of the Chinese delegation attending the seminar noted that there are 14 firms from Tianjin that have established investment projects in Egypt, stressing that there are several opportunities for establishing joint Egyptian-Chinese projects.
Alex Waste Water Scheme Moves Ahead Source: Middle East Economic Digest, August 27, 2004
The Alexandria General Organization for Sanitary Drainage (AGOSD) has issued a tender for its municipal wastewater scheme. Six European contractors are pre-qualified to bid by September 28 for the main package, which will involve the construction of a pumping station and treatment plant and a sewerage network capable of serving 300,000 inhabitants of the Ameriya district to the south of the city.
The estimated €35 million ($45 million) project will be financed by a German government grant administered by Kreditanstalt fuer Wiederaufbau (link here). Germany’s SRP Schneider & Partner (link here) is the consultant on the project, which will involve construction of a plant on the city’s southern outskirts capable of treating 50,000 cubic meters a day of effluent.
Siemens Tipped for Talkha Turbines Source: Middle East Economic Digest, August 27, 2004
Germany’s Siemens (AmCham Member) (link here) has entered into negotiations for the gas turbine package on the 750-MW combined-cycle power station to be built at Talkha. The contract calls for the supply and installation of two 250-MW turbines and auxiliaries, two main transformers, two start-up transformers, a diesel generator and an overhead crane, as well as associated mechanical and electrical works.
The other bidders are GE Power Systems (link here) of the US, and a Japanese team of Mitsubishi Heavy Industries (MHI) (link here) with Tomen Corporation (link here). The gas turbine contracts on the previous two schemes in the crash power program, Cairo North 2 and Nuberiya, were awarded to GE and MHI/Tomen respectively. All three groups have also submitted bids for the gas turbine package on the 750-MW combined cycle project at Kureimat, which is running four- to-six weeks behind the tendering schedule for Talkha.
The government in mid-July signed $225 million in concessionary loans for the Talkha project, shortly before three bids were submitted for the estimated $25 million-30 million civil works package. Bids are under evaluation.
Gippsland Limited in Abu Dabbab-Free Trade Zone Source: AFX News Limited, August 27, 2004
Following discussions with the Egyptian General Authority for Investment and Free Zones (GAFI) (link here), Gippsland Limited (link here) announced that the Company's 40 million tons Abu Dabbab project will operate under the umbrella of a specially established Free Trade Zone ("FTZ") which will provide a number of significant long-term benefits to the project including but not limited to the following:
Zero import duty for plant & equipment plus Abu Dabbab project consumables; Zero sales tax; and Zero general and Company profit taxation.
The benefits provided by the FTZ will apply for the life of the Abu Dabbab project and the Company's nearby 98 million tons Nuweibi tantalum deposit.
Bouygues-Led Group Tipped for T3 Source: InfoProd, August 17, 2004; Middle East Economic Digest, August 20, 2004
Egypt's Minister of Civil Aviation, Ahmed
Shafiq, announced a new comprehensive plan aimed at
converting Egyptian airports into profitable investment
entities. The scheme consists of allocating LE450 million
($72.23 million) to develop and to expand the existing
airports. In addition, the plan includes establishing
new airports in the highly attractive tourism sites
in Egypt.
Mr. Ahmed Shafiq announced allocating LE500 million to develop Sharm El-Sheikh International Airport. The plan consists of developing the airport's existing facilities and building a new runway. The minister asserted that Sharm El-Sheikh is at the top of the list of Egyptian tourism cities.
Cairo Airport Company has recommended to the World Bank (link here) that a consortium of France’s Bouygues (link here), Besix (link here) of Belgium and the local Orascom Construction Industries (AmCham Member) (link here) be awarded the contract to expand Cairo International Airport. The group was the third lowest bidder at $360 million when prices were opened, but is understood to have scored highly on the basis of technical proposals, which were opened in early July. The project will be part-financed by a $335 million World Bank loan.
The other bidders are: TAV (link here) of Turkey, with the local Holding Company for Roads & Bridges; Saudi Binladin Group (link here), with the US’ Turner International (link here); Taisei Corporation (link here) of Japan; France’s Vinci (link here), with Athens-based Consolidated Contractors International Company (CCC) (link here); and Cyprus-based Joannou & Paraskevaides (J&P – Overseas) (link here).
The local Arab Contractors (Osman Ahmed Osman & Company)(AmCham Member) (link here) is carrying out enabling works on the project, which will involve construction of a third terminal (T3) with a built-up area of 164,000 square meters. The terminal, which has been designed to handle 11 million passengers a year, is due to open in early 2007.
The local ECG Engineering Consultants Group (link here) is the engineering design and construction supervision consultant on the project. The project manager on Cairo terminal 3 is Beirut-based Dar al-Handasah (Shair & Partners) (AmCham Member) (link here), which is also overseeing the construction of a new terminal at Sharm el-Shaikh airport. Saudi Binladin Group emerged as low bidder for the main construction
Egypt turns Al-Hamra Port to Main Outlet for Oil Exports Source: Mena Report, August 29, 2004
The northern coast port of Al-Hamra will be the main outlet for oil exports after being upgraded, said Egypt's Minister of Petroleum Sameh Fahmi.
The port is now being used to export part of crude shipments, said Fahmi during a recent tour to the harbor.
A shipment from the Western Desert fields' high-quality production which almost equals the purity degree of the international benchmark West Texas crude will be exported monthly, said Fahmi, adding the region's output reached 210,000 barrels per day.
A one million barrel shipment of Kuwaiti crude oil has been received by the Nasr Petroleum Company for refining in Suez as part of a bilateral cooperation agreement between the two countries, said the minister.
Mashreq Tenders Bulk Terminal Source: Middle east Economic Digest , August 20, 2004
Mashreq Petroleum has invited five pre-qualified groups of contractors to bid by late September for the contract to build an estimated $25 million–30 million bulk liquids terminal, to be located near Port Said on the Mediterranean coast.
The project will involve construction of a 2 million-ton-a-year facility with 150,000 cubic meters of storage capacity. The consultant is Scott Wilson (link here) of the UK.
Apache Announces Two Discoveries in Egypt's Western Desert Source: OilOnline, August 20, 2004
Apache Corp. (AmCham Member) (link here) announced its latest two discoveries in Egypt's Western Desert tested at a combined rate of 70 million cubic feet (MMcf) of natural gas and 2,330 barrels of condensate per day from prolific deep- Jurassic sands.
The Mihos-1X discovery is located on the Matruh Concession, which the company operates with a 100% contractor-interest. The well logged 191 feet of net pay in the Cretaceous AEB 6 and Jurassic Upper and Lower Safa horizons between 12,350 feet and 15,700 feet. Thirty-five feet of the Lower Safa were perforated between 15,385 feet and 15,420 feet, testing at a daily rate of 41.8 MMcf of gas and 1,419 barrels of condensate.
The Mihos discovery proves up a 1,500-acre trap in the Lower Safa reservoir with a gross hydrocarbon column height in excess of 250 feet. Apache plans to tie the well into the Matruh manifold, running directly to its Tarek gas plant about 7-1/2 miles to the east. It is expected to commence production in early September, bringing the Tarek plant up to its full capacity of 100 MMcf per day.
The drilling rig will now move from the Mihos well to Apache's Pamplona-1X location, a 15,000-foot Jurassic wildcat designed to test a 2,400-acre closure situated 7-1/2 miles southeast of the Mihos discovery and directly south of the Tarek gas plant.
The Imhotep-1X discovery on the Khalda Offset Concession, which Apache operates with a 100 percent contractor interest, flow-tested at a rate of 28.4 MMcf of gas and 911 barrels of condensate per day following hydraulic- fracture stimulation.
Roxar Wins Contract for Work Offshore Egypt Source: Rigzone, August 26, 2004
Roxar (link here) has been awarded a contract for Wet Gas Meters to the Simian, Sienna and Sapphire projects in the West Deep Delta Marine in Egypt.
The contract is valued at US$8 million. The Wet Gas Meters will provide flow rate measurement of the produced quantities as well as flow assurance input through online detection of both condensed water and formation water being produced from the wells. The Simian field which includes two Sienna tiebacks is located 114km offshore Idku, in water depths ranging from 677-993m. The order is with Vetco Gray for Burullus Gas Company.
"This order highlights the attractiveness of Roxar's product line for measuring WetGas metering. Multiphase metering is a complex task, and Roxar is able to offer our clients a broad array of products, tailored to the client's needs and reservoir conditions. Our leading position allows us to offer these products in a cost effective way. Roxar has also focused its efforts on supplying high quality solutions in the Sub-Sea arena, where our meters offer 100% true redundancy. We have not been willing to compromise on reliability. This has been well received in the market ", says Roxar Flow Measurement's Managing Director, Gunnar Hviding.
Cairo Orders Burning Rig Destroyed Source: AFP, August 23, 2004
Petroleum Minister Sameh Fahmy has ordered the destruction of the Temsah offshore natural gas production platform after firefighters spent two weeks attempting without success to control a fire at the facility. The blaze erupted on the Mediterranean platform on August 10, although all 150 workers were quickly evacuated, Italy’s Eni (link here) said in a statement.
The Temsah platform is operated by the local Belayim Petroleum Company (Petrobel) on behalf of Eni subsidiary IEOC Exploration, Egyptian General Petroleum Corporation (EGPC) (link here) and BP (Amcham Member) (link here) of the UK. The fire is said to have been caused by a fluid leak. The Temsah field produces some 150 million-180 million cubic feet a day of natural gas
Gail Buys into Natgas Source: Middle East Economic Digest, August 20, 2004
Gas Authority of India (Gail) (link here) has acquired a 15% stake for $19 million in the local National Gas Company (Natgas) (AmCham Member) from the majority shareholder, Egyptian Kuwaiti Holding Company (EKHC) (Amcham Member) (link here).
Natgas is the biggest private gas distributor in the country, with a distribution concession covering the West Delta and several districts of Cairo and Alexandria. In 2001, EKHC sold an 18 per cent stake in the company to the Royal Dutch/Shell Group (AmCham Member) (link here).
Malaysian Petronas to Expand Gas Operations in Egypt Source: Noozz, August 29, 2004
The Malaysia-based Petronas Oil Company (link here) – The largest natural gas producer in Egypt – will hold a meeting in September to announce plans for expansion and the last exploration efforts in Egypt.
The company will also highlight its plan for gas exploration in the deep water area east of the Mediterranean, which was first launched in 2001. According to Azhar Noreddin, general manager of Petronas-Egypt, the Western Delta operation will produce 40 per cent of Egypt’s National gas production by 2006. The region’s production amounts to 633 million cubic feet of natural gas in 2004.
Petronas is looking to increase its stake in the gas liquefying project in Egypt from a current stake of 30%. The project implies developing and liquefying Gas in Edco, 50 kilometers east Alexandria. Two of six units for producing liquid gas have been constructed to date.
Egypt will Remove Tariffs on Cement Imports Source: Al Akhba , August 26, 2004
The Egyptian Minister of Foreign Trade and Industry, Rashid Mohamed Rashid, has announced that Egypt will remove tariffs on cement imports which amount to 10% for unpacked cement and 20% for packed cement imports.
Local cement companies, whether totally Egyptian or subsidiaries of international companies, produce about 35 million tons per year – 25 million tons for local consumption and 10 million tons for exportation to the international markets.
Cement sector analysts say the decision will impact prices in the local market though these prices are the lowest on the regional and international levels. Cement prices in neighboring Arab countries range from US$55 to US$60 per ton while in Egypt they range from US$39 to US$42 per ton.
In his statement to reporters, Rashid said the decision would help stabilize the construction sector and advance public interest. "The decision was taken after holding meetings with concerned departments and local cement producers," the minister said.
Foreign cement producers in Egypt control nearly 40% of the market, including the French Lafarge (link here), Portugal's Cimpor (link here), and the Mexican-owned CEMEX (AmCham Member) (link here). Rashid added that his ministry was considering ways to boost Egypt's cement exports to help use excess production capacity in the local market.
He explained that the move would come as part of an ambitious plan to increase cement experts to about US$180 million to US$200 million in 2004 and US$300 million in 2005.
The removal of tariffs on cement imports comes amid a series of other measures the government takes in order to balance the market, including a recent decision that suspended anti-dumping measures imposed on Egypt's imports of iron construction bars and plates.
The Reconstruction & Housing Co. for Utilities SAE,
issued a request on August 27, 2004. The request is
for the supply of 400 tons polymer materials to Al
Jabal Al Asfar sanitary drainage treatment station.
25-kg samples need be submitted. Goods to be delivered
in 4 equal quarterly shipments. Tender documents are
available at the Company offices at Al Jabal Al Asfar
station. The specification fee is L.E. 1,000, the
bid bond is L.E. 100,000 and the performance bond
is 5%. Deadline for the submission of offers is October
05, 2004.
Agriculture
The Executive Agency for Land Improvement Projects
issued requests on August 23, 2004 . for the supply
of (a) twenty 4 x 4 agricultural tractors on wheels
of not less than 150 Hp capacity, (b) ten articulated
hydraulic excavators on chain & (c) five 20 tons trailers
to handle heavy duty equipment to be tracked by an
agricultural tractor. The specification fees are L.E.
1,500 & 1,000 & 500. The bid bonds are L.E. 119,000
& 80,000 & 15,000. Deadline for the submission of
offers is September 29, 2004.
Construction
The Contracts Department at Mansoura University
General Dept. for Engineering Affairs, issued a request
on August 19, 2004. The request is for the construction
of a building annexed to the Faculty of Dental Medicine.
The specification fee is L.E 3,000 and the bid bond
is L.E. 160,000. Deadline for the submission of offers
is September 20, 2004.
Water and Waste
Water
The Contracts Dept. at the General Org. for Potable
Water & Sanitary Drainage in Minya Governorate issued
a request on August 17, 2004. The request is for the
supply of (a) different diameter water meters, also
(b) 3 Nafouri type (Sewage exhaustion) trucks. The
specification fees are L.E. 300 & 200, and the bid
bonds are L.E. 100,000 & 50,000. Deadline for the
submission of offers is September 18 & September 19,
2004.
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