U.S. Delegation Praises Egypt’s Commitment to Political, Economic Reform Source: Global News Wire, January 18, 2006
Head of the delegation of the U.S. Congress Robert Holste affirmed on Wednesday, January 18, 2006 that Egypt was exerting real efforts for achieving political and economic reforms.
Addressing The American Chamber of Commerce in Egypt (link here), the U.S. official said the reform process in Egypt was continuing and bearing fruit, adding that Egypt was serious in its efforts to achieve such reforms.
He said direct meetings and dialogues continued between Egypt and the United States because, he added, dialogues were the best means to achieve progress. The U.S. lawmaker said that dialogues and meetings were the best way to overcome any misunderstanding between the two sides and rectify any wrong idea about Egypt in the United States.
He stressed the importance of working together to resolve any differences hindering the process of reform and modernization.
The U.S. official said the continuation of dialogue would play an active role in signing a free trade agreement (FTA) between Egypt and the United States.
He added that the agreement would benefit Egypt and the United States alike, pointing out that the Congressional delegation met with senior officials in Egypt, including Foreign Minister Ahmed Abu-El-Ghait and Minister of Foreign Trade and Industry Rachid Mohamed Rachid.
The delegation also held other meetings with senior officials, including Minister of Finance Youssef Boutros Ghali and Minister of Investment Mahmoud Mohieldin.
For further information on Egypt-U.S. Relations (click here).
Egypt’s Economy to grow by 6% Source: Reuters, January 9, 2006
Egypt's Minister of Finance Youssef Boutros Ghali said the economy was expected to grow by 6% in the 2005/6 financial year, a level that economists say is needed to start cutting unemployment significantly and help reduce poverty.
Ghali said the economy would reach 6% growth in the 12 months to June 30, after expanding by an annualized 5.3% in the first quarter of this financial year and 5.1% in the whole of 2004/5.
Economists say Egypt needs to hit at least 6% growth a year if it is to cut unemployment that now stands around 10%, according to official figures, although independent estimates suggest it is much higher.
They say the government also needs to maintain such rates if it is to start making a significant reduction in poverty. The United Nations (UN) (link here) has estimated that roughly 20% of Egypt's 70 million people live on between $1 and $2 a day or less.
Economists have praised the work of a team of economic reformers in the cabinet who were appointed in mid-2004. Since then, Boutros-Ghali and other ministers have slashed taxes and revitalized a privatization programme.
Executive Statute of Customs Law Source: The Egyptian State Information Service, January 6, 2006
Minister of Finance Youssef Boutros Ghali endorsed on Thursday, January 5, 2006 first executive statute of customs law. The new statute includes more than 5,000 decisions in order to optimize customs performance.
The new statute was put into effect on Sunday, January 8, 2006 he added, noting that it issued after polling all organizations and Unions concerned in order to overcome any problem and restore confidence, in Customs Department. The Ministry of Finance attempts to achieve the optimum investment for funds of pension funds.
Egypt Cuts Discount Rate Source: Reuters, January 22, 2006
The Central Bank of Egypt (CBE) (link here) has cut its discount rate for the first time in more than three years to 9% from 10%. The central bank last cut was in November 2002 from 11%.
The decision to cut the discount rate was made at a meeting of the central bank's monetary policy committee last week, when it also cut the bank's overnight deposit and lending rates by 50 basis points to 8.25 and 10.25%.
'The most significant indication of the (discount rate) cut is that it's a loosening stance,' EFG-Hermes (AmCham Member) (link here) senior economist Hany Genena said.
The cut is expected to encourage more borrowing and investment especially retail and corporate clients to borrow from banks. A downside movement of all types of deposit rates and lending rates is also predicted.
The central bank had already made cuts in the overnight deposit and lending rates, which were at 9.5% and 12.5% in June, when the monetary policy committee was created.
Egypt Earns $1.9 Billion through Privatization in Six Months Source: Xinhua News Agency, January 5, 2006
The Egyptian government has gained revenue of LE10.9 billion (about $1.9 billion) through privatization operations in the last six months according to the Minister of Investment Mahmoud Mohieldin.
"The revenue from sales of state-owned shares in 31 companies in the last six months (from July to mid-December last year) reached LE10.9 billion," Mohieldin commented in a press conference.
The number was even higher than $97.7 million achieved through privatization in the whole previous fiscal year (from July 1, 2004 to June 30, 2005), Mohieldin added.
He highlighted several major privatization operations in the past few months, including selling of a 20% stake of state-owned Telecom Egypt (link here), the biggest fix-line telephone company in the Middle East.
The newly-formed cabinet, led by technocrat Prime Minister Ahmed Nazif, pledged on Wednesday, January 4, 2006 to push for comprehensive economic reform programs, including creating more jobs and promoting investment.
EFG-Hermes Buys 20% of Bank Audi Source: Trade Arabia, January 6, 2005; Middle East Economic Digest, January 13, 2006
Egypt-based investment bank EFG-Hermes (AmCham Member) (link here) has bought a 20% stake in Bank Audi (link here) in one of the largest direct investments in Lebanon's history as part of its regional expansion plans.
Investment bank EFG-Hermes will finance the acquisition through an injection of fresh capital to be raised through a $300 million private placement and a $150 million rights issue. Both transactions will be closed at the end of the first week of February.
EFG-Hermes will use the $450 million to purchase 7.5 million new shares to be issued by Bank Audi at a price of $60 each and equivalent to 20% of Audi’s capital. The deal will make EFG-Hermes the largest single shareholder in the Lebanese bank.
In addition, Bank Audi will offer a second tranche of 2.5 million shares to boost its shareholders equity by another $150 million, either through an initial public offering (IPO) at the Beirut Stock Exchange (BSE) (link here) or through a private placement.
The capital increase brings Audi's shareholder equity to $1.5 billion, the largest among banks in Lebanon.
Audi is present in five countries already and seeking opportunities in Egypt and Algeria. The bank also has a very good management and has asset management in Geneva and France.
Lebanon’s Audi Bank Wins Bid for Cairo Far East Bank Source: Dow Jones Newswire, January 29, 2006; Reuters, January 31, 2006
Lebanon's Bank Audi (link here) has won the bid to buy 100% of the shares of Cairo Far East Bank. Bank Audi paid $35 per share, for a total of $94.4 million, to close the deal.
Bank Audi is a private Lebanese bank and part of the Audi Saradar group, which had $10.5 billion in assets at the end of December 2004.
The restructuring process in Egypt's banking sector aims to reduce the number of banks operating in Egypt to about 36 from 56, with the central bank guaranteeing all depositors and staff rights.
Audi Bank's offer beat bids from Union National Bank (link here) of the United Arab Emirates and Qatar International Islamic Bank (link here).
Shareholders in Cairo Far East include five Korean banks (49%) and two Egyptian state companies -- Chark Insurance (20%) (link here) and Banque du Caire (AmCham Member) (19%) (link here) The bank has a capital of $26.3 million
Cairo Announces Another Bank Merger Source: Middle East Economic Digest, January 6, 2005
The government on December 29, announced the merger of 97% state-owned Bank of Commerce & Development with the country’s largest bank, National Bank of Egypt (AmCham Member) (link here), also government-owned. No further details have been released on the merger, which became effective on the day of the announcement. The move is part of a government initiative to restructure and consolidate the local banking sector.
Dow Jones Issues New Index for Egyptian Bourse Source: Xinhua, January 11, 2006
The Dow Jones (link here) will launch a new index for the Egyptian bourse, making Egypt the first African country to cooperate with the New York-based company.
The Dow Jones and the Cairo & Alexandria Stock Exchange (CASE) (AmCham Member) (link here) signed an agreement on launching the Dow Jones CASE Egypt Titans, reflecting the performance of the active and high profitability companies.
However, the Dow Jones CASE Egypt Titans will not be an alternative for the CASE index launched by the Egyptian Stock Exchange in 2003, as it has a different portfolio in the Dow Jones, CASE Chairman Maged Shawki was quoted as saying.
The index with global standard specifications would facilitate marketing financial products, which can improve the financial circulation and risk management.
"The shares of the Dow Jones CASE Egypt Titans will be circulated at the local, regional and international levels after selecting the enlisted companies in accordance with a set criteria,” he added.
Meanwhile, officials in the Dow Jones said that his company's trademark would increase the credibility of the new index and attract more local, Arab and foreign investors to invest in the Egyptian market in the future.
They revealed that similar agreements would soon be concluded between the Dow Jones and the region's markets, where the revenue on foreign investment is expected to be very high. The Index is expected to be launched during the first quarter of this year.
EFG- Hermes Gets License to Operate from DIFC Source: Zawya, December 31, 2005
Regional investment bank EFG-Hermes (AmCham Member) (link here) has been granted a license to conduct asset management and investment banking activities from the Dubai International Financial Centre (DIFC) (link here).
"EFG-Hermes' membership marks another significant milestone in the development of the DIFC. EFG-Hermes' approach reflects the high standards of execution and internal regulatory standards of the DIFC, and its track record as a seasoned regional player will surely prove invaluable to us," said Omar Bin Sulaiman, Director General of the Dubai International Financial Centre.
Mustafa Abdel-Wadood, CEO of EFG-Hermes UAE said: "EFG-Hermes is looking forward to strengthening the DIFC's position as a catalyst for regional economic growth, development and diversification."
The DIFC is set to bring a number of advantages to the region, according to Hashem Montasser, regional head of Asset Management at EFG-Hermes.
EFG Hermes also intends to become a member of the Dubai International Financial Exchange soon.
More than 15 international financial institutions have received licenses to operate in DIFC, which opened in late 2004. They include Standard Chartered (link here), Merrill Lynch (link here) and Credit Suisse (link here).
Calyon Snaps Up EAB Source: Middle East Economic Digest, January 13, 2006
Calyon (AmCham Member) (link here) has acquired 100% of shares in Egyptian American Bank (EAB) (AmCham Member) (link here) at a price of LE45 ($7.80) a share, in a deal worth a total of LE2,916 million ($508 million). Calyon beat off competition from HSBC (AmCham Member) (link here)for the purchase.
EAB was previously owned 33.8% by Bank of Alexandria (BoA) (AmCham Member) (link here), 40.8% by American Express Bank (Amex) (AmCham Member) (link here)and the remainder by smaller investors. At the end of 2004, the bank had assets of LE10,629 million ($1,852 million) and reported net profits of LE240.5 million ($41.9 million).
Credit Suisse First Boston (link here) advised on EAB’s sale, which forms part of a wider process of unwinding the holdings of the country’s four largest state-owned banks ahead of their privatization. Citigroup (link here) is advising on the sale of BoA.
EFC Closes Debt Deal Source: Middle East Economic Digest, January 20, 2006
Egyptian Fertiliser Company (EFC) has concluded a $600 million debt facility, to be used for a combination of refinancing and the funding of expansion plans. The mandated lead arrangers (MLAs) were Arab Petroleum Investments Corporation (Apicorp) (link here), Barclays Capital (AmCham Member) (link here), Citigroup (link here), Commercial International Bank (AmCham Member) (link here) and Misr International Bank (AmCham Member) (link here). The tenor is eight years. EFC was recently acquired by a group of investors led by local private equity firm Citadel Capital (AmCham Member) and including Saudi Arabia’s Savola Group (link here).
Oasis Capital Egypt concludes first investment in Shamsi Group Source: AME Info FX, January 8, 2006
In its debut transaction, Oasis Capital Egypt the newly established private equity fund concluded its first investment in Shamsi Group, the Egyptian retailer, textile and ready-made garment manufacturer.
The investment was made through a simultaneous capital increase and debt buy back from Banque du Caire (AmCham Member) (link here).
Naguib Sawiris, Chairman of Oasis Capital confirmed, 'The fund's strong belief in the Shamsi business model and in its ability to take full advantage of Egypt's preferential manufacturing and trading position through the utilization of QIZ (link here) and EU-Egypt Association Agreements.' He also noted, 'The strong cooperation the fund received from Banque du Caire as a stellar example of private - public sector cooperation in the working out of the debt and giving a new life to Egyptian companies in need of financial restructuring.'
Shamsi attributed the Group's success in manufacturing to international buyers such as GAP (link here), Ralph Lauren (link here), Levi's (link here), M&S (link here)and to their experienced management team, highly qualified cadre and the state-of-the-art machinery. He also added that the Group's local accomplishment via its highly recognized local brands Dalydress, 2Play and Shatex Home Collection will soon be seen in the Gulf market with the opening of its first shop this month.
The transaction size was over LE150 million for an undisclosed majority stake in Shamsi Group.
The six Shamsi operating companies will be consolidated under one holding structure, thus resulting in the first Egyptian vertically integrated textile company that does weaving, knitting, yarn dying, fabric dying, printing, finishing, garment manufacturing and retailing.
The Shamsi Group of companies is a family owned business established in Cairo, Egypt in 1958 and is a leading Textile & Garments manufacturer, distributor & retailer not only in Egypt but in the region. The Shamsi Group has over 3,000 employees, six companies and 39 retail outlets. Oasis Capital Egypt is a newly formed $150 million private equity fund exclusively specializing in Egyptian non-listed investments only. The fund partners are Naguib Sawiris, Olayan Finance Group (link here) and Majed Al-Futtaim Investment Trust (link here) .
The Bank of New York Appointed by Telecom Egypt as Depositary Bank Source: Business Wire, January 10, 2006
The Bank of New York (link here) , a global leader in securities servicing, has been selected by Telecom Egypt (link here) , as depositary bank for its global depositary receipt (GDR) listing on the London Stock Exchange (link here) . Each Telecom Egypt GDR represents five ordinary shares. The ordinary shares trade on the Cairo and Alexandria Stock Exchanges (link here) .
Telecom Egypt is the largest provider of fixed-line services in the Middle East. Telecom Egypt is the only company in Egypt that is able to offer a full range of fixed-line and retail telecommunications services and is the sole provider of wholesale telecommunications services.
The Bank of New York is depositary for more than 1,200 American and global depositary receipt programs, a 64% market share, acting in partnership with leading companies from 60 countries. With an unrivalled commitment to helping securities issuers succeed in the world's rapidly evolving financial markets, the Bank delivers the industry's most comprehensive suite of integrated depositary receipt, corporate trust and stock transfer services.
The Bank of New York has been conducting business in the Middle East and Africa for nearly 100 years. The Company has representative offices in Abu Dhabi, Beirut, Cairo, Istanbul, and Johannesburg, and works with a wide range of banks, governments, and other financial institutions throughout the region.
For Amcham’s Banking Sector Developments in Egypt new (click here).
Egypt Joins EU Technology Transfer Network Source: Egyptian State Information Service, January 7, 2005
Minister of Trade and Industry Engineer Rachid Mohamed Rachid, has announced that the EU (link here) has agreed on Egypt joining the EU Technology Transfer Network which aims at providing the advanced technology to the industry sector. Rachid has noted that Egypt is the first Arab and African country to join this network, a matter that reflects the EU appreciation to the efforts exerted by Egypt in realizing political and economic reforms.
Rachid has stressed that the EU network would help boost the plans of the ministry targeting at modernizing industry and increasing its competitive capabilities. It will provide the latest technological information to all Egyptian industrial sectors.
Third GSM License to Hit the Market Source: Middle East Economic Digest, January 13, 2006
The National Telecommunications Regulatory Authority (NTRA) (link here) is gearing up to release request for qualification (RFQ) documents for the country’s much-anticipated third GSM license following the Eid holiday in mid-January, Communications & Information Technology (CIT) Minister Tarek Kamel said on January 7.
Among the bidders are expected to be international operators, in particular regional players such as Kuwait’s MTC (link here) , Qatar Telecom (Q-Tel) (link here) and the UAE’s Emirates Telecommunications Corporation (Etisalat) (link here) , as well as South Africa’s MTN (link here) , which has teamed up with the local Raya Holding (AmCham Member) (link here) . The license will be awarded later this year.
The CIT Ministry has said that the third license will boost Egypt’s comparatively low mobile phone penetration rate from 13.8% in mid-2005 to about 20% by 2008/09. The ministry forecasts that the third license-holder should be able to capture a market share of about 20% within the first four-five years of operations.
Project to Produce Low-Cost Computers Source: Financial Times Information, January 4, 2006
Premier Dr. Ahmed Nazif held a meeting Monday January 2, 2006 with Microsoft (link here) Chief Executive John Philip where a partnership agreement was signed to manufacture low-cost computers to sell on the Egyptian market.
The new computer will be sold at a price range of LE1500 and LE1800. The new initiative is part of a cooperation program with international companies. The computers are designed and will have low-income-suitable operating systems.
Orascom Telecom Holding Extends its Iraqi License Source: AFX News Limited, January 16, 2006
Orascom Telecom Holding S.A.E. ('OTH') (link here) announced today that its Iraqi GSM operation, Orascom Telecom Iraq Corp. ('Iraqna') has been granted a six month interim license extension on conditions substantially similar to its original license.
The new agreement will extend the operations of Iraqna for a further six-month period starting from the December 22, 2005 until the June 30, 2006 in anticipation of the tendering of a long-term license before the end of this year.
License renewal terms provide for a 'Revenue Sharing' fee of 13% of gross revenues less amounts paid to the Iraqi Telephone & Post Company and other licensed mobile operators for interconnection and access services, but OTH will not be required to pay the nominal license fees on its original license terms anymore.
Since OTH was declared the winning bidder for the Central Region of Iraq on October 6, 2003, OTH began implementing an aggressive plan for an immediate rollout of the network, leveraging on its commercial and technical expertise.
Within an extremely short timeframe, it set up the distribution network, including points of sale throughout the region, and designed complete commercial plans to offer high quality data and voice services at competitive prices to the Iraqi people.
In July of 2005, OTH signed agreements to acquire the remaining 37% equity stakes in Iraqna. Through this transaction, OTH indirectly owns 100% of Iraqna, giving it greater flexibility for participating in the upcoming license grant process.
During the first nine months of 2005, Iraqna revenues soared to $249 million with an EBITDA margin of 66.3%. Iraqna also witnessed substantial growth in its total subscribers, which surpassed the 1.5 million mark in October 2005.
OCI Buys Cement Bag Firm Source: Reuters, January 4, 2006
Egypt's Orascom Construction Industries (OCI) (AmCham Member) (link here) said it had bought an Egyptian cement bag manufacturing company.
OCI said the acquisition, worth LE43 million ($7.5 million), would complement the firm's cement and construction operations.
'The new cement bags subsidiary will help us cope with the packaging requirements associated with the strong volume growth in both the domestic and export markets,' OCI Chief Executive Officer Nassef Sawiris said in a statement.
Moreover, OCI had made acquisitions worth $108.7 million in the Turkish cement industry, buying a cement factory in Turkey. The firm plans to spend another $141.3 million in the sector.
In December, a unit of OCI, which has businesses in Egypt and the region, won a $355 million contract to build a science and technology center in Doha.
Orascom and Club Med Strike Deal Source: Reuters, January 16, 2006
Egypt's Orascom Hotels and Development (OHD) (link here) said it had an agreement with France's Club Mediterranee (link here) to develop real estate around Club Med holiday resorts worldwide.
Under the Club Med deal, Orascom Hotels will take a 75% stake in a joint venture firm, and Club Med would take the remaining 25%. The initial plan is to develop at least 50 villas on about 120,000 square meters of land next to a five-star Club Med resort in Mauritius.
Based on prices for holiday villas on the Indian Ocean island of $500,000 to $1.5 million each, the value of that part of the real estate project with Club Med would be about $50 million to $70 million over two years. The formula for developing real estate would vary with each of Club Med's 120 resorts, depending on how much land was already available, what land could be bought nearby and what kind of buildings could be built.
Orascom Hotels uses the formula of hotels and real estate sales in Egypt, including its Red Sea El Gouna and Taba resorts. It is also using the formula at Andermatt, Switzerland and in projects in Oman and the UAE.
The company, which has about 4,600 hotel rooms now, aims to boost that to about 10,000 rooms by 2011.
Orascom Hotels and Development Set Up Two JV Airlines Source: Zawya, January 17, 2006
Orascom Hotels and Development (link here) to Set up Two JV Airlines, Resumes Regional Expansion Plans- In line with its regional expansion plans, Cairo-based Orascom Hotels and Development (OHD) is planning to launch two aviation joint ventures - Sun Air, with a national/regional focus in Egypt, and Koral Blue, with a regional/international focus.
Sun Air will commence its activities during 2006, operating two ATR aircraft each with a capacity of 72 seats, with two additional planes planned to join the fleet the following year," OHD said in a statement.
OHD will hold 51% stake in Sun Air with an identified technical partner and the Tunisian Karthago group (link here) will hold the remaining stake.
Koral Blue will commence its activities during 2006, operating two A320 aircraft each with a capacity 180 seats, with two similar planes planned to join the fleet the following year. OHD will hold 50% of Koral Blue, with the Tunisian Carthago group holding the remaining stake.
The two new ventures represent an addition to OHD's existing Orascom Aviation operations that comprise a local air taxi service utilizing a fully owned B200 aircraft and leased hours on a new Hooker XP private jet.
Samih Sawiris, OHD chairman, told reporters that operations would start with domestic service by the two small aircraft with the capacity of carrying 75 passengers each.
In another development, Sawiris explained that his company completed the establishment of a joint venture company with the Omani government in which OHD owns 70%.
The company's purpose is to develop four tourism projects in Oman with $600 million in investments. The four projects, which had been approved in March 2005 by the Sultanate of Oman, comprise a development in the downtown of Muscat; a 6 million square meters resort in Seifa near Muscat; and resorts located on the Salalah and Sowady islands.
In order to finance its projects in Oman, OHD in early December had approved a private capital increase through a non-rights issue for a maximum of LE400 million ($69.5 million).
In Yemen, OHD aims at developing the Red Sea Island of Kamaran in a mega tourism project. According to Sawiris, preliminary estimates set the project's investment needs at $250 million in its first phase.
Sawiris added that OHD would hold an exclusive lease of 99 years for the land in the project, which aims at building resorts in the Yemeni Island similar to those in Egypt's Red Sea city of Sharm el-Sheikh.
Singapore's CWT Unit Forms Egypt Joint Venture Source: AFX News Limited, January 18, 2006
CWT Distribution Ltd (link here) said its unit CWT Globelink Pte Ltd has tied up with local partners in Egypt for a freight forwarding venture there.
The joint venture company, Globelink Egypt, will be 51% owned by CWT and 49% by its Egyptian partners.
Globelink Egypt will have offices in Alexandria, Port Said and Cairo.
'The venture will further strengthen and broaden CWT Globelink's network. Globelink Egypt will be able to (exploit) logistics and freight forwarding developments in Egypt,' CWT said in a statement.
It said that CWT Globelink group has the largest non-vessel operating common carrier network in Asia with connections in over 120 international ports and 1,200 destinations around the world.
The company sees no material impact on its net tangible assets per share and earnings per share this year from the joint venture.
Award Nears on Kureimat HRSG Source: Middle East Economic Digest, January 20, 2006
Egyptian Electricity Holding Company (EEHC) (link here) is expected to award by the end of January the estimated $50 million-60 million-heat recovery steam generator (HRSG) package on the 750-MW Kureimat II combined cycle power plant, 90 kilometres south of Cairo. International companies are also preparing to submit bids soon for the project’s gas turbine package.
Four companies – a consortium of Belgium’s CMI (link here) and the Czech Republic’s Skoda (link here), France’s Alstom (link here), Italy’s Ansaldo Energia (link here) and NEM (link here) of the Netherlands – last year submitted bids for the contract, which covers the supply and installation of HRSG equipment. It is understood that the CMI/Skoda team is the low bidder for the contract. The team in August won a similarly-sized HRSG package on the Talkha combined cycle power plant project at a price of about $55 million.
Bids are due to be submitted by the end of January for the package to supply and install two 250-MW gas turbines for Kureimat II. France’s Alstom Power, Germany’s Siemens (link here) and Japan’s Mitsubishi Heavy Industries (MHI) (link here) are expected to bid for the contract. A single 250-MW steam turbine will be tendered separately.
New Oil Findings in Eastern Desert Source: The Egyptian State Information Service, January 10 & 26, 2006
Three new oil findings were discovered in Beni Swef and the Eastern Desert. The three oil wells confirmed reserves of 80 million barrels. They are also expected to produce 6,000-10,000 barrel/day.
Technip Closes in AMOC Work Source: Middle East Economic Digest, January 27, 2006
Paris-based Technip (link here) is understood to be the frontrunner for the contract to carry out a feasibility study on maximising production at Egypt’s smallest refinery for Alexandria Mineral Oils Company (AMOC).
The contract for the seven-month study is expected to be signed in February, with work scheduled to start in March. Three other companies submitted offers for the contract in late September: Austria’s Poerner Ingenieurgesellschaft (link here); US-based Foster Wheeler (link here); and the US’ UOP (link here).
The tender to carry out the revamp work will be issued following the conclusion of the study. AMOC accounts for only 2% of Egypt’s total refinery output but operates two modern complexes, a gas-oil facility completed in 2002 and a lube oil complex completed in mid-2004.
Regal Plans 3D Seismic Survey, Seeks Partner Source: Middle East Economic Digest, January 20, 2006
UK-based Regal Petroleum (link here) is expected to issue tenders in early February for the contract to acquire 3D seismic data over a 100-square-kilometre area in its East Ras Budran onshore concession on the Sinai coast of the Gulf of Suez.
"We are also looking for a partner [for the concession]," says a company representative. Regal signed a heads of agreement in April 2004 to acquire exploration and production rights for the concession originally held by the UK’s LK Exploration. Under the terms of the agreement, Regal has exploration rights for three years with the option of an extension of four years and a financial commitment to spend $4 million. In the event of a discovery, Regal has the right to convert its concession into a 20-year development and production lease.
Kuwaiti - Egyptian Firm to Invest in Energy Source: Kuwait Info, January 25, 2006
Ministry of Investment licensed Egypt-Kuwait Holding Company to operate in oil exploration with an authorized capital of $1 billion and an issued capital of $300 million.
The company said Wednesday in a press statement that the firm will carry out various oil activities in Egypt and overseas.
The company, Tri-Ocean Energy (link here), is to operate in oil exploration and digging in Egypt and abroad and to set up plants to liquefy gas, said the statement.
The Cashier of Cairo Electricity Production Company issued on January 16, 2006 a request for extending services to Al Tebbin 2 x 350 MW steam fired power station project among other site preparation works including (a) preparing & equipping of temporary offices for the owner & consultant during construction period, (b) construction of two residential buildings, (c) preparing & equipping of the station location, (d) electricity works, (e) a potable water supply system, (f) a sanitary drainage system, also (g) removal of old underground foundations. The specification fee is LE400. The bid bond is LE300,000. Deadline for the submission of offers is March 27, 2006.
Information Technology
The program planning & monitoring unit of the ministry of education issued on January 20, 2006 a request for proposals from eligible bidders as per the World Bank Guidelines for the supply & assembly of multimedia rooms at 205 secondary schools in governorates stated in bid documents under funding from IDA - International Development Association. The specification fee is LE200. The bid bond is 2%. The performance bond is 10%. Deadline for the submission of offers is March 8, 2006.
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