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| ROUND UP: The month at a glance |
EGYPTALUM DEAL SEEN:
Alcoa Inc. of the U.S., the world's largest aluminum producer, will
perform due diligence on the state-controlled monopoly Egypt Aluminum
now that the parties have reached preliminary agreement on the terms
of an Alcoa-controlled strategic partnership involving Egypt Aluminum's
smelting, rolling and extrusion operations. A final deal is expected
in early 2000.
GAS DEAL SIGNED:
BG PLC and Edison International SpA signed an agreement in August
with the Egyptian General Petroleum Corp. that will lead to the
largest gas field development in Egypt. The Scarab/ Saffron field,
in the Nile Delta, has estimated reserves of more than four trillion
cubic feet of very high quality gas. Gas is expected to be first
produced in January 2003. The two companies will invest more than
$500 million in the first stage.
FRENCH BANK UPS STAKE:
French banking group Credit Commercial de France increased its stake
in Credit International d'Egypte to 74.83 percent in July by buying
a 24.32 percent stake in CIE from the National Bank of Egypt. CCF
didn't disclose the price it paid, but said it plans to shore up
CIE's current activities and to take the bank into private banking.
BUYERS FOR CEMENT SHARES:
Egypt has accepted a bid from Mexico's Cemex S.A. to buy 90 percent
of state-owned Assiut Cement Co. and was in negotiations with the
U.K.'s Blue Circle Industries PLC for the government's remaining
74 percent stake in Alexandria Portland Cement Co. The government
has set minimum prices for the companies of £E 1.28 billion
for Assiut and £E 900 million for Alexandria.
RESERVES FALL:
Egypt's net international reserves fell $464 million in May to $18.23
billion, their lowest level in at least 33 months. The monthly decline,
the largest since at least September 1996, came as Egypt continues
to spend down its reserves to fund its current account deficit.
Egypt's reserves at the end of May were sufficient to cover 13 months
worth of imports.
TOURISM UP:
Egypt reported that 361,000 tourists arrived in May, up from 241,000
in May 1998 and 331,000 in May 1997, before the industry was flattened
by the Luxor attack. Tourists stayed a total of 2.19 million nights
in May, up from 1.27 million nights in May 1998 and 2.09 million
nights in May 1997.
INFLATION 3.8% FOR 1998:
Egypt's consumer price index rose 2.9 percent in the 12 months to
the end of June 1999, faster than the 2.8 percent rate in the 12
months to the end of May. Consumer prices rose 0.3 percent in June
itself, unchanged from May. June's result left Egypt with average
consumer-price inflation of 3.8 percent in the fiscal year ended
June 30, unchanged from the previous fiscal year, the Ministry of
Economy said.
SIDI KRIR WORK TO BEGIN:
InterGen, the private-power joint venture between Bechtel and Shell,
plans to begin full construction of the $480 million Sidi Krir power
plant west of Alexandria by late this month, now that it has the
financing for the project in place, Dow Jones Newswires reported
in August. The 650 megawatt plant should operate commercially by
January 2002.
POWER COMPANY SALES:
Egypt plans to move ahead with the sale of shares in three of the
nation's regional power companies in the fall, according to reports
in the nation's semiofficial daily newspapers. The three on the
block are the Greater Cairo Electricity Co., the Canal Zone Electricity
Co. and the Middle Egypt Electricity Co. The government plans to
sell 20 percent stakes in all three, and will eventually offer up
to 49 percent of the shares in all seven regional power companies.
Previous discussions had centered on the Cairo company.
PORT CONTRACT SIGNED:
A group led by ECT International of the Netherlands and Maersk of
Denmark in August signed a contract to build a $480 million container
terminal at the new East Port Said Port. Local partners include
the National Bank of Egypt and businessman Ibrahim Kamel. Transportation
Minister Soliman Metwalli said that the build, operate, transfer,
or BOT, contract was the last in Phase 1 of the huge project.
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