RTI INTERNATIONAL TO LEAD NEW PROGRAM TO IMPROVE EDUCATION FOR GIRLS Source: Carolina Newswire, May 19, 2008
As part of an effort to improve the quality of education and learning achievements among Egyptian girls, RTI International will lead a project to strengthen the quality, coverage and management of girls’ education in kindergarten through ninth grades.
Under terms of the three-year, $37.1 million contract, funded by the U.S. Agency for International Development/Egypt, RTI will work with Egyptian government and local communities to help expand coverage of girls’ education in remote areas, improve the quality of teaching and learning, and strengthen the management and governance of education at the school level in communities with the highest percentages of out-of-school girls.
As part of the Egypt Girls’ Improved Learning Outcomes project, RTI will work with international and local partners to improve and sustain learning outcomes among girls in more than 300 schools in seven Egyptian governorates—Aswan, Beni Suef, Qena, Minya, Fayoum, Alexandria and Cairo.
SURPLUS IN EGYPT BALANCE OF PAYMENTS REACHES USD 4.9 BILLION IN 9 MONTHS Source: Egypt State Information Service, May 25, 2008
Balance of payments has shown a surplus of US $ 4.9 billion over the period from July to March compared to US $ 3.1 billion over the same period of the previous fiscal year. Commodity exports increased by US $ 4.9 billion in this period reaching US $ 20.8 billion. Petroleum and non-petroleum exports accounted for 35.4 percent and 27.4 per cent respectively of the total commodity exports. Commodity imports surged by 43.1 per cent hitting $ 37.6 billion. Tourist revenues jumped by 32.9 percent to $ 8.2 billion. Transport revenues also surged by 22.8 percent. As for the foreign direct investments in the said period, they reached $ 11.3 billion compared to $ 9 billion in the same period in the previous fiscal year.
ENERGY SUBSIDIES TO RISE TO EGP95 BILLION IN FY2008/09 Source: Al-Ahram, May 18, 2008
The Egyptian General Petroleum Company projects that energy subsidies will jump to EGP95 billion (USD17.5 billion) in FY2008/09 from an estimated of EGP73 billion in FY2007/08 said EGPC head Taha Abdul Alim. The new figure is higher than what was announced in the draft budget, which is being debated in parliament, due to a continuous increase in oil prices, said Ahmed Ezz, head of the parliament’s Planning and Budget Committee.
The planned increase in fuel subsidies increases the share of subsidies in GDP to an estimated 9.1% in FY2008/09, which begins on 1 July, from 8.5% in FY2007/08.
TELECOM EGYPT WINS LE 50 MLN THROUGH ENGLAND-INDIA CABLE Source: AMEInfo, May 19, 2008
Aqil Beshir,CEO of Telecom Egypt (AmCham member) (link here) said that the company sold services using the new cable (T-North) that are worth around LE 176 million in two contracts only. He said that the overall cost of the cable is around 150 million US dollars. The new cable should be installed in August and starts operation in September.
Beshir also said that the company has done well by being part of the new cable along with 15 other cables with a cost that reached 700 million US dollars. This cable starts in India and Ends in England and passes though Egypt.
The company will not list any shares on the market for the time being, he added that this is a government related decision to make and it is not up to the board of directors of the company.
OT INTERESTED IN RWANDA’S THIRD MOBILE LICENSE THROUGH TELECEL GLOBE Source: Dow Jones, May 19, 2008
Orascom Telecom Holding (link here) is interested in bidding for Rwanda’s third mobile license through its newly established subsidiary Telecel Globe, CEO Naguib Sawiris said. The subsidiary, which will be financed by OT, aims to invest in African countries with relatively high populations and low penetration rates. Rwanda’s has around 9 million people and a GDP per capita below USD400, according to the IMF. Its mobile penetration rate stands at around 7%, according to the ITU.
SAIPEM WINS TWO CONTRACTS IN EGYPT AND ANGOLA WORTH $600 MILLION Source: Dow Jones, May 28, 2008
Saipem (link here), Europe's biggest oil services company by market value, said Wednesday it has won two offshore contracts worth about $600 million in Egypt and Angola.
In a statement sent to the Italian stock exchange, Saipem, which is controlled by Italy's Eni SpA, said that the Egyptian contract was awarded by Burullus Gas Company for the subsea development of the Sequoia field. The company said it expects to complete the work in the second half of 2009.
DANA AGREES EGYPT JOINT VENTURE Source: ShareCast, May 20, 2008
Dana Petroleum (link here) has signed a deal to buy a 40% interest in the South East July production sharing contract offshore Egypt. The agreement with Santos Egypt in the Gulf of Suez secures attractive new prospects for drilling in a core area for Dana. It has already completed five transactions in Egypt.
The SE July PSC is in the same area of the Gulf of Suez as Dana's existing producing oil infrastructure at East Zeit and close to the North Ghara PSC, where Dana is working with BP(AmCham member) (link here). This latest deal utilises the expertise and operational capability of our team to add exciting new prospects into Dana's portfolio, the first of which will be tested as part of the ongoing 2008 drilling campaign. Dana is currently drilling two wells offshore Egypt, at West El Burullus in the Nile Delta and at West Gihan in the Gulf of Suez. Results are expected in the coming weeks.
7 BANKS SIGN OFF A LOAN OF $133.6 MILLION FOR MARIDIVE Source: Al-Mal Newspaper, May 25, 2008
A consortium of 7 Egyptian banks is wrapping up arrangements to issue a loan of 133.6 million dollars for Maridive & oil services (MOIL) to finance expanding its fleet. The consortium includes Commercial International Bank (CIB) (AmCham member) (link here) and Credit Agricole (AmCham member) (link here), the main two organizers of the loan.
It also includes Arab African International Bank (AmCham member) (link here), National Bank of Egypt (AmCham member) (link here), Alexandria San Paolo, United Bank (AmCham member) (link here) and Export Development Bank of Egypt (AmCham member) (link here). Yassin Mansour, president of Credit Agricole Egypt said that the purpose of the loan is to finance expansions in the company; he added that the loan is for 10 years including a 3 years grace period.
MORTGAGE FINANCE IN EGYPT ALMOST TO DOUBLE BY JUNE 2009 Source: Reuters, May 27, 2008
The value of mortgage loans provided to home buyers in Egypt is expected almost to double to more than EGP4 billion by the end of June 2009, said Minister of Investment Mahmoud Mohieldin. The growth in the industry is expected to accelerate beyond the current rate of 31.6%, driven by mortgage finance companies rather than by banks that provide mortgage loans, Mohieldin added. The value of mortgages is expected to exceed EGP3 billion by the end of 2008. Eight mortgage companies and 16 banks provide mortgage loans in Egypt.
BANQUE DU CAIRE TO BE SOLD BY JUNE-END, PROCEEDS COLLECTED LATER Source: Al-Alam al-Yom, May 22, 2008
The government still expects to sell up to 67% of Banque du Caire (link here) by the end of June, before the end of FY2007/08, said Investment Minister Mahmoud Mohieldin. Proceeds from the sale will be collected a month after the sale, meaning they will not show up in the FDI figure for FY2007/08, he added.
FOUR NEW MORTGAGE FINANCE COMPANIES APPLY FOR LICENSES FROM MFA Source: Noozz Editorial, May 19, 2008
The Egyptian Mortgage Finance Authority (MFA) (link here) has received applications from four companies seeking licenses to offer mortgages in Egypt, its chairman Osama Saleh said. One of the companies is US-based and another European, while the origin of other two companies was not disclosed. The MFA recently offered a license to Saudi-based Naeem Investments (AmCham member).
EGYPT'S OCI TO SPEND $800 MLN ON FERTILISER PLANT Source: Reuters, May 20, 2008
Orascom Construction Industries (AmCham member) (link here) has said it would focus on fertilisers after selling its cement unit to French company Lafarge for 8.8 billion euros last year. Egypt's Orascom Construction Industries will spend $800 million over three years to build a phosphate-based fertiliser plant, the firm's chief executive said on Monday.
Orascom would build the plant in the Middle East. The plant would start production after three years. Phosphate-based fertilisers comprise about 30 percent of global farming fertiliser needs.
NEW EGYPTIAN-CHINESE PROJECT IN SUEZ Source: Ministry of Investment, May 25, 2008
An LE 70 million joint project between Egypt and China was inaugurated in Suez by the Minister of Investment, Dr. Mahmoud Mohieldin; Governor of Suez, General Seif Galal and the Chinese Ambassador to Egypt.The Egyptian-Chinese Enterprise for Unwoven Cloth, established in the third sector of North West Suez Gulf, employs 250 Egyptian workers and assigns 70 percent of production to export.
The new project helps to transfer modern and advanced Chinese technology to Egypt in various fields including spinning and weaving, Dr. Mohieldin added. The project provides job opportunities to Egyptians.
Dr. Mohieldin highlighted the importance of attracting more Chinese investments to the economic zone North West Suez Gulf by benefiting from advanced Chinese technology. An international tender was made for selecting the developer of the economic zone North West Suez Gulf. The best bid will be selected from among 29 bidders. The Minister of Investment said that new projects will be offered in the zone with inputs from the Chinese African Fund for Development including a project for motorbike assembly for USD 13 million investments, a factory for electric generators for USD 40 million and a plan for tractor assembly for USD 4 million investments.
ELSWEDY CABLES TO START PRODUCTION IN ALGERIA NEXT JULY Source: Al Mal Newspaper, May 22, 2008
El Sewedy Cables (AmCham member) (link here) announced that production in its cables factory in Algeria will start next July with a production capacity up to 12,000 tons per annum, and investments of $ 50 million. Investor Relation Manager at El Sewedy Cables Company, Ahmad El Homosanay, said that production capacity will rise to 15,000 per annum tons by 2009.The Factory is 100 % owned by El Sewedy Cables and it is a part of the company’s plan to invest $ 1 billion in Africa during the next three years.
BHEL PROPOSES VENTURE IN EGYPT Source: The Hindu, May 27, 2008
Bharat Heavy Electricals Ltd. (link here) has proposed the setting up of a joint venture in Egypt for manufacturing utility and industrial boilers. The project would entail an investment of $250 million in association with an Egyptian company. According to the broad proposal, the joint venture would be most preferably done with a government owned Egyptian company to set up a manufacturing unit of 2000 MW capacity in the initial stage to be expanded later in stages.
UNITS WORTH UP TO EGP400, 000 TO BE EXEMPTED FROM PROPERTY TAX Source: EFG-Hermes, May 27, 2008
Units with a value of up to EGP400,000 will be exempted from Egypt’s new property tax, Minister of Finance Youssef Boutros-Ghali announced in the Shoura Council. For properties above EGP400,000, the owners will pay a 12% tax rate on an estimated gross yield (rental value) of the property after subtracting 25% as maintenance expenses. The value of the units will be determined through a valuation process that will take place every five years.
Compiled by: Business Studies & Analysis Center E-mail: Studies@amcham.org.eg If you want to receive this bulletin on a regular basis, fill out this form
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