U.S. Restarts Egypt Trade Talks Source: The Washington Times, February 22, 2005
The Bush administration in its second term is continuing its drive for closer economic ties with the Middle East, restarting trade-related talks with Egypt this week and formally opening free-trade agreement negotiations with Oman and the United Arab Emirates next month.
The effort builds on recent pacts with Jordan, Morocco and Bahrain, and is part of President Bush's strategy to create a Middle East Free Trade Area by 2013.
"I think we are making rapid progress in the Gulf," said Catherine Novelli, the assistant U.S. trade representative negotiating the deals.
The meetings in Egypt, the most populous country in the region, are the first bilateral trade talks since mid-2003, when a push to open free-trade agreement negotiations soured after Egypt backed out of a multination effort to press Europe to open its markets to genetically modified crops.
The administration at the time also had concerns about Egypt's opaque regulations and commitment to opening its economy.
Egypt since has begun a series of economic reforms, appointed a new trade minister, and in December signed a pact with Israel that allows duty-free exports to the United States of products made with Egyptian and Israeli materials.
"We are very excited about meeting with the new economic team" in Egypt, Ms. Novelli said.
The new round of talks, in Cairo, are not formal free-trade negotiations, but part of a formal mechanism to discuss trade and investment issues. Egypt considers the meeting a step toward a free-trade deal.
When asked whether Egypt would emerge as a candidate for a free-trade agreement, Ms. Novelli said: "That's the ultimate goal with all the countries in the Middle East." The diverse region stretches from Morocco, in northern Africa, to Iran, east of the Persian Gulf. Much of the Middle East has fast-growing populations but is stagnant economically.
Mr. Bush, as part of a broader post-September 11 strategy, in May 2003 proposed a Middle East Free Trade Area "to bring the Middle East into an expanding circle of opportunity, to provide hope for the people who live in that region.
Tunisia, Algeria, Kuwait, Qatar and Yemen, like Egypt, have trade and investment agreements, which create a formal framework for talks with the United States about commercial issues.
The United States' oldest free-trade agreement is with Israel. Jordan formalized a pact in 2001. Congress approved a deal with Morocco last year and is expected to approve a deal with Bahrain this year. The administration highlights the Jordan pact, which helped boost two-way trade from $301 million in 1999 to $1.7 billion in 2004, as an example of successful trade policy.
Egypt Ammonia Plant on Way Source: Trade Arabia, February 17, 2005
The US Export-Import Bank (link here) said it had approved a $229.8 million loan guarantee to support the construction of an anhydrous ammonia plant in Egypt by Halliburton subsidiary Kellogg (link here), Brown and Root (KBR) (link here) and other US suppliers.
Twenty-two US companies from Texas, Oklahoma, Kansas, Illinois, Colorado and Kentucky will provide goods and services to build the plant, the bank said.
KBR is expected be a co-owner of Egypt Basic Industries Company, the project company for the plant, the bank said.
Other expected co-owners include PSK Holdings, an Egyptian petrochemical company, Orascom Construction Industries (AmCham Member) (link here), a major Egyptian construction firm, and Egyptian General Petroleum Corporation (link here), the state-owned oil and gas company.
The planned facility will be able to produce 2,000 tons per day of anhydrous ammonia and will be connected by pipeline to product storage tanks in Sokhna Port. The transaction is Ex-Im Bank's first limited recourse project financing in Egypt. With that type of private financing, repayment is based on project revenues.
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Telecom Egypt Selects Narus for Traffic Anomaly Detection Source: Business Wire, February 23, 2005
Narus Inc. (link here) announced on February 23rd that Telecom Egypt (TE)(link here), the premier carrier in Egypt, has selected Narus, the leading Carrier-Class IP Platform provider, to secure and protect their corporate network against system disruptions such as anomalies, DDoS and worm attacks. Telecom Egypt has previously selected and installed the Narus IP Platform to monitor and report all VoIP traffic usage through the Telecom Egypt IP Network.
The CSI/FBI 2004 Computer Crime Survey estimates that network viruses and DDoS attacks accounted for close to 60 percent of all security-related damage experienced by enterprises last year. Additional research indicates that worm attacks alone will cost Nort American ISPs nearly $250 million in 2004. By using Narus’ IP Platform with Traffic Anomaly Detection, Telecom Egypt will be able to detect and avert attacks that could prevent proper functioning of financial systems.
With anomalies and attacks occurring every day, large carriers are seeking configurable solutions to meet these changing trends and to keep their networks up and running consistently and profitably.
Narus Partner Giza Systems (AmCham Member) (link here) will implement the deployment across the core backbone routers feeding into all of Telecom Egypt’s financial data center applications. Built on the Narus IP Platform that is capturing and analyzing all of the IP traffic in the Telecom Egypt network, the Narus’ Traffic Anomaly Detection configuration will baseline all of the traffic and provide alarms on anomalous behavior.
We’re looking forward to working with Telecom Egypt with the security and management needs of their network, which are critical to their business operations, said Greg Oslan, president and CEO, Narus. The scalability of our IP Platform provides them the ability to grow this solution into their customer network as well as to use it for other applications such as IP Analysis, Lawful Intercept and Billing Mediation.”
The Narus Carrier-Class IP Platform offers a Total Network View through the real-time collection and analysis of one packet to billions of packets across multiple networks simultaneously. The Narus Carrier-Class IP Platform is used by Tier-1 service providers to enable IP applications such as infrastructure protection, policy enforcement, IP monitoring, and billing.
Globecomm Systems Awarded Infrastructure Contract In Egypt Source: Business Wire, February 23, 2005
Globecomm Systems Inc. (link here), a global provider of end-to-end satellite-based communications solutions, announced that it has been awarded an $8.1 million contract from the National Air Navigation Services Company in Egypt.
Under the terms of the contract, Globecomm will design and install a next generation satellite-based network connecting nineteen remote NANSC sites in Egypt to the Cairo Air Navigation Center (CANC), which is the central hub of the network. The contract work is scheduled to begin immediately.
The new network allows NANSC to conform to the International Civil Aviation Organization (ICAO) (link here) standards-based program. ICAO is a specialized agency of the United Nations whose mandate is to ensure the safe, efficient and orderly evolution of international civil aviation. The network will provide a robust connection between the sites allowing for the transfer of voice, data and video at high data rates, enhancing the efficiency of NANSC’s aviation operations. The primary use of the network will be to transfer the packet-based data converted from the underlying systems at each location to the CANC.
David Hershberg, Chairman and Chief Executive Officer of Globecomm said, with this contract award, Globecomm is now qualified on an ICAO standards-based program. Internet Protocol as a common standard allows airports to consolidate radar information from the application layer and move large amounts of data at fast speeds to a central hub, or amongst other airports in the network, and conform them to the ICAO standards-based program. Internet Protocol-based networks carry voice, data and video. When coupled with the ICAO standards-based mandate, it provides a compelling reason for airports to modernize their networks. As more airports come on-line, Globecomm is positioned to capitalize on the trend. The contract was won teaming with Adcom, a local company, who was awarded a separate contract for the civil works and was instrumental in Globecomm’s winning this award.”
Mr. Ahmed Said, Chairman of NANSC commented, the modernization of the nations air traffic control facilities is of great importance and we are confident in GSI’s demonstrated ability and that their offered solution will meet our requirements.”
UK Wheat Shippers Eye Egypt Source: Trade Arabia February 23, 2005
UK wheat shippers are looking to win business in Egypt after being added to Cairo’s list of possible suppliers, Britain's Home Grown Cereals Authority (HGCA) (link here) said.
On Saturday, Egypt's main government-run wheat importer, General Authority for Supply Commodities (GASC), filled a 60,000-ton wheat tender with French grain, but the UK grain marketing body believed it had laid the groundwork for future deals.
"It was probably too much to hope for that we'd get UK wheat on the tender list and get a cargo in one go, but maybe by the time we get to the next tender, or certainly to the next harvest, we've got everything in place," HGCA crop marketing director Alastair Dickie said.
"We've been in direct discussions with Egypt for up to two years about the possibility that Egypt might take UK milling wheat."
Egypt had been anxious about moisture content.
"Dry wheat countries resent paying for water," Dickie said, adding that Cairop had finally been won over to UK wheat after regular tender player Canada was allowed a moisture content of up 14.5 percent.
"That was a big breakthrough because there's a lot of anxiety in the UK about shipping wheat to foreign countries at low moisture levels as it costs us a lot of money to dry it. On this basis, it's cheaper to take an allowance (or cheaper price) than it is to meet those costs."
The HGCA, which helps market UK cereals at home and abroad, said Britain might soon be competing head on with rival grower France in Egypt.
"For certain uses, particularly for flat breads and biscuit wheats, UK wheat actually performs better than French," Dickie said.
However, Britain was unlikely to guarantee UK shipments every year because grain quality could vary widely because of weather.
Textile shares pulled the Egyptian stock exchange up to new highs today, mainly on speculation about the benefits of Egypt's Qualified Industrial Zones (QIZ) agreement with Israel and the US, brokers said.
Cement stocks also made gains after Misr Cement Qena reported that its net profits for calendar 2004 were 162 percent up on 2003 at 80.1 million pounds ($13.8 million).
The benchmark Hermes index ended up 125.22 points, or 0.4 percent, at 32,206.58 points, an all-time high. The index has risen almost 35 per cent since the start of the year.
The broader CIBC index rose 1.64 points, or 1.2 percent, to end at 138.68 points.
The biggest percentage gainer was Arab Cotton Ginning, which rose 18.7 percent to last trade at 6.98 pounds, an 18-month high. Brokers said it rose on media reports that it planned to acquire companies eligible for the QIZ benefits.
Under the agreement, companies in seven zones in Egypt can export duty-free and quota-free to the United States provided their products have at least 11.7 percent Israeli content.
Another textile company, Arab Polavara gained 7.5 percent to last trade at 9.60 pounds, mostly on the back of the parallel interest in Arab Cotton Ginning, brokers said.
Misr Cement Qena rose two percent to 36.56 pounds, while some cement stocks made even greater gains. Alexandria Cement and National Cement each put on 5 per cent, last trading at 35.99 and 30.48 pounds respectively.
Broker Yasser Hassanein of Dynamic Securities said there was more speculation about a new bid for Suez Cement (AmCham Member) from Italcimenti (link here), whose 80.05 pound a share offer was rejected by the Egyptian government last year. The Italian company has said it is still interested.
On Monday the market looks at results from investment bank EFG-Hermes and Mobinil, two major companies. For Mobinil (Amcham Member) (link here), one of Egypt's two mobile phone operators, projections range between about 950 million and 975 million pounds in after-tax net profits for 2004, brokers said.
"As long as there's growth to support prices, the market will hold," said Bassim Arida of CIBC Brokerage (AmCham Member) (link here).
Egyptian Commodity Exports Rise by 20% Source: Mena Report, February 16, 2005
Annual Egyptian commodity exports posted a 20 percent increase from 2003 to 2004, as announced by Minister of Industry and Foreign Trade, Rasheed Mohamed Rasheed.
The Ministry is working to increase this percentage by a further 8 percent, Rasheed said, adding that the Ministry of Foreign Trade and Industry (link here) is coordinating its work with the Industrial Modernization Programme (link here), to raise certain industrial standards to reach international levels.
According to Minister Rasheed, the Ministry is trying to increase exports to the EU within the textile and food product partnership agreement. New markets are being opened this year for Egyptian exports in Latin America, Russia and other Commonwealth of Independent States, Rasheed added.
China’s Shenyang Brilliance Jinbei to Set-up Production Base in Egypt Source: AFX European Focus, February 23, 2005
Shenyang Brilliance Jinbei Automotive Co Ltd, a 49-51 joint venture between Shenyang Jinbei Automotive Co Ltd and Hong Kong-listed Brilliance China Automotive Holdings Ltd, will set up a Zhonghua vehicle production base in Egypt, the China Business News reported.
Citing Shenyang Brilliance Jinbei spokesman, Lu Qiang, the newspaper said the company is in talks with an unspecified factory in Egypt.
Officials with the joint venture were not immediately available for comment.
Negotiations may end this April, according to Lu.
Italy’s SIMEST Launches Investment in 60 Projects In Egypt Source: ANSA English Media Service, February 22, 2005
Italian companies can currently participate in 60 investment projects worth Euro 120 million ($158 million) to be carried out in Egypt, the president of the Italian financial institution for development and promotion of Italian businesses abroad SIMEST (link here), Ruggero Manciati, said.
Manciati joined a trade mission in Cairo of 130 entrepreneurs led by Italy's deputy Industry Minister Adolfo Urso. The projects are in the food, footwear and mechanical industry sectors. SIMEST and its Egyptian partners will facilitate the investment initiatives. Egypt is a very important market for the Italian small and medium-sized enterprises (SMEs), Manciati said. Under projects launched by SIMEST, a total 1,200 Italian companies have invested so far in Tunisia. Manciati added that SIMEST's goal for Egypt is to exceed the investment made in Tunisia in five years.
7,300 Medicine Prescriptions Registered Source: Global News Wire, February 17, 2005
Addressing the Pharmaceutical Industry Conference held in Cairo on February 15, the Egyptian Minister of Health, Dr. Mohammad Awad Taj Al Din, announced that 7,300 medicine prescriptions were registered in Egypt until now.
He added that 74 companies had applied to produce medicine in Egypt, of which 70 companies have already started production while 4 companies are expected to begin production in the upcoming period. Also, Dr. Mohammad Awad Taj Al Din, announced that the value of the Egyptian pharmaceutical market rose to LE7.1 billion in 2004, up from LE6.2 billion in the previous year. Egypt’s pharmaceuticals production increased from LE5.3 billion to LE6.4 billion in the same period. ($1=LE5.8). Egypt’s pharmaceuticals import withdrew from LE0.9 billion to LE0.7 billion in the same period.
Mena Meditech 2005 To Be Held In Egypt Source: Arab Wide Web, February 19, 2005
The third Middle East & North Africa (MENA) Exhibition for medical services, hospital supplies and laboratory equipment, MENA MEDITECH 2005 will be held from September 22-25, 2005, at Cairo International Fair Grounds in Egypt. The exhibition, which witnessed a successful show in 2004, holds great significance for the MENA region and the country’s medical industry, especially following Egyptian Government’s reform campaign in the health sector.
MENA MEDITECH 2005, organized by ACG (link here), the leading trade fairs organizers in the region will open the gates for crossroads of the world’s emerging markets to meet and witness the most advanced medical technologies & laboratory equipment. The healthcare sector throughout the Middle East is experiencing significant growth following modernization programs and increased private participation in the health sector. The Egyptian government has undertaken a five-year program of upgrading of medical facilities from 2003-2007.
The medical equipment market of Egypt alone is growing by 48 percent, taking into consideration that Egypt is the largest MENA country in population.
Egyptian government has launched major reforms in the health sector aimed at expanding health coverage with a basic package of primary health care and public health services to the poor population and improve access and efficiency of primary health care services through rationalization of health infrastructure. As part of the reform, Egyptian Government has embarked on several key activities such as construction and preparation of new hospitals, specialist clinics and rural and urban health units, said Ahmed Ghozzi, Chairman, ACG & ITE.
Moreover, MENA presents a sizeable and growing market for foreign medical equipment. With limited production of medical products, the region depends heavily on imports to meet domestic needs. With the ongoing modernization programs in the health sector, there is bound to be a major demand for high-tech medical items, especially laboratory and testing equipment. Thus the exhibition creates tremendous opportunity for foreign suppliers and manufacturers of such equipment to penetrate the regional market and increase their sales, added Ghozzi.
The 2004 edition of MEDITECH witnessed enthusiastic participation from various sectors in the medical industry, especially local agents, distributors and physicians who consisted of 66 per cent of the participants. While 93 percent of the visitors expressed their satisfaction at the way the exhibition was held, 92 percent of the visitors said that they would visit the exhibition the following year too.
Leading manufacturers from various countries with a broad range of medical equipment ranging from ambulances, cardiac equipment to surgical equipment and walking aids for the handicapped are expected to participate in MENA MEDITECH 2005. A broad range of participants from physicians to pharmacists, dentists, surgeons, radiologists, technologists, academic researchers and medical students are expected to participate in the fair.
Burren Energy Wins Egypt Blocks Source: Liquid Africa, February 19, 2005
British oil and gas group Burren Energy (link here) has won two Egyptian exploration blocks, the company said, boosting its presence in the country.
Burren successfully bid for the North Lagia and North Hurghada Marine blocks, which cover the Gulf of Suez region. It did not disclose how much it paid for the blocks.
The bidding for the blocks was organized by the government-owned Egyptian General Petroleum Corporation (link here) and Ganoub El-Wadi Holding Petroleum Company (GANOPE).
The award of the blocks comes after the Egyptian parliament last year awarded the country's East Kanayis Block to Burren.
"We are delighted to have been successful in the bidding for these blocks, both of which are located near to fields which are already on production," Burren chief executive Finian O'Sullivan said in a statement.
"These assets significantly increase our exploration portfolio in Egypt and we continue to investigate further opportunities in this region."
Burren's main activities are focused on West Africa and the Caspian Sea. Earlier this week Burren bought a 26 percent stake in Hindustan Oil Exploration Company, and added it could raise its stake in the Indian oil group to 51 percent.
Investec analyst Bruce Evers estimated it could take around 18 months before Burren started to drill its first well in Egypt, but added that its moves to diversify into India and Egypt made strategic sense.
"The Indian acquisition and the addition of the Egyptian blocks are a positive," said Evers, who has a "hold" rating on Burren shares.
Burren shares have more than doubled in value over the last year and have outperformed the FTSE oil and gas sector by around 100 percent in that period.
Cepsa, ENI Win New Exploration Permit in Egypt Source: AFX.COM, February 21, 2005
Cia Espanola de Petroleos SA (link here) said a consortium with ENI SpA (link here) unit Ieoc has been awarded a new exploration permit in Egypt by the Egyptian General Petroleum Corporation.
In a statement, Cepsa said it has 25 percent of the consortium, while Ieoc has the remaining 75 percent and is the operator for the exploration project.
The exploration contract is for the North Bahrain block in the Western Desert region in north-east Egypt and is for an initial three-year period.
Germany Finances Wind-Energy Power Station In Egypt Source: MENA Report, February 22, 2005
Egypt and Germany have signed a contract to jointly finance the construction of a wind-energy power station in the Zaafarana area on the Red Sea. The German Reconstruction Bank (link here) has offered finance to the amount of 75 million Euros to the project, said Egyptian Minister of Electricity Dr Hassan Younis.
According to him, the project is part of a national drive to utilize wind energy and the station would be operational and connected to the national electricity network by 2007. He mentioned that a Euros 700,000 EU grant was currently funding a wind-farm feasibility study in the Gabal El-Zeit area.
Egypt’s Petroleum and Gas Exports Projected to Increase Source: Global News Wire, February 22, 2005
According to Al-Riyadh newspaper (February 21, 2005), a recently delivered report to the Egyptian cabinet by the Ministry of Petroleum estimates Egypt’s petroleum exports to increase from $4,350 million in 2005/2006 to $5,535 million in 2009/2010. It also estimates Egypt’s natural gas exports to increase from $2,000 million in 2005/2006 to $2,700 million in 2009/2010.
Fast-Growing BG Speeds Egypt LNG Source: World Gas Intelligence, February 16, 2005
BG Group (AmCham Member) (link here) this week announced healthy 2004 profits, a speed-up of its Egyptian LNG ventures, revised 2006 targets and even some broad LNG goals for 2010-15. One result should be a near-term surge in LNG supply to the US.
Egypt LNG Train 1 start-up has been accelerated by three months to the second quarter of this year, while Train 2 is brought forward six months to the fourth quarter of 2005. Both have a capacity of 3.6 million tons (5 billion cubic meters) per year. BG and Malaysian state Petronas (link here) each have 35.5% in Train 1, 38% in Train 2.
BG Chief Executive Frank Chapman also said that separate 700,000 ton/yr purchase contracts by BG and Petronas with Egypt’s rival, already-producing Damietta venture are earmarked to supply BG’s US positions in Lake Charles and at Elba Island, Georgia, this year.
The Potable Water Co. of Greater Cairo, Contracts
& Purchases Dept. issued on February 20, 2005 a request
of international offers to supply 22 pumps for aluminum
sulfate injection. The specification fee is L.E200
and the bid bond is L.E.75,000 and the performance
bond is 5%. Deadline for the submission of offers
is April 19, 2005.
The Cashier of the Sanitary Drainage Co. of Greater
Cairo issued on February 24 2005 a request for the
rehabilitation/ replacement & insulation of basins
& aquatic paths at Zenin wastewater treatment station,
also renovation of the pumps house building at Atlas
Station in Helwan. The specification fee is L.E3,000,
the bid bond is L.E180,000 and the performance bond
is 5%. Deadline for the submission of offers is April
12, 2005.
The General Department for West Kafr El Sheikh
Drainage issued on February 22, 2005 a request for
the construction of a subsurface [ tile ] drainage
network at an area along El Fadly Canal serving 4,900
feddans in two lots during FY 2004/ 2005. The specification
fee is L.E.700 each and the bid bond is L.E.120,000
and the performance bond is 5% Deadline for the submission
of offers is March 28, 2005.
Electricity
The Cashier of the Egyptian Electricity Transmission
Co. (EETC), Central Egypt Electricity Zone, issued
on February 23, 2005 two tenders for the supply &
fixing of fiber optic ground cables & related accessories
for two 220 kV sections extending (a) Ras Sidr/ Abu
Redeis & (b) Abu Redeis/ Al Toor on turn key. Ref.
8/ 2005. The specification fee is L.E8,000 and the
bid bond is L.E.80,000 each. Deadlines for the submission
of offers are April 11, 2005.
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