Egypt Forum to
Focus on Iraq Source: Trade Arabia, October
20, 2004
A top US official said that only members
of Iraq's interim government would be invited to next
month's international conference on Iraq that is scheduled
to be held on November 22-23 in the Egyptian Red Sea
resort of Sharm el-Sheik.
"This is an opportunity to help Iraqis and the Iraqi
government to help organize and secure a political process
in Iraq," Burns told reporters after meeting with Egyptian
President Hosni Mubarak.
"While it is one thing to provide a strong message of
support for an inclusive political process among Iraqis,
this meeting, as we understand it, is focused on government
representatives," Burns added.
There is wide debate among conference participants over
whether Iraqi opposition groups at odds with the Iraqi
government should be able to attend the meeting, which
is expected to attract Iraq's neighbors and Egypt, the
eight major industrialized powers and China, the UN
(link
here), the Arab League (link
here), the Organization of Islamic Conference (link
here) and the European Union (link
here).
France, which strongly opposed the war in Iraq, has
called for a broader gathering that would allow Iraqi
political forces opposing the American presence and
the interim government to participate.
But Ahmed Aboul Gheit, the Foreign Affairs Minister
of host nation Egypt, has been reported as saying that
the meeting would be "a governments' conference, not
a conference for influential powers".
Today, Egyptian presidential spokesman Magad Abdel Fattah
said disputes are continuing among participating countries
over the proposed conference agenda and whether Iraqi
opposition groups opposed to the interim government
should be invited.
"There are different views and visions on how to deal
with issues to be discussed by the conference," Abdel
Fattah said.
US Delaying QIZs
with Israel, Egypt Source: Financial Times, October
24, 2004
The US is delaying an initiative to establish
a qualifying industrial zone (QIZ) between itself, Israel,
and Egypt. The US is concerned that the agreement could
harm the US or foreign textile manufacturers.
Talks have been taking place in recent months between
Israel and Egypt on establishing QIZs in Egypt, on the
same format as those in Jordan.
Enterprises in these zones are exempt from US customs
duties and import quotas. The enterprises must include
Israeli inputs in products exported to the US.
The initiative for an Israeli-Egyptian agreement was
a result of pressure by private Egyptian businessmen,
and aroused a public political debate.
Reports said that the discussions concerned technical
aspects of the agreement were almost finished. The “Financial
Times” asserts, however, that the US administration
is refusing to cooperate with the Egyptian-Israeli initiative
at this stage.
For further information on Egypt-U.S. Relations (Click
here)
For Amcham’s latest research on textiles and clothing
(Click
here)NEW
For latest information on Rebuilding Iraq (Click
here)
Egypt Launches
Fiber Optic Cable Connection with Sudan Source: Egyptian State Information
Service, October 27, 2004
Egypt has just launched a fiber optic
cable connection with Sudan to boost communications
and the high-speed internet services between the two
countries, said Egyptian Minister of Telecommunications
and Information Technology Tareq Kamel.
During the launching ceremony of the project which further
bolsters the inter-relations between the Nile Basin
countries, Kamel said the 400-km-long cable costs $4
million.
Despite the difficult desert weather and topography,
Telecom Egypt (link
here) managed to finish the project works within
a record period of one year, said its chairman Okail
Bashir. "The cable operation will be carried out through
high-speed equipment to ease information transmission
and cater for the needs of the Egyptian and the Sudanese
sides. " The new project will serve millions of Sudanese
in the fields of communications and high-speed, Bashir
added.
For his part, chairman of the state-owned Sudanese Telecommunications
Ltd. (Sudatel) Abdelatif Abdel Qader said Sudan has
now 1.3 million ground lines in addition to one million
mobile lines.
Sudan also has 104 internet service providers and Sudatel
(link
here) was the first Sudanese company to be registered
in foreign stock exchanges, he said, adding that its
shares are being traded in Bahrain, Abu Dhabi and Dubai
bourses.
Egypt Moves to
Spur Recovery Source: Trade Arabia, October
27, 2004
The International Monetary Fund (IMF)
(link
here) has urged Egypt to begin implementing a series
of measures it says will help economic recovery, spur
growth and raise the standard of living.
IMF managing director Rodrigo de Rato told Egyptian
President Hosni Mubarak that the main challenge for
Cairo was to pay off part of its foreign debt, which
hit $28.7 billion in 2003.
He also urged the government to take immediate action
to reduce a $60 billion budget deficit that has been
growing faster than gross domestic product. Egypt, said
the top IMF official, should promote transparency in
government spending and accelerate reforms, particularly
tax reforms, and continue liberalizing the economy and
privatizing state-owned enterprises.
The reform-minded government of Prime Minister Ahmed
Nazif that took office in July has pledged to turn around
Egypt's ailing economy and rein in high inflation, skyrocketing
unemployment and the huge debt burden.
Egypt announced in September that it was ready to allow
foreign companies to manage state-owned businesses but
would not give up control of those firms it sees as
strategic.
De Rato was in Egypt on the final leg of a Middle East
tour that also took him to Lebanon and Saudi Arabia.
EDB Loan Syndication
Closes Source: Middle East Economic
Digest, October 22, 2004
Bank of Tokyo-Mitsubishi (link
here) has announced the successful close of the
$50 million, three-year syndicated loan facility for
Export Development Bank of Egypt (AmCham Member).
The facility, which will be used for general funding
purposes, was issued after the bank’s last major medium-term
facility matured in May. Bank of Tokyo was the mandated
lead arranger and book-runner, while 14 other local
and international banks joined the facility.
The arrangers were Arab African International Bank (AmCham
Member) (link
here), Misr International Bank (MIBank) (AmCham
Member) (link
here), National Bank of Egypt (AmCham Member) (link
here) and Wachovia Bank (AmCham Member) (link
here) The co-arrangers included American Express
Bank (AmCham Member) (link
here), Barclays Bank (AmCham Member), British Arab
Commercial Bank (link
here) and Egyptian American Bank (link
here). The local lead managers were Al-Watany Bank
of Egypt, Arab Bank (AmCham Member)(link
here), Arab International Bank, Banque Misr (AmCham
Member) (link
here), KBC Bank (link
here) and Mashreqbank (link
here).
New
Customs Authority Head Appointed Source: Al Ahram, October 30,
2004
Minister of Finance Dr. Youssef Boutros Ghali has issued
a Decree to appoint Galal Aboul Fetouh, former head
of Damiatta Port Authority, as the new Head of the Customs
Authority. Aboul Fetouh will replace Mahfouz El Aragawy
who has reached the legal age for retirement. It is
noted that Galal Aboul Fetouh was also former Director
of the Cargo Village at Cairo Airport.
Trade Deficit Down
by 12% Source: Mena Report, October
18, 2004
The trade deficit narrowed by 12% in January-May
2004 to L.E. 1.6 billion compared with L.E. 1.82 in
the same period last year, a report released by the
Egyptian Foreign Trade Ministry said.
Meanwhile, export went up 18% to hit $ 3.7 billion,
and imports posted a 6% rise to $4.78 billion, the monthly
report by the Ministry indicated.
Exports by the free zones amounted to $892 million during
the first five months of this year, the report added.
Egypt's Cotton
Exports Amount to $18.6 Million Source: Mena Report, October
20, 2004
The volume of Egypt's cotton exports amounted
to 37,500 kantars of hair cotton, worth $3.3 million
in the 3rd week of the export season. Aggregate contracted
cotton reached 199,000 kantars, worth $18.6 million
as of the beginning of the export season.
Egypt's cotton exports are directed to 15 countries,
where India ranked first, accounting for 26.5% of aggregate
contracted cotton. It is followed by the United Arab
Emirates (UAE) with 18% of the aggregate contracted
cotton. Turkey, Italy, Thailand, China, Switzerland
and the USA come after that.
The cotton exports include extra-long staple hair cotton
(Giza 70, Giza 88) hitting 70,520 kantars while long-staple
hair cotton (Giza 86, Giza 89, Giza 80, Giza 83) reached
89,740 kantars.
According to local sources, Egypt's cotton exports are
set to reach 60,000 tons of cotton accounting for 1.1
million kantars to 1.2 million kantars of cotton in
the 2004/2005 export season.
Meanwhile, Egypt's local spinners received 76,706 kantars
of hair cotton during the 2004/2005 export season, 45,054
kantars of which have been delivered to the public spinners,
while 31,652 kantars of hair cotton were provided to
the private sector, El-Attar noted. Furthermore, the
Egyptian cotton export prices dropped by 40% compared
to last year's prices for all cotton brands, including
Giza 70, reaching 95 cents/libra, Giza 88, 92 cents/libra
and Giza 86, 85 cents/libra.
This decline is attributed to the government's decision
to raise cotton prices in the last season which led
to a backtrack in Egypt's cotton exports, at a time
when there was strong competition from the low-price
US Prima cotton.
Egypt Seeks Chinese
Experience in Pharmaceutical, Serm Industries Source: Egyptian State Information
Service, October 27, 2004
Minister of Health and population Mohamed
Awad Tag Eddien received a delegation of Chinese senior
officials in the field of family planning and population.
The two sides tackled family planning, methods to control
population growth and Egyptian-Chinese cooperation in
this domain.
The minister pointed to the fruitful and increasing
cooperation with China in the various domains including
health and exchanging scientific expertise in the fields
of health care, pharmaceutical and serm industries.
The Minister briefed the delegation on Egypt's experience
in the overpopulation control based on 11 strategies
fulfilled in cooperation with 13 ministries.
Award Approaches
on Cairo T3 Source: Middle East Economic
Digest, October22, 2004
Cairo Airport Company is understood to
have entered negotiations with Tepe Akfen Ventures (TAV)
(link
here) of Turkey and the local Holding Company for
Roads & Bridges for the contract to build a third terminal
at Cairo airport.
The group has received a letter of no objection from
the World Bank, which extended a $335 million loan to
the government in March to part-finance the expansion
of Cairo and Sharm el-Shaikh airports.
TAV emerged as low bidder for the contract in mid-June,
when it priced the contract at $347 million. The other
bidders are: France’s Bouygues (link
here), with Besix (link
here)of Belgium and the local Orascom Construction
Industries (link
here); Taisei Corporation (link
here) of Japan; France’s Vinci, with Athens-based
Consolidated Contractors International Company (CCC)
(link
here); Cyprus-based Joannou & Paraskevaides (J&P
– Overseas) (link
here); and Saudi Binladin Group (link
here), with the US’ Turner International (link
here).
The Cairo expansion plan calls for construction of a
third terminal with a built-up area of 164,000 square
meters, capable of handling 11 million passengers per
year. Construction is expected to start as early as
late December, and the terminal is due to open in 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).
AUC Award Approaches Source: Middle East Economic
Digest, October 15, 2004
The board of the American University in
Cairo (AUC) (AmCham Member) (link
here) was due on October 18 to award the contract
for the main construction package on the estimated $300
million New Campus project to a team of Samsung Corporation
(link
here) of South Korea and Samcrete Egypt (link
here). The other bidder is Laing O’Rourke (link
here) of the UK with the local SIAC Industrial Construction
& Engineering Company (AmCham Member).
The two groups submitted revised financial bids in August,
after which a letter of intent and notice to proceed
were issued to the Samsung/Samcrete consortium. However,
a formal award has awaited final revisions to the detailed
designs in consultation with the project and construction
manager, Fluor Daniel (link
here) of the US, and the design consortium of US
and local architects, engineers and consultants.
Samcrete has now completed the L.E. 26 million ($4 million)
early works contract, which involved construction of
substructures, earthworks and main service tunnels on
the site, located to the southeast of the capital. The
New Campus project team is preparing tender documents
for the main utilities package which will involve construction
of a central service complex regulating the power, water
and wastewater networks and air-conditioning systems.
AUC’s new home has a total built-up area of about 150,000
square meters. Sitting at the heart of the New Cairo
residential development, the 260-acre campus is scheduled
for completion in mid-2007. Landscape designs for the
project are being finalized by a team led by the local
Sites International, and several packages are due to
be tendered by the end of the year.
Final designs are also being prepared by two teams of
architects from Cairo University for an AUC presidential
residence and an off-campus housing complex for faculty
staff, both of which will be tendered independently
of the main campus package in early 2005.
The Central Bank of Egypt (CBE) (link
here) accepted offers for seven-year treasury bonds
worth LE3 billion ($480 million) at rates between 10.15
and 11.75 percent, the bank said on Tuesday.
The bank, acting for the Ministry of Finance, had invited
offers for LE 3 billion and in the auction on Monday
it received bids for a much larger amount, bankers said.
One banker said the value of the bids amounted to LE
7 billion.
Egypt Bank Stake
Offer Denied Source: Trade Arabia, October
28, 2004
The Central Bank of Egypt (link
here) has denied that state-owned National Bank
of Egypt (NBE) (AmCham Member) (link
here) has received any offers for its stake in joint
venture National Societe Generale Bank (NSGB) (AmCham
Member) (link
here).
The denial knocked nearly 10 percentage points off the
value of NSGB shares, which last traded 2.14 Egyptian
pounds ($0.34) lower at 46.02 pounds, having earlier
touched 50.56 pounds.
The Egyptian weekly business newspaper al-Mal on Sunday
quoted a central bank source as saying NBE had received
three offers of between $12 and $14 per share for its
stake in NSGB.
Al-Mal had said one of the offers came from France's
Societe Generale, which already owns 54.3% of NSGB.
National Bank of Egypt currently has a 19.3% stake in
the bank, according to the NSGB Web site.
A central bank statement said: "A central bank source
said that there is no truth to the report in one newspaper
that the National Bank of Egypt has received offers
to buy its stake in National Societe Generale Bank".
Egypt's Bank Misr
Uses CR2 Software to Add Currency Exchange Source: ATM Marketplace, October
27, 2004
Banque Misr (AmCham Member) (link
here) in Egypt will use CR2’s BankWorld ATM Client
software to drive its newly expanded ATM network.
Banque Misr is almost doubling its current ATM fleet,
adding 120 new machines for a total of 300 throughout
Egypt.
"Banque Misr has an excellent relationship with CR2,
having successfully used its products for 14 years now,"
said Banque Misr General Manager Hoda Shoukry. "With
the addition of the 120 new ATMs, it made sense to also
extend the facilities we can offer using this channel.
The new software allows us to do just that."
Among the additional features Banque Misr will offer
at its ATMs are cash note acceptance and foreign exchange,
which will allow customers to deposit currencies such
as United States dollars and withdraw Egyptian pounds.
"These new initiatives will take customer service levels
at the bank to new heights," said Cian Kinsella, CR2's
chief executive.
Egypt Increases
Centurion's Daily Gas Sales Volumes Source: Centurion Energy,
October 27, 2004
Centurion Energy International Inc.
(link
here) has received written confirmation that contract
volumes under its existing gas contracts for the El
Wastani and South Manzala production leases, located
in Egypt's Nile delta region, have been increased to
a total of 250 million cubic feet per day (mmcf/d).
Centurion is currently delivering 65
mmcf/d and expects to increase gas deliveries to approximately
90 mmcf/d by December 31, 2004. A further increase in
deliveries up to 150 mmcf/d is expected to be achieved
by mid 2005 and the company expects to exit 2005 at
the full 250 mmcf/d contract amount.
The contracted gas will be produced
from dedicated reserves being developed in Centurion's
El Wastani and South Manzala Production Leases where
an 18 well drilling program is currently underway. Two
drilling rigs are under contract to the end of 2005
to carry out this program. The next well in the program,
El Wastani East 2 is expected to spud before the end
of October, 2004.
Centurion is also finalizing plans for
the commencement of exploration on its two new exploration
blocks in the Nile Delta which were awarded earlier
this year.
Paradigm to Open
New Office in Cairo, Egypt Source: Rigzone, October 18,
2004
Paradigm will open a new office in Cairo,
Egypt. The office will offer sales, customer support
and training to Paradigm's expanding client base in
Egypt and North Africa.
The decision to establish an office in Cairo is a result
of the significant success Paradigm has had in recent
years in the Egyptian oil and gas industry. Use of Paradigm's
leading solutions is becoming increasingly widespread,
as customers discover the advantages of Paradigm's integrated
product suites. The expertise of Paradigm's support
staff and its partnership approach to working with its
customers, have resulted in increased customer confidence
in the accuracy and reliability of the interpreted data,
as well as an appreciation of the enhancements in efficiency.
Steve Hunt, Managing Director of Paradigm EAME, stated,
"Expanding the knowledge base of local teams in their
search for hydrocarbons using Paradigm's leading-edge
technologies and expertise, will benefit both the Egyptian
oil and gas industry and all the companies operating
in the region. We at Paradigm are proud to be taking
part in this effort."
OPC Deadline Extended Source: Middle East Economic
Digest, October 22, 2004
Oriental Petrochemicals Company (OPC)
has postponed the bid deadline for the planned propane
dehydrogenation (PDH) and polypropylene (PP) complex
near Port Said by one month to November 30.
Three groups pre-qualified for the contract in 2002,
when the project was envisaged as a stand-alone PDH
plant: Japan’s Toyo Engineering Corporation (link
here) with Samsung Corporation (link
here) of South Korea; Germany’s Lurgi (link
here); and Linde (link
here), also of Germany. A fourth group led by Uhde
(link
here) of Germany is now expected to bid for the
contract.
After considering various options for the scope of the
project, OPC is now understood to favor construction
of a 400,000-ton-a-year (t/y) PDH plant which would
supply propylene feedstock to a 400,000-t/y PP plant.
A second alternative, for which bidders are still required
to submit a proposal, would involve construction of
a PDH plant of identical size, but a smaller 200,000-t/y
PP plant.
Egypt-Canada to
Establish Joint Petrochemical Company Source: NOOZZ, October 27, 2004
Prime Minister Ahmad Nazif met on Monday.
October 25th, with the visiting board chairman of the
Canadian Methanex Petrochemical Company, said Oil Minister
Samih Fahmi.
Fahmi said the two sides tackled plans by Methanex to
set up a Canadian-Egyptian company to carry out a petrochemical
project with investments reaching up to half a billion
dollars.
The project will produce 1.2m tons of petrochemicals
annually.
Fahmi said the venture is to become one of the most
vital industrial projects in Egypt and will be located
either in Port Said or Damietta.
The Canadian official, on his part, said his company
will co-share the project with an Egyptian petrochemical
company.
WEEM Export Pipeline
Opens Source: Middle East Economic
Digest, October 22, 2004
Lukoil Overseas (link
here) has opened a new 24,000-barrel-a-day (b/d)
pipeline to convey crude oil from its West Esh el-Mallaha
(WEEM) concession near Hurghada to export terminals
at Ras el-Bikhar and Gebel el-Zeit on the Red Sea coast.
The $8 million pipeline, which is designed for continuous
operation over a 30-year period, was built by the local
Petrojet (AmCham Member) (link
here). Lukoil is finalizing plans for construction
of a crude processing facility, which is due to be tendered
in 2005.
Sharkeyya Governorate, the Finance Dept. issued
a request on October 25, 2004 for conducting the public
cleaning works of Zagazig City. The specification
fee is L.E. 2,000, the bid bond is L.E. 250,000. Deadline
for the submission of offers is December 15, 2004
.
Cairo Metro Operation Agency, the Finance Dept.,
issued a request on October 28, 2004. The request
is for offers from French companies for the rehabilitation
& maintenance of the French made electric trains serving
Cairo Metro first line. The specification fee is L.E.
3,000, and the bid bond is L.E. 150,000. Deadline
for the submission of offers is December 8, 2004.
Automotive Equipment
Egyptian National Railways Authority (E.N.R.), the
Purchases & Stores Dept., issued a request on October
28, 2004. The request is for international offers
for the import of spare parts for the M.T.U. engines
serving the power coaches. The specification fee is
L.E6,000 and the bid bond is EURO100,000. Deadline
for the submission of offers is November 30, 2004.
Sohag Governorate, Sohag Rural Development Project
Adm., Sohag Housing Directorate issued a request on
October 27,2004 for offers from eligible bidders as
per World Bank guidelines to supply the following
in 3 lots: (A) 18 single cabin pickup trucks, (B)
11 waste water suction trucks & (C) 18 tilting vehicles
for the collection of garbage under IDA funding. The
specification fee is L.E.1,500 and the bid bond is
L.E.150,000. Deadline for the submission of offers
is November 30, 2004.
Energy
The Egyptian Electricity Transmission Co. (EETC),
Central Egypt Electricity Zone, issued requests on
October 27, 2004 for offers from international eligible
bidders for the supply of 11 transformers of 125 MVA
capacity each, 220/66/11 kV in two lots. Documents
are available against a payment of $ 2,000 non-refundable
fees from the National Bank of Egypt, Nasr City Brach
in favor of EETC account 7171100100. Ref. 33/2004.
The specification fee is $2,000 The bid bond is $150,000
each. Deadline for the submission of offers is November
30, 2004.
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