WASHINGTON GROUP INTERNATIONAL TO PROVIDE SERVICES IN EGYPT Source: Yahoo! Finance, August 16, 2006
Washington Group International (link here) announced that it has been selected to provide construction, infrastructure repairs, and operations and maintenance work at Egyptian government military bases and installations.
The work is part of an indefinite delivery-indefinite quantity contract awarded by the U.S. Army Corps of Engineers Transatlantic Programs Center to Washington Group and its joint-venture partner, Contrack International (link here). This is the third five-year contract awarded to the joint venture servicing the Corps of Engineers' projects in Egypt.
The one-year contract, which was awarded July 31, 2006, will become effective October 31, 2006. It has four one-year option periods that can be awarded at the government's discretion. Over the potential five-year life of this contract, the government may order up to $100 million in services.
The contract scope includes new facility construction and repair and maintenance of specialty equipment and systems, such as fire alarms, elevators, complex control systems, HVAC systems, frequency converters, and high-pressure hydraulic systems. In addition, Washington Group will supply training and technical expertise.
EGYPT BUYS 5% MORE WHEAT IN 2005-06 Source: agreport.com, August 24, 2006
Egypt's total wheat purchases from the U.S. rose 5% in 2005-06, according to a recent report from the U.S. agricultural attaché for Egypt, totaling over 7 million metric tons (MT).
Imports by both the General Authority for Supply Commodities (GASC) and the private sector increased by 3% and 2%, respectively. The agricultural attaché said while U.S. Market share rose slightly during the past season, "it is still below the 55-65% threshold experienced prior to 2004-05. The loss of market share is driven by a loss of price competitiveness; price is the single most important determinant when Egyptian buyers enter the market."
$165.6 MILLION FROM USAID TO FINANCE SMALL–SCALE PROJECTS Source: Egypt State Information Service, August 28, 2006
The USAID (link here) economic aid program is going to provide small and micro small-scale projects in Egypt with $165.6 million," said Minister of International Cooperation, Fayza Abul Naga.
The program will be carried out by a number of societies registered with the Ministry of Social Solidarity at 18 governorates in Upper and Lower Egypt.
36,000 loans at a value of LE 130.2 million were granted to Egypt during April-June of this year, with 12% increase compared to last year, the Minister added.
The loans program is carried out through Banque du Cairo (link here) and Al Watany Development Bank, where Banque du Cairo offered about LE205 million in loans during the first half of the current year while Watani Bank offered LE 30 million during the same period.
Click here for AmCham’s Egypt-U.S. Economic Relations (click here).
INTERNATIONAL RESERVES EXCEED $23 BILLION Source: ANSAmed, August 18, 2006
Egypt's international reserves exceeded $23 billion in end-June, registering an increase of $2.8 billion compared to June 2005, according to the Central Bank of Egypt (link here). The increase was registered despite the fact that Egypt repaid $1.5 billion of its debt both to the so called Paris Club and in the form of debt on international bonds. Analysts project that Egypt's reserves will increase progressively reaching $26 billion in the second half of 2006. In the next months the privatization of the Bank of Alexandria (AmCham Member) (link here), the payment of $2 billion by Etisalat (link here) for the third mobile telephony license and the sale of the state-owned stake in the Suez-Steel Company (link here) are expected.
NEW CONSUMER PROTECTION LAW IN EFFECT Source: Economist Intelligence Unit, August 21, 2006
The new Consumer Protection Law (Law 67 for 2006) ratified in May 2006 came into effect on August 21, 2006. Executive regulations to the law are to be published by the end of 2006. The law requires businesses to accept returns and exchanges within 14 days as long as a receipt is presented, and stipulates fines from LE 5,000 to LE 100,000 for violations ranging from refusal to return goods to the intentional sale of faulty goods. Article 2 of the law lists those rights, which derive from a text established by the United Nations in the 1980s, and they include a right for individuals, as consumers, to participate in consumer organizations. Article 23 of the law allows consumer groups as well as individuals the right to bring actions against producers and service providers. This will enhance the power of consumers under the law.
The new Consumer Law provides for the setting up of a Consumer Protection Agency (CPA) under the umbrella of the Ministry of Trade and Industry (link here) that will file complaints from consumers and consumer groups. The CPA will have 15 members drawn from industry and commerce organizations as well as consumer groups. The Minister of Trade and Industry, will appoint most members of the CPAs board.
RACHID MEETS CEMENT PRODUCERS AND TRADERS Source: EFG-Hermes, August 24, 2006
Minister of Trade and Industry Rachid Mohamed Rachid met local cement producers and traders on August 23, 2006 to discuss local cement prices that have risen to as high as LE 390/ton in the retail market. The minister capped bagged cement at LE 290/ton ex-factory and at LE 330/ton for retail sales. Some analysts said that the new ceiling would cut cement company profits but might provide a boost to construction firms.
The new selling prices are effective as of August 23, 2006 and local producers and cement wholesalers will be required to announce their selling prices and sales volumes on a weekly basis. However, the meeting ended with no conclusion regarding cuts in the selling price and producers did not receive any formal communication from the government in this regard. Producers added that the Minister asked them not to engage in further price increases.
PRIVATIZATION GENERATES LE 15.7 BILLION IN FY2005/06 Source: Al-Ahram El-Ektesady, August 27, 2006
The Egyptian government generated LE 15.7 billion through asset sales in fiscal year 2005/06. The 20% sale of Telecom Egypt’s (link here) shares through a public offering in September 2005 generated about LE 5 billion. Other important transactions included the sale by National Bank of Egypt (NBE) (AmCham Member) (link here) of the state’s stake in National Société Générale Bank (NSGB) (AmCham Member) (link here) and the government’s sale of 20% of it’s Alexandria Mineral Oils Company (link here) shares to the public.
GOVERNMENT ANNOUNCES PUBLIC-PRIVATE PARTNERSHIP TO BUILD SCHOOLS Source: Daily Star Egypt, August 22, 2006
The Ministry of Finance (link here) has announced the initiation of a new public-private partnership (p.p.p.) to build 50 elementary and secondary schools in 11 governorates in an attempt to meet the presidential campaign’s promise of introducing 3,500 new schools into the system by 2011.
Project tenders will be held before the end of September. Several construction companies have expressed interest in the project in which the government provides the land and the companies provide development and maintenance over 15-20 year agreements. Among the governorates standing to benefit the most from the first phase of the partnership are Kafr El Sheikh with six schools, Alexandria with five and El Gharbiya with four. Cairo and Qalubiya will each receive one school.
Nihal Fahmy, Political Science Professor at the American University in Cairo (AmCham Member) (link here), says it is too early to judge the government's attempt to involve the private sector in the education system. The partnership, she says, has the potential for success but only if the participating companies are more "socially responsible" than profit-driven.
Since 1991, the private sector has participated in developing 16 infrastructure projects in four traditionally public domains including telecommunication, transportation, irrigation and sewage with $6.2 billion (LE 35.7 billion) in total investment, according to ministry figures. The numbers pale in comparison to other developing countries over the same period of time. Malaysia, for example, recorded 81 projects worth almost $38 billion and the Philippines came in with 78 projects worth almost $32 billion, according to the Ministry of Finance.
EGYPT TO HELP REBUILD LEBANESE ELECTRICITY NETWORK Source: Al Ahram, August 24, 2006
Egypt will supply 100% of the components to rebuild Lebanon's electricity network after Israeli's bombing campaign, Electricity and Energy Minister Hassan Younis said. President Hosny Mubarak assigned the ministry to rebuild the network, which will need new power plants, transformers and overhead and land transmission lines. Egypt will supply components needed for the project from its local manufacturing plants that employ 250,000 workers. Egypt, which manages the largest electricity network in Africa and the Middle East, supplies electrical equipment to both the domestic and Middle East markets. Egypt renovated Lebanon's electricity network after the Israelis withdrew from the south of the country in 2000.
GULF INVESTORS CONTROL EGYPTIAN TOURISM DEVELOPMENT PROJECTS Source: ANSAmed, August 17, 2006
Investors from the Arab Gulf countries control about 99% of the total Arab contribution to Egyptian tourist development projects, accounting for LE 403.4 million of total investment estimated at LE 406 million. The Chairman of the Egyptian Tourism Promotion Authority, Khaled Makhlouf, announced that Kuwaiti investors pumped the largest amount of investment in the Red Sea area, with contributions estimated at LE 126 million. The second largest Arab investors in the area came from Saudi Arabia with total contributions of nearly LE 108 million. Makhlouf pointed out that three investment groups from the Gulf area have teamed up with an Egyptian company to launch four tourist projects in Egypt at a total investment cost of LE 19 billion. The combined area for the four projects amounts to 37 million square meters. Industry officials in the Egyptian real estate and tourism industries affirm the influx of investments from the Gulf area in the Egyptian real estate and tourism sectors. They added that both industries were expected to benefit from the oil surpluses in the Gulf area leading to searches for high-revenue investments.
EMAAR MISR WINS BID FOR SIDI ABDEL RAHMAN BAY Source: Daily Star Egypt, August 18, 2006
Ever since the government made real estate development a priority on their agenda, all eyes have turned to the North Coast. However, none has garnered more attention than the Sidi Abdel Rahman Bay auction, which put the auction’s winner, Emaar Misr (link here), in the spotlight. Emaar Misr, an Egyptian company established in 2005 with current capital of LE 400 million, is part of the ARTOC Group for Investment and Development (AmCham Member) (link here). The company was hatched under a 60–40 joint venture with the Dubai-based Emaar Properties (link here), with ARTOC Group holding the 60% majority stake. The company also pledged to inject LE 10 billion worth of investments into the development of the project, named Marassi.
According to Mohamed Shafik Gabr, the vice chairman of Emaar Misr and chairman of ARTOC Group, the site has different soils, which is why the geotechnical studies have to be carried out first. Furthermore, the company, which has contacted the Denmark Water Institute (link here) to professionally undertake the necessary studies for the project’s lagoons, will have to submit these studies to the Egyptian Environment Authority (EEAA) (link here)According to Gabr, the company will also provide a finished, quality product, be it residential, commercial, retail or office space, at the time of the launch. Unlike most projects, Emaar Misr will work in parallel so that all phases are finished around the same time, rather than completing one phase at a time. Furthermore, the property will include an 18-hole golf course, amphitheater, sports stadium, conference center and a town center and marina, which will create an extra-added attraction for people.
LINKDOTNET GETS CMMI LEVEL 3 Source: Ameinfo, August 15, 2006
LINKdotNET (AmCham Member) (link here), a privately owned Internet service and solutions provider in Egypt and the Middle East, has successfully completed its appraisal for Capability Maturity Model Integration (CMMI) level 3 Staged Representation, based on the SCAMPI CLASS A appraisal method. CMMI certification is a global standard for best industry practices for software development.
“PC FOR EVERY HOME” PROGRAM RE-LAUNCHED Source: Daily Star Egypt, August 15, 2006
Twelve companies have purchased the conditions statement for the Ministry of Communication and Information Technology's (MCIT) (link here) initiative to re-launch its 2002 "PC for Every Home" campaign. MCIT's new effort provides more affordable computers and stricter guidelines on participating companies in an effort to achieve its goal of covering 30% of households by 2010.
The new program offers the public personal computers ranging in price from LE1,585 to LE3,300. The old program, which was launched in partnership with Microsoft Egypt (AmCham Member) (link here), offered computers at prices ranging from LE 3,000 to LE 5,000, with up to 48 months of financing and monthly payments of less than LE 100.
The 2002 initiative found success in doubling the number of households with computers, now up to an estimated 600,000 to 700,000 relative to 2002 figures.
Still, the numbers fall far short of the MCIT's initial goal of reaching selling 7 million computers in the first seven years, or by 2009.
Megacom (Amcham Member) (link here) CEO, Tarek Thabet, said the initiative has faced several problems that have kept it from taking off in the manor aspired by MCIT. One problem has been the complication of procedures for individuals seeking to purchase a computer including dealing with Telecom Egypt (TE) (link here), their lending institution and the computer distribution company. TE allowed their customers to use their phone lines as collateral to finance their PC purchase under the initiative. Other problems he adds included high computer prices relative to average income and the lack of maintenance centers in rural areas.
In its conditions statement, MCIT has worked to solve some of the problems posed by Thabet and other critics of the program such as requiring new distributors to operate maintenance centers in at least seven governorates, toughening requirements on distributor selection, lowering prices and setting strict standards on the quality of PCs to be sold
CA ANNOUNCES GIZA SYSTEMS AND OMS AS NEW ESP PARTNERS IN EGYPT Source: Zawya.com, August 16, 2006
CA (link here), one of the world's largest IT management software companies today announced Giza Systems (AmCham Member) (link here) and OMS as its first two newly appointed Enterprise Service Providers (ESP) partners for the recently launched business model for CA presence in Egypt. Giza Systems and OMS will offer CA Software and services which will include providing customer environment assessments and enhancement of several IT platforms. Both companies will sell service solutions to mid-size and enterprise customers as well as specialize in both pre and post sales.
EUROPEAN INVESTORS SNAP UP EGYPT’S THEWAYOUT Source: ANSAmed, August 17, 2006
A group of European investors has shelled out $130 million for the Egyptian company TheWayOut (link here), specialized in wireless Internet technology. The group will hold the majority of the shares in TheWayOut, which controls 98% of the wireless market in Egypt and 92% of the Middle East market with activities in the Emirates, Saudi Arabia, Qatar, Jordan, Morocco, Yemen, Oman and Bahrain. Investors have launched a company called "Morgan" with an initial capital of $300 million. The headquarters will be in Egypt and the company will have a branch in Europe and another in the Middle East. The new company structure is the first step to help TheWayOut enter the European market. The objective is to spread wireless technology in the hotels in Europe. According to the company’s vice president, Fadi El Gendi, the name of the Egyptian company will remain TheWayOut for the Middle East market for the moment while it will operate under the name Morgan on the European market. TheWayOut, which plans to invest $30 million this year, was launched in 1996 with a capital of 67,000 euro and reached 6.7 million euro in 2000.
Huawei Technologies Co., Ltd. (link here), a leader in providing next generation telecommunications network solutions for operators around the world, has been selected by Egypt's largest telecommunications company, Telecom Egypt (TE) (link here), to provide Dense Wavelength Division Multiplexing (DWDM) technology. This technology enables multiple video, audio, and data channels to be transmitted over one fiber and increases the efficiency and bandwidth of networks by supporting different formats. The three-year contract will increase the capacity of Telecom Egypt's Cairo network and reduce operating costs while increasing quality of service.
Emerging demand for advanced, higher-quality communications poses a paradigm-shifting challenge to telephone operators. Originally designed to carry circuit-switched voice traffic, existing networks now need to carry heavy data loads, deliver streaming video, and provide Internet access to a rapidly growing user base. Huawei offers industry leading transmission network architecture with its DWDM technology and will give customers access to new, advanced services while enhancing the security and quality of existing services.
The Huawei DWDM equipment has been applied to over 250 national and inter-city transmission networks. In the Middle East, Huawei DWDM Technologies have been widely adopted in many countries like the UAE, Saudi Arabia' Oman, Tunisia, Algeria, and Morocco. As a leading supplier in the global optical market providing full set of NMS, DWDM, MSTP, intelligent optical and network solutions, Huawei was named Optical vendor of the year for the second year running at the 2006 Frost & Sullivan Asia Pacific ICT Awards. Huawei is devoted to bringing value-added solutions in network programming, technology innovation, and customized solutions to telecom operators globally.
GOOGLE TO START OPERATING IN NOVEMBER Source: ITP Technology, August 20, 2006
A spokesperson for Google (link here), the world’s leading search engine, which is in the process of opening an office in Egypt to concentrate on its Arabic services, has confirmed that their regional office will start operating some time in November. The regional office in Cairo will be the first to open in the Middle East and will be headed by Sherif Iskander, the Regional Head for Google Middle East and North Africa. Google is currently focusing a lot on the localization of products in many languages in order to further fulfill its mission to organize the world’s information and make it universally useful and accessible. The news comes as European search engine company Seekport (link here), in partnership with Saudi firm Mitsco (link here), prepares to launch a portal specifically for the Arabic language. Google is also considering having representation in Morocco and the Gulf.
THIRD MOBILE COMPANY TO BEGIN BUILDING NETWORK BY END OF AUGUST Source: Al Ahram, Al Alam al Youm, August 24, 2006
On August 21, the consortium led by United Arab Emirates' Etisalat (link here), the Egyptian Post (link here) and the National Bank (AmCham Member) (link here) has signed the contract for Egypt's third mobile telecommunications license. The consortium has won the third license at the cost of LE16.7 (2.2 billion euro) in fierce competition with eleven other international bidders. Etisalat holds 66% of the consortium's shares, the Egyptian Post holds 20%, the National Bank has 10%, and Commercial International Bank (CIB) (AmCham Member) (link here) owns 4%.
Etisalat will begin setting up the first phase of its network by the end of August. The cities of Cairo, Alexandria, Hurghada and Sharm el Sheikh will be covered during the first six months and the coverage will later be extended to other cities in northern Egypt. Under its license agreement, the network is expected to cover 70% of populated areas in the first year of operation, 85% in the second year and 93% and 97% in the third and fourth years, said Saleh El Abdooli, the company’s CEO. Construction of the network is expected to cost a total LE25 billion, including the license fees already paid. The company hopes to account for about 28% of mobile subscribers in Egypt in three years, said Etisalat chairman Mohamed Omran. He added that the new company expects to sell shares to the public on the stock market within two years.
Etisalat is currently in negotiations with the Egyptian National Telecommunications Regulatory Authority (NTRA) (link here) to obtain an international telecommunication service license and has announced that is planning to invest some LE 25 billion (3.39 billion euro) in Egypt.
INTERNATIONAL FIRMS VIE FOR EGYPTIAN EXPLORATION RIGHTS Source: ANSAmed, August 17, 2006
Fifty international energy groups have bid in two Egyptian government tenders for natural gas exploration in the Nile Delta, North Sinai coast and areas on the Mediterranean coast. The firms' proposals were accepted by the Ministry of Petroleum (link here), while the tenders were launched by the Egyptian Holding Company for Natural Gases (EGAS) (link here) and Ganoub El Wady Holding Company (GANOPE) (link here) early this year. The bid launched by EGAS accounts for the lion's share of total proposals received by the ministry. EGAS CEO Sherif Ismail said the oil companies are studying technical and financial proposals meeting the requirements of the investment model approved by the Ministry of Investment (link here). He pointed out that some of the international bidders have presented sound proposals for exploration in the offered concessions, particularly for deep-water exploration in the Mediterranean. Officials at the Ministry of Petroleum say international energy groups are interested in the rich proven reserves of natural gas, estimated at 67 trillion cubic feet. The reserve prospects in the deep waters of the Mediterranean are estimated at 70 trillion cubic feet. Ministry sources said bidders include 20 Egyptian gas and oil exploration companies, participating in such a competition for the first time.
MORE OIL FOUND AT EGYPT NORTH BAHARIYA CONCESSION Source: Morning Star, August 22, 2006
Chilean state energy company Empresa Nacional del Petroleo SA (Enap) (link here) has found additional high-quality light crude at its North Bahariya concession in Egypt.
This is Enap's fifth discovery at the site in Egypt's western desert. The discovery at the Rayan-1 well, initially supplying 500 barrels per day, occurred at a depth of 2,554 meters, raising output to 570 b/d during the stabilization period. Enap sells more than 90% of the crude oil and oil products that Chile consumes. Sipetrol, Enap's international unit, operates exploration and production projects in Argentina, Ecuador, Egypt, Iran and Yemen.
$722 MILLION FOR THE CONSTRUCTION OF 6 OFFSHORE RIGS AND PIPELINES Source: Oilegypt.com, August 22, 2006
The Egyptian petroleum sector signed a contract with a total value of $722 million for the construction of 6 offshore rigs and pipeline. A consortium of Egyptian oil companies comprising Petrojet (AmCham Member) (link here), Enpi and the Maritime Oil Services Company has won a bid for the design, supply and construction of 6 offshore rigs in El Khafgy oil fields North of the Arab Gulf. The project scope includes the design and supply of offshore pipeline.
The project is expected to be completed in 30 months, announced the Egyptian Ministry of Petroleum (link here). The Egyptian oil companies have already won international tenders in Saudi Arabia such as the one to enlarge the gas extracting platforms in Yanbu and a project to build liquid gas deposits in Yanbu for Saudi company Yansab through a contract with Italian company Taknib.
ABRAAJ SETTING UP NEW COMPANY TO BUY 25% OF EFG-HERMES Source: Al Alam Al Yom, August 30, 2006
Abraaj Capital (link here), the UAE-based asset management firm, plans to establish a new company to buy a 25% stake in EFG-Hermes (AmCham Member) (link here). Deutsche Bank (link here) will contribute about $100 million to the new company, equivalent to a 5% stake in EFG-Hermes, and the Kuwaiti Fund, the Qatari Fund and a UAE fund will also contribute. Under the transaction, first announced in July, the new company would buy 97.04 million new shares in EFG-Hermes, equal to 25% of the company, in a capital increase. EFG-Hermes will hold an Extraordinary General Meeting (EGM) next week to discuss the offer.
NEW INVESTORS JOIN INVESTMENT WING OF CIB Source: Reuters, August 21, 2006
Investors, including businessman Naguib Sawiris, are pooling their investment banking and brokerage operations with Commercial International Bank (CIB) (AmCham Member) (link here). Sawiris and Oasis Capital will buy equity in Commercial International Capital Holding (CICH), which owns CIB's brokerage, asset management and investment banking operations. Sawiris is chairman of regional mobile phone operator Orascom Telecom (link here) and Oasis Capital is a $150 million private equity fund in which he is a major partner. CICH will also acquire Dynamic Securities, one of Cairo's biggest brokerages specializing in retail investor business. An official of Oasis Capital said Sawiris and the other new partners would end up holding significantly more than 20% of the newly structured CICH. The new CICH will have at least LE 8 billion ($1.4 billion) under management.
EGYPT STUDIES AMENDING INVESTMENT LAW TO ALLOW DISCOUNTING Source: Al-Akhbar, August 27, 2006
Investment Minister Mahmoud Mohieldin is studying amendments to Egypt’s investment law to add discounting procedures to investment activities, said Ziad Bahaa El-Din, chairman of General Authority for Investment and Free Zones (GAFI) (link here). The discounting would allow the establishment of special purpose financial vehicles that could be used to purchase debts owed to companies at a discount and assume responsibility for collecting them. Discounting, used in many countries, increases liquidity and the ability of investors to finance production needs. The amendments would involve changes to the executive regulations of Investment Law no. 8 of 1997. A number of Egyptian banks already provide discounting, and the practice would likely increase after the amendments are finalized.
PRICE RELIEF FOR LIVER DISEASE PATIENTS ON THE WAY Source: Daily Star Egypt, August 15, 2006
For the first time in the history of the country, antibiotics for liver diseases will be produced locally for 50% less than the price of their imported counterparts.
Liver diseases have plagued the population for a long time. Other than liver cancer and liver transplants, the most prevalent liver condition is hepatitis.
For example, pegylated interferon, the most effective drug against HCV available, costs LE 1,400 an injection and is meant to be taken once a week, while interferon, the less effective drug, costs approximately LE 80 and is taken every two days. The high cost of such medication has left millions of Egyptians living with liver disease without treatment, slowly dying due to complications and infections that arise from not receiving treatment.
However, all this is about to change. It has been confirmed that antibiotics for liver diseases will be produced in Egypt in the factories of Nile Medicine. The move will increase the country’s production capacity of antibiotics from the current half a million bottles to 2.5 million bottles. The production of the antibiotics (around 200 antibiotics will be produced) is part of a government and private sector plan set in place at the beginning of 2006 to last until 2007 to transform and better medical conditions in Egypt. In addition, a part of the plan, awaiting approval by the Ministry of Health (link here) and other concerned government bodies, includes the production of insulin, used by diabetics, for a total investment of LE 10 million.
MEDITECH 2006 IN SEPTEMBER AT CAIRO FAIR GROUND Source: menameditech.com, August 28, 2006
MEDITECH 2006 (link here) is the 4th Middle East & North African exhibition for medical services, hospital supplies and laboratory equipment to be held as usual in September (14-17 in 2006) at Cairo Fair Ground. The exhibition holds eminent significance for the medical industry in Egypt and the rest of MENA countries as well, thanks to regional governments' reform campaigns in the health sector. Although being a regional exhibition, MEDITECH 2006 showcases the world's best medical equipment, hospital supplies & services and laboratory equipment to trade visitors from the whole MENA region. MEDITECH 2006 will expand its profile to cover more medical sectors and thus serve the increasing demands of the regional market for technologies necessary for the strategic health modernization plans particularly in the 70+ million-population market of Egypt.
Last year's exhibition, MEDITECH 2005, inspired exhibitors, trade visitors and organizers to develop better plans for MEDITECH 2006. It also provided opportunities for exhibitors drawn from: Australia, Canada, China, Egypt, England, Finland, France, Germany, Hungary, India, Italy, Korea, Malaysia, Netherlands, Pakistan, Russia, Slovenia, South Africa, Sweden, Taiwan, Thailand, Turkey, U.K., UAE and USA to meet new buyers and potential partners.
EAC LAUNCHES EXPANSION PLAN IN EGYPTIAN AIRPORTS Source: Noozz.com, August 15, 2006
Magdeddin Ibrahim, Chairman of the Egyptian Airports Company, announced that the Egyptian Airports Company has launched a new plan to improve the efficiency of runways in Taba Airport at a cost of LE 15 million, in addition to the construction of a LE 75 million passenger terminal at Hurghada Airport.
He pointed out that the number of passengers traveling through Egyptian airports has increased recently, which highlighted the need to improve the airports and upgrade their capacity in cooperation with international airport management operations. Magdeddin said his company would allocate LE 50 million of funds to improve security in the Egyptian airports in line with the most modern technologies. He added that the new LE 524 million passenger terminal in Sharm El Sheikh Airport will be opened in November after upgrading the airport’s runway at an estimated cost of LE 48 million. Construction of the passenger terminal was financed by bank loans.
A NEW DAWN FOR BOOT IN EGYPT Source: ITPBusiness.com August 19, 2006
A newly launched consortium is set to plough $30 billion (LE 172 trillion) of investment into privately financed transportation projects in Egypt. The new infrastructure will be built using the BOOT (Build-Own-Operate-Transfer) approach and is expected to provide a work bonanza for contractors, consultants and operators with experience in privately financed construction projects. Planned projects include a tourist railway line linking the resorts of Hurghada, Safaga, Kena and Luxor, as well as several underground light rail lines connecting new cities to greater Cairo. It is expected to kick-start a wave of construction activity across the country. According to figures quoted by state news agency, MENA, the construction sector grew by a massive 16% in the first quarter of the year while overall economic growth is running at around 5.3% according to the International Monetary Fund (IMF) (link here).
The introduction of privately financed BOOT projects is expected to add to the construction sector’s growth prospects. The new consortium is led by National Holding of Abu Dhabi and also includes Abu Dhabi Investment House (ADIH) (link here), Gulf Finance House (link here) and Global Development and Investments. The $1 billion holding company will invest in developing the country’s transportation infrastructure. And it will implement projects managed by three Egyptian authorities — the General Authority of Roads, Bridges and Land Transportation, Egyptian National Rail Authority and Port Said Port Authority.
EGYPT TO INVEST LE 8.5 BILLION IN RAIL NETWORK Source: Al Ahram, Yahoo! News, August 23, 2006
Egypt has decided to compress its five-year plan to develop the country’s railways into two years after a train crash last week north of Cairo killed at last 58 people. The Ministry of Transport now plans to spend LE 8.5 billion in two years in a plan to be drawn up by October. LE 5 billion will be taken out of the LE 16.7 billion the government received last week from the sale of its the third mobile license. The remaining LE 3.5 billion will be raised through borrowing on a three-month period, said Prime Minister Ahmed Nazif.
According to Egypt’s Transport Minister, Mohamed Mansour, half of the locomotives in service are in need of modernization, with a quarter of the total being at least 30 years old. The money will be spent on "developing level crossings, stations and locomotives, as well as second- and third-class wagons and more training for personnel. The latest railway crash, which also left 143 people injured, was the worst railway accident in four years. The deadliest disaster occurred on February 20, 2002, when a passenger using a stove set ablaze a train heading to the south, killing at least 361.
COMESA SURPLUS SOARS TO $253 MILLION Source: ANSAmed, August 21, 2006
Egypt raked in a $253 million trade surplus with the Common Market for East and Southern Africa (COMESA) (link here) in 2005, Ambassador Mohammed Hegazy, Assistant Minister for African Affairs, has reported. Hegazi noted that Egyptian trade with COMESA members increased threefold over the past five years to $813 million from $285 million in 2000. Egyptian trade with COMESA markets are mainly meat from Sudan and Ethiopia, tea from Kenya and copper from Zambia, with more potentials in this enormous market that includes more than 370 million consumers. The remarkable increase coincides with Egypt's hosting of regional cartel's investment agency's headquarters which plays a major role in encouraging regional and international investments in COMESA members. Egypt joined the African trade cartel in 1998 which includes 20 nations in its membership, the combined GDOP figure for COMESA members amount to $203 billion.
EGYPT BEATS PAKISTAN AS TOP TEA IMPORTER Source: The Standard, August 24, 2006
Egypt has overtaken Pakistan as the key export market for the Kenyan tea, says the Tea Board of Kenya. The board also says tea prices have improved slightly this year due to increased demand in the global market. The board’s managing director, Mrs Sicily Kariuki, said the export volume has, however, declined by 16% compared to a similar period last year.
"This has been due to the drought in the first-quarter of the year," she says. She said 29.5 million kg were exported in July compared to 35.5 million kg recorded the same month last year.
Egypt, which has been one of the top importers, bought more than Pakistan.
Pakistan has been the key market for many years having imported 28% of the commodity last year.
EGYPT AND RUSSIA TO START FREE TRADE AREA TALKS Source: MIST News, August 24, 2006
Egypt and Russia will soon begin negotiations in Moscow to establish a free trade area, the Russian commercial adviser in Cairo announced. The negotiations were recommended at a November 2005 meeting in Moscow of the Egyptian-Russian Joint Governmental Committee for Commercial, Economic and Technical Cooperation attended by Egyptian Trade and Industry Minister Rachid Mohamed Rachid. Egypt and Russia traded more than $1 billion in 2005, a number expected to grow by 20% in 2006. Among Egyptian exports to Russia are citrus fruits, potato, onion and rice. In addition, some 1 million Russian tourists, second only to German tourists, visited Egypt in 2005, and 1.3 million are expected in 2006, the official said. Egyptian imports from Russia include wheat, iron, steel, wood, paper and fertilizers, in addition to electrical equipment and machine and turbine spare parts for Aswan High Dam.
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