Egypt-China To Build "New Cairo"

[Shotgunner51]

http://www.dailynewsegypt.com/2016/...s-signed-for-administrative-capital-projects/

Projects include construction of new governmental buildings and 15,000 residential units

Sara Aggour 22 hours ago

An Egyptian-Chinese alliance was formed following the signing of seven memorandums of understanding (MOUs) to implement projects for the New Administrative Capital.

The MOUs were signed between Chairman of the Arab Contractors company Mohsen Salah, Chairman of Petrojet Mohamed Al-Sheimy, and Vice President of China State Construction Engineering Corporation (CSCEC).

The alliance will construct the new cabinet’s building along with 12 other ministerial buildings, starting with the Ministry of Housing. The alliance will also build a new convention centre, a fairground, and 15,000 residential units for low and middle income citizens.

“These projects mark the first phase of the new capital, which will be launched by Egyptian President Abdel Fattah Al-Sisi,” an official statement issued by the ministry read. The first phase will be implemented on 10,500 feddans.​

The MOUs also included the loan agreement for sewage projects in 1,077 villages in eight governments. The loan will be provided by Chinese governmental banks and is for an undisclosed amount.

During his upcoming visit to Cairo, Chinese President Xi Jinping witnessed the finalisation of the agreement outlined by the MOUs when the Egyptian companies sign the loan agreement with the Chinese side, Minster of Housing Mostafa Madbouly said Sunday.

At the inception of the new capital project, which was first launched in March 2014 during the Egypt Economic Development Conference (EEDC), the expected cost of construction totaled $45 bn and construction was supposed to take place during a five to seven-year implementation period. The capital will be located along the corridor between Cairo and the Red Sea, providing linkages to significant shipping routes.

Initially, Emirati Company Capital City Partners, a private real estate firm chaired by tycoon Mohamed Al-Abbar who was the principal investor in Dubai’s skyscraper Burj Khalifa which cost $1.5 bn to construct, was said to be the sole developer in the project.

Madbouly recently announced that the Egyptian New Urban Communities Authority (NUCA) will infuse EGP 5bn in the new capital project.

The implementation of the new capital project was met with scepticism after conflicting reports from government officials. These reports included statements made by Assistant Minister of Housing Khaled Abbas who pointed out that negotiations with UAE investors over the New Cairo Capital project are facing significant difficulties. This led several news outlets to report that the agreement between Egypt and the UAE partner was terminated.

In June, Ministry of Housing spokesperson Wafaa Bakry told Daily News Egypt that private negotiations are still ongoing with the presidency. Madbouly also said at the time that those reports were untrue.

“Signing contracts usually takes a lot of time, so no need to worry about the project,” he had said.​

The latest announcement made by Minister of Investment Ashraf Salman and Madbouly mentioned that Capital City Partners will not be the sole developer but rather will be one among many investors.

“The government is taking significant steps toward implementing the new administrative capital project via an investment zone system,” Salman said in September.

 

[Abd-ar-Rahman III]

Very encouraging news. Just read it earlier today. It's always great to see two historical and ancient titans like Egypt and China cooperate. Long may it continue.

Egypt is an almost 100 million big market for China and we are in desperate need of improving our economy although we are moving in the right direction. Despite this we can do much, much better on every front.

China is a successful and reliable partner. I much prefer Chinese and Russian cooperation than the current US administration under Obama.

 

[Shotgunner51]

Very encouraging news. Just read it earlier today. It's always great to see two historical and ancient titans like Egypt and China cooperate. Long may it continue.

Egypt is an almost 100 million big market for China and we are in desperate need of improving our economy although we are moving in the right direction. Despite this we can do much, much better on every front.

China is a successful and reliable partner. I much prefer Chinese and Russian cooperation than the current US administration under Obama.

Thanks my friend. Our two countries have had a lot of coops for decades, let's continue to make prosperity together! China-Egypt Suez Economic and Trade Cooperation Zone is one of them, lead investment by China-Africa TEDA Investment Co, Ltd.

Like all SEZ's, this zone is industrial in nature, it's all about manufacturing i.e. "Made in Egypt". Major firms here include Jushi Egypt Fiberglass Industry, XD High Voltage Equipment Company and Muyang Egypt Industry. The zone is under expansion now, ultimately it will bring 150~180 Chinese companies here, total investment US$2+ billion, creating 40,000 local jobs, generate significant tax revenues for Egyptian budget as well as your Forex reserves

 

[Abd-ar-Rahman III]

Thanks my friend. Our two countries have had a lot of coops for decades, let's continue to make prosperity together! China-Egypt Suez Economic and Trade Cooperation Zone is one of them, lead investment by China-Africa TEDA Investment Co, Ltd.

Like all SEZ's, this zone is industrial in nature, it's all about manufacturing i.e. "Made in Egypt". Major firms here include Jushi Egypt Fiberglass Industry, XD High Voltage Equipment Company and Muyang Egypt Industry. The zone is under expansion now, ultimately it will bring 150~180 Chinese companies here, total investment US$2+ billion, creating 40,000 local jobs, generate significant tax revenues for Egyptian budget as well as your Forex reserves

Well, you are much better off economically than us. Even if you have a 15 times as big population.

The past few years of political unrest have been really costly for Egypt. Our budget deficit ballooned into double digits, foreign exchange reserves shrank, inflation soared, many businesses struggled or were forced to close their doors and unemployment grew.

Now it is time to slowly bounce back and establish a new foundation for sustainable growth by incentivising productivity, investment and job creation.

We also need to focus on fostering and deepening our manufacturing and production base and on improving the quality of the Egyptian workforce. Improving the private sector and making it easier for foreign investors are crucial aspects as well.
It's an enormous task but with hard work and clever leadership we will reach our goals. The main goal for el-Sisi and his government should be to serve the Egyptian nation and improve it every day. Hopefully as many people as possible will leave poverty too. The potential in Egypt is big if a few issues will be corrected.

Not to forget defeat terrorism which we face in Sinai and put the tourism sector back to its former heights and even aim to beat previous numbers by improving the infrastructure further etc. I think that Egypt will remain a magnet for tourism and only grow on this front but we must not be as dependent on tourism as we have been in the past.

 

[Sasquatch]

Bad move.

 

[Abd-ar-Rahman III]

Bad move.

What makes you say such a thing?

 

[Sasquatch]

What makes you say such a thing?

Corruption, terrorism, and projects likely to never take off. I have worked with Arabs in the past and witnessed everything from terrible work ethics to cutting corners on the job. The westerners that I have worked with have worse things to say than I do. I'm skeptical or look pessimistic of any interactions China has in dealing with Arab countries because of this, maybe I might be wrong as Chinese and China suffered from this in the past.

 

[Blue Marlin]

Corruption, terrorism, and projects likely to never take off. I have worked with Arabs in the past and witnessed everything from terrible work ethics to cutting corners on the job. The westerners that I have worked with have worse things to say than I do. I'm skeptical or look negatively of any interactions China has in dealing with Arab countries because of this, maybe I might be wrong as Chinese and China suffered from this in the past.

your just putting your own personal experiances into this. unless you work where you encounter arabs alot in arab countries, then i dont think your in any position to view it negativley.
look at the uae they are arabs, they are doing a good job in the construction industry.

 

[Abd-ar-Rahman III]

Corruption, terrorism, and projects likely to never take off. I have worked with Arabs in the past and witnessed everything from terrible work ethics to cutting corners on the job. The westerners that I have worked with have worse things to say than I do. I'm skeptical or look pessimistic of any interactions China has in dealing with Arab countries because of this, maybe I might be wrong as Chinese and China suffered from this in the past.

Well, you are entitled to your opinion. I can't agree with your views though and generalizations. You know that there are some 500 million or so Arabs nowadays? Not everyone is lazy. As a Chinese you should know everything about how pointless generalizations are.

One of China's biggest trading partners is the Arab world if not the biggest and hundreds if not thousands of Arabs conduct business in China every single day successfully. Likewise there is a big Chinese diaspora in countries such as UAE and others.

You must have had a bad experience with some Arab (s) but I also once had a bad experience at a Chinese restaurant but that did not cause me to make any rash conclusions about Chinese people or their service.

Anyway this project and others will happen with or without Chinese involvement. I have no doubt about this. Egypt is bound to move forward.

 

[Sasquatch]

your just putting your own personal experiances into this. unless you work where you encounter arabs alot in arab countries, then i dont think your in any position to view it negativley.
look at the uae they are arabs, they are doing a good job in the construction industry.

I have worked in the Gulf and Egypt in the past this is what directly impacted my view on this. The common notion is most of them favor a relaxed government related job with foreigners from US, Europe, and South Asia who are the backbone of major sectors of the economy. I have not worked in any Arab country recently and possibly this has changed, but I remain in contact with people who work in the middle east who still say many of the problems I have highlighted still occur.

Well, you are entitled to your opinion. I can't agree with your views though and generalizations. You know that there are some 500 million or so Arabs nowadays? Not everyone is lazy. As a Chinese you should know everything about how pointless generalizations are.

One of China's biggest trading partners is the Arab world if not the biggest and hundreds if not thousands of Arabs conduct business in China every single day successfully. Likewise there is a big Chinese diaspora in countries such as UAE and others.

You must have had a bad experience with some Arab (s) but I also once had a bad experience at a Chinese restaurant but that did not cause me to make any rash conclusions about Chinese people or their service.

Anyway this project and others will happen with or without Chinese involvement. I have no doubt about this. Egypt is bound to move forward.

Yes I agree generalizations are terrible and should not impact the real picture, I have worked in Arab countries this is what impacted my views steering it toward more negative. But my experiences were not tied to single incidents but multiple in more then one Arab country. I remain in contact with Westerners who work in the middle east who still say many of the problems I have highlighted still occur. Maybe this has changed, you seem to have a better view on the ground than me on the current situation.

 

[Abd-ar-Rahman III]

I have worked in the Gulf and Egypt in the past this is what directly impacted my view on this. The common notion is most of them favor a relaxed government related job with foreigners from US, Europe, and South Asia who are the backbone of major sectors of the economy. I have not worked in any Arab country recently and possibly this has changed, but I remain in contact with people who work in the middle east who still say many of the problems I have highlighted still occur.



Yes I agree generalizations are terrible and should not impact the real picture, I have worked in Arab countries this is what impacted my views steering it toward more negative. But my experiences were not tied to single incidents but multiple in more then one Arab country. I remain in contact with Westerners who work in the middle east who still say many of the problems I have highlighted still occur. Maybe this has changed, you seem to have a better view on the ground than me on the current situation.

Well, your experiences are your own so I will not counter it and just say that generalizing 500 million or so people or any significant group of people for that matter makes no sense. At least not in my eyes.

This totally depends on the firm, work place, the education of people etc. All I know is that the situation is constantly improving.

You said yourself that Chinese people faced similar problems not long ago. Now you have largely improved. This means that people are capable of changing. It's all about effectiveness.

Also I don't think that you can compare Egypt with the Gulf as we have a completely different market and we don't rely on foreign workers. It's mostly small GCC states that do that anyway for obvious reasons as their local populations are limited.

 

[zestokryl]

China has endless workforce, industrial, construction, financial resources, and they seem like almost desperate to invest anywhere. Maybe China could treat every egyptian teenager with a smartphone or a tablet, as a sign of good will

 

[mahatir]

Very good news , China is the right partner to work with on strategic projects in any developing country .

 

[Abd-ar-Rahman III]

China has endless workforce, industrial, construction, financial resources, and they seem like almost desperate to invest anywhere. Maybe China could treat every egyptian teenager with a smartphone or a tablet, as a sign of good will

They are investing heavily in Africa and in emerging markets elsewhere.

That sounds like a terrible idea to be honest with you. Computers would be a better choice.

That's it for today.

Very good news , China is the right partner to work with on strategic projects in any developing country .

America under Obama cannot be trusted. They were engaging in troublemaking in Egypt as you probably know already. China and Russia are better partners along with some European countries especially France. In any case we are in no position to refuse any partners if they can offer something useful.

 

[HAIDER]

They are investing heavily in Africa and in emerging markets elsewhere.

That sounds like a terrible idea to be honest with you. Computers would be a better choice.

That's it for today.



America under Obama cannot be trusted. They were engaging in troublemaking in Egypt as you probably know already. China and Russia are better partners along with some European countries especially France.

In Sudan Chinese companies face huge loses. Specially in oil sector. Due to constant terrorism and civil war.