Chinese deal for Egypt Capital City project falls through

17 December 2018
China Land & Fortune Development Company was planning $20bn of developments at the new Capital City

Officials in Egypt have said that talks with China Fortune Land & Development Company (CFLD) for $20bn-worth of development projects at the new Capital City to the east of Cairo have fallen through, according to a report by Bloomberg.

The negotiations about how revenue from the project will be shared ended after Egyptian authorities sent a response to a final proposal and did not receive a reply. “We did not hear back,” Ahmed Zaki Abdeen, who heads the company created to oversee the construction of the new capital, told Bloomberg. “The talks have stopped.”

Bloomberg also reported that Khaled Abbas, the deputy minister for housing and urban communities in Egypt, said authorities could collaborate with CFLD on another development, though not in the new capital.

It is not the first time that a Chinese entity has withdrawn from the Capital City project. In early 2017, Beijing-based China State Construction Engineering Corporation officially withdrew from the memorandum of understanding to build and finance the government district of the proposed Capital City project.

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