Letter of intent has been inked to build governmental district
Egypt has signed a letter of intent (LoI) with China State Construction Engineering Corporation (CSCEC) for work on the New Capital City project.
The agreement, which was initially signed earlier this year, involves the Chinese firm working on a ministerial district in the new administrative capital city project east of Cairo.
The agreement includes constructing the new cabinet building along with 18 other ministerial buildings, starting with the Ministry of Housing, Utilities and Urban Development. It also includes the building of a new convention centre, a fairground, and 15,000 residential units for low- and middle-income citizens.
The agreement with CSCEC to take part in the first phase of the capital city scheme was signed in September 2015 with Egypts then investment minister Ashraf Salman.
Earlier this month MEED reported that local real estate firm Al-Alameya for Development and Real Estate Investment is set to develop a $349m residential project at the new capital city site.
The project, which will be developed on a 1.2 million square metre plot of land, will be located on the Egypt-Suez road near the Capital City development.
The project will include residential buildings and a sports club, and will be called Compound Alalmeya. According to a company statement it is expected to be completed by 2020.
Sources close to the project told MEED that the scheme will be financed with 50 per cent equity and 50 per cent debt from local banks.
The New Capital City project, which was announced during the Egypt Economic Development Conference (EEDC) in Sharm el-Sheikh in March last year, has been central to the governments promises to improve living standards and press ahead with major housing, infrastructure and transport schemes.
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