Egypt capital city faces complications

11 June 2015

Egypt’s new Capital City project is facing complications as the ministry of housing looks to fast-track phase 1

  • Complications slow down Capital City project
  • Firms understood to be competing for the masterplan of the city

Egypt’s Housing Ministry has admitted that complications surrounding the project’s negotiation process between the ministry and the developers is slowing down progress on the new Capital City project, a source close to the project tells MEED.

Local media reports have said that the complications include the Egyptian government wanting 24 per cent stake in the project.

The scheme is being developed by the government with a new venture founded by Eagle Hills board member and chairman of UAE’s Emaar Properties Mohammed Alabbar, called Capital City Partners.

Despite this, earlier this month MEED reported that consultants are tendering for design work on the project.

The fast-track scheme is the largest in the country and the first phase is expected to cost $45bn to develop.

Firms are understood to be competing for advancing the masterplan of the city, the infrastructure design, and architecture for the residential buildings and commercial centres. US-based Skidmore Owings & Merrill prepared the concept masterplan.

The design work will involve developing a framework for the entire 700-square kilometre city and more advanced design work for an 18-sq km pilot project.

MEED reported in early April that construction work on the first buildings is expected to start in the middle of 2015.

The new city is expected to have a population of 5 million people and create 1.7 million jobs. It will be built 45 kilometres east of Cairo and 80km from Suez.

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