Egypt continues to struggle with securing the support required for its proposed new capital city
- Cairo signs MoU with Chinese firm
- Other investors approached for major scheme
Egypt has signed a memorandum of understanding (MoU) with China State Construction Engineering Corporation to participate in developing parts of the new administrative capital.
The agreement was signed in order for the Chinese firm to explore development opportunities on the Capital City project.
Speaking on the sidelines of the Euromoney conference in Cairo, Investment Minister Ashraf Salman told MEED: We failed to reach a win-win situation with the initial investor from the UAE (Mohamed Alabbar). We are now looking at other investors although the UAE firm will be involved at some of the stages.
Salman also went on to say that negotiations with other developers will be opened in the coming weeks as the Egyptians look to secure the required investment to press ahead with the first phase of the project which is set to cost $45bn.
A ministry spokesperson also tells MEED that there are five companies negotiating with the government as a consortium of investors looks to be created.
In June, MEED reported that the Egyptian government says it is pressing ahead with all utility and infrastructure work for the new capital city area despite reports of a breakdown in the initial agreement.
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.