Egyptian firm Hassan Allam Construction has been appointed as the main contractor for work on six buildings in Egypt’s proposed ministerial district.

“We are set to start work very soon on six government buildings in the new Capital City,” the company’s CEO Hassan Allam told MEED on 21 February.

The company was recently appointed following the official withdrawal of China State Construction Engineering Corporation (CSCEC), which was set to build and finance the ministerial district of the Capital City.

“This is a promising period for local contractors with a lot of work in the new Capital City expected to be announced this year,” said Allam.

Allam also told MEED that the company, along with other local contractors, is ready to “fill the gap left behind after the Chinese withdrawal.”

The largest construction project currently under way at the Capital City scheme is $783m-worth of work being carried out by local firm Hassan Allam Construction. The contractor is working on 60 kilometres of roads, a 500-room hotel and a 20,000-seat conference hall.

Earlier in February MEED reported that the master developer of Egypt’s Capital City project has introduced new conditions for firms interested in the first phase of the scheme.

The state-controlled Administrative Capital City for Urban Development is understood to have communicated the new rules to some local firms although there has been no official statement from the company.

The government has told interested firms that it will be offering plots of land ranging from 200,000 to 2 million square metres for residential, mixed-use and commercial development opportunities.

Companies are being asked to pay a 20 per cent down payment, and will be expected to insure the land before starting work.

The authorities have also said that companies with government officials serving on the board of directors will not be able to take part in the first phase. Developers are expected to complete 50 per cent of the project within three to five years, depending on the size of land.