Cairo Metro

Bids to build phase 3 of the four phases of Line 3 of the Cairo Metro were submitted in October 2014, and in March the National Authority for Tunnels awarded France’s Vinci and Travaux Publics the construction contract to complete work on the fourth phase of the third line. France’s Alstom was awarded two contracts, totalling $85m, to supply signalling systems and infrastructure work for phase 4a of line 3.

October Oasis

At the Egypt Economic Development Conference in March, a mixed-use urban development was announced for 6 October City. Covering 42 square kilometres, the land where October Oasis will be built is owned by New Urban Communities Authority (Nuca), an agency operating under the umbrella of the Ministry of Housing, Utilities & Urban Development. Excluding the cost of land, Nuca is looking for $20bn of investment in high-, middle- and middle-to-low-income housing, commercial, retail, hotel and recreational blocks. The government will provide basic utilities infrastructure.

Cairo Airport City

Plans for the long-awaited Cairo Airport City (CAC) were unveiled at the Egypt Economic Development Conference in March. To be built around Cairo International airport, the city will consist of a series of logistics, retail and recreational developments, worth $13bn of investment over 25 years.

Aerocity, the first project to be launched as part of CAC, will be the development’s commercial and leisure heart. Stretched over 2.8 million square metres, it will be developed in two phases. Phase 1 includes a 62,000 sq m mall and a 30,000 sq m office park, and phase 2 will include the development of entertainment areas.

Other parts of CAC will include Exhibition City, Cargo City, a free trade zone and Airport Core, a complex of urban developments to accommodate business and leisure visitors to Cairo and CAC.

Problems for new capital

Egypt’s Housing Ministry has reportedly admitted complications surrounding the negotiating process between itself and developers on the New Capital city project. Local media report these issues include the Egyptian government wanting a 24 per cent stake in the project, and progress is slowing as a result.

The $45bn fast-track scheme is the biggest in the country and is being developed by the government with a new venture, Capital City Partners, founded by Mohamed Alabbar, board member of Abu Dhabi developer Eagle Hills and chairman of the UAE’s Emaar Properties.

Three desalination projects to be tendered in third quarter

The National Authority for Potable Water and Sewage, in partnership with the Ministry of Finance’s Public-Private Partnership Central Unit, plans to tender contracts for three private desalination schemes in the third quarter of this year.

There will be a 40,000 cubic-metre-a-day (cm/d) desalination facility at Hurghada, a 20,000 cm/d plant at El-Tor, and an 80,000 cm/d plant on the north coast near Alexandria.

Development conference sets pace of change

The Egypt Economic Development Conference held in Sharm el-Sheikh in March signalled a leap forwards for the Egyptian economy. President Abdul Fattah al-Sisi said at the conference that Egypt needs some $200bn-$300bn of investment to get its economy back on track after the revolutions that replaced President Hosni Mubarak in 2011 and his successor President Mohamed Mursi a year later.

By the end of the three-day conference, more than $130bn of investments had been pledged by countries and private investors. This included $4bn each from Saudi Arabia, Kuwait and the UAE, and $500m from Oman.

Canal extension to open in July

The Suez Canal redevelopment is set to be operational by July, although it will not officially open until 6 August. The project to build a new 72-kilometre waterway will enable two-way traffic and double daily ship capacity.

In mid-June, Mohab Mameesh, chairman and managing director of the Suez Canal Authority, issued a statement saying, “The project is more than 80 per cent complete and climbing as we speak, with more than 210 million tonnes of sand excavated.”

Suez Canal Zone

One of the most important projects to come out of March’s Egypt Economic Development Conference was the development of the Suez Canal Zone (SCZone), the land alongside the waterway. Spread over 500 sq km, the project has the potential to kick-start the industrial growth needed to stimulate the economy. SCZone will be centred on six ports along the canal, with major industrial zones around the cities of Ismailia, Port Said and Ain Sokhna. Total investment will be about $50bn, and by 2030 the Egyptian authorities hope this will help push 9 per cent of global seaborne trade through the zone. Mohab Mameesh has said the project has the potential to create more than 1 million jobs by that date.

Arabtec deal likely to go ahead

The UAE’s Arabtec Holding and the Egyptian Armed Forces are likely to go ahead with a project to build a million homes despite ongoing disputes between them. MEED understands that the military may want to renegotiate the terms of the $40bn deal to require the developer to use only local materials on the project and submit to an external audit to monitor compliance with a profit cap. Sources have told MEED that Arabtec is expected to compromise.

The project, which was announced in 2014, will see affordable housing developed in at least 13 locations throughout Egypt.

Golden Triangle project

The Golden Triangle project, currently at the study stage, covers 6,000 square kilometres from Edfu, south of Qena, to Marsa Alam on the Red Sea coast, to Safaga in the north. It will be an integrated industrial complex exploiting natural resources including gold ore and shale oil. Production from the area will include fertilisers.

Transport developments to support the mining industry will include the Safaga-Qena railway, which will be extended by 223km, with 150km being reconstructed. The ports of Safaga and Abu-Tator will also be expanded.