The master developer of Egypts 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.
Sources close to the housing ministry have told MEED that 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 also expected to complete 50 per cent of the project within three to five years, depending on the size of land.
Although the new directives offer some structure for firms interested in development opportunities at the Capital City project, details remain vague, particularly for foreign firms who are not accustomed to doing business in Egypt.
The Administrative Capital City for Urban Development, which is jointly owned by the Housing Ministry and the Armed Forces Engineering Authority, was set up in May last year to serve as a window for investors interested in the scheme.
The largest construction project currently underway 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.