Deal to build new capital near Cairo is part of Beijing’s plans to boost business in emerging markets
By Tamer El-Ghobashy and Esther Fung
THE WALL STREET JOURNAL - May 3, 2016
CAIRO—When President Abdel Fattah Al Sisi announced an ambitious
plan to build a new administrative and business capital for Egypt on 270
square miles of desert land, many were understandably skeptical about
the $45 billion project.
Today some of the skepticism over that
March 2015 announcement has eased. One reason: an alliance announced in
January between Egyptian authorities and China State Construction
Engineering Corp. giving the Chinese-state owned business a major role
in the project.
Neither side announced details of the
agreement and it remains unclear whether the Chinese construction
company, one of the world’s largest, has made a major financial
commitment. But state media in Egypt reported that the deal was worth
$15 billion in loans, grants and memorandums of understanding.
Moreover,
there is now movement at the desert site about 30 miles east of Cairo.
In early April, Egyptian construction companies commenced work to
develop roads, sanitation and communication infrastructure that will
underpin the massive undertaking, according to Mostafa Madbouly, the minister of housing.
“We
will overcome any obstacle to implement this project,” Mr. Madbouly
said in a written statement on the day the project broke ground.
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