Plans for 25 new cities, attracting 100bn(LE) in investments

[DJKeefy]

Ministry of Housing plans to establish 25 new cities, attracting EGP 100bn in investments.

The Egyptian housing sector is set to attract sizable investments from Gulf and Egyptian investors in the coming period according to Minister of Housing Ibrahim Mehleb.

“The market is in the process of receiving new investments through domestic and Gulf partnerships totaling EGP 100bn,” Mehleb told Al Borsa newspaper.

He highlighted that the Ministry of Housing plans to establish 25 new cities, which are expected to receive a large amount of investment Gulf countries announced their willingness to fund the construction of 50,000 residential units as part of this project.

In addition, the ministry intends to extend the sanitation system to 131 villages, as well as a project establishing new silos with a storage capacity of 1.5bn tons.

Mehleb asserted that the ministry has laid out a “clear-cut” road for encouraging investment in all governorates.

Source: http://www.dailynewsegypt.com/2013/12/0 ... vestments/

[Dusak]

This would be good for the country if it kicks off. Wonder if the Russians and Chinese money will be involved.

[Hafiz]

Correct me if I'm wrong. 100 b estg which is about $US12 b which is about the total gold and $US reserves of Egypt. Although who is going to spend what is mysteriously unclear given you usually want to announce something concrete in a press release. The only definite thing is the huge number (hurrah) and the 131 villages (the number clear but the location mysterious) producing the response: what a caring government. With the fragrant sewerage on the top of the icecream you can be sure the other bit is something else.

Well the other bit is definitely strange. 'Cities'. 25 'cities' with an average of 2000 units per 'city'. Odd idea of a city but anything about government gets waved through whether it makes sense or not. Would be interesting to know where and for whom. Can't see it providing housing for the poor or lower middle class because, invariably, Arab money is put into glitzy housing with an eye to tourists and international investors. If its one of the usual Arab investment suspects then this is the formerly proposed and announced Mediterranean Sea development with no place for the poor. If it is this you would probably keep quiet about it given the current political situation. Wouldn't want people to hear that all this announced Arab money was going to end up in 'not very socially useful' areas. Wait and see, I'm likely less than half right but the figure is very similar to the previously announced tourism development that disappeared after its announcement more than a year ago.

Basic maths says that 50,000 units costing $US12b works out at $240,000 per unit. Even allowing for utilities these are clearly going to be up market or for tourists/international investors. Allowance should also be made for the 131 villages but who believes that the 131 will be done. the silos will also cost something but I thought that the major wheat suppliers (US, Canada and Australia) had, in the past, had been 'asked' to fund terminals and storage. A bit of money to reduce wastage and spillage in the domestic market (world bank figures as high as 20%) would increase domestic supply, reduce imports and improve farm incomes but as every politician knows 1 really big press release is worth dozens of small ones.

No mention of the split in costs. How much will the Government of Egypt supply. Given the announced sewerage connection to 131 villages (a trivial but necessary investment) its safe to assume that the other bit of the announcement is no social security program.

No mention of what gulf state. Suspicious. Could just be another promise which never arrives. What sane person issues a press release which says that we expect the something to happen in the future. Why cant you save on paper and put 2 press releases together (if there is to be a second one) and just tell Egyptians what is going to happen. So many overtures so few encores.

The presence of Egyptian investors in this venture gets the juices of anticipation going. Will it be the army or will it be Osracom or will it be both. For certain it won't be anyone else.

Blind Freddy could tell you, there is a huge shortage in housing for the poor and the very poor,there is no comparable housing shortage for the middle class, loans for housing are all but impossible to get whilst banks pour out credit for major high status housing projects and for Red Sea developments. Bank reform and clear titles would mean that people don't need to rely on Ministerial press releases to get what they need. Access to credit on fair terms would do a lot to help Egyptians but an oligopoly of State owned banks loaning to the politically correct leaves little for everyone else but makes for a comfortable life for bankers. Its not housing people need its credit and for the government to get out of the way average person.

When did sewerage and water become the responsibility of the national government. In any properly run country provinces/governates/cities would do this job and be held to account. The national government jumping in just confuses roles and lets regional government off the hook.

The reference to the silo is just plain bull. Silo or silos to hold 1.5b tons. That would be a hundred years of all external grain needs for Egypt. The silos would take up 10's of thousands of hectares most of them would be continuously empty for more than a hundred years. I think the Daily News means 1.5m tons but that would only be about 10% of their yearly imports or about 36 days supply. So either one is unbelievably grandiose, except in Egypt, or the other is a pinprick. Whatever the story: crazy or pitiable, the Daily News seems to have missed their chance for a headline. I'd forgotten the possibility that the proposal was just another wasteful folly like the west Aswan irrigation project. Wasting billions is de rigeur in Egypt and this could be just a new chapter in an old tale.

[DJKeefy]

I enjoy reading your posts Hafiz

[Brian Yare]

Habu City (by Medinet Habu temple) is one of the smallest cities that I know! It has a mosque so I suppose that might qualify it as a village rather than a hamlet.