US$45 billion for Egypt's New Capital
Posted: Wed May 04, 2016 7:29 am
An item on this morning's BBC News caught my attention......a Wall Street Journal update on the New Capital project.
http://www.wsj.com/articles/big-chinese ... MtcdTNwyiA
By TAMER EL-GHOBASHY and ESTHER FUNG
Updated May 3, 2016 2:25 p.m. ET
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.
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.
To be sure, the plan’s immense scale still sounds too good to be true to many experts. It calls for some 20 residential districts with mixed-income housing for about seven million people and tall skyscrapers adorning a planned downtown financial district.
The planned development will also include an international airport set to be larger than London’s Heathrow, a public park dwarfing New York’s Central Park and an amusement park four times the size of Disneyland to serve its residents and visitors.
At the same time, other Egyptian attempts to build new towns on Cairo’s outskirts have been mired by inefficiency and produced underwhelming returns, says David Sims, an economist and urban planner who wrote two books studying urban development in Egypt. “Egypt needs a new capital like a hole in the head,” he said in an interview. “But the government is looking for investment and being able to announce an achievement.
The planned new Egyptian capital, which hasn’t yet been named, was designed to provide a lifeline to Cairo, which is home to some 18 million people. Officials expect that number to grow to 40 million by 2050.
New megaprojects on the scale of the Egyptian new capital plan have a spotty track record around the world. Many have never gotten off drawing boards. But there are several examples of newp caitals being created in the middle of nowhere, including Canberra in Australia; Islamabad in Pakistan; and Brasília in Brazil.
Mr. Sims said Egypt faces more hurdles than most of these other countries did when they embarked on their new capital projects. For example, foreign investment in Egypt has been limited since the coup, with the country’s economy being propped up largely by donations from Gulf countries. Government funds will inevitably have to be allocated to more pressing concerns, he said.
(The above are extracts from the lengthy article)
With the military mindset in control, and all the other issues of poor governance that have beset Egypt over the years, the surrounding war zones etc.... it is difficult for me to believe this will be a success.
I hope to be proved completely wrong as , health permitting, I wish to spend the rest of my days in this country which, despite its shortcomings, I have grown to love
http://www.wsj.com/articles/big-chinese ... MtcdTNwyiA
By TAMER EL-GHOBASHY and ESTHER FUNG
Updated May 3, 2016 2:25 p.m. ET
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.
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.
To be sure, the plan’s immense scale still sounds too good to be true to many experts. It calls for some 20 residential districts with mixed-income housing for about seven million people and tall skyscrapers adorning a planned downtown financial district.
The planned development will also include an international airport set to be larger than London’s Heathrow, a public park dwarfing New York’s Central Park and an amusement park four times the size of Disneyland to serve its residents and visitors.
At the same time, other Egyptian attempts to build new towns on Cairo’s outskirts have been mired by inefficiency and produced underwhelming returns, says David Sims, an economist and urban planner who wrote two books studying urban development in Egypt. “Egypt needs a new capital like a hole in the head,” he said in an interview. “But the government is looking for investment and being able to announce an achievement.
The planned new Egyptian capital, which hasn’t yet been named, was designed to provide a lifeline to Cairo, which is home to some 18 million people. Officials expect that number to grow to 40 million by 2050.
New megaprojects on the scale of the Egyptian new capital plan have a spotty track record around the world. Many have never gotten off drawing boards. But there are several examples of newp caitals being created in the middle of nowhere, including Canberra in Australia; Islamabad in Pakistan; and Brasília in Brazil.
Mr. Sims said Egypt faces more hurdles than most of these other countries did when they embarked on their new capital projects. For example, foreign investment in Egypt has been limited since the coup, with the country’s economy being propped up largely by donations from Gulf countries. Government funds will inevitably have to be allocated to more pressing concerns, he said.
(The above are extracts from the lengthy article)
With the military mindset in control, and all the other issues of poor governance that have beset Egypt over the years, the surrounding war zones etc.... it is difficult for me to believe this will be a success.
I hope to be proved completely wrong as , health permitting, I wish to spend the rest of my days in this country which, despite its shortcomings, I have grown to love