Minister Inspects N W Suez Gulf (SEZ) Development

The Minister of Investment, Dr. Mahmoud Mohieldin, paid a visit the North-West Suez Gulf Economic Zone to inspect the ongoing development efforts to attract more investments through the Chinese TEDA Co.

TEDA is the zone developer that was selected last July out of 29 global developers, and is marketing the zone at global investment institutions.

The minister inspected some productive projects in the Suez Economic Zone (SEZ) and Ain Sukhna Port. He was accompanied by Suez Governor Saifuddin Galal, World Bank (WB) Deputy Chief Justin Lin, WB senior advisor for economic development Mustafa Nabuli, SEZ chairman Ahmed Amin, and officials from the Ministry of Investment and SEZ General Authority.

The Zone sets an example for Egyptian-Chinese cooperation. The visit came within the framework of the Forum on Chinese-African Cooperation, which will take place in Sharm el Sheikh. The Forum is due to be attended by President Hosni Mubarak, China's Prime Minister and several Chinese corporations interested in increasing investments in Egypt and Africa.

In his presentation, SEZ Chairman Ahmed Amin stated that the Suez Economic Zone aimed at attracting US$1.5 billion of investments to build some 180 plants with 40,000 workers in various industries such as transportation, electric equipment, textiles and petroleum equipment.

The Chinese developer of this ongoing project will upgrade some 6 km2 inside the zone and build the necessary infrastructure such as electricity, water, communications and roads, according to Amin.

TEDA officials made a presentation of their SEZ development plan which comes in three phases, each lasting 3 years.

Dr. Mohieldin said the North-West Suez Gulf Economic Zone was a successful model for Egyptian-Chinese cooperation. He pointed to the uniqueness of Chinese investments in Egypt, with over 20 Chinese companies operating in different fields.

China's investments noticeably increased in the recent years due to government efforts, the rapprochement between Egypt and China, and exchanged visits by senior officials since President Mubarak's visit to China in 2006. 805 Chinese companies have been set up in Egypt over the past five years, accounting for 85% of the 953 Chinese companies built in Egypt from 1970 to Sept. 2009.

Dr. Mohieldin expected an increase in Chinese investments in Egypt during the coming period, especially in the North-West Suez Gulf Economic Zone. This comes in light of the major investment projects presented by the Egyptian government, including 52 projects with LE 120-billion of investments nationwide in addition to the major projects on both sides of the Upper Egypt-Red Sea Road.

There will be greater areas of cooperation between Egypt and China through joint projects in Africa. Such projects will be extensively discussed at the Forum on China-Africa Cooperation which is due to be held in Sharm El-Sheikh, Minister Mohieldin added.

On his part, Mr. Justin Lin, World Bank Deputy Chief, referred to the efforts made to develop the North-West Suez Gulf Economic Zone, stating that they would contribute to attracting more Chinese investments. The zone will be a unique model for cooperation between southern countries, especially in light of the zone's comparative economic advantages, employment opportunities, and good coordination to efficiently develop the zone.

During his tour to the Ain Sokhna Port, Dr. Mohieldin listened to an explanation from the port's chairman. He reviewed the efforts made to develop the port, which is located next to the North-West Suez Gulf Economic Zone and will play an increasing role after the flow of investments to this area.

In this regard, Mohieldin stressed that the Egyptian government is exerting great efforts to develop the Red Sea ports in light of the increasing trade exchange and investments between Egypt and the Arab, African and Asian countries.

He affirmed that the Ministry of Investment was contributing to these efforts, especially through the Holding Company for Maritime and Land Transport and its subordinated container handling companies in Alexandria, Port Said and Damietta. Such efforts aim to develop East Port Said Port and the Red Sea ports, including Safaga.

The three companies proposed to establish a quay at the Safaga Port and the proposal is being studied in coordination with the Ministry of Transport. These companies have enough technical expertise and financial capacity to launch a new project increasing their investments and providing more jobs and incomes.

Dr. Mohieldin confirmed that this project would be launched immediately after getting the Ministry of Transport's approval. It will contribute to the development of Upper Egypt, especially as the Upper Egypt-Red Sea Road is about to be opened. The road will link Assiut, Sohag and Qena governorates to the Safaga Port.