::AMIGOS ADVOCATES EGYPT ::BUSINESS IN EGYPT ::INFRASTRUCTURE PROJECTS

:: INFRASTRUCTURE PROJECTS

Egypt is currently involved in a huge infrastructure project (Toshka) intended to create a new river delta parallel to the Nile Valley over the next 20 years to open up tracks of land for agriculture, industry and settlement. The core of the project is a 310-km long canal taking Nile water from Lake Nasser to the Western Desert . The Government has decided to provide complete tax exemption for land reclamation projects and 20year tax exemption for other investment projects established in the New Valley . The Government is also considering exempting the machinery and capital goods from the sales tax.

East Port Said is another one of the government's mega infrastructure projects. The project aims at developing a container terminal intended to become a hub for shipping in the eastern Mediterranean and building an industrial free zone designed to attract export industries. Suez Canal Container Handling Company – 60% owned by a partnership between ECT International of the Netherlands and Denmark 's Maersk Sealand and 40% owned by local investors – has a 30-year franchise to operate the terminal. The company will be responsible for all the costs of bringing the port into operation but the government will finance infrastructure work. The area allocated for the free zone has been recently downscaled to 10 million-square-metre.

The Gulf of Suez mega project involves building a new port and an industrial free zone. Sokhna Port Development Company – 25% owned by Seattle-based Stevedoring Services of America – has a 25-year agreement to equip and operate the port and the government is financing the infrastructure work. The port will be mainly used for bulk cargoes to serve the industrial zone in which groups of private investors have been allocated plots of land to develop.

The three areas are identified by the Government as Special Economic Zones enjoying the incentives provided by law No 83 of 2002.