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Chinese Companies Bet Big On Egyptian Projects

by wireworld on 05/16/2017 - 04:26 pm

Tag: Projects

Chinese companies in a wide range of sectors are betting big in projects in Egypt that span from port building to power transmission lines, as they signed several deals with the Egyptian government and companies.

At an investment forum in Beijing, six memoranda of understanding were signed.

The agreements include a project by two Chinese companies to develop the El Sukhna port, a $500 million loan from the China Development Bank (CDB) to the Central Bank of Egypt, and investment by the CDB and the Export-Import Bank of China for a power transmission line in Egypt. Details were not immediately available.

The presence of so many top officials at the forum, which was also attended by many Chinese firms, suggests the high importance the Egyptian government puts on attracting Chinese investment, as the country seeks to revive its economy through several initiatives such as a development zone on the Suez Canal and the development of a new capital city.

Marketing the Suez Canal as the gateway to the Silk Road, Egyptian officials invited Chinese firms to invest in various sectors in the projects.

"Both the (Suez and New Capital development initiatives) will present a lot of opportunities for Chinese companies," Osama Elmagdoub, Egyptian Ambassador to China, said at the forum. "This is the first forum and a good start: There will be a second and a third."

These agreements came after deals with a value of more than $10 billion in 2016 during a state visit by Chinese President Xi Jinping to Egypt.

Li Ruge, a representative of State Grid Corp of China, said that the firm has already been involved in a power transmission line in Egypt and is seeking more projects.