Egypt’s New Administrative Capital Company for Development entered negotiations with an unnamed major Chinese construction company to develop 14 thousand acres of Egyptian land into an industrial city. The Investment Committee in the New Administrative Capital Company will be handling the negotiations and evaluating the final offer.
Company spokesman Khaled Al-Husseini told Al-Masry Al-Youm that negotiations are underway and the parties are close to an agreement. He praised the Chinese company saying it is one of the biggest companies in the world in development.
Husseini explained that the Chinese company requested 14 thousand acres to build the city on, which is to include all necessary facilities, while also asking to use the city and reap profits from it for a period of 25 years.
Husseini pointed out that the current negotiations with the Chinese company involve agreements on the pricing of land as well as profit shares and investment shares.
Husseini also said that the New Administrative Capital is negotiating with two real estate companies to acquire 1500 acres within the first phase of the New Administrative Capital, explaining these companies were chosen out of a large batch who presented offers to acquire over 1000 acres. The negotiations are taking place in the presence of specialists from the Ministry of Housing and the New Administrative Capital consultant to decide on the best offers.
The infrastructure for the first stage of the New Administrative Capital will cost LE130 billion and will be completed by mid-2019, after which government ministries will be relocated there. The third batch of housing units will also be completed by 2019.
Husseini also said that the company already began implementing services in 2016 and will be done providing full services for the first stage of the New Administrative Capital by 2022. The government sector will include 36 buildings. One will be for the Parliament, one for the Cabinet and 34 for different ministries. The first stage will cost LE30 billion, excluding infrastructure.
Finally, Husseini confirmed that the prices for the New Administrative Capital will continue to increase in accordance with the money spent on developing different areas within it, saying that the prices are determined by a specialized committee consisting of members of the New Capital Company, the New Urban Communities Authority, the Governmental Services Authority, and the Military Area Management Committee. This committee will be responsible for pricing the square meter according to pre-agreed standards. One square meter currently costs around LE3400-4750 in the residential area and around LE9000 in the managerial area. As for the commercial are, one meter will cost around LE11,000 and the meter in the banking area will cost around LE14,000.
The New Administrative Capital was inaugurated in October 2017 in the presence of renowned singers such as Hussain Al Jassmmi , Nancy Ajram and Tamer Hosny. China had already announced it will be investing in the New Capital US$11.2 billion in September 2017.
A host of local and international urban planners have criticised the construction of the new capital, saying that it is a waste of scarce state resources. For instance, renowned Egypt-based planner David Sims has said that he doubt’s that the city will be successful considering that the vast majority of the country’s desert cities have failed to meet their targets. In a blunt comment, Sims stated that “Egypt needs a new capital like a hole in the head.”