China’s US$20 billion project to develop a new capital for Egypt falls through amid discord over how to share revenue
- The project was to develop 15,000 acres (6,070 hectares) over 25 years in the new capital, east of Cairo
- Phase One of the project was due for completion in mid-2019
Two years of tough negotiations came to an end after Egyptian authorities sent a response to the final proposal by the Shanghai-listed China Fortune Land Development (CFLD) on developing 15,000 acres (6,070 hectares) over 25 years in the new capital east of Cairo.
“We didn’t hear back,” Ahmed Zaki Abdeen, who heads the company created to oversee the construction of the new capital, told Bloomberg News. “The talks have stopped.”
Failure to reach an agreement is likely to raise questions over Egypt’s ability to attract crucial foreign direct investments to propel economic growth. It may not, however, deter state-owned Chinese companies from pursuing other opportunities in the Arab country, thanks to strong ties between the two governments.
CFLD international declined to comment. Officials in CFLD Egypt did not respond to requests for comment.
Khaled Abbas, Egypt’s deputy minister for housing and urban communities, said authorities could collaborate with CFLD on another development, though not in the new capital. “This could be an alternative to the new capital project,” he said by phone, without elaborating.