News / Middle East

Egypt Awards Suez Project to Group Including Army

Egypt's army troops cross the Suez Canal to work on an upgrading project to guard Ismailia, a port city northeast of Cairo, Aug. 12, 2014.
Egypt's army troops cross the Suez Canal to work on an upgrading project to guard Ismailia, a port city northeast of Cairo, Aug. 12, 2014.
Reuters

Egypt's Suez Canal Authority announced on Tuesday that a Bahrain-registered firm is to develop a huge industrial and logistics hub around the canal, but gave no details of the project itself.

The Egyptian army is a local partner in Dar Al-Handasah Egypt through the Armed Forces Engineering Authority, army and government sources have told Reuters.

A plan to develop the canal was announced under former President Mohamed Morsi last year but opponents accused him of attempting to sell public land to foreigners and the project was shelved for many months. The army ousted Morsi in July last year following mass protests.

The head of the Suez Canal Authority, Lieutenant General Mohab Memish, announced the winning consortium alongside Prime Minister Ibrahim Mahlab at a news conference in the city of Ismailia, a city on the banks of the canal.

"The winning consortium to create the master plan for the Suez Canal area development project is the consortium of Dar Al-Handasah Shair and Partners, which is registered in Bahrain, in alliance with Dar al-Handasah Egypt," Memish said.

He gave no further details about how much the project is likely to cost or which industries the plan would focus on. The Suez Canal Authority was not immediately available for comment.

Earlier this month, President and former army chief Abdel Fattah el-Sissi announced a multi-billion dollar national project to expand the Suez Canal by building a new canal alongside it.

It was not immediately clear in what way the two projects might be linked.

Sissi has said he would not hesitate to award to the army major projects that would help revive Egypt's economy.

The military - whose budget is not made public - has accrued a business empire ranging from bottled water to tablet computers and is seen by many Egyptians as more efficient than the government.

The Suez Canal is the fastest shipping route between Europe and Asia and brings in around $5 billion in revenues per year, a vital source of hard currency for Egypt which has struggled since a 2011 uprising deterred tourists and foreign investors.

In January, Egypt invited 14 consortia to bid for the development of 76,000 square kilometers (29,000 square miles) around the canal. Thirteen of the 14 consortia, which included Australia's WorleyParsons, consulting firm McKinsey & Co and Japan's Oriental Consultants, submitted bids.

“Wait and see”

The government says it wants to attract both local and foreign investors for the Suez Canal area development project which it has hailed as a way of turning Egypt into a major trading hub through the expansion of shipping facilities.

But investors are likely to wait until more concrete plans have been announced before pouring in money.

"It is an important project... If it is well planned and well designed it is achievable," said Mohamed Abou Basha, an economist at Egyptian investment bank EFG-Hermes.

"The idea has been there for many years but never been implemented or seriously considered... We have to wait to see how they are going to design the zone, which industries are they planning to attract and what benefits they will give investors," Abou Basha said.

The Sinai peninsula, which lies the eastern side of the canal, has seen a rise in violence from Islamist militants in recent months, prompting the government to launch an ongoing military campaign in which hundreds have died on both sides.

Egypt's Gulf Arab allies support the Egyptian military and have given billions of dollars in aid to the country since the army ousted Morsi last year.

Dar Al-Handasah says on its website that its 6,900 employees offer services in planning, design, management and supervision and that it has finished building projects across the Middle East, Africa and India.

You May Like

Photogallery Americans Celebrate Thanksgiving With Feasts, Festivities

Holiday traditions include turkey dinners, 'turkey trots,' American-style football and New York parade with giant balloons More

Video For Obama, Ferguson Violence is a Personal Issue

With two years left in term, analysts say, president has less to lose by taking conversation on race further More

Video Italian Espresso Expands Into Space

When Italian astronaut Samantha Cristoforetti headed for the ISS, her countrymen worried how she would survive six months drinking only instant coffee More

This forum has been closed.
Comment Sorting
Comments
     
by: Nihal El-Sayed from: Singapore
August 21, 2014 7:45 AM
This article makes it sound like Morsi was ousted because of the canal plan and so Sisi is also implicated in the allegations, this is misleading. Also, the tone of the article towards the Egyptian army is not fair – there are many countries where the army plays a significant role in the country and Egypt happens to be one of them. Western media is quick to judge and jump to conclusions!

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
To Make A Living, Nairobi Street Vendors Face Legal Hurdles, Physical Violencei
X
Lenny Ruvaga
November 27, 2014 7:05 PM
The Nairobi City Council has been accused of brutality in dealing with hawkers in the Central Business District - in order to stop them from illegally selling their wares on the streets. Lenny Ruvaga has more for VOA News from the Kenyan capital.
Video

Video To Make A Living, Nairobi Street Vendors Face Legal Hurdles, Physical Violence

The Nairobi City Council has been accused of brutality in dealing with hawkers in the Central Business District - in order to stop them from illegally selling their wares on the streets. Lenny Ruvaga has more for VOA News from the Kenyan capital.
Video

Video For Obama, Ferguson Violence is a Personal Issue

Throughout the crisis in Ferguson, Missouri, President Barack Obama has urged calm, restraint and respect for the rule of law. But the events in Ferguson have prompted him to call — more openly than he has before — for profound changes to end the racism and distrust that he believes still exists between whites and blacks in the United States. VOA White House correspondent Luis Ramirez reports.
Video

Video Online Magazine Gets Kids Discussing Big Questions

Teen culture in America is often criticized for being superficial. But an online magazine has been encouraging some teenagers to explore deeper issues, and rewarding their efforts. VOA religion reporter Jerome Socolovsky went to this year’s Kidspirit awards ceremony in New York.
Video

Video US Community Kicks Off Thanksgiving With Parade

Thursday is Thanksgiving in the United States, a holiday whose roots go back to the country's earliest days as a British colony. One way Americans celebrate the occasion is with parades. Anush Avetisyan takes us to one such event on the day before Thanksgiving near Washington, where a community's diversity is on display. Joy Wagner narrates
Video

Video Aung San Suu Kyi: Myanmar Opposition to Keep Pushing for Constitutional Change

Myanmar opposition leader Aung San Suu Kyi says she and her supporters will continue pushing to amend a constitutional clause that bars her from running for president next year. VOA's Than Lwin Htun reports from the capital Naypyitaw in this report narrated by Colin Lovett.
Video

Video Mali Attempts to Shut Down Ebola Transmission Chain

Senegal and Nigeria were able to stop small Ebola outbreaks by closely monitoring those who had contact with the sick person and quickly isolating anyone with symptoms. Mali is now scrambling to do the same. VOA’s Anne Look reports from Mali on what the country is doing to shut down the chain of transmission.
Video

Video Ukraine Marks Anniversary of Deadly 1930s Famine

During a commemoration for millions who died of starvation in Ukraine in the early 1930s, President Petro Poroshenko lashed out at Soviet-era totalitarianism for causing the deaths and accused today’s Russian-backed rebels in the east of using similar tactics. VOA’s Daniel Shearf reports from Kyiv.
Video

Video Hong Kong Protests at a Crossroads

New public opinion polls in Hong Kong indicate declining support for pro-democracy demonstrations after weeks of street protests. VOA’s Bill Ide in Guangzhou and Pros Laput in Hong Kong spoke with protesters and observers about whether demonstrators have been too aggressive in pushing for change.
Video

Video US Immigration Relief Imminent for Mixed-Status Families

Tens of thousands of undocumented immigrants in the Washington, D.C., area may benefit from a controversial presidential order announced this week. It's not a path to citizenship, as some activists hoped. But it will allow more immigrants who arrived as children or who have citizen children, to avoid deportation and work legally. VOA's Victoria Macchi talks with one young man who benefited from an earlier presidential order, and whose parents may now benefit after years of living in fear.
Video

Video New Skateboard Defies Gravity

A futuristic dream only a couple of decades ago, the hoverboard – a skateboard that floats above the ground - has finally been made possible. While still not ready for mass production, it promises to become a cool mode of transport... at least over some surfaces. VOA’s George Putic reports.
Video

Video Falling Gas Prices Impact US Oil Extraction

With the price of oil now less than $80 a barrel, motorists throughout the United States are benefiting from gas prices below $3 a gallon. But as VOA’s Kane Farabaugh reports, the decreasing price of petroleum has a downside for the hydraulic fracturing industry in the United States.
Video

Video Tensions Build on Korean Peninsula Amid Military Drills

It has been another tense week on the Korean peninsula as Pyongyang threatened to again test nuclear weapons while the U.S. and South Korean forces held joint military exercises in a show of force. VOA’s Brian Padden reports from the Kunsan Air Base in South Korea.
Video

Video Mama Sarah Obama Honored at UN Women’s Entrepreneurship Day

President Barack Obama's step-grandmother is in the United States to raise money to build a $12 million school and hospital center in Kogelo, Kenya, the birthplace of the president's father, Barack Obama, Sr. She was honored for her decades of work to aid poor Kenyans at a Women's Entrepreneurship Day at the United Nations.
Video

Video Ebola Economic Toll Stirs W. Africa Food Security Concerns

The World Bank said Wednesday that it expects the economic impact of the Ebola outbreak on the sub-Saharan economy to cost somewhere betweenf $3 billion to $4 billion - well below a previously-outlined worst-case scenario of $32 billion. Some economists, however, paint a gloomier picture - warning that the disruption to regional markets and trading is considerable. Henry Ridgwell reports from London.
Video

Video Chaos, Abuse Defy Solution in Libya

The political and security crisis in Libya is deepening, with competing governments and, according to Amnesty International, widespread human rights violations committed with impunity. VOA’s Al Pessin reports from London.
Video

Video US Hosts Record 866,000 Foreign Students

Close to 900,000 international students are studying at American universities and colleges, more than ever before. About half of them come from Asia, mostly China. The United States hosts more foreign students than any other country in the world, and its foreign student population is steadily growing. Zlatica Hoke reports.

All About America

AppleAndroid