Kuwait fund studies 2 electricity sector projects applications in Egypt: Cabinet

The Kuwait Fund for Arab Economic Development is studying the application of two electricity sector projects in Egypt worth $300m, according to Hesham Ibrahim, the Fund’s Deputy Director-General.

Ibrahim’s comments came during his meeting with Egyptian Prime Minister Ibrahim Mehleb, who is currently visiting Kuwait to discuss increasing Egyptian-Kuwaiti economic cooperation.

According to a cabinet statement Monday, Mehleb invited the fund officials to participate in Delta provinces sanitation projects, which will have a positive health, social, and economic impact.

“The fund will participate in Egypt’s economic conference in Sharm El-Sheikh,” according to the director of Kuwait Fund for Arab Economic Development. The fund has participated in a number of service and development projects in Egypt since 1964.

Egypt is currently preparing for the Economic Summit Sharm El-Sheikh in March to reassure the international financial and business communities about Egypt’s investment environment. The Economic Summit is also looking to attract foreign direct investment, according to Egypt’s Investment Minister Ashraf Salman.

The cabinet’s official spokesman, Ambassador Hossam Al-Qaweesh, said the Kuwait visit is of an economic nature, with the government seeking the reassurance of the Kuwaiti business sector about Egypt’s situation. Egypt is also looking for agreement on investment cooperation during the upcoming phase, and consulting on speeding up the settlement of any disputes relating to Kuwaiti investors working in the Egyptian market.

The Egyptian-Kuwaiti Company’s ongoing dispute over Al-Ayyat land is considered the most prominent dispute to date. The company wanted to change the land (26,000sqm) from agricultural to residential, because of the unavailability of water and means of irrigation. The Egyptian government, however, demanded further payment for changing the land’s activity, which was rejected by the Kuwaiti company.

The company asked for 10,000sqm in additional space to be reclaimed. However, the Egyptian government did not settle the conflict, nor has it met the company’s demands. However, Investment Minister Salman has said in previous statements that the company is not serious in settling the conflict.

Mehleb is currently visiting Kuwait with a delegation, including the governor of the Central Bank of Egypt (CBE), Hisham Ramez, the Ministers of Investment, International Cooperation, and Trade and Industry. During the visit, they will discuss the enhancement of economic, investment, and trade cooperation with Kuwait, for three days starting Sunday. Kuwait is considered the third biggest Arab investor in the Egyptian market after Saudi Arabia and the UAE.

A government source told Daily News Egypt that the presence of Naglaa Al-Ahwany, the Minister for International Cooperation, among the governmental delegation, accelerates settling the suspended investment disputes. This will attract new investments and complete the stalled ones before the economic summit. Al-Ahwany was on the governmental team responsible for the ministerial committee for conflict resolution and investment contracts settlement in the Cabinet, before she took over the international cooperation portfolio.

Egypt-Gulf for Investment & Development

The Egypt – Gulf Company for Investment and Development, S.A.E. (formerly known as the Egyptian – Kuwaiti Company for Investment and Development, S.A.E.) was founded in accordance with the applicable laws of the Arab Republic of Egypt, the provisions of Law No. 8 of 1997 of issuing guarantees and investment incentives, and the provisions of Law No. 159 of 1981 of issuing joint-stock companies with a capital of 3.8 billion Egyptian pounds paid from 381 million Egyptian pounds.

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