Egypt's president urges private sector to participate in state’s development projects

CAIRO – 22 December 2021: Egypt’s President Abdel Fattah El-Sisi urged the private companies on Wednesday to participate in the implemented projects as part of the state's approach to engage the private sector.

He made the remarks during the inauguration of a number of developmental projects as well as a gasoline production complex in Upper Egypt’s Assiut with the attendance of Sisi.

Of 4,375 private sector companies, 150 companies have participated with minimum investments of LE 1 billion and maximum investments of LE 75 billion annually over the past seven years, Sisi said.

The projects inaugurated or those soon to be inaugurated in Upper Egypt reflects the state's keenness to overcome difficulties nationwide, Sisi said.

He added that the current labyrinth of underdevelopment is caused by ignorance, poverty, and lack of awareness.

We can only face ignorance with economic capabilities to achieve good education, the president added.

Sisi called for facing the phenomenon of construction on agricultural lands, adding that population growth also has to decline.

Construction over agricultural lands

Egyptians have been constructing units on the limited agricultural lands over the past 60-70 years despite the extended desert lands, Sisi said.

The cost of reclaiming a feddan of desert lands range from LE 250,000 to 350,000, Sisi said, affirming that the construction over agricultural lands must end.

This means that the cost of reclaiming 1 million feddans is about LE 3 billion, Sisi said.

My only goal is to preserve the Egyptian state and efforts are being made to achieve growth and prosperity amid the population growth, Sisi said.

Over the past 30 years before 2014, the state had bumped LE 30 billion annually, Sisi said, adding that over the past seven years, the annual investment value reached an average of LE 1 trillion.

The state has bumped annual investments of LE 1 trillion over the past seven years, which is equal to the total investment value over the previous 30 years, the president added.

Speaking during the event, Finance Minister Mohamed Maait said construction over agricultural lands and population growth have caused the state to import wheat and other commodities with hard currency.

He added that these two phenomena have been of a very negative impact.

Petroleum sector

During the event, Egypt's Petroleum Minister Tarek El-Molla said the geographical petroleum area in Assiut extends over 1,040 feddans and includes six companies, a refinery, and a refining complex that represents 12% of the refining capacities in Egypt.

Speaking about the recently inaugurated gasoline production complex in Assiut, he said it seeks to produce 800,000 tons of gasoline annually to contribute to covering the needs of Upper Egypt's governorates.

The complex in Assiut aims to reduce dangers and save costs of transporting the petroleum products from the north to the south, Molla added.

The complex also aims at maximizing the utilization of Assiut Oil Refining Company's assets through bumping new investments in Upper Egypt's governorates.

State’s efforts in Upper Egypt

Prime Minister Mostafa Madbouly during the event said six ministries of the state have implemented projects worth LE 535 billion in Upper Egypt.

Madbouly said the state is working on achieving comprehensive development in Upper Egypt as the area had witnessed poor services and highest unemployment rates.

The state has constructed 365 bridges and tunnels worth LE 50 billion in Upper Egypt, in addition to constructing 2600 kilometers of roads and upgrading 4000 kilometers of roads.

The prime minister said 14 road axes are being constructed along the River Nile in Upper Egyptian governorates at a cost of LE 23.5 billion.

Assiut gasoline complex

The gasoline production complex at the Assiut Oil Refining Company in Assiut governorate is one of the state’s strategic projects which comes within the framework of the state’s plans to develop Upper Egypt, Presidential Spokesman Bassam Radi said.

The complex aims at securing gasoline supplies to the people of Upper Egypt’s governorates and saving the cost of gasoline transporting from the existing refineries in Cairo, Alexandria and Suez to the various regions of Upper Egypt, Radi added.