4 Banks to finance Alexandria University Hospitals Project in March

The National Bank of Egypt (NBE), Banque Misr, Commercial International Bank and Ahli United Bank (AUB) are targeting to sign finance contracts worth EGP630 million in favor of Alexandria University hospitals project before the end of next March.

Banking sources said the arranged finance phase will be directed for Smouha Maternity University Hospital, adding that the partnership with the Finance Ministry extended the period of the project, in addition inking the finance project by the end of March instead of the last December 2013.

The sources explained that the banks did not agree the last shares for each bank, and the shares will be between EGP150-200 million for each bank after the approval of Banque Misr to the finance alliance loan by providing additional category worth EGP158 million by the CIB.

The total expected value of the project reached around EGP1.8 billion that will be implemented in partnership between the government and the private sector along with the banks will arrange about EGP1.2 billion from the total investment cost.

The Egyptian Ministry of Finance signed partnership contracts with the winning alliance at the end of April 2012 after the alliance competed with another alliance comprised of Alexandria Care, Orascom Construction Industries, Gemo Construction, IT Ventures and Misr Sons Development. The project is structured as a 20-year PPP contract. The ownership of the two hospitals and blood bank will be transferred to Alexandria University at the end of the contract.