Ministry of Housing denies termination of Cairo Capital MoU

Negotiations around the Cairo Administrative Capital Project are still ongoing with the UAE investor,  Ministry of Housing spokesperson Wafaa Bakry told Daily News Egypt Wednesday.

Bakry added that rumours the Memorandum of Understanding (MoU) has been terminated are untrue.

“Negotiations are still ongoing secretly with the presidency and reports of its termination are incorrect,” she elaborated.

Al-Masry Al-Youm newspaper reported Wednesday that the Cairo Capital project MoU has been terminated with Capital City Partners, the UAE investor that signed the MoU with the Egyptian government at the March Economic Summit.

The newspaper reported that officials said that “within a year, a sovereign entity will prepare the feasibility studies and general plan for the project, so that it would be proposed again to local and international real estate investment companies without assigning it to one particular company”.

According to the newspaper, officials claimed that tycoon and founding member of Capital City,Mohamed Alabaar, who is also behind Dubai’s Burj Khalifa, could not meet the requirements set by the government. Al-Masry Al-Youm also reported that officials said Alabaar was unable to provide the sources of funding needed for the project.

The Cairo Administrative Capital project was one of the main mega projects presented at the Economic Summit. Since the project’s announcement, contradicting reports have kept swirling around it.

Negotiations with UAE investors over the new Cairo Capital project are facing major difficulties, Assistant Minister of Housing Khaled Abbas said in mid June.

However, he confirmed that Egypt will be responsible for the project if negotiations fail. “Whether negotiations with the Emirati investors succeed or fail, the project will be implemented,” he said.

In the same month, some private newspapers reported there were problems between the government and Emirati investors who will implement the project. The reports suggested the issues were regarding converting the MoU that was signed to carry out the administrative capital to a final contract.

Private newspapers, citing government sources, said the problems are related to the government’s percentage in the project.

In response, Minister of Housing Mustafa Madbouly said at the time that those reports were untrue.

“Signing contracts usually takes a lot of time, so no need to worry about the project,” Madbouly said.

The project is expected to be developed with a total cost of $80bn and an area of 700 sqkm.

Source: Daily News Egypt