Some insurance companies operating in Egypt are competing for an insurance policy bid to cover the engineering risks of Ahmed Hamdi Tunnel in Ismailia port city, northeast of Cairo, said sources on Sunday.
The 1,640-metre long car tunnel is named after Ahmed Hamdi, an Egyptian engineer and general killed in action during the October War. It has two lanes of traffic, one in each direction, and connects Sinai to the town of Suez.
At total sum insured of 6.5 billion Egyptian pounds ($399.8 million), the policy will see coverage of all the engineering risks during the period of carrying out the tunnel, official sources in the insurance sector told Amwal Al Ghad.
“The insurance policy will include all contractors’ risks as well as the mechanical, machines, and equipment failure, besides the coverage of the civil liability and natural disasters,” the sources said.
The policy will also cover a digging machine used in the tunnel, with total sums insured up to around €45 million, equivalent to 813 million pounds, they added.