Ministry of Transport issues regulations for project assignment to Gulf Investors Consortium

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CAIRO: The Ministry of Transport has issued a number of regulations for dealing with the Bahraini-Emirates consortium that has stepped into the Egyptian market to invest in transportation projects. The regulations are set forth in a letter of intent sealed by the various departments affiliated with the Ministry of Transports.

The new regulations detail methods of assigning projects to investors interested in the transport projects, especially in the West Port Said Port – an initiative intended to end controversy over the consortium’s plans to monopolize transport projects in Egypt.

The Ministry of Transports pledged to assign rights to investors and corporations only after returning to Egyptian top executive agencies and under supervision of the legislative and judicial authorities. The regulations stress that no concession or leasing rights will be offered on projects for road, railway, or port constructions, which shall be subject to license terms set by concerned government agencies.

The Ministry of Transport rebuffed claims that it would contribute 20 percent of the value of every transport project, noting that it would determine its contribution in every project on a case-by-case study.

The ministry has also unveiled names of companies that are members of the consortium that have not been mentioned in the letter of intent, including Abu Dhabi Investment House, the Gulf Finance House, Gulf Al-Ahliya Holding Company, and Al-Dawlia for Investment & Development.

The list of companies also included Aref Group of Kuwait, Zamil Group of Saudi Arabia, and the Islamic Development Bank among others.

The consortium announced plans to pump as much as $30 billion into mega transport projects in Egypt based on its initial feasibility assessments.

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