The Suez Canal Economic Zone (SCZone) has revealed the details of establishing a Russian industrial zone in East Port Said.
The SCZone explained, in a report, that the Russian industrial zone will be established on an area of 5.2 sqkm, with investments worth $6.9bn. It will include residential and industrial complexes that include several industries, providing nearly 35,000 jobs.
According to the report, the implementation of the Russian zone will begin next month to develop the area to provide 73,000 jobs for the infrastructure work. The project will be implemented in three phases and will take 13 years to complete.
According to the meeting, a joint company between the SCZone and the Russian industrial developer will be launched to manage and operate the zone.
Mohab Mamish, chairperson of the Suez Canal Authority, said that the initial implementation phases will start next month. The economic zone is receiving a delegation from the Russian industrial developer, Technopolis Moscow, to showcase the companies planning to be present in the area and to determine a final legal framework for the company, as well as the percentages and types of Egyptian and foreign labour for the project.
With the end of the implementation of the first phase, the development of an area of 1.6 sqkm as a second phase starts. About 10,000 jobs would be provided in the second phase, planned to end in 2022. Afterwards, about 2.65 sqkm will be developed, and 17,000 jobs will be provided in infrastructure projects. The implementation of the entire area will be completed by 2031, when Russian companies will start working and establishing projects and industrial complexes that will provide nearly 35,000 direct and indirect jobs.
Mamish stressed that the Russian industrial zone is subject to the terms of the usufruct conditions specified within the zone, according to the law. He also stressed that no investor is preferred over another, and that everyone is subject to the law of the economic area.
He explained that the most important industries to be established within the Russian region include the manufacturing of sensors, ACs, motors, construction equipment, glass, ceramic, wood, paper, and feed-in industries for vehicles.
Technopolis Moscow agreed with the SCZone to establish a company to operate the region. The company will be Moscow Economic Zone.
Both sides have agreed that the supervision of the project will be carried out under the umbrella of the Egyptian and Russian governments. The funding will be provided by the Russian Direct Investment Fund, in addition to several Egyptian banks, with the aim of providing the necessary support to launch the investment projects.