Cairo and Moscow are planning to hold discussions on the construction of a Russian industrial zone in the Mediterranean city of Port Said, according to Egyptian Trade and Industry Minister Neveen Gamea.
“In the near future, the sides will begin negotiations on the practical steps to create an industrial zone,” Gamea said, marking the end of a meeting of the Russian-Egyptian Intergovernmental Commission on Trade, Economic, Research and Technical Cooperation.
The minister added that launching of the industrial zone would open access for Russian products to many markets through localization of manufacturing sites for various economic sectors.
“The ambitious project is a huge step towards strengthening economic partnership,” she said, highlighting that the area of the zone is about 5.2 million square meters with investments expected to reach $7 billion.
According to Gamea, Russia and Egypt have enormous potential for investment cooperation in such sectors as construction and the modernization of railways, including the launch of a railway transport control center, supply and assembly of rail carriages, as well as shipbuilding, modernization of shipyards, production of oil tankers and floating workshops.
“The two nations are also cooperating in the sphere of oil field exploitation and in the banking sector,” the minister added.
The intergovernmental arrangement on the project was signed in 2018. Back then, the parties projected full implementation of the vast enterprise to be complete within 13 years.
Russian resident companies are expected to launch production lines as early as 2022. Russian firms may count on rent payment holidays, reduced tariffs for energy, special taxation schemes, as well as ready-made areas for work.
The start of construction works was planned for 2020, but was delayed due to the coronavirus pandemic.
Moscow will reportedly invest around $190 million in the development of basic infrastructure, while the entire volume of private investments is expected to reach $7 billion.
No comments