Egypt’s International Cooperation
The state's policy, in the field of international cooperation, mainly aims to develop and enhance the Egyptian economic relations with other countries of the world, as well as invest Egypt's international relations so as to serve development targets and merge them with world economy. This is achieved through signing several agreements that provide necessary finance for the various benefiting governmental bodies in order to implement their projects.
The year 2006/07 has witnessed the signature of several agreements:
- Total agreements that were concluded with our development partners during 2006/07 reached a number of (44) agreements through which a total amount of grants provided reached $ 740,033 million at a ratio of 28.5% of the total finance volume.
- The total technical aid volume reached $ 9.239 million at a ratio of 2.3% of the total finance volume.
- The total technical aid volume reached $ 9.239 million at a ratio of 2.3% of the total finance volume.
- The total loans volume reached $ 1.8 billion at a ratio of 69.2% of the total finance volume.
Description of Total Finance Volume "Grants –Loans -Technical Aid" that were signed with our Development Partners over the Period 1-7-2006 to 30-6-2007. The Most Important Implemented Projects during the Year 2006/07: 1- The Regional and International Finance Bodies A number of (18) agreements were signed with total finance $ 1.4 billion at a ratio of 53.8% of the total finance volume ($ 2.6 billion), of which $ 2.602 million as grants, $ 9.189 million as technical aid and about $ 1.350 billion as loans. African Development Bank contributions ranked first at a ratio of 43.2%, while the International Bank for Construction and Development contributions ranked second at a ratio of 39.9%, Kuwaiti Fund for Arab Economic Development contributions came at a ratio of 13.7%, Saudi Fund contributions came at a ratio of 1.8%, International Fund For Agricultural Development came at a ratio of 1.8% and lately Arab Fund for Economic Development Contributions came at a ratio of 0.2%. All these are to finance several projects and agreements salient of which are the projects of establishing Sohag/Red Sea road, supporting small enterprises, combating the industrial pollution, extending the natural gas net, studying the development of the national net for transferring electricity, eliminating poverty and enhancing legal rights for the Egyptian women and teenagers. Description of Finance Volume During the Period (2006/07) from the (Regional and International Finance Bodies and Organizations)
The year 2005/06 has witnessed the signature of several agreements:
- Some 37 agreements were signed with development partners that contributed to $ 1.762 billion; $ 307.922 million were allocated for grants with a percent of 17.5% of the total finance and $ 1,454,171 million a percent of 82.5% of the total finance.
- Some 37 agreements were signed with development partners that contributed to $ 1.762 billion; $ 307.922 million were allocated for grants with a percent of 17.5% of the total finance and $ 1,454,171 million a percent of 82.5% of the total finance.
- The finances projects that support small and medium size enterprises; as well as graft workshops and women through several agreements that were signed in 1988,1991,1998. These projects are now gradually implemented in several governorates by a group of civil society organization registered in the Ministry of Social Affairs. These agreements are as follows:
* A $ 44 million credit agreement of for small size enterprises and craft workshops.
* A $ 35 million credit agreement of for small size enterprises.
* An agreement supporting small enterprises with a budget of $ 86.6 million. In 2005/06,9 agreement were signed with the United States of America, the total finance amount of these agreement reached almost $ 124.109 million (grants).
- Enhancing communication channels with Asian, African and Latin American Countries through their diplomatic figures present in Egypt t activate economic cooperation with such continents. The countries which have political and economic weight are given a special priority.
- On the European level, two agreements were signed with the European Union and one agreement with Finland, with total finance amount reaching $ 123.823 million (grants).
- A conference was held in Egypt about (the Challenges of Technical and Professional Training in the Middle East and North Africa). The World Bank and the European Comission Training Organization have participated in organizing it so as to implement a comprehensive strategy for reforming employment system to cope with the future developments such as activating partnership between Egypt and the European Union and preparing for the Euromediteranean free trade zone.
- Activating the joint higher committee role with several Arab and African countries and giving a push to the strategic cooperation relations with various countries; such as Sudan and Ethiopia.
- On the occasion of the 50th anniversary of establishing diplomatic relation between Egypt and China, 10 agreements were signed in different fields such as plant health, mineral resources, education, tourism, strategic cooperation and investment.
Throughout Egypt's international cooperation, Egypt has been able to provide the finance necessary for implementing the emergency plan of the Ministry of Electricity, besides establishing the great Egyptian Museum and developing Hurghada Airport plus a number of projects serving low-income brackets the majority of the state's ministries have benefited from that finance in number of social and economic development projects during 2005/06.
The most significant programs and projects implemented in 1006:
United States of America:
The most significant projects financed by the united states are upgrading the educational sector, improving the health sector, implementing a successful family planning awareness campaign, as well as protecting the environment and increasing agricultural exports; in addition to completing water and sanitary drainage projects located in several Egyptian governorates.
China:
Within the framework of maintaining economic, technical, commercial, and investment cooperation relationship between Egypt and China seeking the distinguished political relations levels, China has participated with 85% financing the project of alimunium (Almagd Complex) in Ismailia desert whose cost hits about $ 800 million. All its products will be exported to foreign markets. It will provide about 3000 direct job opportunities and about 2000 indirect ones.
The project will help to establish new urban community in Ismailia desert besides reviving the process of transferring production materials and the final products by means of the Egyptian harbours. The volume of the Chinese grants has reached about $ 38.8 million after signing the agreement on establishing a building to render services to investors.
The grants aim to finance number of projects; namely, preparing a technical training centre in Beni Sewif, sharing in financing Mubarak's project for scientific research, as well as the project of remote education system development (1st stage) besides establishing a model school for teaching the Chinese language and history in Kafr mesilha in Menoufiya, in addition to a grant estimated by Swiss Franc worth 159 million so as to finance the project of Cairo International Conference Centre besides signing 10 agreements on different fields: plant health, mineral resources, education, tourism, strategic cooperation and investment.
Japan:
The economic relationship between Egypt and Japan has witnessed a great leap throughout a number of important projects during the recent few years; salient of which is the project of Mubarak As-Salam Bridge (Peace), Children hospital in Aby er-Reesh, and the Opera House besides the project of the great Egyptian Museum (under construction); besides the projects of improving potable water in Giza, Sharqyya and Mahala al-Kobra governorates and projects of improving wheat production plus a number of projects related to the environment reaching34 ones.
The Japanese side is interested in financing projects of clean and renewable energies such as wind energy in Za'afarana with a finance reaching about 13.497 billion Yen (a loan) and generating electricity in Kuraymat with a finance reaching about Yen 10.665 billion (a loan).
Preparations have begun for establishing the Egyptian-Japanese University for Sciences and Technology. The year 2005/06 has witnessed the biggest budget for official aid from the Japanese government to Egypt as US Dollar 41 million allocated for the project of combating environment pollution (stage 2) in number of districts with high pollution rates located between Greater Cairo and Alexandria.
The European Investment Bank
The Bank contributed to a number of vital projects. Arround 250 million euros will go to finance the project of establishing power stations in al-'Atef and Sidi Krir. It also participated in financing the power station in North Cairo with about 150 million euros.
Canada
Within the framework of encouraging Canadian investments in Egypt, number of joint investment projects between both countries have increased from 28 in 1998 to 112 in 2005. Volume of Canadian shares in direct internal investment companies reaches about LE 442 million, representing 17% in the fields of contracting, infrastructure, financial and touristic services, spinning and texture, nutrition substances, land reclamation and chemicals.
There are also ten projects in the free-zone areas exceeding $ 4 billion; besides the Canadian investments in the field of petroleum reaching about 300 million canadian dollar. Within the field of petrochemicals, a contract was signed for granting about $ 2 billion and this is considered the biggest Canadian project in Egypt.
During the last 2 years, the trade exchange between both countries have been increasing mounting to 452.8 million canadian dollar in 2005. In 2006, an agreement was signed so as to allocate $ 100 million to finance education program in early childhood.
Italy:
Italian investments in Egypt have excelled $ 1.8 billion in various sector. On the European level, Italy is considered the first commercial partner to Egypt. In 2005, Egypt's exports to Italy reached about 1.265 billion euros and Italy's exports to Egypt about 1.384 billion euros. In 2006, volume of trade exchange has mounted to 886.5 million euros resulting a surplus for Egypt estimated at 251.3 million euros.
The Italian aid to Egypt reached about 355 million euros (grants), and 855 million euros (soft loans); as well as trade facilities mounting to about 140 million euros.
Kuwait:
A loan agreement was signed by Egypt and the Kuwaiti Fund for Arab Economic development reaching about 30 million dinar so as to share in financing the project of West Cairo power station.
Saudi Arabia:
An agreement was signed between Egypt and the Saudi development Fund so as to finance the project of constructing grains silos in order to develop storage methods and decrease losses amounts. The grant is estimated to reach about Saudi riyal 90 million. About 55% of the finance is a grant from Saudi Arabia while the rest is paid on 25 years with only 5 years grace period.
Bahrain:
As regards volume of investments in Egypt, Bahrain ranks third after Kuwait and Saudi Arabia with total amount of investments in the Egyptian market reaching about $ 500 million. Three projects were signed in natural gas, ready-made clothes and tourism, costing about $ 100 million. Some 21 agreements between both countries were signed so as to cover all bilateral fields of cooperation. Volume of trade exchange between both countries has reached about $ 25 million.
France:
In 2006, the percentage of French exports to Egypt has reached about 70% and that of the Egyptian exports rose to 82%. An agreement was signed between Egypt and France so as to renew the program of Emoteb that strengthens cooperation between both countries in science field as well as activating cooperation in the field of human sciences. Moreover, a specialized French institute was inaugurated so as to qualify Egyptian professors.