Abraaj’s IDH and Travco resurrect IPO talk. Bishai bullish on Egypt. Cairo Runners make global headlines. HSBC withdrawing from retail in Turkey, Brazil. Sugar imports could face 20% tariff. EGPC to tender for diesel imports. IMF / WB spring meeting.

WHAT WE’RE TRACKING THIS WEEK

20 April (Monday): Emaar Misr annual shareholder meeting. Expect it to be fairly anticlimactic after Emaar Misr Chairman Mohamed Alabbar handily passed the Emaar Properties shareholder meeting last week.

21-22 April (Tuesday-Wednesday): Al Mal-GTM Money and Finance Conference, Four Seasons Nile Plaza Hotel, Cairo.

22-23 April (Wednesday-Thursday): World Green Economy Summit, Dubai. Visit the official website here.

23 April (Thursday): CBE Monetary Policy Committee meeting.

Are we or are we not changing the clocks to daylight savings time on 1 May? No one seems quite sure after Prime Minister Ibrahim Mahlab suggested one of Cabinet’s research arms should carry out a public opinion survey on the matter.

Oh, and the Wall Street Journal will unveil its first online redesign in seven years on Tuesday, 21 April. That may be a bit too “inside baseball” (as our American cousins would have it), but we’re excited. POLITICO New York has a sneak peek.

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A MESSAGE FROM PHAROS HOLDING

Data Suggests CBE is Moving to Cut Rates Further, Bring on another Round of Depreciation

Current research from Pharos Holding suggests that the Central Bank of Egypt is close to executing another round of interest rate cuts of around 50bps during one of two upcoming MPC meetings, either on 23 April or 11 June this year. The cut is expected to be followed by depreciation in the EGP against the USD, bringing the exchange rate closer to the EGP 7.90-8.00 per USD mark from c. EGP 7.60-7.63 after the January 2015 cuts, which Pharos had predicted against the odds.

The success of a USD 1.5 bn Eurobond issuance slated for mid-2015 seems to be contingent upon further policy changes; with the USD-index trading near a 12-year high, the EGP appreciating nearly 17% against the EUR since mid-2014, and uncertainty clouding the immediate future of Turkey and the Eurozone (which together represent nearly half of Egypt’s non-oil imports), circumstances seem optimum for these policy moves. Read the full report here.

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LAST NIGHT’S TALK SHOWS

Khaled Abu Bakr filled in for Amr Adeeb on Al Qahera Al Youm, conducting an often contentious interview with Dr. Gaber Gad Nassar, president of Cairo University. Asked about his position regarding student demonstrations at his university, Dr. Nassar replied that he had no problem with students peacefully protesting on campus grounds. He stated that the problems stemmed from young people who are not affiliated with the university, such as the Ultras, showing up on campus and causing havoc. The other issue was when students would leave campus, get into violent confrontations with the police, then retreat back to school grounds, drawing the police in behind them to continue street battles on university premises.

Lamees El Hadidy was also AWOL on her program on CBC Egypt, with someone other than Khairy Ramadan hosting (feel free to write in with his name but no one really cares who he was) who took Ministry of Health spokesperson Hossam Abdel Gaffar to task during his call-in to the studio regarding the death of a man who died after failing to receive proper emergency medical attention. The host pointed out that the explanations from Abdel Gaffar, who cited lack of specialists and functioning equipment, only further painted a picture of a state-run medical establishment in disarray.

Over on ONTV, Youssef El Hosseiny spoke of the brewing culture war taking place pitting the media and the state (on the side of religious reform) against Al-Azhar, the Ministry of Awqaf, Islamists, and the highly pious on the other. The war of words has been most strongly associated with Islamic researcher and El-Qahera Wel Nas host Islam El-Behery, who on Saturday debated Saudi religious Scholar Habib Ali Al-Jifri Al-Azhar and Egyptian Al-Azhar professor and scholar Osama Al-Azhary on Khairy Ramadan’s program on CBC Egypt. Also on Saturday, without naming names, President Abdelfattah El Sisi said he viewed “some talk not in the benefit of the cause.” He urged caution in discussing religious discourse so not to pressure public opinion and scare people, “Because there’s nothing more precious than religion. … Religious discourse won’t be fixed overnight and not in this way. It requires enlightened effort from enlightened scholars.” (Read)

El-Hosseiny implicitly called for the replacement of Ahmed el-Tayeb, the Grand Imam of Al Azhar, as well as calling for psychoanalysis of all those who which to work in education in order to weed out individuals who harbor extremist ideology. At the same time, he criticized the recent burning of Islamist books, paraphrasing without crediting poet Heinrich Heine who stated: “Where they have burned books, they will end in burning human beings.” However, El Hosseiny was supportive overall of the removal of books with extremist ideology, such as those by Sayyid Qutb, Mohamed Badie and Qaradawi.

Ossama Kamal on Al Qahera Wal Nas hosted the Governor of Cairo Galal Saeed in his studio, where among other topics, they discussed various renovations in Cairo, with Saeed saying that the renovations of Ahmed Orabi Square in Downtown Cairo will be completed by 2 May. Kamal also hosted the Minister of Youth and Sports Khaled Abdel Aziz, who answered the question: “What is on the mind of THE YOUTH?” with a very reasonable and honest, “Uh … different things.”

SPEED ROUND

IPO Watch: Travco and IDH resurrect listing discussions. Leading tourism player Travco is reportedly mulling whether to list its shares on the EGX following an Administrative Court decision allowing companies in Sinai to seek listings without necessarily obtaining special approval from the regulator. GAFI had refused Travco’s request to list 20-25% of its shares in 2010 because the 20% of the company’s assets were based in Sinai, Al Mal notes. Travco’s legal advisor believes the recent court ruling creates a precedent allowing the company to go public. Meanwhile, Abraaj’s Integrated Diagnostic Holdings (IDH) is apparently resurrecting talk of a listing on the London Stock Exchange after having hit the brakes on the transaction back in the first week of February. The labs company intends to offer up to 45% of its equity on the London Stock Exchange later this year, according to a separate report in Al-Mal (background here from the time of the original announcement in January.) The company had announced in February it was postponing its LSE listing to pursue a dual listing on the EGX, citing “strong interest from international and particularly local Egyptian investors.” EGX Chairman Mohamed Omran had said in the run-up to the EEDC that the bourse expected 7-8 IPOs by mid-year. With Edita and Orascom Construction now trading, other candidates include Emaar Misr and Egyptian Centres (a unit of Saudi Arabia’s Fawaz Alhokair Group).

Bond issuance on track: Egypt will issue USD 1.5 bn in dollar-denominated bonds in June, the deputy Minister of Finance told Al Masry Al Youm. Promotions for the issuance is set to expire on 2 June.

Orascom’s Bishai bullish on Egypt, wants more reforms + mulls desalination: Orascom Construction CEO Osama Bishai is quoted by Reuters as saying that the company is looking into water desalination on the Mediterranean coast. “I’m very bullish about water desalination,” he said. “If you fast-forward 10 years and you want the population to spread around, you need to create desalination water plants”. (Read)

The Minister of Finance issued a decree appointing Abdel Moneim Mattar as the new head of the Tax Authority, replacing Moustafa Abdel Kader who has reached the legal retirement age, according to Al Mal.

Oil Minister Sherif Ismail says BP’s Northern Alexandria Gas Project could save the state USD 2 bn annually and significantly cut Egypt’s reliance on foreign gas, reported Al Mal. Delays in the execution of the project have a significant factor in behind Egypt’s energy crisis, added the minister.

Prosecutor to appeal acquittal of former oil minister: Public Prosecutor Hisham Barakat on Saturday filed an appeal against the acquittal of former Minister of Petroleum Sameh Fahmy and five other former officials from the ministry, according to Kuwait News Agency, citing state news agency MENA. Former minister Sameh Fahmy was accused of profiteering from the sale of natural gas to Israel at highly-discounted rates. (Read)

The Egyptian Financial Supervisory Authority plans to provide 63 civil society organizations with temporary licenses to offer microfinance services to citizens, according to Al Mal. Assuming this decision goes through, a total of 168 civil society organization with a combined portfolio exceeding EGP 1 bn will be permitted to offer microfinance services.

Egypt, China have the same annual bill for fuel subsidies? Bjorn Lomborg, a regular contributor to Daily News Egypt, writes for Canada’s Globe and Mail: ‘It’s time to stop subsidizing fossil fuels,’ preaching to the choir in arguing against fuel subsidies, pointing out that Egypt and China both pay the same annual bill on fuel subsidies: USD 20 bn. (Read)

MOVES- Obtala Resources appoints Stephen Murphy Executive Deputy Chairman: Obtala Resources Ltd has appointed Qalaa Holdings Special Advisor Stephen A. Murphy as its Executive Deputy Chairman, London South East reports. Murphy will continue in his role at Qalaa. (Read)

A spate of positive tourism news and travel reviews were published on Egypt recently:

• ‘Egypt safe, tourism rebounding, Egyptian archeologist Hawass says’: The fedora-wearing former antiquities minister has some encouraging words for Egypt’s tourism industry, while at the same time making some withering statements as to the current leadership of the ministry. (Read)
• ‘Searching for the REAL Egypt’ (Read)
• ‘Israel Needs Tourism Lessons From Its Neighbors’: Surprisingly, argues that Israel could take some pointers from Egypt regarding its tourism sector. (Read)
• ‘Egypt: There Is No Time Like the Present’ (Huffington Post)
• ‘Egypt: When is The Best Time to Go?’: Please take note that there is autoplay ad video in the upper-right hand corner. (TravelPulse)
• ‘Egyptian Tourism Authority, Visa launch campaign to promote tourism in Egypt’ (Zawya)

We’ll believe it when we hear it: “Egypt’s state religious authority has banned the use of loudspeakers in mosques beyond the call to prayer (Azan) and Friday afternoon sermons,” reports Ahram Online. The gentleman who took care of the fajr prayer this morning next to Enterprise Global Headquarters apparently missed that memo.

Will Egypt be next on HSBC’s chopping block? The FT reports this morning that HSBC will accelerate its plan to withdraw from underperforming emerging markets “in a renewed effort to become ‘simpler and smaller.’” Notes the paper: “Its new strategic plan will lead to a withdrawal from retail banking in Brazil and Turkey, followed by other underperforming operations, said people close to the bank. Parts of its investment banking arm — one of its core businesses — will also be cut.”

Dual Canadian-Egyptian Ikhwan activist denied permission to leave Cairo: Khaled Al-Qazzaz, who had been detained for more than a year and a half without charge and who apparently requires surgery, was denied permission to fly from Cairo International Airport to Toronto on Thursday despite the widespread expectation that he would be allowed to fly. (Read)

Princeton to vote on divestment from Israel and Egypt on 20 April: Concerned that their boycott of Israeli hummus, the donning of keffiyeh scarves and furious Facebook posts weren’t doing enough to free Palestine, Princeton University undergraduate students have called for a referendum to expand the BDS (Boycott, Divest and Sanctions) movement beyond Israel to include Egypt, a country with a poverty rate of 26% which has struggled to attract investment and rebuild after four years of chaos, part of which includes fighting off constant attacks on the Egypt-Gaza border, because: social justice. Three students (two Egyptians and a Qatari) called on Thursday for divestment from Egypt, arguing that Egypt is supporting the collective punishment of Gazans. Which of course, must be met with the collective punishment of Egyptians. Read their letter here, and find the landing page for the Princeton Divests site here.

Did a can of Coke take down Bloomberg on Friday? Business Insider reports the rumor thatBloomberg terminals across the globe went dark on Friday because of a spilled can of Coke. “We experienced a combination of hardware and software failures in the network, which caused an excessive volume of network traffic,” Bloomberg said in a statement. “This led to customer disconnections as a result of the machines being overwhelmed.”

Total, BP say no plans for M&A bids: The heads of both BP and Total on Thursday stated they have no plans to go on shopping sprees of their own following Royal Dutch Shell’s bid for BG Group, Oilpro reports. “Total can do anything. It could do nothing, because we don’t need it…,” said Total CEO Patrick Pouyanne. (Read)

International price declines can affect companies proved reserves’ levels, an EIA report suggests. Since companies are required, by law, to report proved reserves, and defines them as “estimated quantities of oil and natural gas that analysis of geologic and engineering data demonstrates with reasonable certainty are recoverable under existing economic and operating conditions,” oil prices can affect the economics of exploration, and thus impact the reported reserves levels indirectly. “According to annual reports for 75 global oil and natural gas companies, oil proved reserve additions totaled 10.4 bn barrels in 2014, the lowest since 2010,” the report says.

‘Biggest Wealth Fund Turns to Africa for Profit Growth.’ Notes Norges Bank Investment Management CEO Yngve Slyngstad in a sit-down with Bloomberg: “What’s new is that we have crept north — Kenya and Nigeria — we’re looking at quite a few west African countries,” he said. “In North Africa, for quite some time, we’ve been invested in Morocco and Egypt, there are also some investments coming in Tunisia.”

‘Is Slack Really Worth USD 2.8 bn? A Conversation With Stewart Butterfield’: “When I recently wrote about Slack, a corporate messaging app that has aspirations to replace email, investors valued the company at USD 1 bn. That was a month ago. Today, the start-up announced that it has raised USD 160 mn from a half dozen investors, and that it is now worth USD 2.8 bn.” (Read)

CORRECTION: In Thursday’s issue, we left a broken link on the story about President Abdelfattah El Sisi meeting with Siemens’ CEO Joe Kaeser. Please find the link to the Al Ahram story in Arabic here.

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WORTH READING

When A Muslim Doctor Saved A Jewish Teenager From The Nazis: Worldcrunch tells the story of Dr. Mohamed Helmy, an Egyptian doctor who risked his life to hide a Jewish teenager from the Nazis in Germany. (Read)

VIDEO

Making the rounds at one of our favorite companies: Seth Brings Jon Snow to a Dinner Party – Late Night with Seth Meyers (Watch, running time: 5:03, H/t Wafaa A.)

SPOTLIGHT ON: IMF / WORLD BANK SPRING MEETING

There’s a fair bit of commentary on Egypt and the global economic system coming out of Washington today in the wake of the spring IMF / World Bank meeting. We’d suggest starting with Reuters roundup of highlights of what ministers and central bankers had to say about the state of the global economy.

The FT, meanwhile, warns that the IMF meeting was “overshadowed by renewed fears about the risk of debt default,” noting that ECB chief Mario Draghi “warns of ‘uncharted waters’ if Greece crisis deteriorates.” TheWSJ notes, however, that a Greek exit of the Euro is essentially unthinkable.

Masood Ahmed, the Middle East and Central Asia Director at the IMF, welcomed the recent measures taken by the Egyptian government to revive the economy during a press briefing saying they are “welcome because they do try to bring about a reduction of any differential between the parallel market and the official market… because that would help to create the basis for more investment, and better functioning of the exchange markets. And as a result encourage investment and growth… the economic conference… was a success… the key will be for these pledges to get translated into real investment.”

The World Bank Group is increasing investments in Egypt to USD 4.5 bn over the next four years, at a rate of USD 1.2 bn annually, according to World Bank VP for the Middle East and Africa Hafez Ghanem, Al Borsa reports. The WBG will continue to pump funds into creating employment opportunities, improving education, and supporting vital sectors including agriculture.

Egypt signs USD 400 mn loan with World Bank for social development: Minister of Social Solidarity Ghada Wali said that Egypt signed a USD 400 mn loan with the World Bank on Friday for social development purposes. Wali added that a portion of the loan will be allocated to help low-income families and senior citizens. Wali said that more than 100,000 people benefit from the social development program that launched last November and which is included in the current World Bank loan. (Read in Arabic)

Investment Minister Ashraf Salman addressed US business leaders while in D.C. for the meetings, saying the government would stay the course on its reform agenda and noting that the private sector would continue to lead economic growth. (Read in Arabic)

Is U.S. economic primacy fading? “The spring meetings of the International Monetary Fund and World Bank have filled Washington with motorcades and traffic jams and loaded the schedules of President Obama and Treasury Secretary Jacob J. Lew. But they have also highlighted what some in Washington and around the world see as a United States government so bitterly divided that it is on the verge of ceding the global economic stage it built at the end of World War II and has largely directed ever since.” Read in theNew York Times.

DIPLOMACY

Sameh Shoukry, the Minister of Foreign Affairs completed a trip to eastern European countries where he held official talks with Poland’s foreign minister where “the two ministers agreed to hold regular political consultations between the two countries” followed by Shoukry giving an interview to the official Polish news agency. Shoukry also signed a deal with Hungarian authorities allowing for direct flights between Hungary and Hurghada and strengthening cooperation. The Minister of Foreign Affairs ended his trip meeting the Czech Republic’s Prime Minister Bohuslav Sobotka.

EGYPT IN THE NEWS

‘Egypt runners defy Cairo mayhem as sport’s popularity grows’: The AP reports on the Cairo Runners Friday runs, although they don’t seem to be referring to last Friday’s run, or have otherwise mysteriously omitted that President Abdelfattah El Sisi showed up unexpectedly to encourage the runners and pose for selfies. The best part of the AP article: “The first time we ran in the streets all the workers and doormen stared at us,” Doss recalls. “They asked, ‘Who are you running from? Is this a demonstration or what?’” Which may remind one of the following scene from the short-lived Wondershowzen, where Clarence the puppet asks joggers: “What are you running away from?” (Watch, running time: 1:23)

‘CPJ requests information about alleged detention of two journalists in Egypt’: The Committee to Protect Journalists (CPJ) has submitted a letter to the Ministry of Justice inquiring on the names and fates of two journalists who were reportedly detained while covering the bombing of the electricity pylon at the Egyptian Media Production City on Tuesday, according to a release from the CPJ. (Read)

The Carnegie Endowment for International Peace released two papers on Egypt last Wednesday: ‘The Egyptian Armed Forces and the Remaking of an Economic Empire‘ by Shana Marshall and ‘Egypt’s Nationalists Dominate in a Politics-Free Zone‘ by Michele Dunne. Marshall posits four future scenarios, each more unlikely the next (save for the last):

• Divisions within the military could surface.
• Evidence that the military worked behind the scenes to foment protests and weaken rivals could undercut its power.
• Institutional survival may trump the military’s economic and political aspirations.
• The U.S. government is likely to continue military assistance despite the program’s failure to elicit reform from or enhance accountability of the EAF.

Dunne also presents future scenarios, focusing her work on the upcoming parliamentary elections: “If the parliament is fractious, or indeed if the three-year hiatus in parliamentary life continues, Egyptians’ sense of ongoing political dysfunction will only increase.”

‘Egyptian food firm’s GDR marks turnaround after Arab Spring’: IR Magazine writes on Edita’s successful dual listing, saying it is emblematic of Egypt’s overall economic turnaround. (Read)

‘Growth hopes for Egypt and Iran’: UAE-based The National picks out Egypt and Iran as countries set to make economic comebacks, although it’s a bit of a confusing choice to lump the two together as their recovery stories (potential in terms of Iran) are worlds apart. (Read)

‘Dana Gas looks forward to production in Egypt and Sharjah’: The National also features an interview with Dana Gas CEO Patrick Allman-Ward, who reaffirms that the company is looking forward to increasing its production in Egypt. (Read)

WHAT YOU CLICKED ON LAST WEEK

The most-clicked stories in our truncated, three-day week were:

• New car prices as of mid-April for select brands (Al-Borsa, jpg table)
• IMF World Economic Outlook, April 2015 Update (IMF, pdf)
• Four trends shaping markets and economies (Goldman Sachs Annual Report 2014)
• Lamis El-Hadidy and Electricity Minister Mohamed Shaker (CBC, YouTube)
• North Africa’s key economics poised for growth spurt (WSJ)

ENERGY, RENEWABLE ENERGY & SUBSIDY REFORM

Egypt’s signs USD 1.6 bn MoU with Kuwait’s Alghanim for energy projects
Reuters | 15 April 2015
Egypt signed preliminary deals with Kuwait’s Alghanim International for two energy projects worth an estimated USD 1.6 bn in total, PM Mahlab announced according to Reuters. The two projects involve converting four gas-powered plants to combined cycle and establishing 900 MW gas-powered plants. PM Ibrahim Mahlab did not specify a timeframe for the project, Reuters notes. (Read)

West Delta Electricity Production Company negotiating for EGP 5.8 bn facility
Al Mal | 16 April 2015
The West Delta Electricity Production Company is negotiating an EGP 5.8 bn loan to finance the construction of the 900MW Seyouf power station. The loan will be split on an EGP tranche and another in foreign currency with the latter worth USD 450 mn to be repaid over eight years. The other tranche will be approximately EGP 2.4 bn and has a maturity of 12 years. 11 companies have submitted bids for the plant’s EPC contract including El Sewedy, Siemens, and Mitsubishi. (Read in Arabic)

New electricity pylon for media production city
Al Borsa | 17 April 2015
A new electricity pylon has been constructed for the Egyptian Media Production City (EMPC) and will be connected to the national grid within 3 days, according to a source from the Ministry of Electricity and Renewable Energy. Two electricity towers supplying EMPC were sabotaged by the “Revolutionary Punishment” group last Tuesday. (Read in Arabic)

OIL & GAS

ADNOC to start oil product deliveries this week
Reuters | 16 April 2015
Abu Dhabi National Oil Company (ADNOC) will start monthly deliveries of oil products to Egypt this week, a source at EGPC said. The deliveries, worth USD 400 mn will last until the end of October. “Egypt will receive the products on credit and was still negotiating the interest rate for payment,” Reuters reported noting that ADNOC is seeking an interest rate of 3%. “The Egyptian government had said EGPC will buy 65 percent of its oil product import needs from ADNOC in 2015. The agreement covers gasoline, diesel, heavy fuel and liquefied petroleum gas,” Reuters said. (Read)

EGPC to purchase 768,000 tons of diesel in May and June
Youm7 | 17 April 2015
According to bid documents, the Egyptian General Petroleum Corporation intends to buy 768,000 tons of diesel next May and June. The General Petroleum Corp, which intends to close the bidding phase on 28 April, is likely to purchase four diesel cargos ranging from 30,000-33,000 tons to be delivered in the Port of Alexandria. In another related bid, the government intends to buy six diesel shipments of gas ranging from 34,000-36,000 tons to be delivered in Suez, and another three shipments to be delivered in Ain Sokhna. (Read in Arabic)

EGAS in negotiations to prepare Adabiya Port for second FSRU
Al Mal | 16 April 2015
EGAS is engaging in talks with the Ministry of Transport to prepare the Adabiya Port to possibly receive a second FSRU. Khaled Abdel Badie said EGAS will issue a new LNG import tender once the preparations to receive an FSRU are complete. Preparing the Adabiya port could take up to four months and EGAS said it might look into using other ports instead including the Ain Sokhna port. (Read in Arabic)

Regulations to allow private sector to import gas in six months -oil minister
Al Masry Al Youm | 16 April 2015
The Ministry of Petroleum is finalizing regulations to allow the private sector to import natural gas directly, minister Sherif Ismail said. The regulations will allow private sector companies to use the national natural gas infrastructure for imports for a fee through a contract with EGAS. The move is set to deregulate the energy market and reduce the direct burden on the government. (Read in Arabic)

EGAS and ENPPI engaged in technical studies to assess Aphrodite pipeline
Al Borsa (Print edition) | 16 April 2015
EGAS and ENPPI are engaged in technical and feasibility studies to assess the construction of a pipeline connecting Cyprus’ Aphrodite gas field with Egypt’s natural gas infrastructure. The head of EGAS, Khaled Abdel Badie, expects Cypriot gas to reach Egypt in 2018. He also noted that the cost of the pipeline will be borne by the Cypriot government and Noble Energy as well as BG Group and UFG.

Alexandria Fertilizers to resume operations
Al-Borsa | 18 April 2015
Sources within Alexandria Fertilizers Company revealed that EGAS sent word to factories that it will begin pumping Natural Gas back to the plants, but at much smaller volumes, to begin “preheating” the machines, preparing them for full operation in the few days to come. That same source noted that the company halted supplying fertilizers to the Ministry of Agriculture and Land Reclamation last month due to shortage of natural gas. (Read in Arabic)

BASIC MATERIALS & COMMODITIES

New markets to export sugar sought –Supplies minister
Al Borsa | 16 April 2015
The Ministry of Supplies is currently looking into exporting Egyptian sugar to new markets, Minister Khaled Hanafy said. Hanafy is specifically focusing on the potential of African markets, particularly Kenya, to absorb some of Egypt’s sugar production. The minister met with the Kenyan agriculture minister to discuss the potential trade. Hanafy noted that no imported sugar is used in the ministry’s rations. (Read in Arabic)

Egypt considers 20% tariff on sugar imports
Reuters | 16 April 2015
Egypt is mulling a 20% tariff on white sugar imports along with a subsidized export push, a ministerial statement and a filing at the World Trade Organization said on Thursday, as reported by Reuters. “It is proposed to impose a provisional safeguard measure in the form of additional duty 20% of the CIF (cost, insurance and freight) value with a minimum EGP 700 Egyptian Pounds (USD 92) per ton,” Egypt said in its filing to the WTO. (Read)

GASC allocates EGP 1 bn for wheat purchases
Al Borsa | 16 April 2015
The General Authority for Supply Commodities (GASC) allocated EGP 1 bn as an initial amount to pay for the purchase of 25 thousand tons of domestic wheat. The Ministry of Supplies is targeting the purchase of 3.7 mn tons of domestically-sourced wheat at EGP 420 per erdeb. EGP 10 bn in total is earmarked for the domestic purchases. (Read in Arabic)

Ministry of Petroleum finalizing new mining law
Al Mal | 16 April 2015
The new mining law is being finalized, according to the Minister of Petroleum Sherif Ismail. The only pending issue relates to rent and payment issues with quarries. Ismail said the ministry is in talks with stakeholders to ensure the law is presented in a fair and acceptable manner. (Read in Arabic)

HEALTHCARE

Minister of Investment signs MoU with OFID to develop Ain Shams Hospital
SIS + Youm7 | 18 April 2015
During his trip to Washington this week for the spring meeting of the IMF and World Bank, Minister of Investment Ashraf Salman signed a USD 27 mn loan agreement with the OPEC Fund for International Development (OFID) to redevelop the dilapidated Ain Shams Hospital. The deal is expected to reform the Ain Shams Hospital’s ICU units and overall quality. Salman also met with US Senior Advisor to Secretary of State David Thorne to discuss Egypt’s economic and political strategies heading forward. (Read in Arabic and on theSIS feed)

REAL ESTATE & HOUSING

Revenue-sharing agreements between Housing Ministry and private contractors will not be audited by Central Auditing Organization
Al Borsa | 16 April 2015
The Central Auditing Organization (CAO) will not audit agreements between the Ministry of Housing and private-sector partners. The law dictates that any public sector company controlling 40% of the value of a project has to have it audited by the CAO, and the ministry had set the land value of some of the projects at 40% of the cost. In light of a revaluation putting the land at a higher value than previously anticipated, the ministry will scrap the previous agreements signed at the EEDC to form joint companies with the private sector to oversee developments in order to circumvent the legal requirement of the CAO’s oversight. (Read in Arabic)

Ministry of Housing, Emiratis kickstart work on administrative capital -Madbouly
Al Borsa | 18 April 2015
The Ministry of Housing has reached a preliminary agreement with its Emirati counterpart for the construction of 50,000 residential units as part of the initial phase for the envisioned administrative capital, according to the Minister of Housing Moustafa Madbouly. Units will range from 55 to 180 sqm in area, and will take three years to be completed, added the minister. For its part, the Egyptian government is set to begin work on the construction of the water pipeline, which initially should provide the administrative capital with 100,000 cubic meters of water on a daily basis. Construction of the pipeline, which will be connected to the water station in the 10th of Ramadan district, is set to be completed within three months. (Read in Arabic)

TRANSPORTATION

Cairo Metro looks to upgrade aging turnstiles
Al Mal | 18 April 2015
The Egyptian Company for Metro Management and Operation (Cairo Metro) is awaiting the Thales Group’s submission of the financial requirement for the installation of 850 ticket turnstiles for lines 1 and 2 of the metro. The government is expected to receive the offer no later than next week. Cairo Metro has allocated EGP 160 mn for the project. According to a government source, aging turnstiles have resulted in a 10% loss in revenue to Cairo Metro. (Read in Arabic)

US, France and South Korea compete over Cairo Metro’s Line 3 consultancy
Al Mal | 18 April 2015
The National Authority for Tunnels (NAT) received three preliminary offers from three foreign private consultancy groups from the United States, France and South Korea last month to evaluate Cairo Metro’s Line 3 project serving the Imbaba to Cairo International Airport route. The European Bank for Reconstruction and Development and French Development Agency called for independent consultancy groups to make the selection, according to NAT Vice President Sameh Refaat. Refat added that NAT expects to accept an offer in the next month to carry out a consultancy role. The expected plan will take approximately 4 years to complete. (Read in Arabic)

TOURISM

Russian tourism companies demand charter flight fees decrease: Ministry official
Daily News Egypt | 15 April 2015
Russian tourism companies are demanding a decrease in takeoff and landing fees at the Red Sea and South Sinai airports, according to an unnamed Ministry of Tourism official as reported by Daily News Egypt. The official said the ministry is studying the Russian tourism companies’ demands. (Read)

OTHER BUSINESS NEWS OF NOTE

Ministry of Social Solidarity to issue EGP 350 pension to special needs and elderly
Al Borsa | 17 April 2015
The Ministry of Social Solidarity plans to provide elderly and special needs citizens with an EGP 350 pension, assuming they meet all of the necessary qualifications. Although the article does not discuss the ministry’s requirements in detail, it does state that interested citizens must not receive any form of income or health insurance in order to be eligible. Additionally, the government will undergo a detailed examination on the backgrounds of all the applicants in order to ensure that they meet the necessary requirements.(Read in Arabic)

ATM Logistics expresses interest in Damietta Logistics Center
Al Borsa | 18 April 2015
During his visit to Egypt, the vice president ATM Logistics expressed his company’s interest in pursuing a number of ventures at the government’s envisioned Logistics Hub in Damietta. Amongst these include soybean oil and animal fodder production facilities, as well as a number of grains and cereals and storage projects. The logistic hub has an estimated capex of EGP 13 mn and is expected to completed within two years, according to the Egyptian government. (Read in Arabic)

Egypt signs memorandum with the Marseille Center for Mediterranean Integration
Youm7 | 17 April 2015
Minister of International Cooperation Naglaa Al-Ahawni signed an MoU with the Marseille Center for Mediterranean Integration, which is managed by the World Bank. According to the Ministry of International Cooperation’s statement, the new agreement targets four main areas: economic development, climate change, human resource development and sustainable development. Egypt is considered a founding member of the Marseille Center, along with France, Morocco, Tunisia, Lebanon, Jordan, the EBRD and the World Bank. (Read in Arabic)

EGYPT POLITICS + ECONOMICS

Government plans to amend intellectual property law: MoCI
Al Borsa | 18 April 2015
According to the Minister of Commerce and Industry, the government is considering amendments to the country’s intellectual property law. The amendments to the law aim to provide a more a effective means for protecting the country’s national and cultural heritage, which, according to the minister, is often exploited by foreign companies. The decision to amend the law comes on the back of a recent decision to ban foreign imports of ancient Egyptian souvenirs, explained the minister. (Read in Arabic)

Egypt’s political parties complain of parliament’s record number of 592 seats
Ahram Online | 18 April 2015
The 592-seat parliament is the highest in Egypt’s 150-year-old parliamentary history, as reported by Ahram Online. A study by Al-Ahram Centre for Political and Strategic Studies (ACPSS) says the number of parliamentary seats in Egypt did not exceed 350 between its year of founding in 1866 up until 1990. The number of seats in Egypt’s parliament increased in 1990 by around 100. In 2010, the number of parliamentary seats increased once again, growing to 518. (Read)

REGIONAL

Moody’s downgrades Bahrain’s rating to Baa3, maintains negative outlook
Moody’s Investors Service | 16 April 2015
Moody’s Investors Service downgraded Bahrain’s long-term government issuer rating to Baa3 from Baa2, according to a release from the credit rating agency. The outlook on the rating remains negative. Moody’s based its decision to downgrade the rating on the back of expected deterioration in the government’s finances as a result of lowered oil prices. The decision to maintain the negative rating outlook reflects the uncertainty regarding the government’s response to the fiscal challenges posed by a prolonged period of lower oil prices, according to the release. (Read)

ON YOUR WAY OUT

Arton Capital, a firm specializing in advisory services for individuals seeking investor visas, has issued as of 17 April its Passport Index, which ranks the power of passports of 199 countries and territories. The Index ranks passports based on how many countries the bearer of the passport in question may enter without a visa. Egypt is tied for 64th place with six other countries, namely: Tajikistan, Congo, Uzbekistan, Zimbabwe, Mauritania, Burkina Faso. View the index here.

March 2015 was “another month of a high rate of terror attacks… with 107 reported attacks” in Egypt, TIMEP’s Security Watch reported, noting that 34 attacks in Match “focused on the banking and telecommunications sectors.”

2 detainees die in Old Cairo police station: Two detainees, one of which was being held over a stolen car battery, have died due to suffocation in a police station in Old Cairo, Daily News Egypt reports. The article states that over 380 detainees were put into a holding area whose maximum capacity is for 100 individuals. (Read)

Cairo governorate puts in effect parking ban on 26th of July Street. The ban went into effect on Saturday, 18 April, and seeks to help reduce traffic congestion. (Read)

BY THE NUMBERS

USD CBE auction (last sale Thursday, 16 April): 7.5301 (unchanged since Monday, 02 Feb)
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