Qalaa says Egyptian Refining Co. to start trial runs in June

Good morning, friends, and welcome an an achingly slow news day, including warmed-up leftovers from our own Speed Round to Bloomberg, the FT and beyond.

Is this a good time to note that we’re nearly into the month of March? Which means Ramadan will be upon us in just over two months. Expect the first day of Ramadan to fall sometime between 15-17 May, depending on whether you believe Google or Egypt’s astronomical authorities. Either way, you’ll release your Q1 financials then welcome the Holy Month.

Samsung’s Galaxy S9 unveiled — looks an awful lot like the S8. Samsung is betting the house on animated emojis like those introduced on Apple’s iPhone X last year, the Wall Street Journal reports. The device maker’s new flagship, including the larger S9+ model, “retains the overall design of the Galaxy S8, but Samsung listened to criticisms about the placement of fingerprint sensor and adjusted its location, which should make it easier to unlock the phone with your fingerprint,” Business Insider notes. The biggest advancement? The camera, which Samsung says is better than the S8’s camera, giving it the potential to “take on the Google Pixel 2 as the best smartphone camera.” Bloomberg and CNBC have the story, watch the S9 event in 12 minutes (watch, courtesy The Verge), or rejoice (if you’re so inclined) that it has a headphone jack. You can also go check out Samsung’s S9 page here or read its launch press release here.

And for the iSheep among you: Apple could finally be shipping its AirPower wireless charging mat in late March. The device, announced last fall, will be unique for being able to inductively charge at the same time an iPhone, an Apple Watch and a new AirPods case, according to Engadget.

The best non-business news we’ve heard in a very long time: Heavy trucks will not be allowed on Cairo’s Ring Road once the Regional Ring Road is open ahead of Ramadan, Transport Minister Hisham Arafat said in statements to Al Shorouk. He added that 345 km of the new road have been completed and that the ban comes as part of a strategy to divert cargo traffic to the regional road and alleviate congestion within the city. The ministry also has plans to do maintenance work on Cairo’s Ring Road was once traffic is diverted, he added. Now, if only the rest of us who drive that road in passenger cars could refrain from doing so like inebriated monkeys…

PSA- Planned water outage in Mohandiseen, Agouza: The Giza governorate has scheduled a water outage lasting as long as 24 hours for 13 neighborhoods including Imbaba, Mohandiseen and Agouza starting Wednesday 8am CLT, according to Al Mal. The outage is to permit maintenance works on water and sewage lines.

Brinkwire has a recap of all the World Cup outfits that have been released so far. Egypt’s is the traditional Adidas-made red but with a lot less black than before.

Meet me there: Hind El Hafez, our friend and the noted jewelry designer and artist, is helping organized the Cairo Artists Collective’s group exhibition “Meet Me There,” running through Friday, 2 March 2018 in Zamalek. The event features her latest collection of contemporary art jewelry and has as its special guest Spain’s Estela Saez Vilanova. Want to attend? Pop an email over to info@cairoartistscollective.com for the details.

Government to announce winners of PPP schools tender this week: The Ismail government plans to announce this week the winners of its tender for the development and management of 200 schools under public-private partnership contracts.

Our friends at EFG Hermes are hosting their 14th annual One on One Conference in Dubai on Monday, 5 March. The three-day event is the largest investor conference globally focused on frontier and emerging markets and will bring together some 175 companies for discussions on what a year of shifting benchmarks — including oil production cuts and the prospect of US interest rate hikes — mean for emerging frontier markets.

The American Chamber’s 40th annual Doorknock mission to Washington DC will take place in March, with some 35 companies participating, AmCham President Tarek Tawfik said, Al Mal reports. Trade and Industry Minister Tarek Kabil met yesterday with an AmCham delegation ahead of the mission to discuss US-Egypt trade relations, according to the newspaper. Foreign Minister Sameh Shoukry had also sat down with the delegation on Saturday.

President Abdel Fattah El Sisi was the center of attention on the airwaves last night after he appeared in military uniform at the inauguration of a new military command center east of the Suez Canal.

El Sisi’s visit is confirmation that the Armed Forces have a tight grip on matters in the Sinai Peninsula, say both Hona Al Asema’s Lamees Al Hadidi (watch, runtime: 6:47) and lesser half Amr Adib (watch, runtime: 4:57).

The president donned his military uniform as a sign of support for troops on the ground, journalist Emad El Din Adib told Lamees (who also happens to be his sister in-law). Al Shorouk Editor in-Chief Emad El Din Hussein and the former head of the army’s morale division, Samir Farag, called to say that they expect the military to conclude its anti-terror operation in Sinai soon (watch, runtime: 56:50). Farag and Hussein also spoke to Masaa DMC’s Eman El Hossary (watch, runtime: 2:14).

An in-progress development plan for Sinai should be fully implemented and complete by 2022, Ittihadiya spokesperson Bassam Rady told Yahduth fi Masr’s Sherif Amer. The Housing Ministry and military’s Engineering Authority alone are executing EGP 275 bn-worth of projects, he added (watch, runtime: 5:35).

Meanwhile, school students in Port Said will be singing out the army’s anthem every morning for a week, Governor Adel Al Ghadban told El Hossary, explaining that he hopes it will allow the students to connect better with the troops fighting in Sinai (watch, runtime: 3:58).

Also on the airwaves last night:

• State officials and MPs will meet on 28 February to resume discussion of a mandatory insurance scheme for private-sector employees, MP and labor union secretary Mohamad Wahaballah told Lamees (watch, runtime: 56:59)
• Orla Guerin’s two-part documentary for the BBC on human rights in Egypt uses “unreliable” and “contradictory” sources, State Information Services head Diaa Rashwan told Masaa DMC’s El Hosary (watch, runtime: 15:02). Al Hayah Al Youm’s Tamer Amin echoed similar thoughts (watch, runtime: 5:42).
• The families of the victims of a building collapse that killed 12 in Cairo’s Manshiet Nasser district appeared on Yahduth Fi Masr with Sherif Amer to discuss the incident (watch, runtime: 4:11).
• The Antiquities Ministry is planning three overseas exhibitions of Ancient Egyptian artefacts in March, including one in the US, minster Khaled El Anani tells Kol Youm’s Adib (watch, runtime: 47:48).
• Members of Al Wafd appeared on Hona Al Asema to tell Lamees more about the party’s internal rift (watch, runtime: 36:51).

Qalaa Holdings is on track to launch trial operations at its Egyptian Refining Company complex in Mostorod by the end of June 2018, the company said in a bourse statement on Sunday (pdf). Qalaa confirmed that ERC took on new debt finance and equity commitments valued at around USD 500 mn as part of a now-completed restructuring. The move brings the cost of the refinery to USD 4.2 bn, from a previous USD 3.7 bn, Qalaa said. The company also confirmed that it had reached an agreement with construction partners GS Engineering of Korea and Mitsui of Japan that will allow construction to move forward. The firm also noted that construction on the project is now 96.4% complete.

INVESTMENT WATCH- Mena Health Partners to invest EGP 3 bn in four hospitals: Mena Health Partners plans to invest EGP 3 bn over the coming three years in its portfolio of four hospitals, said the company’s co-founder and CEO, Ayman Badr. The firm holds majority stakes in Katameya Specialized Hospital, Katameya Clinic, Welcare Hospital and October International Hospital, with a combined capacity of 355 beds. The company is spending EGP 500 mn this year to launch the 85-bed Katameya Clinic in July of this year, Badr told Al Mal on Sunday. Mena wants to grow its roster of hospitals to 15 by 2020 through acquisitions, he said, adding that the company would much rather expand through M&As rather than greenfield projects. Saudi investors hold about 25% of Mena Health Partners’ shares, Badr said.

M&A WATCH- Mondi Paper Sales applied for Financial Regulatory Authority (FRA) approval of a mandatory tender offer to acquire the remaining 70.1% stake in Suez Bags, according to a FRA statement on Sunday (pdf). Mondi plans to acquire 7.7 mn shares for for EGP 26.01 per share, valuing the transaction at EGP 199.4 mn. FRA is currently looking into the request, the statement said.

IPO WATCH- NIB proposes 13 new companies take part in state IPO program: The National Investment Bank (NIB) has sent the Finance Ministry a list of 13 of its subsidiaries that it is looking to enroll in the state’s IPO program, Planning Minister Hala El Said this week, according to Al Borsa. The minister did not name the companies, but NIB managing director Mahmoud Montasser said that the bank holds stakes ranging from 10-50% in each of the proposed companies, some of which it plans to exit entirely, while others will aim to raise capital to finance expansion plans. We have been hearing rumors that two Transport Ministry subsidiaries — namely the Alexandria Container & Cargo Handling and Damietta Container & Cargo Handling Company — would be joining the IPO pipeline, alongside the General Nile Company for Road Construction and the General Nile Company for Desert Roads. The state’s IPO program is set to kick off with the listing of energy firm Enppi, which has been pushed delayed several times, most recently to the end of 2018.

UPDATE-Abdul Latif Jameel not taking part in 600 MW PV plant tender—here’s the list of who is. We noted an Al Borsa story yesterday on Abdul Latif Jameel bidding on the 600 MW solar power plant in the West Nile area. Sources close to the matter have confirmed to us that the company was not among the list of bidders for the project. They were also kind enough to provide us with the full list of participants, which include an Engie-Orascom Constructions consortium and an EDF-Marubeni-Elsewedy Electric. Click here to view the full list of 18 companies and consortiums bidding on the project (pdf).

Orascom Development enters agreements to sell non-core assets, will use proceeds to pay down debt: Orascom Development Egypt (ODE) announced signing two final agreements to sell non-core assets. ODE will sell 100% of its equity stake in Tamweel Group and its stake in Makadi Gardens, Royal Azur and Club Azur, and a land plot in Makadi destination. The first agreement was signed with a consortium of international and local investors for the sale of Tamweel Group at a valuation of up to EGP 300.0 mn and the second is with Meeting Point International Egypt for the sale of ODE’s stake in the Makadi Gardens, Royal Azur, and Club Azur hotels and a land plot in Makadi for an Enterprise value of EGP 939.3 mn. The proceeds of the sales will reduce debt by EGP 1.0 bn and generate interest savings of around EGP 100.0 mn annually.

MOVES- McKinsey’s “secretive leadership election process” has seen the world’s largest consulting firm appoint Kevin Sneader as kits new global management partner, the Financial Times reports.

A towel for your thoughts: A fifth-grade student in Suez learned the hard way that you won’t always get the recognition you deserve for your efforts when his school decided to award him a towel for winning a nationwide competition, according to Youm7. Our guess is the principal grabbed the first thing he found in his hallway closet at home and hoped it would fly. The student’s parents were reportedly not pleased.

It is an achingly quiet day (in a nice way) for Egypt in the international press:

Egypt is concerned that Ethiopian Prime Minister Hailemariam Desalegn’s resignation will once again stall negotiations over the Grand Ethiopian Renaissance Dam (GERD), Ahmed Megahid writes for The Arab Weekly. “Egypt’s main fear is that radical political change in Ethiopia could allow Addis Ababa to change its negotiating position on the dam project” while construction of the dam continues uninterrupted, Megahid says. Addis Ababa, Cairo, and Khartoum had been making modest progress on resolving the impasse last month following a meeting of the three countries’ presidents. Media reports had claimed that a potential resolution would have seen Egypt temporarily reducing its cultivation of water-intensive crops and rely on imports instead while Ethiopia filled the dam’s reservoir, and Addis Ababa would reimburse Cairo for the extra costs. However, it now remains unclear whether the incoming Ethiopian government “will follow the negotiating line pursued by Desalegn’s administration.”

Also worth a quick skim:

• The death toll in a building collapse in Cairo’s Manshiet Nasser on Thursday has risen to 12, while 19 were injured, Reuters reports.
• Many Israeli generals were skeptical about Egypt’s commitment to peace during President Anwar El Sadat’s historic visit in 1977, Haaretz reports (paywall).
• Two Coptic Christian asylum seekers in Australia “fear for their lives if they are deported to their native Egypt when their visas expire within weeks,” Carolyn Webb writes for The Age.
• Egyptian authorities detained 54-year-old Australian citizen Hazem Hamouda in Cairo last month on charges of supporting a terrorist organization and spreading false news, The Age reports.

International marketing campaigns alone won’t attract tourists to Egypt, Fathiya El Dakhakhny writes for Al Masry Al Youm. She argues that a true and lasting revival of the country’s ailing tourism sector requires infrastructure projects allowing access to remote archaeological sites, awareness campaigns for citizens and sector employees how to treat tourists, and—most importantly—toning down the media’s banging of the drum on “Egypt fights terrorism,” which she says scares tourists away.

Passersby watched and filmed a car being swallowed in a landslide near Road 90 in New Cairo yesterday, according to videos circulating on social media (watch, runtime: 01:37). The three-meter-deephole was caused by a broken main water pipeline, Youm 7 reports.

Cyprus has lodged a formal protest with the UN against what it calls repeated “Turkish violations” of its airspace and maritime territory, Cyprus Mail reports. “Turkey’s actions are clearly aimed at undermining the sovereignty of the Republic of Cyprus…Additionally, Turkey continues to systematically harass civilian and military aircraft within the Nicosia flight information region via radio calls,” the country said in a letter to the UN Secretary General on Friday. The move comes after the Turkish military blocked drilling efforts in Cyprus’ portion of the Economic Exclusion Zone for a second time, deeming it illegal. As we noted yesterday, Turkey’s aggression did not go unnoticed, with both senior EU and US officials expressing support for Cyprus and calling on Turkey to back off. The move comes just as Egypt and Cyprus near an agreement on establishing a natural gas pipeline, which could well turn Egypt into the export hub for East Mediterranean gas.

Some in Cyprus are hoping diplomacy might work with a brick wall: While the Cypriot government isn’t taking any chances with the unstable Erdogan regime, others, including Charles Ellinas, believe this is merely Turkish power projection. It is possible that once Turkey feels it has made its point after blocking drilling in Cypriot waters, it may back off provided that drilling in ‘disputed’ areas is avoided, he writes in Cyprus Mail.

11 new ambassadors present credentials: President Abdel Fattah El Sisi received letters of credentials from 11 new ambassadors to Egypt on Thursday, according to an Ittihadiya statement. The list of appointments is as follows:

• Burkina Faso – Alasan Monet
• Congo – Acolafa Mvola Salastan
• Lebanon – Ali Hassan Al Halaby
• Libya – Mohamed Abdel Aziz
• Nigeria – Dandati Abdelkader
• Palestine – Diab Nemr Al Louh
• Serbia – Jugoslav Vukadinovi_
• Seychelles – David Claude Pierre
• Tanzania – Eissa Suliman Nassour
• Uganda – Sam Male Sebuliba
• Zambia – Tupali Mulampo Lubaya

BRIEFLY NOTED- Among the small handful of blurbs worthy of note this morning:

Sudan’s ambassador to Egypt Abdel Mahmoud Abdel Halim will return to Cairo “within days” to resume his duties Sudan’s Foreign Minister Ibrahim Ghandour said, Ahram Online reports. Abdel Halim was recalled a month ago. Al Arabiya also has the story.

An Egyptian security delegation arrived in Gaza yesterday for talks on the stalled reconciliation agreement between rival Palestinian factions Fatah and Hamas, Kuwait News Agency reports. The Associated Press also takes note.

Egypt’s Bassem Hassan has been elected as one of five vice-chairs of the UN Disarmament Commission’s 2018 substantive session, the UN announced yesterday.

The Damietta Port Authority is in talks with local banks and international financiers for a USD 305 mn loan needed for the establishment of its second container terminal, sources tell Al Mal. The banks include NBE, CIB, QNB, and AAIB, while the international financiers include EBRD, IFC, and JICA. The Authority is looking to establish a new company to oversee the construction after negotiations failed with several firms, including China Harbor. PricewaterhouseCoopers had been tapped last year to conduct feasibility studies for the project.

A delegation from Saudi Arabia’s Nesma Holding met with representatives of the Alexandria Port Authority to discuss the possibility of investment in port logistics and maritime transport projects in Alexandria and Dekheila, port director Medhat Atiyya tells Al Mal.

The National Bank of Egypt is studying arranging a USD 400 mn loan to finance the establishment of the Saudi Al Ghurair Group’s USD 1 bn Al Canal sugar beet processing factory in Minya, unnamed banking sources tell Al Shorouk. First Abu Dhabi Bank, the Arab African International Bank, Qatar National Bank, CIB, and Union National Bank are expected to participate in the syndicated loan. Ghurair’s Al Khaleej Sugar Refinery is expected to contribute USD 333 mn of the total cost for the plant, which is expected to begin production in 2020 and produce an annual 900k tonnes of sugar by 2021, once it’s fully operational. Investment Minister Sahar Nasr had previously said the project should help Egypt achieve self-sufficiency in sugar production.

Juhayna hopes to start exporting to Palestine, Iraq, Libya, Jordan, Lebanon, and Ethiopia this year as part of its plan to double its exports, CEO Seif Thabet tells Al Shorouk. Exports currently make up around 6% of Juhayna’s sales, Thabet added.

The Agricultural Export Council has added guava and pomegranates on the list of crops approved for exports, council sources tell Al Borsa. Companies seeking approval can register starting early March for guava and 15 April for pomegranate.

The Industrial Development Authority (IDA) will allow companies looking to obtain permits and licenses to apply online starting from mid-March, IDA sources told Youm7 on Sunday. The IDA is also working on a mobile phone app for its services as part of its e-government drive, the source added.

The Trade and Industry Ministry is bringing 500 factories with ready licenses online for SMEs next month, according to Al Borsa. The factories will be zoned in the industrial areas of Badr City, Sadat City and Port Said, said Minister Tarek Kabil.

Arabia Investments, Development and Financial Investment Holding Company (AIND) is seeking permits to build a new brick and concrete blocks factory in Dabaa, according to a EGX filing (pdf). The project will cater to demand from ongoing development in the area. AIND is also working on adding a new production line to its Abo Rawash factory that should increase the company production capacity once online in April 2018.

The Arab Company for Projects and Urban Development, a Talaat Moustafa Group subsidiary, is in talks with the New Administrative Capital Company to acquire 1,000 feddans of land in the new capital, an unnamed source tells Al Shorouk.

Heliopolis for Housing and Development selected Banque Misr and Sarwa Capital to advise on it planned EGP 500 mn securitization of its real estate portfolio, the company said in a bourse statement on Sunday (pdf).

The Housing Ministry has reached an agreement with Maspero Triangle residents on the monetary compensation they will receive for their homes and the two sides will sign the compensation contracts by month’s end, Informal Settlement Development Fund Executive Manager Khaled Seddik tells Al Borsa. The move came after Housing Minister Moustafa Madbouly threatened them last week to force an agreement.

Air Cairo will run two weekly flights between Belgrade and Hurghada starting mid-April and increase that to five weekly flights as of mid-May, according to Al Shorouk. The new flights aim to cater to increased tourist demand from Serbia.

The Tourism Ministry has decided to lift and reduce fines imposed on 60 tourism companies and is considering grievances from 100 others, Youm 7 reports. This comes a day after the ministry decided to set a cap of 500k visas for Egyptians and impose a fee of SAR 2-3k on travelers who have recently performed the journey, angering tour operators, who threatened to take legal action and said the decision would harm demand.

Catalyst Partners plans to launch leasing services this week after having received approval from the Financial Regulatory Authority (FRA), Managing Partner Aly El Tahry tells Al Mal.

The New Administrative Capital Company for Urban Development (NACCUD) received last week an offer from an unnamed US company to establish an open-air park over 1,500 feddans in the new capital, NACCUD spokesman Khaled El Hosseini, Al Shorouk reports. The US company will assess the available land before beginning negotiations with NACC, according to El Hosseini. No further details on the project were provided. It appears that US companies are interested in amusement parks these days. Some US-Saudi outfit calling itself Entertainment World Company announced earlier this month that it is investing USD 3.3 bn into a Disneyland-type amusement park.

Mohsen Abulghar is reportedly in the process of founding a new clinical laboratory company after he sold his stake in Cairo Labs Group to Saudi Arabia’s Elaj last year in EGP 36 mn transaction. Abulghar is using a portion of the proceeds from the sale to launch the new Great Lab and has already set up four branches with plans to launch more, sources close to the matter (read: someone on his PR team) tell Al Mal.

Porto Group has submitted a request to the Financial Regulatory Authority to increase its issued capital by EGP 100 mn to EGP 601.0 mn from EGP 501.5 mn, according to an EGX disclosure (pdf).

Prosecutor General Nabil Sadek issued an order yesterday an assets freeze on ex-Islamist presidential candidate Abdel Moneim Aboul Fotouh, Al Shorouk reports. A court had added Aboul Fotouh to Egypt’s terror list last week, after authorities had arrested him over allegations that he had been in contact with the Ikhwan — charges his family has since denied.

Egyptian squash player Marwan Shorbagy has qualified for the third round of Chicago’s Windy City Open after beating England’s James Willstrop 3-1 yesterday, according to Al Masry Al Youm. Egyptians Ali Farag and Nour El Sherbini also made it to the third round, the newspaper adds.

Egyptian-American swimmer Abdallah Mahgoub is eying a spot on the Egyptian national swim team for the 2020 Summer Olympics in Tokyo, reports the Diablo Valley College Inquirer. Mahgoub currently competes in the US college circuit for Diablo Valley College in California and has been in touch with the Egyptian swimming federation for an opportunity to tryout for the Olympic squad. Mahgoub’s coach believes he is amongst the top two swimmers.

Legendary Egyptian ballerina Magda Saleh will be honored in New York next month following the screening of two documentaries on Egyptian dance history, according to Egypt Independent. Saleh will feature heavily in one of the documentaries ‘Egypt Dances,’ where she stars and narrates a visual historical record of the various forms of Egyptian dance. Saleh graduated from the Bolshoi Academy of Ballet in Moscow before becoming the prima ballerina of the Cairo Ballet Company in the 1960s, collecting several accolades and awards throughout the years.