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Wednesday, 10 August 2016

EU team needs to conduct more extensive studies on 1.5 mn feddan project

EU experts assessing the 1.5 mn feddan desert reclamation project found that the project requires more extensive research before making a final decision on investment, even though it is financially feasible, Al Mal reports. The team focused on four out of the nine areas that are part of the reclamation project, including Toushka, Siwa, West Minya, and El Moghra. The first round of investment is estimated at EUR 5.49 bn, according to the studies, while the annual operation cost is EUR 1.80 bn. Annual agricultural yield is estimated at 10.1 mn tonnes, while sales from crops are estimated at EUR 2.15 bn. The study also recommended reducing the concession period to 25 years from 49 for foreign investors, as initial capital investments will “wear off” after 25 years, especially renewable energy systems. Ultimately, the study believes the concession period will make no significant impact on investor interest.

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