Blumberg Grain is hoping to reach an agreement with the Egyptian government on phase two of the Shouna Development Project “in the next two weeks,” according to a company statement (pdf) yesterday. The statement followed Blumberg Grain’s meeting with Prime Minister Sherif Ismail on Thursday. Phase one of the project was completed in April 2016 and phase two sees the development of 300 new Blumberg Grain Aggregation and Processing Centers and includes a system allowing for “accurate, up-to-the-minute, digital inventory of its grain under storage, which will assist in combatting corruption across the wheat value chain.” Blumberg Grain’s Middle East and Africa CEO, David Blumberg, notes that while “the modest issues that stand in the way of phase 3 project implementation” have not been resolved yet, the company is confident “the Egyptian Government will do everything in its power to ensure the rapid development of the entire shouna network.” Blumberg is sweetening the prospect by saying that the investment would make Egypt Blumberg Grain’s Headquarters and Hub for the Middle East and Africa and would include a number of other investments, adding that their impact on the economy would be over USD 8 bn in five year and it requires no financing. Reuters also covered the statement. Bloomberg carried the news as well, adding a small warning from Blumberg that “Algeria is waiting on the wings” for a chance to “grab the [USD 250 mn] investment.”

What’s Hanafy thinking? Blumberg Grain may not be a shoe-in for phase two, as three other offers are on the table from companies in the UAE, the US and Italy, claimed Supply Minister Khaled Hanafy in a statement to Al Masry Al Youm. “The government will look into the offers in the coming weeks and determine the winning company then,” said Hanafy. The minister had announced back in July that the Blumberg’s phase two proposal was rejected.

More arrests on wheat scandal: Meanwhile, The General Prosecutor’s Public Funds Investigation Unit has issued arrest warrants for six more people entangled in the wheat corruption scandal, following the arrest of 13 officials and private silo owners, unnamed sources told Al Shorouk on Sunday. The prosecution’s investigation apparently revealed a concerted conspiracy to defraud the government which included the selling of wheat by private companies to the state under assumed identities of farmers. Another company has been accused of forging official documents. The investigation revealed that around 250k tonnes of wheat were missing or were never produced. As we noted yesterday, the House committee investigating the fraud claimed to have direct evidence implicating the Supply Minister in the scandal.