PM lays foundation of new capital’s Central Business District
USD 2.55 bn in financing from China for new capital’s skyscraper district as PM breaks ground yesterday: Prime Minister Sherif Ismail broke ground yesterday on the new capital’s 1.71 mn sqm central business district, according to a Cabinet statement. The district will be developed by the China State Construction Engineering Company (CSEC), which will spend some USD 3 bn building a “skyscraper-studded portion of Egypt’s new capital.” CSEC had signed the contracts for the area’s development last October after a troubled and prolonged negotiation period.
Chinese banks are expected to finance 85% of CSEC’s work, while Egypt’s Housing Ministry will provide the remaining 15%, CSEC Egypt’s deputy general manager Zhao Qiang tells Bloomberg. Egypt will have “a grace period of 36 months to 42 months — until construction is completed — before repayment begins on the 10-year loan,” according to Assistant Housing Minister Khaled Abbas.