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Tuesday, 10 July 2018

Is CFLD finally going to sign its new capital development contracts?

Is CFLD finally going to sign its new capital development contracts? The China Fortune Land Development Company is ironing out the final details of its contract to develop 15k feddans in phase one of the new administrative capital, Zaki Hashem & Partners Managing Partner Yasser Hashem tells Al Masry Al Youm. ZH&P is representing CFLD. Hashem did not provide details on talks to develop additional land, nor did he comment on why it has taken until now to sign contracts backed by a memorandum of understanding signed back in 2016. CFLD had reportedly sent its final proposal for the development project to the Egyptian government in March, at which time officials said they were “taking their time” to study the offer thoroughly.

The project value and financing are still not public: Hashem says CFLD will invest anywhere between USD 10 and 20 bn over 30 years, with the first phase of the project set to cost USD 2 bn. The company had said last year it would invest USD 4 bn in the project over the coming four years, while a recent copy of the developer’s proposal shows CFLD committing to bringing in FDI worth USD 2 bn in the first five years. The scope of the project was supposed to see the company invest USD 20 bn over 10 years, but all we’ve heard from the press for a year is USD 13.4 bn over 10 years.

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