Saudi-Egypt $16bn joint investment fund formed: VIDEO
Saudi-Egypt $16bn joint investment fund formed
by Neha Bhatia on Apr 10, 2016
Saudi Arabia and Egypt have inked an agreement for the construction of a bridge, a power plant, and a free-zone under a newly-created investment fund.
source.munsif.tv
A memorandum of understanding (MOU) was inked for the establishment of a joint investment fund, with a capital of $16bn (SAR60bn) between Saudi Public Investment Fund and its entities, and the Egyptian government and its entities.
The MOU forms one of the numerous agreements formed during King Salman's visit to Egypt.
An economic free-zone will be developed in Egypt's Sinai region, and a company has also reportedly been established to develop 6sqkm of industrial areas around Egypt's Suez Canal, worth $3.3bn.
In a statement, Egyptian president Abdel Fattah El Sisi is said to have attended the signing ceremony of 17 joint cooperation agreements with King Salman.
Egypt's electricity ministry said the country's International Cooperation Minister Sahar Nassr and Head of Saudi Development Fund Ibrahim Al Assaf signed an agreement to fund a power plant project in western Cairo at a cost of $100m.
The power plant is expected to generate 650MW of energy, and commence operations in November 2019.
Its total cost is expected to be $700m, with funding expected from National Bank of Egypt, Kuwait Fund, Arab Fund, and Islamic Development Bank.
Furthermore, according to Reuters, a 2,250MW electricity plant, worth $2.2bn, has also been agreed upon.
Egypt also signed development agreements with Saudi Arabia worth $590 million, Egyptian International Cooperation Minister Sahar Nasr said, according to the report.
These agreements cover development in Sinai, and Egypt's agriculture, housing, and education sectors.
The agreements also include an MOU between Saudi Aramco and Egypt's Arab Petroleum Pipelines Company (SUMED).
King Salman also announced a bridge connecting the two countries would be built across the Red Sea, but no additional details about the project were provided.
According to BBC, the project has been proposed several times, but is yet to become a reality.
Previous estimates for the project have suggested it will cost between $3bn and $4bn, but the latest plan's details are yet unclear, it added.
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