Tag: Ossama Kamal

Russia snubs Morsi’s $2bn loan request

A handout picture released by the Egyptian presidency shows Egyptian President Mohammed Morsi (L) and Russian President Vladimir Putin (R) giving a press briefing on April 19, 2013 in Sochi, Russia.
(AFP Photo)

By Nada Badawi

No agreement has been reached on a $2bn loan from Russia following President Mohamed Morsi’s visit to the country, said Minister of Industry and Foreign Trade Hatem Saleh on Friday.

Morsi had also requested wheat supplies in addition to financial aid; however, Russian President Vladimir Putin turned down his request.

“Today we have reached no conclusion on that loan,” said Saleh after a meeting between Morsi and Putin on Friday.

Morsi arrived in Russia last Thursday with a ministerial delegation, including Minister of Investment Ossama Saleh, Minister of Petroleum Ossama Kamal, Minister of Agriculture Salah Abdel Moemen, and Minister of Electricity and Energy Ahmed Imam.

Yuri Ushakov, assistant to the Russian leader, reported that Morsi had requested the $2bn loan when het met the Russian leader.

“We are not talking about a small amount here,” said Ushakov.

Russian officials have said that they will need to “study the decision” before commenting.

Russian news agency Novosti reported on Friday that Russia’s energy minister Alexander Novak stated that Egypt had suggested collaborating with Moscow to construct a nuclear power plant.

Morsi emphasised the bilateral ties between Egypt and Russia, and acknowledged Russia’s contribution to Egypt’s agriculture, industries, and military.

“The issue isn’t only about an increase in trade exchange or number of tourists,” he said. “I am speaking of a true alliance in economic fields that will establish a true industrial renaissance to realise enormous developments in Egypt.”

Putin said that the two countries enjoy good relations, and that they “agreed to continue working together until we eventually diversify our economic, investment and trade activities”.

Morsi and his delegation planned to discuss oil and wheat during the trip to find possible solutions for Egypt’s plunging wheat stocks and fuel shortages.

Among other issues, the two leaders discussed the Syria crisis and called for a ceasefire in the war-torn country.

“Russia and Egypt support a ceasefire in Syria as soon as possible and the launch of negotiations between the Syrian government and the opposition,” Putin said.

Political and economic relations between Egypt and Russia began during the ruling of late President Gamal Abdel Nasser.

April 20, 2013
Qatar to give Egypt natural gas and $3bn in bonds or deposits

President Mohamed Morsi met Sheikh Hamad bin Jassem bin Jabr al-Thani in Cairo on 6 September 2012
(AFP Photo/Khaled Desouki)

By: Nada Badawi & Emily Crane

Qatar will provide Egypt with natural gas and an additional $3bn in the form of either Egyptian treasury bonds or deposits in the country’s central bank, according to Prime Minister Hesham Qandil at a press conference on Wednesday.

Prime Minister Hesham Qandil arrived in the Qatari capital of Doha on Tuesday evening for a brief visit to discuss a number of investment projects and trade agreements between the two countries as well as ways to attract further Gulf investments to Egypt, according to an official statement by Qandil.

The prime minister was accompanied by Minister of Investment Ossama Saleh who announced that they are working to establish eight large investment projects in the fields of agriculture, industry, tourism, energy, and water. Qandil will be promoting these during his visit to Qatar, according to state-run news agency MENA.

Mahram Helal, president of the Egypt Qatar Business Council (EQBC), said that the visit comes after a previous visit made by council representatives on Tuesday that discussed difficulties in importing Qatari gas faced by companies operating in Egypt’s private sector.

These investment projects include expanding the industrialisation of the Ein Sokhna and Port Said ports, developing over 300,000 acres of land for agriculture, expanding the tourist industry along the Red Sea and North Coast, and constructing new oil refineries as well as upgrading the infrastructure of existing ones, Saleh said.

“We reached an agreement to add more bonds from the Qatari government in the amount of $3bn. During the coming days, we will discuss the details of issuing those bonds,” Sheikh Hamad said.

Petroleum Minister Ossama Kamal said on Sunday that Egypt had planned to import 1bn cubic metres of Qatari gas.

He added on Tuesday that “officials from both governments would discuss the appropriate price of Qatari gas set to be imported by an affiliate of Citadel Capital”.

Sheikh Hamad also promised to ease financial restrictions for Egyptian businesses operating in Qatar.

The gulf state has already granted Egypt $5bn, including a $1bn grant and $4bn worth of deposits at the Central Bank of Egypt since President Mohamed Morsi was elected last June.

Roughly 56% of local natural gas consumption in Egypt goes to the electricity sector, which increases significantly in the summer season as gas is diverted from other sectors to meet rising demand for electricity.

The Egyptian government has already announced power cuts and energy-saving measures, such as closing one of Cairo airport’s runways for four hours in the summer.

Qatar’s aid to Egypt has been a matter of protest in recent demonstrations where protesters have adamantly declared that Egypt has no need for assistance from Qatar or a loan from the International Monetary Fund (IMF).

On Sunday the EQBC expressed its anger over the latest episode of Bassem Youssef’s Al Bernameg programme, during which the satirist poked fun at Egypt’s relationship with Qatar.

April 10, 2013
Petroleum ministry halves supply of natural gas to cement factories

The Ministry of Petroleum will reduce its supply of natural gas to cement factories by 50% starting from June,
(AFP Photo)

By Lamia Nabil

The Ministry of Petroleum will reduce its supply of natural gas to cement factories by 50% starting from June to September, said Vice Chairman of the Titan Cement Company Medhat Estefanous responding to a question by Daily News Egypt.

Estefanous said that the Ministry held a meeting on Sunday with heads of major cement factories to announce the decision.

According to Mubasher, Minister of Petroleum Ossama Kamal did not attend the meeting.

“This decision will negatively impact our production lines by 50%,” said Estefanous. “This will directly translate into increases in cement costs.”

Secretary of the Building Materials Division at the Cairo Chamber of Commerce (CCC) Abdel Aziz Qasem said that cement factories in developed countries are responsible for providing their own energy supply, “but in Egypt cement factories depend on the government to supply their energy needs, and they receive subsidised energy as well”.

He also added that the amounts supplied by government are “limited” as “they try to save as much as possible”.

“Cement factories are already raising their prices,” he continued. “They are reducing their production rates, despite having very low production costs including low labour costs, low energy costs, and low raw material costs.”

He also mentioned that the current average cement price was EGP 670 per tonne, and that recently cement factories had raised their prices by EGP 200 per tonne. “The El-Arish Cement Company, which is owned by the Egyptian Armed Forces, raised their prices by only EGP 30 per tone,” he added.

Qasem also said the real estate sector had experienced a recession during the past two years, as building material price increases had created problems for the sector and led to increases in real estate prices.

Minister of Petroleum Ossama Kamal announced on Monday, during a meeting with the Industrial Production and Energy Committee at the Shura Council, that the Ministry was launching 11 new agreements to explore areas for oil and natural gas for the first time and with new contract terms, according to media reports.

Kamal said that these agreements were sent to the State Council for examination in preparation for submission to legislative institutions.

April 10, 2013
Ministry of Petroleum admits fuel shortage

Motorists line up to buy fuel outside a gas station in Cairo
(AFP Photo / Khaled Desouki)

By: Nada Badawi

Minister of Petroleum and Mineral Resources Ossama Kamal said in a statement on Saturday that the Petroleum and Mineral Resources Ministry will be unable to provide power plants with enough fuel in the coming period.

Kamal made the admission during a meeting with the Egyptian Cabinet that discussed the issue of fuel shortages.

He said that “there is a 25% in fuel insufficiency for power plants in the country”.

In an attempt to reduce the shortage, the Petroleum and Mineral Resources Ministry announced a bid to import 500 million cubic feet of fuel daily in order to meet the needs of power plants throughout the country.

“Egypt has a dire need to import 750 million cubic feet of gas daily to meet needs of power plants and factories,” officials from the Egyptian Natural Gas Holding Company (EGAS) said.

“A total of 5.75 billion cubic feet of gas is being produced on a daily basis, but what is actually consumed is 6.5 billion cubic feet daily,” they continued

Next week the Petroleum and Mineral Resources Ministry is due to submit details of all the solutions it is considering to address the crisis.

“This is an obstacle for Egypt’s National Electricity Grid,” the Ministry said, adding that: “Only 2,000 megawatts have been produced in the past two days due to fuel shortages.”

Fuel shortages have also become a daily occurrence for cab drivers and industrial and agricultural sectors after the government decided to increase fuel prices by 50%.

March 17, 2013
Thousands of contracting companies bankrupt

Daker Abd-Ilah, a member of the EFCBC highlighted that materials prices rose by more than 100%, with asphalt prices reaching EGP 1,100, up from EGP 200 and cement currently at EGP 700 per tonne, up from EGP 200 per tonne.
(AFP Photo)

By: Lamia Nabil

The total number of contracting companies that have completely halted operations during the past two years currently stand at 13,615, with nearly 75% of all road contractors filing for bankruptcy, according the Egyptian Federation for Construction & Building Contractors (EFCBC)

The EFCBC attributed the phenomenon to the worsening economic security and security environments over the last two years, as well as recent diesel and construction materials prices hikes.

“The entire sector is suffering from a diesel shortage,” said Daker Abd-Ilah, a member of the EFCBC. “It’s a massive problem as all machines and tools consume diesel.”

Abd-Ilah highlighted that materials prices rose by more than 100%, with asphalt prices reaching EGP 1,100, up from EGP 200 and cement currently at EGP 700 per tonne, up from EGP 200 per tonne.

“I’m very upset with the minister of petroleum’s statements,” he continued. “It as if he was talking about another problem. The ministry forced contractor companies to deal with smugglers, as we now buy our diesel from the black market at a price of EGP 5 per litre.”

“What we have seen since the revolution,” he continued, “is a series of successive governments with trembling hands and inept decisions.”

The EFCBC warned of increasing numbers of companies filing for bankruptcy if the situation persists.

Mohamed El-Sayed Aboul Enein, the EFCBC secretary general, said that total registered companies in the sector currently stand at 41,814, the renewed license companies are 14938 while the rest 13473 companies are already exited, due to bankruptcy or activity change especially with less work in the construction sector and also many problems related to taxes and employees social insurance and labor.

He reported that work has already stopped on a number of contracting company projects due to their inability to complete them.

The EFCBC next course of action is to prepare a memorandum to be sent to Prime Minister Hesham Qandil, with another to be sent to Minister of Petroleum Ossama Kamal.

March 10, 2013