The General Authority for the Suez Canal Economic Zone (SCZone) signed Sunday a loan agreement with a banking consortium, led by the National Bank of Egypt, to finance infrastructure projects in the industrial zone and the ports affiliated to it.
In the light of the agreement, the NBE and four other banks, namely the Arab African International Bank, the Commercial International Bank, Banque du Caire, and the Suez Canal Bank, will offer a long-term loan of LE10 billion (roughly $645 million) to the SCZone.
The loan comes within the framework of plans to speed up the implementation of remaining infrastructure projects in the ports affiliated to the zone, SCZone Chairman Yahai Zaki said, following the signing of the agreement.
He added that his authority has a plan to finalise all infrastructure works in these ports within two years.
He expected the implementation of the projects to contribute to the attraction of foreign investments to the SCZone.
Zaki noted that his authority would repay this loan and others from the returns of its projects, without reliance on the Egyptian state budget.
He revealed that his authority works now on turning Sokhna Port into a central port by implementing a comprehensive upgrade in it.
Turning the port into a central one on the Red Sea, Zaki said, goes hand in hand with government policies to upgrade the nation’s ports to attract more international maritime lines to them.
NBE Board Chairman Hesham Okasha said his bank is keen on financing infrastructure projects in the SCZone which covers an area of 461,000 square kilometres.
He added that the bank and other banks participating in the aforementioned consortium also take an interest in backing state plans for turning the SCZone into a central logistical centre for the international trade movement.
We also back plans for capitalising on the promising potentials of the zone which connects the different parts of the world together, Okasha said.
He expected the completion of infrastructure projects to attract more industrial, commercial and maritime investments to the zone, localise industries and reduce imports.
This will lead to, he said, boosting local production that caters to the needs of the local market, which will support the national economy.
Okasha noted that his bank pays special attention to joint loan deals within the framework of its keenness on financing national projects that aim at offering support to vital sectors of the Egyptian economy.
He cited the transport sector, industry and agriculture as vital sectors for the economy.
Support to these sectors, Okasha said, contributes to the creation of jobs and increasing Egypt’s financial resources.
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