(Egypt) -- The Chairman of Egypt's Industrial Development Authority (IDA) Amr Assal has announced that Egypt aims to initiate an international bidding process to grant cement licences by the middle of this year.
"We're presenting the case to the High (Supreme) Council of Energy to get their blessing" said Assal
"This is our target, June-July." He said when asked about the timing of the bidding.
The country plans to offer eight licences with 1.5 million tonnes of capacity. He indicated that twelve companies had formally expressed their interest in the licences out of which seven were Egyptian and the rest were Chinese, Turkish and Italian companies.
Egypt’s current cement capacity was around 50 million tonnes, which is expected to rise around 60 million tonnes by 2011 as the local demand is increasing at a rapid rate.
Egypt witnessed a growth of 26 percent in its cement consumption last year despite a downturn in global fortunes that hit the demand in the global construction sector.
Assal expects the demand growth to go back to the normal growth levels of 7 to 10 percent this year. To meet the domestic demand, the country's capacity will have to increase to around 80 million tonnes in the next five years..
The cement factories will be located in remote areas to avoid pollution in residential places.
"Our plan is new areas like Marsa Mattrouh, Upper Egypt, remote areas. Also these kinds of investment can create economic growth for these areas," Assal said.
.Egypt had granted six Greenfield cement factory licences in the end of the year in 2007 to increase cement production after a rise in local prices impelled the government to impose an export duty in February.
By: Rashmi Kalia (ARI-C NEWS)
Source: www.egypt.com