VZCZCXYZ0010
RR RUEHWEB

DE RUEHEG #0587 0971252
ZNR UUUUU ZZH
R 071252Z APR 09
FM AMEMBASSY CAIRO
TO RUEHC/SECSTATE WASHDC 2108
INFO RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUEHRC/DEPT OF AGRICULTURE WASHINGTON DC

UNCLAS CAIRO 000587 
 
SIPDIS 
 
STATE FOR NEA/ELA 
 
E.O. 12958:  N/A 
TAGS: ECON EINV EFIN EAGR ETRD ENRG PGOV EG
SUBJECT:  EGYPT'S ECONOMY:  APRIL 7 WEEKLY PRESS ROUND-UP 
 
¶1. The following are notable economic news stories that appeared 
over the past week in the Egyptian press: 
 
New Pension Law to be Proposed 
------------------------------ 
¶2. At a recent financial conference, Muhammad Ma'it, Deputy Minister 
of Finance, said that a new law on pensions would guarantee 
additional benefits for pensioners.  The law would create an 
investment council to specialize in managing pension funds.  A 
minimum contribution would be established for pensions along with a 
mechanism to increase their value.  Pension payments would increase 
annually to account for inflation. Under the new law, the social 
insurance payment would be calculated on gross pay, rather than 
simply fixed salary. The current law for pensions would remain in 
force until the government had fulfilled all its obligations under 
the current pension system. (Ahram, 4/1/09) 
 
 
Electricity Deregulation 
------------------------ 
¶3. Sources at the Ministry of Electricity and Energy indicated that 
the government will submit a draft law to the People's Assembly in 
the current session that would liberalize the production and 
distribution of electricity, opening up what is currently a nearly 
complete government monopoly on generation and distribution. (Al 
Masry Al Yom, 4/1/09) 
 
 
Suez Canal Revenues Slip 
------------------------ 
¶4. Suez Canal revenue accounted for 34.5% of Egyptian foreign 
exchange revenues during the FY2007/08 fiscal year.  The global 
economic slowdown, along with shipments diverted due to piracy 
concerns, has led to a gradual decline in daily canal transits and 
revenue since mid-2008.  Some reports estimate full year 2008/09 
(July-June) Suez Canal receipts may fall by as much as 15.3% from 
US$5.16 billion in FY2007/08 to US$4.37 billion in 2008/09. Suez 
Canal revenue during the month of February 2009 was US$301 million, 
26% less than February 2008 revenue. (Al Badeel, 3/31/09). 
 
 
GOE to Promote Eco-friendly Projects 
-------------------------------------- 
¶5. Minister of State for Environmental Affairs Maged George 
announced that the Egyptian Council for a Clean Environment approved 
financing 52 ecological projects at a total cost of US$1.27 billion 
dollars. At a conference on the environment organized by the 
Egyptian Industries Federation, George pointed out that the projects 
aim at improving the quality of energy and greater reliance on 
natural gas as a fuel along with minimizing toxic emissions 
generated by the fertilizer industry. According to the minister, the 
projects will reduce carbon dioxide emissions by 8.1 million tons 
and create investment and job opportunities.  George also said Egypt 
is also preparing a new strategy for dealing with the impact of 
global climate change.  (Ahram, Alam Al Yom, 4/2/09) 
 
 
No Crying over Spilt Milk 
------------------------- 
¶6.  The Ministry of Trade and Industry rejected requests by milk 
producers to impose trade restrictions on imported powdered milk. 
Minister Rachid M. Rachid confirmed that the government does not 
intend to put safeguard measures on products that would not result 
in lower prices for consumers. Rachid pointed out that the 
government also does not want to impose measures which could lead to 
an increase in prices of food commodities. (AMAY, 4/2/09) 
SCOBEY