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FM AMEMBASSY CAIRO
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UNCLAS CAIRO 000857 
 
SIPDIS 
 
STATE FOR NEA/ELA 
 
E.O. 12958:  N/A 
TAGS: ECON EINV EFIN ETRD ENRG PGOV EG
SUBJECT:  EGYPT'S ECONOMY:  MAY 18 WEEKLY PRESS ROUND-UP 
 
¶1. (U) The following are notable economic news stories that appeared 
over the past week in the Egyptian press: 
 
---------------------------- 
Bechtel Loses Nuclear Tender 
---------------------------- 
 
¶2. (U) The Egyptian Nuclear Power Plants Authority (NPPA) has 
officially informed the U.S. Bechtel Corporation it is rejecting 
Bechtel's offer to provide the consultancy engineering expertise for 
Egypt's nuclear plants after a four month negotiation. Reports 
indicated that Bechtel's offer was rejected because the offer 
violated the terms of the tender document and specifications.  NPPA 
started negotiations with the Australian firm Worley Parsons, which 
bid together with three Egyptian consulting firms. Worley Parsons 
was ranked second in the Egyptian government tender Egypt to select 
a multinational company to manage the construction of Egypt's first 
nuclear power plant.  A contract is expected to be signed within two 
weeks.  The value of the contract is approximately US$180 million 
for the first and second phases of the project. (Amal, Al Alam Al 
Yom, Al Ahram, 5/12/2009, 5/14/2009) 
 
-------------------------- 
Russian Wheat Investigated 
-------------------------- 
¶3. (U) Counselor Abdel Maguid, Egypt's state prosecutor, ordered the 
seizure and inspection of all imported Russian wheat after heated 
discussions in the Egyptian parliament suggesting that the wheat is 
not suitable for human consumption.  The prosecution is a response 
to a complaint that a quantity of the imported wheat is spoiled and 
entered the port without the required quality control inspection. 
Minister of Agriculture Amin Abaza highlighted that that there are 
Egyptian standards for imported wheat and claimed that the 
government is dedicated to guaranteeing the health of Egyptian 
citizens.  Fears have been raised that tainted shipments were sent 
to Upper Egypt, and many citizens are complaining about the quality 
of subsidized bread and believe it may have been made from the 
contaminated wheat.  (Al Alam Al Yom, Al Masry Al Yom, Al Wafd, Al 
Dostour, 5/13/2009, 5/14/2009) 
 
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Illiteracy 
---------- 
 
¶4. (U) Raafat Radwan, head of the General Authority for Adult 
Literacy, stated that Egypt's illiteracy rate in 2006 was 29%, or 
about 17 million people.  This is an improvement compared to the 
illiteracy rate in 1996, which was 39%.   (El Shorouk, 5/13/2009) 
 
-------------------------- 
Tourism Promotion Strategy 
-------------------------- 
 
¶5. (U) Prime Minister Ahmed Nazif chaired a session of the Cabinet 
of Ministers to discuss a ten-year comprehensive tourism promotion 
strategy. The meeting was attended by the ministers of culture, 
tourism and local development and members of tourist chambers and 
the tourist authority.  The strategy involves greater 
government-private sector cooperation, improvements to 
transportation infrastructure, awareness campaigns on how to deal 
with tourists, diversification of tourism products, improving the 
tourist-related infrastructure, improving customer service and a new 
marketing strategy.  (Egypt State Information Service, 5/11/2009) 
SCOBEY