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Reference ID	Created	Released	Classification	Origin
09CAIRO2221	2009-12-01 13:23	2011-08-24 16:30	UNCLASSIFIED	Embassy Cairo

VZCZCXYZ0005
RR RUEHWEB

DE RUEHEG #2221 3351323
ZNR UUUUU ZZH
R 011323Z DEC 09
FM AMEMBASSY CAIRO
TO RUEHC/SECSTATE WASHDC 4358
INFO RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUEHRC/DEPT OF AGRICULTURE WASHINGTON DC

UNCLAS CAIRO 002221 
 
SIPDIS 
 
STATE FOR NEA/ELA 
 
E.O. 12958:  N/A 
TAGS: ECON EINV EFIN ETRD EAGR ENRG PGOV EG
SUBJECT: EGYPT'S ECONOMY: December 1 PRESS ROUND-UP 
 
¶1. (U) The following are notable economic news stories that appeared 
over the past week in the Egyptian press: 
 
------------------------------------------ 
Cement Producer Requests Ending Export Ban 
------------------------------------------ 
 
¶2. (U) The Lafarge Company, a large multinational firm with a branch 
in Egypt, announced that it will ask the Ministry of Trade and 
Industry to end the export ban on cement if demand and sales in the 
local market remain at current levels during January and February 
¶2010. Hisham Ragab, the Assistant Minister of Trade for legal 
affairs, hinted that the Ministry might cancel the ban if local 
demand continues to decline and the available reserves increase. 
Cement sales have dropped due to the slowdown in new construction 
projects since the summer (Al Shorouk, Al Mal, 11/25/2009, 
11/24/2009, 11/22/2009). 
 
--------------------------------------------- ------- 
New Draft Law for Public-Private Partnership Program 
--------------------------------------------- ------- 
 
¶3. (U) The Ministry of Finance will present to the Cabinet of 
Ministers a draft law regulating the Public-Private Partnership 
(PPP) program. Pending the Cabinet's approval, the draft law will be 
referred to the Parliament for discussion and ratification. Minister 
of Finance Youssef Boutrous Ghali stated that the law is designed to 
be a tool for regulating joint infrastructure projects between the 
public and private sectors (Al Ahram, Al Mal, Al Masry Al Youm, 
11/24/2009). 
 
-------------------------------------------- 
GOE Considers Extending Sugar Duty Exemption 
-------------------------------------------- 
 
¶4. (U) The Ministry of Trade and Industry is studying the 
possibility of extending the customs duty exemption on sugar imports 
beyond December 2009. Sayed Abul Qumsan, Senior Advisor to the 
Minister of Trade and Industry, stated that the government will 
extend the exemption only if local sugar production fails to 
increase to a level that meets demand (Al Shorouk, 11/23/2009). 
 
--------------------------------------------- ---- 
Cost of New Health Plan Estimated at $6.8 Billion 
--------------------------------------------- ---- 
 
¶5. (U) Minister of Health and Population Hatem El-Gabaly estimated 
that the proposed new health insurance system will cost LE 37 
billion (US$6.8 billion), with the government paying for LE 30 
billion (US$5.5 billion) and private citizens and business paying 
for the rest through subscription fees. The proposed law was 
described by President Mubarak as a universal coverage plan in his 
recent address to Parliament (Al Ahram, 11/25/09). 
 
------------------------------------ 
Current Account Deficit Rises by 50% 
------------------------------------ 
 
¶6. (U) The Central Bank of Egypt released new statistics for Q3 
2009, revealing that Egypt's current account deficit rose by 50%, 
climbing to $1.5 billion from $1.0 billion in the same quarter in 
¶2008.  Declining tourism, falling Suez Canal revenues, and the 
decrease in Egyptian exports were cited as the main reasons for the 
increase (Al Masry Al Youm, Al Ahram, Al Alam Al Youm, 11/25/09). 
 
-------------------------------------- 
Egypt Plans Solar Power Plant for 2010 
-------------------------------------- 
 
¶7. (U) Speaking to reporters in India, Minister of Electricity 
Hassan Younis announced that Egypt's first solar power plant will be 
operational by the end of 2010, with a 140 megawatt capacity. In a 
meeting between Minister Younis and Jerzy Buzek, the President of 
the European Parliament, Buzek expressed the European interest in 
purchasing electricity generated by solar energy in North African 
countries, including Egypt (El Ahali, 11/23/09, 11/25/09). 
 
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Viewing cable 09CAIRO2221, EGYPT'S ECONOMY: December 1 PRESS ROUND-UP