by Ahmed Kamal
Fifteen years ago, the Chinese TEDA investment group came up with the idea of building the first industrial park in Egypt’s northwest Suez Canal Zone. Part of the project is complete, with the company awaiting the handing over of a piece of land by the Egyptian government.
“We will receive two square kilometres on 10 August, and we have concluded negotiations with the Egyptian government regarding the price of water and electricity,” Wei Jianqing, the CEO of TEDA, told The Middle East Observer.
“We are targeting seven manufacturing sectors, which are energy, transportation, the machine industry, the petrochemical industry, electronics, automotives, the light industry, and a section of the SMEs industries,” Jianqing said, adding that 20 investors have requested lands from TEDA for establishing industrial projects.
TEDA has signed a contract with the General Authority for the development of the northwest Gulf of Suez, and the minister of investment has signed the final clause to develop six square kilometres of the northwest Suez Canal Zone during his visit to China in 2014.
According to Jianqing, the land will be developed in three phases, with each phase covering two square kilometres.
“TEDA has already finished construction works and marketing for the initial 1.3 sq.km part of the project. We have already finished registration as a special economic zone, and 100 per cent of our company capital is already here,” Jianqing said, adding that the company is finished with drawing up the master plan.
The Chinese company is one of the biggest companies operating in the Suez Canal Zone, which includes Ismailia, Suez and Port Said, with TEDA foreseeing that the opening of the New Suez Canal will double investment in the region.
Jianqing states that his company has a long-term plan to expand its activities in the Suez Canal Zone, with a focus on bringing Chinese knowhow to Egypt.
TEDA is owned by the Chinese government, and has three subsidiary companies. The first is the Egypt TEDA Investment Company, which has a total capital of $100m – this company was established for developing the first 1.3 sqkm phase of the project. Its shareholders are the China-Africa TEDA Investment Co. Ltd with 75 per cent, the Egyptian Chinese JV Company for Investment with 20 per cent, and TEDA Investment Holding Co with 5 per cent.
The second company is Egypt-TEDA SE Zone Development Co, which was established last January with a total capital of $223m. Its shareholders are the China-Africa TEDA Investment Co. Ltd with 90 per cent, TEDA Investment Holding Co with 5 per cent, and Egypt TEDA Investment Company with 5 per cent.
The third company is specialised in services for TEDA projects in the northwest Suez Canal Zone.
“Our total investment in infrastructure construction is nearly $223m. Regarding the total investment for the zone from different sectors, we expect $80m as an initial investment, and $2bn total investment in seven different sectors. We are also aiming to attract 100 companies to invest in the zone and to create some 40,000 jobs for locals,” Jianqing said.
