USAID amendments MINISTER of International Cooperation Fayza Abul-Naga this week signed ten amendments to the USAID programme agreement, in the fields of health, education, infrastructure and economic reform, reports Mona El-Fiqi. Abul-Naga signed an amendment to the US imports programme for the private sector, by which $197.4 million were made available for short- to medium-term credit facilities. This would cover the private sector's needs of US imports, which include raw materials, intermediary and capital goods. These credit facilities will be provided through Egyptian commercial banks participating in the programme. Two amendments were made to support infrastructure for water and sanitation services. The ninth amendment to the Secondary Urban Development agreement is worth $30.5 million, out of a project costing $358.8 million. The deal will help the government sustain its programmes in the water and sanitation sectors in Daqahliya, Aswan and South Sinai. The second amendment is related to the Egyptian Utilities Management and is worth $30 million, while the total value of the contract is $345 million. This change assists in improving the water and sanitation sector in Alexandria and Upper Egypt. In the field of education, an amendment to the Strategic Target of Basic Education is worth $84.7 million, and aims at sustaining the Egyptian government's attempts to reform the education process from Kindergarten to Secondary School in Beni Sweif, Minya, Alexandria, Cairo and Aswan. In the health sector, an amendment in the Strategic Target of Improving Health and Family Planning worth $24.7 million was signed. The deal's value altogether reaches $163.4 million, with a view to completing the ongoing activities of the Integrated Programme for Family Planning Services. This monitors the combating of contagious diseases, and focuses on family health and communications for securing a healthier life. To sustain the efforts of economic reform, an amendment worth $6 million was signed to upgrade the financial sector, bringing the project's value to $73 million. The grant will be allocated for technical support to develop the legal and executive frameworks of trade and investment, financial markets and the real estate mortgage system. These allocations are also to encourage the private sector's involvement in the development process by providing technical and training support. Moreover, another amendment worth $7.5 million was signed in this field related to technical support. It aims to facilitate customs and trade systems increasing the value of the project to $37.5 million. It will provide technical support to create an adequate environment for encouraging imports and investments, as well as enable trade through improved customs systems and trade services. Flying behind schedule AVIATION authorities announced this week a second delay in delivery dates for the construction work at the new terminals of Cairo International and Sharm El-Sheikh airports. "We understand that the reasons behind the delays are not the fault of the contractors," commented Aviation Minister Ahmed Shafiq, in a meeting with contractors' representatives last week. "We hope it will be the last delay." Cairo airport's new terminal was scheduled to be complete by mid-2007, while Sharm El-Sheikh's was originally scheduled to be finished by mid-2006. Delivering the terminal at Cairo airport has now been delayed by more than six months; as for Sharm El-Sheikh, despite asking for a three-month extension, the contractors still failed to meet the second deadline. The two new terminals are financed by a $350 million loan by the World Bank, which managed the international tenders to choose the contractors for both operations. Turkish contractor TAV Holding Company, which carried out the construction of Istanbul International Airport's new terminal, was chosen to carry out the work at Cairo airport. Saudi contractor Bin Laden was chosen for the work in Sharm El-Sheikh. "The new terminal would expand the capital's gateway capacity from the present figure of eight million passengers annually, to 20 million passengers each year," according to Ibrahim Manaa, head of the Airports Holding Company. "Unfortunately, delaying the completion of the new terminal at Cairo airport will postpone the plan to upgrade the entire facilities at Cairo International Airport," noted Manaa. Exports to Italy boom THE MINISTRY of trade and industry announced this week that exports to Italy have achieved a remarkable increase by 103 per cent, to reach one billion euros during the first half of 2006. This is compared to 535 million euros during the same period last year. The report added that the Egyptian imports from Italy also rose by four per cent to reach 700 million euros during the first half of 2006, compared to 675 million euros last year. Experts say that if the increase of exports to Italy continues at the same rate during the second half of this year, Egyptian exports are expected to reach an unprecedented total figure. According to a recent report issued by the Ministry of Trade and Industry, Italy is the number one trade partner with Egypt among European Union countries. Moreover, Egyptian oil exports rose from 156 million euros during the first half of 2005 to 609 million euros during the first half of 2006. Egyptian non-oil exports to Italy increased by 25 per cent to reach 476 million euros compared to 379 million euros last year. The report added that agricultural exports also rose by 18 per cent to reach 58 million euros compared to 49.5 million euros in 2005. Egyptian exports of ready-made cloths increased by two per cent to reach 19.3 million euros compared to 18.9 million euros last year. Moreover, 25 Egyptian companies are going to participate in the Verona International Fair for Marble and Granite in Italy between 5 to 8 October. This is considered a good opportunity for Egyptian companies to share their experience with 1,449 companies representing 51 countries. Egyptian exports of marble and granite to Italy rose from 7.3 million euros during the first half of 2005 to 10 million euros during the same period in 2006. IT dynamism and influence IMPORTANT issues related to technical and educational aspects of the Knowledge Society were discussed recently at the IT in Education and Training forum, reports Eman Youssef. The forum was held in Paris under the theme Training for the Knowledge Society. Several topics related to the information society and Information and Communication Technologies (ICT) were debated, such as modernising public administration, education and training, electronic commerce, regional development and employment creation, as well as new entrepreneurial opportunities. According to Juan Alegret, education and research manager South and East Europe, Middle East and Africa at Sun Microsystems, the knowledge and skills that a country's labour force possesses, rather than its physical capital, determines its economic and social progress. This, in turn, enables it to compete in the new world economy, Alegret added. Alegret was optimistic about the future of IT in Egypt, saying that Egypt's IT sector is one of the fastest growing in the Middle East and the world, at a rate of around 30 per cent since last year. He told Al-Ahram Weekly that Egypt has all the qualifications to make substantial progress in this field. "There is a strong correlation between technology growth rates and a healthy, expanding gross domestic product," observed Alegret. He emphasised that the ICT field and new technologies are among the more dynamic elements of the economy. Egypt's political stability and sound economic performance make it well-placed to provide new business opportunities in the Mediterranean and Arab region, according to Alegret. As the importance of IT increases in the international economy, "Egypt is poised to be the main gateway to the Middle East for firms operating in the Internet and telecommunications markets," he said. The world economy has shifted towards what has been characterised as the "knowledge society" where information is abundant, rapidly expanding, and is in continuous rapid changes, Alegret told the forum. Failure to keep up with these changes, he cautioned, is almost certain to result in a failure to be competitive in the new global economy. A European Information Technology Observatory (EITO) report revealed a decrease in the growth rate of the ICT market in Europe after a long period of strong development. However, EITO President Bruno Lamborghini said this drop, "should not lead us to think about crisis, but rather about a moment of slackening and consolidation of a sector destined to drive the new cycle of economic and social development."
