Cement producers in court SOME 20 officials at cement companies were referred to criminal court by the Prosecutor-General on Sunday for colluding to raise the price of cement, reports Mona El-Fiqi. Investigations by the general prosecution found out that top officials from cement companies held several meetings during which they agreed to raise prices without justified reasons. Cement prices in local markets rose to LE430 per tonne although cost prices do not exceed LE180 per tonne, according to experts. Ezzat Maarouf, an expert on the steel and cement industry, noted that cement producers continue to raise prices to make more profits. Maarouf explained that one year ago, a technical committee was formed to estimate the cost price of cement and decided that it is LE180 per tonne. Following this conclusion, Minister of Trade and Industry Rachid Mohamed Rachid met with cement manufacturers and they agreed that LE330 per tonne will be the ceiling for cement prices. "But cement companies ignored the outcome of this meeting and began raised prices to reach LE400 per tonne," added Maarouf. In June 2006, Rachid asked the Egyptian Competition Authority (ECA) to investigate the cement market and find out if it is being monopolised. ECA's report was issued in October 2007, and asserted that cement companies were violating the anti-monopoly and competition law because they are conspiring to control prices. The report also revealed that they coordinated to limit the market share of each cement producer to control prices. All this contradicts the 2005 law regulating competition and prohibiting monopoly acts, therefore Rachid called on the prosecutor general to formally investigate these companies. Three months later, investigations ended this week by referring a score of cement company officials to criminal court. Entrepreneurs compete for ideas THE INDUSTRIAL Modernisation Centre (IMC) two weeks ago launched the first Business Plan Competition, targeting existing and potential entrepreneurs in different industrial sectors. Mashroaak Hakika [Bring your project to life] was announced on 5 January to create a pipeline of new and innovative small and medium enterprise (SME) ideas for industry, and promote a culture of entrepreneurship in the sector. The competition is under the auspices of the Ministry of Trade and Industry (MTI) and in cooperation with two NGOs, namely the Egyptian Junior Business Association and the Arab Science and Technology Foundation. On the eve of the launch, Minister of Trade and Industry Rachid Mohamed Rachid asserted that entrepreneurship is the principle source of innovation and energy in an open- market economy. "If we are to maintain our present trajectory of strong industrial growth and competitive exports for decades to come, we must encourage today the emergence of Egypt's next generation of industry and export companies," proposed Rachid. The focus of Mashroaak Hakika is to support entrepreneurs in establishing new feasible SME projects, ranging in size from LE100,000 to LE5 million, in all industries including food, textiles, furniture, engineering products, pharmaceutical products and recycling of industrial waste. Entries may include new start- up ventures or existing businesses that have been operational for up to two years. According to an MTI press release, priority will be given to proposals for products or services with export potential and tangible plans for job creation. Moreover, the competition is supposed to provide applicants with the basic tools to develop integrated business plans to transform their ideas into successful market-oriented business ventures. Winners of the competition will receive cash prizes of up to LE400,000, a package of business services, match-making services from IMC and private sector sponsors to support launch their winning ventures. The competition will be judged by a panel of independent judges with experience in business plan competitions. They will come from the government, private sector, NGOs and academia. Locally made oil driller THE CANAL city of Suez is rapidly becoming a hub for petroleum industries. Mubarak 1, a 2000 horse power land driller was manufactured and is now ready to cruise the eastern desert looking for oil. The first ever locally made driller is the inaugural output of an Egyptian-Chinese $30 million investment factory, established over an area of 84,000 square metres in the industrial zone at Ain Sokhna, to produce petroleum land drillers. "It is of great significance for Egypt to host a number of strategic industries in the field of petroleum exploration," asserted Minister of Petroleum Sameh Fahmi during a visit to the factory last week. Moreover, these industries contribute to the economic development of the governorate and help create more job opportunities, noted Suez Governor Seif El-Din Galal. The factory has two production lines, one for assembling and testing while the other, which is about to start production, manufactures basic components. By 2011, some 20 drillers will have been manufactured; notably, oil drillers are becoming less and less affordable worldwide. More funds for electricity MINISTER of International Cooperation Fayza Abul-Naga recently signed two agreements with the Arab Fund for Economic and Social Development (AFESD), to provide Egypt with $200 million in loans to finance the expansion of Abu Keir electricity station. The easy loans will be paid during 26 years with a three per cent interest rate. The expansion of the Abu Keir station will cover increasing demand on power. In 2007, the Ministry of International Cooperation (MIC) developed a plan with AFESD for 2007-2011, giving priority to the electricity sector, to achieve the government's target of doubling electrical power output to enable Egypt to export electricity. The plan also includes cooperation in financing a project to develop the Egyptian Railway Authority. According to MIC figures, total assistance to Egypt since AFESD was established in 1974 is estimated at $2.7 billion. These loans are used for development projects in different sectors, on top of which are the electricity and sewage systems, health and tourism. Moreover, the total grants provided to Egypt by the AFESD amount to $28 million. The government is currently negotiating with AFESD for funds for several vital projects, including providing natural gas to homes in Upper Egypt through a $100 million loan. Also, a project aiming at developing small enterprises to fight unemployment and reduce poverty rates at a cost of $74 million. Good life by the sea TODAY marks the beginning of the Red Sea governorate's national day celebrations which will be carried out in Hurghada and Marsa Alam. Nesmahar Sayed underlines the inauguration of a number of projects to commemorate the event. Twelve tourist villages which provide some 400 job opportunities are scheduled to open soon in the resort city of Hurghada, which is also home to a new sanitary drainage station. Meanwhile, around 600 new housing units will be handed over to their new owners, according to the Red Sea governor's adviser General Mohamed Ezzeddin, and tourists and visitors will soon be able to enjoy a long walk along a recently finished two-kilometre boulevard. Moreover, the work of the USAID-funded LIFE Red Sea project will be spotlighted, particularly in the village of Hamata which is 110km south of Marsa Alam. LIFE Red Sea has provided and operates two 100 KW diesel generators, renewed the power net, constructed a small generator room and provided households with safe electricity connections. Investing in education to drive development, LIFE Red Sea focussed on renovating and refurbishing the school at Hamata. The project also constructed two new vocational workshops in the village, which will provide training, production material and equipment to make environment-related products including rugs and textiles. "Participants are encouraged to attend periodical fairs organised by the governorate to market their products," noted Ezzeddin. In addition to its charm as a tourist attraction, the Red Sea governorate is perhaps the leader in very low unemployment rates across the country. In addition to nationals, some 38,000 foreigners have secured jobs in the region and make it their home. Aware of this fact, LIFE Red Sea is engaged in training 30 students at the Hotel School in El-Gouna to ascertain well-trained staff. Meanwhile, the private sector has been encouraged to build water desalination stations, stated Ezzeddin. This initiative has helped ease the scarcity of potable water in the governorate.
