CAIRO: Egypt's Minister of International Cooperation Faiza Abul-Naga revealed that the World Bank had stopped for a period of 10 years financing infrastructure projects in Egypt. She said on Wednesday before the Committee on Industrial Production and Power of the Shura Council – Upper house of Parliament – chaired by Mohamed Farid Khamis, that the bank then resumed its activity in Egypt in 2003. She said the resumption of funding occurred “when it [the World Bank] found seriousness from the Egyptian government in the payment of government benefits for loans when the civil aviation ministry received a loan of $350 million.” The minister pointed out during the discussion of a loan agreement worth $280 million between Egypt and the World Bank for housing and reconstruction. The minister said the loan will be repaid in 21 years after a grace period of “7-years with up to 7 percent, or less than one percent interest and the Holding Company for Airports in Egypt will be responsible for bearing the cost of the reimbursement of the loan and the budget of the government will not bear any burden.” Major General Ahmed Shafiq, Minister of Civil Aviation said that the loan granted by the World Bank comes with “small interest and that it is almost a good loan, pointing out that the Ministry of Civil Aviation will pay the loan value.” He added that the Ministry of Aviation did not have a budget surplus, as claimed by the Ministry of Finance, and was able to repay taxes and salaries of employees, denying access to any support from any government agencies except the Department of International Cooperation, which is negotiating with donors to provide loans to the aviation sector. The sector has been hit hard by Egypt's budget crisis as a number of programs and projects have been curtailed to shore up other interests, the minister said, adding that the World Bank loan is a welcome step toward being able to improve all sectors of Egypt's economy. BM
