CAIRO: With the turn of the new year, the government has diverted its attention to Upper Egypt with the launch of several investment initiatives and development projects In a bid to sustain Egypt's growth rate and economic stability, President Hosni Mubarak and several ministers conducted field visits this month to a number of governorates in Upper Egypt, bringing a once "neglected area into the limelight. "Egypt's stability and growth will be achieved only by high growth rates in Upper Egypt, Mubarak told reporters during one field visit. Echoing Mubarak's views, Investment Minister Mahmoud Mohieldin explained during his visit to Assiut that the president's electoral program included the implementation of an integrated plan to develop the vital region by improving roads, establishing new companies and attracting investment. Since 2004, a total of 138 new companies have been established in Assiut, accounting for 20 percent of the companies established there since 1970. "Investors are now more willing to establish projects in Upper Egypt after years of avoidance, Mohieldin said. To encourage investors, the minister witnessed the operation of the license unit in Assiut's One-Stop Shop, which provides integrated services to investors, assisting them in procedures to establish new companies. This shop is the third of its kind in Egypt. The government has also focused on improving facilities in Upper Egypt, upgrading airports and connecting Upper Egyptian governorates to the gas network. The Upper Egypt-Red Sea Road, due to be completed in September 2009, is worth LE 640 million and was financed by selling publicly-held assets managed by the Ministry of Investment. "Our concern is focused on attracting investments to labor-intensive sectors and assisting the Upper Egyptian people in developing their governorates, Mohieldin said. Consequently, the Upper Egypt Investment Company (UEIC) - affiliated to the General Authority for Investment and Free Zones (GAFI) - has initiated several labor-intensive tourist and agricultural projects. "Some initiatives were launched through the company, including the establishment of an organic fertilizer plant, medical centers in Assiut, three three-star hotels in Assiut and Sohag as well as a financial leasing company, a UEIC spokesperson told Daily News Egypt. UEIC's role is to encourage the private sector to initiate projects in Upper Egypt, conforming to a number of measures. The private sector company that takes up a new initiative can have no more than a 20 percent stake in the new company, whose capital cannot exceed LE 100 million. The private sector company will then transfer operation of the newly established project in seven years time. Within the government's plan to support limited-income citizens and provide affordable foodstuffs, land slots in different Assiut districts will be used to establish complexes with outlets selling subsidized food commodities. The same concept will be applied in Sohag. The complexes will be supported by investments from the Holding Company for Food Industries, the UEIC explained. Attracting tourists to Upper Egypt is also an important step in the overall development of the area. A three-star hotel is being established in the Sohag city of Belana, with the participation of the Holding Company for Tourism and Cinema. A school complex is also being developed and will be finalized by mid-2009, while the Misr Sound and Light Company will establish a sound and light project after facilitating the river transport flow between Sohag and Qena. "The development in Sohag will turn it into a major tourist attraction with hotel and tourist projects, Mohieldin said. To attract tourists and investment, Upper Egypt must first upgrade its infrastructure in order to accommodate the influx of those interested in the area. Several information and communication technology (ICT) services have already been inaugurated in different Upper Egyptian governorates. Minister of Communications and Information Technology (MCIT) Tarek Kamel recently inaugurated the newly renovated Telecom Egypt Customer Support Center in Qena. The center is now ready to receive and deal with complaints on the spot. A 13,000-line telephone exchange was also inaugurated in Luxor. Costing LE 45.5 million, it can be upgraded to accommodate 40,000 lines. All pending requests have been met and exchange centers are open to receive further orders. Upper Egypt s South Customer Support Center was established, allowing Qena, Luxor and Aswan to handle any malfunctions or complaints. The Aswan/South wireless exchange, a 9,515-line capacity exchange center, has been equipped with the CDMA wireless technology. The center delivers phone services across Aswan, especially in remote areas. A total of 3,650 subscribers were provided with fixed telephone services via the new exchange. To expose Upper Egyptians to information technology, Kamel commenced Qena's 58th IT Club at the Egyptian Red Crescent Society, with another eight under construction. IT Clubs are similar to internet cafes, equipped with computer and internet services. Luxor, Daraw City and Aswan also inaugurated new IT Clubs, and more are in the pipeline. Kamel also inaugurated upgraded and automated post offices in the governorates. Although the government has taken serious steps towards the development of Upper Egypt, there is still a long way to go. "Sewage, failing infrastructure, education and poverty are the main drawbacks in Upper Egypt, the UEIC said. "Only through direct investments in the area and public-private partnerships will the government succeed in providing the necessary growth and development in this area.
