Bringing Sudan closer

EGYPTIAN-Sudanese economic cooperation efforts surged forward this week with a groundbreaking series of treaties. On 19 July, Prime Minister Atef Ebeid and Sudanese Vice-President Ali Osman Taha signed a list of 15 cooperation agreements, covering an array of fields such as trade, industry, agriculture, transport, investment, education and health. The breakthrough came in the third round of the Joint Egyptian-Sudanese Higher Committee which was held in the Sudanese capital of Khartoum. Ebeid and Osman emphasised the importance of boosting economic integration between Egypt and Sudan and mobilising the effort required to attain this objective.

According to Ebeid and Osman, another agreement between Egypt and Sudan will also be signed to set up three joint companies in the areas of cement production, electric equipment manufacturing and drug processing. Ebeid said Egypt will help Sudan realise its food production potential by establishing a training institute for agricultural and animal production.

Ebeid and Osman also indicated that land and river transport projects between the two countries will also be a top priority in future negotiations in order to facilitate the flow of trade between Egypt and Sudan.

Mobile scramble

THE COMPETITION for the Iraqi mobile licence is underway. Last Thursday, the Coalition Provisional Authority (CPA) opened up the bidding for three licences for north, central, and south Iraq.

Applicants are required to bid for at least two of the licences, which are valid for only 24 months. The CPA will receive requests from interested firms until 28 July, then a bidders' conference will ensue in Amman, Jordan.

The announcement of the beginning of the competition was made on the basis of another development considered to be the first of its kind. The CPA is going to waive a key piece of Iraqi legislation requiring all foreign investors to allocate a 51 per cent share of their projects to Iraqi entities.

Defying expectations, the CPA also left the door open concerning using GSM or CDMA technology, allowing applicants to propose the use of either technology within the offered frequency band. According to the CPA question-and-answer brief for press inquiries, the prime selection criteria will be the value delivered for the cost and the suitability of the company's plan for Iraqi needs.

A number of European and American firms are expected to place bids including Alcatel, Ericsson and Motorola. Egyptian Orascom Telecom also expressed interest in the contest.

EIB power plant loan

THE EGYPTIAN Electricity Holding Company (EEHC) is to receive a long-term loan to the value of 150 million euro from the European Investment Bank (EIB) to finance the second module of the Nubaria power plant. A similar amount was granted by EIB in September 2002 for the first phase of the plant. The gas-fired plant, scheduled to come into operation in 2007, will serve the Cairo and Alexandria area.

EIB's financing of the power plant is part of the Bank's new Facility for Euro-Mediterranean Investment and Partnership (FEMIP). The goal of the FEMIP is to help Mediterranean partner countries meet the challenges of economic and social modernisation and regional integration as part of the run-up to the planned creation of a Euro-Mediterranean free trade area in 2010. It does that by promoting private sector development through the establishment of economic infrastructure, health and education schemes, which are essential for the development of a healthy private investment climate.