Japanese grant
Egyptian-Japanese relations get a new boost.
Mona El-Fiqi reports
Minister of State for Foreign Affairs and International Cooperation Fayza Abul-Naga last week signed an agreement for a non-project grant with Kazuyoshi Urabe, the Japanese ambassador to Egypt.
Provided by the Japanese government to support Egyptian imports of essential commodities, the non-project grant is worth $27 million.
The aim of the grant, according to Abul-Naga, is to help the government's efforts in economic reform and to support the Egyptian balance of payments.
In a press conference, Abul-Naga added that the grant is the first of its kind since the Japanese aid programme started in Egypt in the mid-1970s.
Japanese economic assistance to Egypt has traditionally been in the form of grants and loans for specific projects but this grant is different: "The Egyptian government has the right to decide according to its priorities in what sector the grant can be used," Urabe explained.
Abul-Naga said that the grant will be provided to finance imports for the Ministry of Transportation, Ministry of Industry and Ministry of Public Enterprise.
The extraordinary non-project grant comes as a result of close economic and trade ties between the two countries. According to Abul-Naga "the value of the grant, which is above the normal levels, expresses the great concern of Japan for the economic and social development in Egypt."
The total annual value of Japanese economic assistance to Egypt is expected to reach $50 million in the fiscal year 2003/2004, which is double the value of last year's figure.
Moreover, a bilateral cooperation programme to provide medical assistance to Iraq started last week. Located in Egypt and financed by Japan, the programme provides a training course for about 100 Iraqi physicians.
There are a number of joint Egyptian-Japanese projects in the pipeline, according to Abul-Naga, including building a new museum, developing the Borg Al-Arab airport, establishing an Egyptian organisation for promoting exports, providing technical training for schools and supporting the textiles sector.
