The Egyptian government has refused an offer from the Egypt Kuwait Holding (EKH) company to settle the dispute over the 26,000 acres of land of Ayyat, said Minister of Investment Ashraf Salman.
Salman added that they will begin a new round of negotiations in the near future.
The minister refused to disclose the points behind the conflict in the new offer, saying that “government is serious in concluding a quick and fair settlement of all investment disputes in a way that guarantees the right of the country and the serious investor.”
The dispute between the government and EKH erupted after the company sought to convert its activity on the disputed 26,000 acres land of Ayyat from agricultural use to urban.
“New negotiations will begin with determining the controversial points the dispute is about, and amount of compensation the company is demanded to pay,” added Salman.
Negotiations ground to a halt after the Egyptian government asked that the company to pay EGP 47bn in return for converting activity of 26,000 acres of land of Ayyat in Giza.
Of this amount, 25% will be paid in advance, while the rest will be paid in instalments on condition that the government agrees on all the company’s demands. This will especially affect the height of buildings, streets, and the green spaces as well as the investment projects which are planned to be established. This, however, has not taken place as yet.
“The government is keen to resolve conflicts with investors without further issues, in order to assure the business communities, whether national and international, and encourage them to work in Egypt,” added Salman. The government is serious for achieving the public benefit through reaching a negotiating solution.
The company demands that the government supply it with water as agreed, in order to cultivate land, or agree to use it for urban purposes, while the company will pay a fair amount in return for that.
Minister of International Cooperation Nagla Al-Ahwani announced at March’s Economic Summit in Sharm El-Sheikh that they have resolved 24 conflicts with investors, while there are still 11 conflicts to be resolved in the current period.