The New Urban Communities Authority (NUCA) will introduce new procedures to put forward and award partnership projects with the private sector after the unified investment law is issued.
The new law allows for the offering of investment lands through the single-window at the Ministry of Investment.
A source at the Ministry of Housing told Daily News Egypt that the new partnership projects will be announced through the one-stop shop, following suit with the latest tender for 65 pieces of investment lands of 1,500 acres.
The source advised that previous partnership projects were promoted by inviting a number of major real estate contractors to undertake partnerships with the authority. Proposals were evaluated and the winning company was awarded the project by a decision from NUCA’s Board of Directors, and the memorandum of understanding (MoU) was signed before the final contract.
NUCA signed six MoUs in February 2015, before the investment law was issued later that year in March. The winning company was announced during the Economic Summit in Sharm El-Sheikh, where negotiations resumed.
Four contracts were signed at a value of EGP 130bn. Two of those contracts were with the alliance of the Egyptian Mountain View, and Saudi Sisaban Holding in New Cairo on an area of 500 acres, and in 6th of October City at an area of 470 acres.
The third contract was signed with Al-Arabia Real Estate for a project of hotel city in 6th of October City on an area of 557 acres. The fourth contract was signed with Palm Hills Development to develop a 500-acre real estate project in New Cairo.
Sources said the new procedures for announcing lands for investment, the requirements of competing companies, and rules of awarding will be prepared soon in cooperation with the Ministry of Investment. These will be different from the current rules regulating auctions on real estate investment lands.
The source said the new real estate by-law includes regulations for partnerships projects, such as specifying the category of developers to partner with NUCA, and allowing partnership projects to be offered through public auction or closed envelopes. In the last scenario, the auction will rely on NUCA’s share of the project’s revenue and the advance of the land price, if it exists.
Moreover, partnerships will be determined through one of the two systems, whether in return for a rate of the project’s revenues, or for ownership of part of the project itself. The contracts will be ratified by a decision from NUCA’s Board of Directors.
The source explained that the new procedures will be used to award projects that NUCA aims to implement in cooperation with real estate investors in new cities and the new Administrative Capital.
Minister of Housing Mostafa Madbouly offered Saudi Arabian investors 22 projects in the administrative capital and in New Cairo, 6th of October City, Sheikh Zayed, New El Alamein City, Sadat City, Shorouk City, New Aswan, and New Damietta.
This offer was made during his last visit to Saudi Arabia to attend the meetings of the Egypt-Saudi Coordinating Council.