China Fortune Land Development (CFLD) is still in negotiations with Administrative Capital for Urban Development (ACUD) to develop 14,000 feddans in the New Administrative Capital through a usufruct system for 25 years, according to ACUD spokesperson Khaled El Hosseini.
CFLD intends to develop an integrated industrial city inside the capital with investments reaching approximately $20bn, according to Egypt’s Industrial Modernisation Centre (IMC).
El Hosseini told Daily News Egypt that ACUD does not seek industrial activities in the first phase of the capital, as the first phase is specified for residential, commercial, and administrative activities.
He explained that CFLD applied to obtain the land in the second phase of offering, and once the two parties reach an agreement, CFLD will begin the implementation of its project without waiting for the official launch of the second phase offering.
El Hosseini pointed out that the company is studying mechanisms of contracting on the mentioned area, especially since part of the 14,000 feddans will be allocated for industrial activity, adding that ACUD will not waive the requirement that industries established inside the capital be non-polluting to the environment.
He explained that negotiations are currently underway with the Chinese company on the price per square metre and the percentage of partnership and profits that ACUD will receive from the project, as well as obtaining cash from the Chinese company in dollars.