&w=3840&q=100)
Egypt's new capital city to be built, operated by Chinese construction firm
Egypt is getting a new capital — and China is building it. The China State Construction Engineering Corporation (CSCEC), a state-owned Chinese firm, has signed an agreement to operate and maintain the central business district (CBD) of Egypt's new administrative capital, according to the South China Morning Post. CSCEC is also the main contractor responsible for constructing the district.
Egypt is constructing a new administrative capital (NAC), located approximately 45 kilometres east of Cairo, to alleviate the congestion and pollution of the current capital. This ambitious project, part of Egypt's Vision 2030, aims to house over six million people and serve as the country's new political and administrative hub.
Spanning 700 square kilometres, the NAC includes a $3.8 billion CBD featuring 10 office towers, five residential skyscrapers, and four hotels. Its centrepiece is the 385.8-metre Iconic Tower, now the tallest building in Africa. The district will also include supporting infrastructure and smart city features.
CSCEC's newly expanded role will go beyond construction. Through a joint venture called Horizon Operations Management (Egypt) Co Ltd, the company will oversee services such as property management, utilities, public cleaning, security, green space maintenance, and environmental monitoring. This marks a shift toward the build-operate-maintain model that Chinese firms are increasingly adopting in infrastructure projects across Africa.
14 ministries already moved to Egypt's NAC
Egypt has already started moving government operations to the new city. As of May 2023, 14 ministries and other state bodies had relocated. President Abdel Fattah al-Sisi inaugurated the NAC as the seat of government on 2 April 2024, shortly after the start of his third term.
China's role in the project also includes significant financing. Around 85 per cent of the CBD's funding comes from Chinese lenders, including a $2.2 billion loan from a consortium led by China Exim Bank. In addition, Egypt's Arab Contractors Company and CSCEC have formed a joint venture to collaborate on further projects across the continent.
Capital city vs administrative capital
A capital city typically serves as the centre of governance and is symbolic of national identity. It usually hosts the executive, legislative, and judicial branches, along with being a cultural or economic hub.
An administrative capital, by contrast, is where the day-to-day functions of government are carried out, such as housing ministries, agencies, and civil services. In some countries, this is a separate city from the official or historical capital.
South Africa, for instance, has three capitals: Pretoria (administrative), Cape Town (legislative), and Bloemfontein (judicial). Malaysia relocated its administrative capital from Kuala Lumpur to Putrajaya in the 1990s, while Kuala Lumpur remains the national capital.
New smart capital signals strategic shift
Egypt is following a similar model. While Cairo will remain the capital in name, the country is relocating its core government functions, including ministries and public administration, to the newly built New Administrative Capital.
The New Administrative Capital is designed as a smart city, with technology integrated into public services and infrastructure. Its development also reflects Egypt's economic ties with China, aligning with Beijing's Belt and Road Initiative.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
35 minutes ago
- Time of India
Auto companies 'in full panic' over rare-earths bottleneck
Frank Eckard, CEO of a German magnet maker, has been fielding a flood of calls in recent weeks. Exasperated automakers and parts suppliers have been desperate to find alternative sources of magnets, which are in short supply due to Chinese export curbs. Some told Eckard their factories could be idled by mid-July without backup magnet supplies. "The whole car industry is in full panic," said Eckard, CEO of Magnosphere, based in Troisdorf, Germany. "They are willing to pay any price." Car executives have once again been driven into their war rooms, concerned that China's tight export controls on rare-earth magnets - crucially needed to make cars - could cripple production. U.S. President Donald Trump said Friday that Chinese President Xi Jinping agreed to let rare earths minerals and magnets flow to the United States. A U.S. trade team is scheduled to meet Chinese counterparts for talks in London on Monday. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Small Electric Car for Seniors in Iraq: Prices That Will Surprise You Electric Cars | Search Ads Undo The industry worries that the rare-earths situation could cascade into the third massive supply chain shock in five years. A semiconductor shortage wiped away millions of cars from automakers' production plans, from roughly 2021 to 2023. Before that, the coronavirus pandemic in 2020 shut factories for weeks. Those crises prompted the industry to fortify supply chain strategies. Executives have prioritized backup supplies for key components and reexamined the use of just-in-time inventories, which save money but can leave them without stockpiles when a crisis unfurls. Live Events Judging from Eckard's inbound calls, though, "nobody has learned from the past," he said. This time, as the rare-earths bottleneck tightens, the industry has few good options, given the extent to which China dominates the market. The fate of automakers' assembly lines has been left to a small team of Chinese bureaucrats as it reviews hundreds of applications for export permits. Several European auto-supplier plants have already shut down, with more outages coming, said the region's auto supplier association, CLEPA. "Sooner or later, this will confront everyone," said CLEPA Secretary-General Benjamin Krieger. Cars today use rare-earths-based motors in dozens of components - side mirrors, stereo speakers, oil pumps, windshield wipers, and sensors for fuel leakage and braking sensors. China controls up to 70% of global rare-earths mining, 85% of refining capacity and about 90% of rare-earths metal alloy and magnet production, consultancy AlixPartners said. The average electric vehicle uses about .5 kg (just over 1 pound) of rare earths elements, and a fossil-fuel car uses just half that, according to the International Energy Agency. China has clamped down before, including in a 2010 dispute with Japan, during which it curbed rare-earths exports. Japan had to find alternative suppliers, and by 2018, China accounted for only 58% of its rare earth imports. "China has had a rare-earth card to play whenever they wanted to," said Mark Smith, CEO of mining company NioCorp, which is developing a rare-earth project in Nebraska scheduled to start production within three years. Across the industry, automakers have been trying to wean off China for rare-earth magnets, or even develop magnets that do not need those elements. But most efforts are years away from the scale needed. "It's really about identifying ... and finding alternative solutions" outside China, Joseph Palmieri, head of supply chain management at supplier Aptiv, said at a conference in Detroit last week. Automakers including General Motors and BMW and major suppliers such as ZF and BorgWarner are working on motors with low-to-zero rare-earth content, but few have managed to scale production enough to cut costs. The EU has launched initiatives including the Critical Raw Materials Act to boost European rare-earth sources. But it has not moved fast enough, said Noah Barkin, a senior advisor at Rhodium Group, a China-focused U.S. think tank. Even players that have developed marketable products struggle to compete with Chinese producers on price. David Bender, co-head of German metal specialist Heraeus' magnet recycling business, said it is only operating at 1% capacity and will have to close next year if sales do not increase. Minneapolis-based Niron has developed rare-earth free magnets and has raised more than $250 million from investors including GM, Stellantis and auto supplier Magna. "We've seen a step change in interest from investors and customers" since China's export controls took effect, CEO Jonathan Rowntree said. It is planning a $1 billion plant scheduled to start production in 2029. England-based Warwick Acoustics has developed rare-earth-free speakers expected to appear in a luxury car later this year. CEO Mike Grant said the company has been in talks with another dozen automakers, although the speakers are not expected to be available in mainstream models for about five years. As auto companies scout longer-term solutions, they are left scrambling to avert imminent factory shutdowns. Automakers must figure out which of their suppliers - and smaller ones a few links up the supply chain - need export permits. Mercedes-Benz, for example, is talking to suppliers about building rare-earth stockpiles. Analysts said the constraints could force automakers to make cars without certain parts and park them until they become available, as GM and others did during the semiconductor crisis. Automakers' reliance on China does not end with rare earth elements. A 2024 European Commission report said China controls more than 50% of global supply of 19 key raw materials, including manganese, graphite and aluminum. Andy Leyland, co-founder of supply chain specialist SC Insights, said any of those elements could be used as leverage by China. "This just is a warning shot," he said.
Time of India
36 minutes ago
- Time of India
US-China talks in London: Rare earths, export curbs on table
Talks between the US and China kicked off in London on Monday, with the US signaling a willingness to remove restrictions on exports in exchange for assurances that China is easing limits on rare earth shipments. The Trump administration expects that "after the handshake" in London, any export controls from the US will be eased and rare earths will be released by China, Kevin Hassett , head of the at the White House's National Economic Council, told CNBC. It was the clearest signal yet that the US is willing to offer such a concession. The first round of negotiations since the teams met a month ago is aimed at restoring confidence that both are living up to commitments made in Geneva. During those discussions, Washington and Beijing agreed to lower crippling tariffs for 90 days to allow time to hammer out ways to address a trade imbalance that the Trump administration blames on an unfair playing field. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Windows Users Don't Forget To Do This Before Monday Read More Undo Aim is to Dodge Clash The confusion after the Geneva meeting about China's rare earth export-permitting process, combined with US limits on tech shipments and Washington's recent crackdown on Chinese student visas, underscore the complexity of deal-making between China and the US. Live Events "They left too many things open to interpretation," said Josh Lipsky , chair of international economics at the Atlantic Council. The US and China "just want to get back to where they were in Switzerland with a few more agreements down on paper to understand what is gonna be licensed, what gets permitted, what doesn't," he added. A phone call last week between President Donald Trump and his counterpart Xi Jinping appeared to give fresh momentum to reviving talks and reaching a deal. On Monday at London's Lancaster HouseUS Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer will meet a Chinese delegation led by Vice Premier He Lifeng. The addition of Lutnick, who's in charge of curbs on the sale of advanced technology, signals Trump may be willing to consider reversing some of the restrictions that threaten to hobble China's long-term growth ambitions, ranging from tech supplies to jet engine parts.
NDTV
an hour ago
- NDTV
Wall Street Investors Wait And Watch As US, China Hold Trade Talks In UK
Wall Street stocks were little changed early Monday as investors awaited details from trade talks between the United States and China in London. The Dow Jones Industrial Average edged down 0.1 percent to 42,710.60, while the broad-based S&P 500 Index was flat at 5,999.11. The tech-heavy Nasdaq Composite Index crept up 0.1 percent to 19,550.16. There is "some optimism that momentum could be maintained" in the markets, with the S&P 500 not far from a new all-time high, said Sam Stovall of CFRA Research. "But we'll have to wait and see whether the economic data, the trade negotiations will continue to be supportive," he added. On Monday, representatives from the world's two biggest economies gathered in London for trade talks. A US delegation led by Treasury chief Scott Bessent, Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer began a round of negotiations with a team headed by Chinese Vice Premier He Lifeng. All eyes are on whether both sides can reach a longer-lasting truce, after temporarily de-escalating staggeringly high tariffs in May. But tensions over export controls underscore the challenges that both countries are grappling with. Markets will also be monitoring US inflation figures due midweek. Among individual companies, shares of Warner Bros. Discovery surged more than 12 percent in early trading after it announced Monday that it will split into two companies as it seeks to build up its streaming business.
