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Viewing cable 09CAIRO1840, EGYPT'S ECONOMY: September 23 PRESS ROUND-UP

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Reference ID Created Released Classification Origin
09CAIRO1840 2009-09-24 05:22 2011-08-24 16:30 UNCLASSIFIED Embassy Cairo
VZCZCXYZ0000
RR RUEHWEB

DE RUEHEG #1840 2670522
ZNR UUUUU ZZH
R 240522Z SEP 09
FM AMEMBASSY CAIRO
TO RUEHC/SECSTATE WASHDC 3690
INFO RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
UNCLAS CAIRO 001840 
 
SIPDIS 
 
STATE FOR NEA/ELA 
 
E.O. 12958:  N/A 
TAGS: ECON EINV EFIN ETRD EPET ENRG PGOV EG
SUBJECT: EGYPT'S ECONOMY: September 23 PRESS ROUND-UP 
 
1. (U) The following are notable economic news stories that appeared 
over the past week in the Egyptian press: 
 
----------------------------------- 
Cost of Subsidies Drops in July 2009 
----------------------------------- 
 
2. (U) A report by the Ministry of Finance showed that the cost of 
government subsidies in July fell 74% compared with July 2008. The 
subsidies bill in July 2009 was LE1.3 billion (US$236 million), down 
from LE5 billion (US$909 million) during the same period last year. 
Minister of Finance Youssef Boutrous Ghali attributed the decrease 
to the decline in the international prices of the subsidized food 
commodities such as wheat, oil, sugar, and tea along with petroleum 
products. (Al Ahram, 9/12/2009) 
 
------------------------------------ 
The World Bank Conditions Egypt's Concurrence for Funding Projects 
along the Nile 
------------------------------------ 
 
4. (U) The World Bank (WB) reiterated its position that it needs 
Egypt's agreement before funding water projects along the Nile in 
upstream countries.  Representatives from Ethiopia, Kenya, and 
Uganda accused the WB of being impartial and siding with the 
Egyptians and Sudanese interests over Nile water rights issues. 
Under the umbrella of the Nile Basin Initiative (NBI), the World 
Bank is providing grants of US$250 million and is working to make 
about US$1 billion available in loans for Nile projects (Al Shorouk, 
9/17/2009). 
 
----------------------------- 
Egypt Helps South Sudan in Water Projects 
----------------------------- 
 
5. (U) The Minister of Irrigation and Water Resources, Nasr Allam 
said that Egypt will assist the Sudanese government in the site 
selection and the construction of a multi-purpose dam in Southern 
Sudan.  This dam would provide irrigation for up to 40,000 feddans 
(41,520 acres) in an area called Waw, west of Bahr El Gazal basin. 
Other Egyptian projects in South Sudan include a river port in Waw 
and decontaminating water channels in Bahr El Ghazal (Al Ahram, 
9/15/2009). 
 
-------------------------- 
Natural Gas to Upper Egypt 
-------------------------- 
 
6. (U) The Minister of petroleum, Sameh Fahmi stated that the 
government would complete the final phase extending the national gas 
grid south to Aswan by the end of 2009.  The new section of the gas 
grid will be the longest section at 930 km (Al Ahram 9/15/2009). 
 
--------------------------- 
Telecommunication during the Month of Ramadan 
--------------------------- 
 
7. (U) The National Telecommunication Regulatory Authority (NTRA) 
announced that the fifty five million subscribers of the three 
wireless operators working in Egypt (MobiNil, Vodafone, and 
Etisalat) sent more than 130 million SMS Ramadan greetings during 
the few days before the start of Ramadan at a total cost of around 
LE37 million (US$6.72).  Competition between the three wireless 
operators has increased and pushed down the price of a regular 
wireless phone call during the month of Ramadan to 5 piasters per 
minute (0.9 cents) from the usual 25- 45 piasters (4.5 - 8.2 cents) 
per minute.  Egypt's fixed-line telephone monopoly Telecom Egypt 
(TE) lost significant income because of the lower prices offered by 
the wireless operators. Minister of Telecommunication and 
Information Technology, Tarek Kamel criticized the wireless 
operators for their price cuts, stating that the reduced prices 
might lead to a reduction in the quality of the service. He added 
that NTRA might impose fines and punitive measures on the cell phone 
companies if the "unrealistic" prices continue after the month of 
Ramadan (Al Masry Al Youm, Al Shorouk, Al Alam Al Youm, 9/14/2009, 
9/13/2009). 
 
Scobey