Egypt closes bid on cement licences on weak offers

Egypt closes bid on cement licences on weak offers
Published: 05 July 2010

Egypt’s Industrial Authority closed a bid for two cement production licences on Thursday as the one offer it received failed to meet its requirements, the authority’s head said on Saturday.

Egypt re-opened bidding for cement licences previously held by El Wadi Cement and North Sinai Cement after the firms had permits withdrawn late last year over start-up delays and financing shortfalls.

The new bid deadline was last Thursday.

"The authority has received one offer from Horus Cement (a subsidiary of investment bank Naeem Holdings), and it did not have a complete financial guarantee," Amr Assal told Reuters on Saturday.
The authority will meet on Monday to discuss the licenses, he said.

Remco for Touristic Villages Construction, which had expressed interest in the bid, did not officially apply, Assal said.

Assal had said the Industrial Authority wanted to attract investment in textiles, food processing, chemicals and other industries as part of Egypt’s effort to double exports to 200 billion Egyptian pounds by 2013.

Egypt’s construction industry has grown although it stalled elsewhere in the region. Cement demand rose 25 percent last year, driven largely by the housing needs of a growing population and a cash-fuelled economy.