Egypt to reissue two licences

Egypt to reissue two licences
Published: 15 April 2010

Egypt said it is to reissue production licences to two cement companies that had their licences scrapped.

El Wadi Cement and North Sinai Cement had their licences cancelled late last year over start-up delays and financing shortfalls, but were granted 60 days to challenge the decision.

While the firms did not meet the conditions during the appeals period, they have since pushed to secure financing to help get their projects off the ground.

“The licences will be reissued in the same areas to ensure sustained development and the flow of investment to those two areas,” Amr Assal, head of the Industrial Development Authority, told Reuters

The new licences will be issued in May, he added.

In February, El Wadi said it had secured a US$328m loan from Liechtenstein bank LLB to build a 1.5Mta cement factory.

Assal said North Sinai Cement, which is t o build its plant in central Sinai with investments worth E£17bn had also secured financing.