(MENAFN- Daily News Egypt)
The Egyptian government has raised $1.9bn from its Asset Monetisation Programme, according to Prime Minister Mostafa Madbouly. Of this amount, $1.65bn was obtained in US dollars and $250m was obtained in Egyptian pounds.
Madbouly announced the figure during a press conference on Tuesday, in which he said that the government aims to raise another $1bn in the near future. He explained that the government intends to use the proceeds from the Asset Monetisation Programme to support the private sector in various economic activities, as well as to increase Egypt's foreign currency resources.
Egypt's Minister of Planning Hala El-Said also spoke at the press conference, providing more details about the Asset Monetisation Programme. She said that the government has offered 25-30% minority stakes in three government-owned companies: Egyptian Ethylene and Derivatives Company (ETHYDCO), Egyptian Drilling Company (EDC), and Egyptian Linear Alkyl Benzene Company (ELAB). The contract for these stakes was awarded to the Abu Dhabi Development Holding Company (ADQ) for $800m.
She added that the Arab Company for Hotels and Tourism Investment (ICON), a subsidiary of TMG Holding, has allied with a foreign investor. Then the alliance participated in increasing the capital of the newly established Holding Company for Tourism and Hotels by 37% and a value of $700m.
The company includes 7 hotels: Cairo Marriott, Aswan Cataract, Haram Mena House, Luxor Winter Palace, Alexandria Cecil, Movenpick Aswan, and Elephantine Aswan.
El-Said added that minority stakes in three government-owned companies were offered ranging from 25% to 30%, namely Egyptian Ethylene and Derivatives Company (ETHYDCO), Egyptian Drilling Company (EDC), and Egyptian Linear Alkyl Benzene Company (ELAB), and the contract was awarded to the Abu Dhabi Development Holding Company (ADQ) for $800m.
She explained that several public fund shareholders exited from Al Ezz Dekheila Steel Company by 31% and a value of $241m, with 60% of the deal value paid in US dollars and 40% in Egyptian pounds.
El-Said also revealed that the government has received several non-binding offers to acquire the Gulf El Zayt Wind Power Plant Project. One of these companies has been awarded due diligence, which is expected to take 60 days. The deal value is expected to exceed $300m, and the final award is expected to be made in October.
Moreover, El-Said declared that the government has received 6 non-binding offers to acquire the military-owned Wataniya Petroleum. Three other companies are currently being evaluated, and the final award is expected to be made in November.
She pointed out that 21 water desalination plants were offered, with investments of $3bn, and the first phase of the offering will end in 2024, attracting 90 investors from 30 countries.
El-Said added that the Sovereign Fund of Egypt will complete the award of one of the Siemens stations during the first quarter of 2024.
The Asset Monetization Programme is part of the government's State Ownership Policy (SOP), a new framework rolled out in December 2022 aiming to empower the country's private sector across sectors to spur economic growth.
In June, Egypt appointed International Finance Corporation (IFC) as the strategic advisor for the government's Asset Monetization Programme, which will focus on harnessing private capital and know-how to manage state-owned assets.