Representatives from China Fortune Land Development (CFLD) will be meeting with the Egyptian Ministry of Housing, Utilities, and Urban Communities in the upcoming days to discuss the pricing for the first phase of land offered in the new Administrative Capital, reported Al Borsa.
The total area of land in the first phase measures 14,000 acres, at an investment cost of $20 bn. The Administrative Capital Development Company has prepared land pricing recommendations and expected revenues for 2,400 acres of lands offered in the first phase that will be developed in partnership with CFLD, unnamed government sources told Al Borsa.
The pricing was undertaken following the flotation of the Egyptian pound against the US dollar, and takes into account the cost of facilities and each company’s percentage in the project.
The Administrative Capital Development Company will receive a share from 30% to 40% of the development, with the final value to be approved after negotiating with the Chinese company regarding land pricing.
The Investment and the Housing Ministries previously signed a contract with CFLD to develop 14,000 acres of land in the Administrative Capital over three phases.
The first phase will include developing 10 km of lands that will be completed in 2018 for foreign investments worth $5 bn, while the second phase set to include developing 20 km that will be completed in 2020.