Egyptian President Abdel Fattah Al-Sisi has tightened the deadline on the construction of the new Suez Canal project.
The project, which will cost US$4 billion, involves digging a 72-kilometre canal alongside the original channel in order to attract more ships and expand trade. The expansion was initially scheduled for completion in three years however Al-Sisi has called on the army’s engineering corps, who will directly supervise the project, to conclude it in one year because of “the deteriorating security” which could threaten the project. According to Armed Forces spokes person, Mohamed Samir, they have added 16 companies to work on the Suez Canal axis, with a total of 33 Egyptian civilian companies specialising in excavation work. Two engineering corps military brigades were also added to accomplish the 36 months of work in just 12 months. Speaking at a press conference, the Chairman of the Suez Canal Authority Mohab Memish, said once the project is completed revenues from the Suez Canal will jump from US$5 billion dollars to US$12.5 billion annually.
According to Memish work on the project will involve 35 kilometres of “dry digging” and 37 kilometres would be “expansion and deepening”, indicating the current Suez Canal, which is 163 km long, could be widened as part of the project.
This project forms part of a broader plan by the Egyptian government to increase the role of the Suez Canal region in international trading, and to develop the three canal cities: Suez, Isimailia and Port Said. The Suez Canal is the first canal that directly links the Mediterranean Sea to the Red Sea and is considered to be the shortest link between the east and the west due to its unique geographic location. Funding for the project will come from investment certificates and domestic debt, according to Ibrahim Mahlab, Egyptian Prime Minister. He said that three banks namely Banque Misr, National Bank of Egypt, and Banque du Caire would issue the 5-year certificates with a 12 per cent interest rate and quarterly dividends.
