Ahmed Abdel Razek, head of the Industrial Development Authority (IDA), signed a protocol with Polaris Al Zamil (PZIP) and SDM for Development and Management for the allocation of two industrial zones through the industrial developer system in Sadat City on an area of 2.8m sqm split in half between the two companies.
Abdel Razek said that signing these contracts comes within the framework of the implementing the Ministry of Trade and Industry plan, represented by the Industrial Development Authority, to put forward 8m sqm of industrial lands through the industrial developer system, including 4m sqm in Sadat City and 4m sqm in 10th of Ramadan City.
He added that during the next few days, the contract for the allocation of the third zone will be signed with the Central Bank of Egypt (CBE) on an area of 1.1m sqm, which would total 3.9m sqm for the three companies.
He explained that under these contracts, the IDA will hand over the land to the developer after the approval of the master plan, within a maximum period of six months. The developers will then be granted two years to complete all the development and rehabilitation of infrastructure and services for the total area.
He added that the services provided by the developer within the industrial zone include the establishment of an administrative building for the management of the industrial zone, a medical clinic, an equipped training centre, a child care centre, a firefighting station, security services, and an industrial sewage treatment plant, along with a civil defence system for the area.
“The experience of the industrial developer proved successful during the last period. The introduction of the land by the industrial developer system enabled rapid implementation of the state plans and the Ministry of Trade and Industry’s strategy of providing full industrial land facilities through a successful and balanced partnership with giant private sector entities. This is next to the efforts of the state to meet the needs of the industrial sector of lands without any additional burden on the state budget for the establishment,” Abdel Razek said.
The latest offering of industrial developer land was in 2010.
According to Abdel Razek, the next phase will see the activation of the role of the industrial developer as a key partner in the implementation of industrial development plans targeted by the Ministry of Trade and Industry, noting that the process of allocation and contracting of 4m sqm in Sadat and the 10th of Ramadan cities will soon be completed.
He added that the IDA has made some modifications and improvements to developer contracts, thus creating a transparent, fair relationship between the state and the private sector within a sound regulatory and legal framework, which contributes to providing the lands with utilities for business at fair prices through a continuous follow-up by the IDA, and within a precise timetable for specific delivery dates.
Since the inauguration of the industrial developer system in 2007, 12 industrial and services zones of 15m sqm were established, which included 983 factories and 168 service facilities at a total investments of EGP 25bn that created 132,000 jobs.