Egypt faces more delays in funds to build new capital
The consortium of Chinese banks funding the lion’s share of Egypt's new administrative capital has delayed delivery of the loan until Egypt provides more proof of its ability to repay the funds.
Money issues continue to plague Egypt's plans for a new administrative capital.
Egypt has yet to meet multiple conditions attached to China’s $3 billion loan facility to design and construct the proposed new capital's central business district, an Egyptian government source told Al-Monitor.
The source, who declined to be named because of the sensitivity of his position, said the Chinese banks’ insistence on overcomplicated payment guarantees is obstructing disbursement of the $834 million first tranche of the loan. Egypt was expected to obtain that tranche in January. The Egyptian government is working to resolve this dispute and hold talks to rush the disbursement, the source explained.
“The Chinese side has concerns about whether [Egypt] is capable of reimbursing the loan and through what means, in addition to the debt scheduling. Nevertheless, negotiations are underway with the Chinese side to address these unjustified concerns and ease the loan disbursement measures, which the consortium of Chinese banks funding the project has imposed," the source said.
