Nipped in the bud LESS than a month after the Sidi Abdel-Rahman land acquisition deal was signed with the Egyptian government, the partners in Emaar Misr decided to break up, reports Sherine Abdel-Razek. According to a press statement issued by Emaar Properties, the owner of 40 per cent of Emaar Misr, it will buy out its Egyptian partner ARTOC Group's 60 per cent stake in the infant company for an undisclosed sum. In the press release, Chairman of Emaar Properties Mohamed Ali Alabbar said that the transfer of shares must be concluded by 27 March. Both companies declined to comment on the news when contacted by Al-Ahram Weekly, preferring to wait until the deal is finalised. Meanwhile, ARTOC Group's press release did not mention the group's pulling out of the deal. "After months of extended negotiations between ARTOC Group for Investment and Development with Emaar Properties about restructuring the capital ownership in this joint venture, both partners arrived to a framework agreement," it stated. The agreement whose clauses remain under wraps at the present time, entails several conditions and clauses of implementation including the listing of Emaar Misr shares in the Cairo and Alexandria Stock Exchange (CASE). Emaar Misr sent a letter to the Holding Company for Tourism (HCT) assuring it that the ongoing conflict between the partners will not affect the implementation of the company's Sidi Abdel-Rahman mega tourism project known as Marasi. In August 2006, Emaar Misr won a bid to purchase 6.25 million square metres of prime land on Egypt's North Coast in a deal worth LE1.6 billion, and is expected to complete the project in under six years from the start of construction. As the majority shareholder, ARTOC said it maintains all its responsibilities towards Emaar Misr and its projects, and continues to provide all the needed administrative and financial support, the government's reaction to the break-up was anything but conservative. Addressing parliament's Economic Affairs Committee, Minister of Investment Mahmoud Mohieddin noted that the government is closely monitoring the development of the Sidi Abdel-Rahman property, and will take "the necessary steps" without consulting the partners, if the 27 March deadline passes without any clarification of the situation. In an obvious threat that the government might take the land back, Mohieddin stressed that the Sidi Abdel-Rahman deal was not just a land sale between the government and Emaar Egypt, but an overall development project in that area. Emaar plans to announce two new major projects in Egypt, the details of which have not yet been disclosed. One such project is Up-Town Cairo on the Muqattam Hills, covering over four million square metres with an overall investment of $4 billion. Pipeline to Lebanon MINISTER of Petroleum and Mineral Resources Sameh Fahmi met Lebanese Minister of Public Works and Transportation Mohamed Safdi on Sunday to discuss further cooperation in the field of gas and petroleum exploration and extraction. The two officials agreed to extend the Arab gas pipeline from southern Syria to northern Lebanon to supply Lebanon's electricity stations with Egyptian gas. Safdi underlined the fact that Lebanon is in dire need for Egyptian natural gas to eliminate the costs of burning fuel to generate electricity. Both countries will work jointly in the field of compressed natural gas, and will also study the possibility of establishing a joint venture for transporting gas. A joint team with experience in the field of constructing, operating and maintaining natural gas networks will be formed to carry out similar projects in Lebanon. Egyptian experts will also inspect operating refineries to study the possibility of upgrading their efficiency, as well as enlarging storage capacity to cover growing demands. The construction of the third phase of the Arab gas pipeline is currently underway, and by the end of the year will have reached the Syrian city of Hems. From there, a pipeline will be extended to the north of Lebanon.
