CAIRO: The Arab Contactors is set to build 15 wheat silos in 11 governorates with the total value of 2.2 billion EGP, according to Mohsen Salah, chairman of the company’s board, Ahram reported Saturday.
The 15 wheat silos will be built funded by two sources, he said, adding that the first is by UAE financing valued at 1.6 billion EGP for building 9 wheat silos in 14 months with a 60,000-ton capacity each, while the second will be financed by the Egyptian government within 18 months with a total value exceeding 650,000 EGP that will be used to build 6 silos.
This came following the October 2013 UAE $4.9 billion grant for establishing 25 wheat silos with a total collective capacity of 1.5 million tons to help prevent the loss of billions of dollars worth of wheat each year, while the other came within the national program to build 50 wheat silos, he said, adding “Egypt wants to boost its storage capacity in the strategic wheat sector to reduce reliance on imports.”
Millions of low-income Egyptians rely on government subsidized bread, but a wasteful and corrupt distribution system strains government finances.
Along with Saudi Arabia and Kuwait, the UAE pledged more than $12 billion in loans and donations after former army chief Abdel Fatah al-Sisi ousted Islamist President Mohamed Morsi last July following mass protests against the latter’s rule.