The Ministry of Housing, Utilities and Urban Development agreed to allocate land in newly established industrial zones to the Ministry of Trade and Industry. The ministry will reportedly only be charged for utilities installation at the new properties.
The Industrial Development Authority (IDA), according to its president Amr Asal, will seek alternative sources for financing the land acquisition through the Ministry of Finance or the Trade Ministry’s utilities fund.
Housing Minister Ahmed al-Maghraby approved the allocation while citing the higher costs for utilities installation at the industrial zones when compared to residential areas, sources told Al-Masry Al-Youm. The ministry typically finances 70 percent of utility costs, with investors paying the 30 percent dividend.
Asal said he understood the Housing Ministry’s demand, noting that its budget is already overburdened with financial commitments for housing projects and utilities provisions.
An official source at the Urban Communities Authority said current negotiations with the Finance Ministry seek a gradual raise in the land’s selling price over the next 3 to 5 years in order for its value to reach the cost of purchase.
The average land price at industrial zones ranges between LE95-LE110 per meter. But in the case that an industrial developer bears the cost for utilities in favor of an investor, the meter jumps to LE300, with an annual increase in value reaching 15 percent.
Translated from the Arabic Edition.
