The current settlement between the Egyptian government represented in Ministries of Investment, Housing and the UAE-based Al-Futtaim Group is threatened to fail due to watchdog reports regarding violations worth billions of Egyptian pounds due to price differential, senior sources told Amwal Al Ghad.
The sources said the price differentials have been detected through the price of allocation, compared to the actual price of the plot which Al-Futtaim will establish Cairo Festival City (CFC) New Cairo Project.
The sources further added that the UAE firm allocated EGP 3.2 million for the plot in 1997; the firm signed a supplementary accord in January 2008 to allocate about EGP 287 million for extra plots. The total paid-up by Al-Futtaim reached EGP 589 million without indentifying the basis of the increase value, the company did not finalize the implementation of the project up till now, explaining that the value of price differential is up EGP 5 billion.
The sources have pointed out that Al-Futtaim failed to reach a settlement with Egypt’s successive governments formed since the 2011 revolution and till now, which suggested paying nearly EGP 450 million as a reconciliation with the state ,especially signing the settlement will make Al-Futtaim complete its extension plan throughout getting ministerial decisions and detailed plans of the administrative buildings II phase which includes 5 buildings on an area of 60 Km, as well as establishing 250 apartments and 140 villas with EGP 500 million total investment cost and 4 stars hotel with EGP 300 investment cost.
The sources called the banks which approved to provide EGP 1 billion to continue Cairo Festival City as a mortgage loan and to approve the settlement with the government so as not to let the deposits’ money face any risks.
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