Orascom Development Egypt (ODE) has signed a $151 million milestone agreement with the Egyptian authorities regarding its flagship project El Gouna which will further ODE’s strategy and efforts to drive growth, the company said on Wednesday.
The agreement will allow Orascom to develop about 1.2 million square metres of connected lagoons and build 1,000 hotel rooms every 10 years, according to the statement.
It will also reduce the shoreline setback for the remaining land bank from 200 meters to 105 meters, which allows ODE to make commercial use of the most prime land of the destination.
The master agreement will enable ODE to bring in world-class partners to accelerate its vision for El Gouna as a leading, global destination, says Naguib Sawiris, chairman of Orascom Development Holding.
ODE announced that it would finance the deal through its cash and equivalent balances, which stood at 141 million Swiss francs ($152 million) in 2022, and will take out a $30 million from its main shareholder and use cash from future operations.
