Army to finance major roadways due to lack of state funding

Due to lack of state financing, Egypt’s army now has the green light to undertake the construction of a major roadway at a cost of LE7 billion, according to the state-owned Middle East News Agency.

Defense Minister Abdel Fattah al-Sisi has approved the project for a roadway called the Rod al-Farag Axis, which falls under the “strategic projects funded and carried out by the Armed Forces,” MENA reported.

Construction of the roadway would cost a total of LE9 billion, of which the Armed Forces would pay LE7 billion. Meanwhile, the Housing Ministry will take on the work of research and expropriation of public utilities, worth LE2 billion, said MENA.

The Armed Forces’ Engineering Authority plans to carry out construction work on the roadway, which would span 30 km and have five lanes in both directions. Phase one should connect kilometer 40 of the Cairo-Alexandria Desert Road to the Ring Road.

Officials from the Giza governorate are currently holding coordination meetings with concerned parties implementing the project, said Giza Governor Aly Abdel Rahman.

“Over the past three years, the governorate has implemented a number of development and service projects within its means, but the Armed Forces has given new hope in carrying out strategic mega-projects, including the Rod al-Farag Axis,” Abdel Rahman added.

Egypt’s state finances have been in dire straits for the past three years, with a widening budget deficit that has at times left the state unable to meet import needs to cover basic commodities and fuel products.

The army’s economic activities, however, remain a clandestine issue, and it is therefore difficult to determine the size and health of its funds and operations. It is largely an autonomous institution, a fact that was cemented in the newly passed Constitution.

In December 2011, after the Supreme Council of the Armed Forces had taken over power from ousted President Hosni Mubarak, the military pumped US$1 billion of its own revenues into the Central Bank of Egypt. It was a measure meant to shore up dwindling foreign reserves, which then stood at US$20 billion — down from US$36 billion before the 2011 uprising.

On Monday, the Giza governor said the military would also construct a 25 km extension to the Ring Road at an additional cost of LE2 billion. Another LE2 billion project has also been approved for which the Armed Forces would finance and construct a 50 km roadway linking the Oases Road to the Desert Road over two phases, with a two-year timeframe.

A protocol is also in the works to be signed by the Defense and Housing Ministries for the construction of phase three of the Ring Road, from the Cairo-Fayoum Road to the Cairo-Alexandria Desert Road. Spanning 66 km, the roadway would cost LE1.4 billion, which the Housing Ministry plans to fully finance.

The Armed Forces would also take part in constructing the Kerdasa Axis, connecting the Saft al-Laban Road Axis to the Alexandria Desert Road, as well as constructing three bridges at a cost of LE200 million.

Four service projects in Kerdasa would also be financed by the military, including “sewage systems in housing areas, building a bakery for subsidized bread and building a sports center.” The governor added that the army is also currently constructing a youth center in Imbaba.