Implementation Program of Ship-breaking Project In The Arab Republic of Egypt
This report presents an implementation program for the Suez Ship-breaking Project with information on the national economy, the operation of Suez Canal Authority (SCA), project formulation, project cost estimate, and financial evaluation.
The project is composed of:
a) construction of ship breaking dock and a wharf,
b) construction of oil treatment plant,
c) re-rolling factory,
e) procurement of heavy machine,
f) other facilities.
This report facilitate a loan application to be made by the Government of Arab Republic of Egypt to the Overseas Economic Corporation Fund (OECF) in Tokyo, Japan.
1.2.1 Outline of Egypt
During the presidency of Gamal Abdel Nasser, the economy of Egypt was radically socialized. Beginning in 1961, foreign trade, banking, insurance, and most wholesale and industrial establishments were nationalized. Those sectors which remained in private hands were placed under heavy regulatory restraints. Industry was expanded and production increased according to a five-year plan. Inadequate foreign investment, a sluggish bureaucracy and the disastrous 1967 Arab-Israeli War subverted subsequent development programs until a process of economic reform was inaugurated by Abdel Nasser's successor, Anwar Sadat, in the aftermath of the October War of 1973.
By reversing many of Abdel Nasser's policies and opening Egypt to foreign investment, Sadat began a gradual revival of the Egyptian economy that was significantly enhanced by remittances from Egyptians working in the surrounding oil producing countries. The very slow but sure relaxation of import, currency and trade restrictions stimulated Egypt's foreign exchange economy. Tourism, which had fallen off drastically during Abdel Nasser's time due to Egypt's anti-western stance and poor tourist infrastructure, was restarted with the privatization of many nationalized tourist facilities.
Sadat's dramatic peace initiative and treaty with Israel transformed the western view of the Arab leader and his country and further enhanced the country internationally, although the gesture was motivated by more practical considerations: Egypt couldn't afford another war with Israel. Despite many advances the country has witnessed under President Hosni Mubarak, Egypt continues to suffer from the vagaries of regional instability and its exploding population. Government leaders openly admit that population growth is undermining all efforts toward developing the country's economy. This situation is further aggravated by consumerism.