Gov’t mulls establishing new authority to manage Downtown Cairo revamp: The government has proposals in the works to establish a new independent authority that would be responsible for managing, operating, and realizing Downtown Cairo’s potential following its restoration, government sources tell EnterpriseAM.

Remember: The Sovereign Fund of Egypt is in charge of a plan to revamp Downtown Cairo, which it is developing alongside the European Bank for Reconstruction and Development and two other international advisers.

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Madbouly highlighted Downtown revamp as one of two mega tourism projects in the pipeline: “We are currently putting the final touches on two very large tourism projects with the aim of doubling hotel capacity in the area surrounding the Giza Pyramids, the Grand Egyptian Museum, and downtown,” Prime Minister Moustafa Madbouly said last month.

The plan for the area includes the privatization of former ministerial HQs: With government ministries and authorities moving to the new capital, the government has sought to find ways to take advantage of its numerous now empty properties in the heart of downtown. The government transferred its ownership of a set of ministerial headquarters to the Sovereign Fund of Egypt last year in its efforts to sell off or repurpose the properties, which included the headquarters of the Foreign Ministry on the Nile Corniche, the headquarters for the ministries of trade, tourism, transport, justice, education, housing, health, supply, social solidarity, and military production.

The Mogamma may also soon be a place you actually want to visit: Work is underway to turn the Mogamma Tahrir building into a 450-room, five-star hotel under the brand Cairo House Hotel.

There’s even been talk of a skyscraper: Former SFE boss Ayman Soliman in comments to thepress “did not rule out” reports that a skyscraper could be constructed on the former headquarters of the National Democratic Party next to the Egyptian Museum. The former Interior Ministry compound will be turned into a business park that will cater primarily to startups and tourism and is set to include a three-star Moxy hotel by Marriott, Soliman added.

But economic headwinds over the last several years have presented setbacks: As a case in point, back in August a consortium of the UAE’s Al Shafar General Contracting (ASGC) Group and Saudi Egyptian Developers (SED) backed out of an agreement to work on the USD 5 bn redevelopment of the former National Democratic Party (NDP) headquarters in central Cairo due to increased construction costs following the EGP float.

The new Madbouly gov’t continues to be committed to the project: Despite the substantial costs incurred amid inflation and currency fluctuations, the government is committed to completing the redevelopment efforts despite a jump in total costs to EGP 80 bn, a senior Housing Ministry official told us. Prime Minister Moustafa Madbouly has also highlighted the importance of renewing Downtown Cairo and optimizing use of the area, particularly following the relocation of ministries to the new administrative capital.

That’s where the new authority comes in: The new entity is envisioned as overseeing the investment management of the redeveloped areas, with the authority authorized to issue tenders, receive investment proposals, and conduct feasibility studies to identify possible investments.

Paving the way for investments, tourism expansion: Creating an institutional framework for managing the district’s assets is at the top of the ministry’s list of priorities, Housing Minister Sherif El Sherbiny noted. The ministry’s plan focuses primarily on enhancing the investment environment in the area, while also situating its redevelopment within plans to strengthen Egypt’s tourism industry and market Cairo as a travel destination.

The geographic remit: The new authority would oversee an area spanning 20k feddans in central Cairo — encompassing the area between the Nile and the Citadel to the southeast and Azbakeya and Attaba to the southwest.

A new working group to check up on the plan’s progress: PM Madbouly has assigned a working group to propose mechanisms for implementing the plan and achieving its goals.

There’s one catch — the new authority will need legislative approval to take over the redevelopment process. In the meantime, a temporary administrative body composed of various government entities operating under the auspices of the Sovereign Fund of Egypt will continue to oversee the area’s operations.

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