Egypt's housing minister on Tuesday acknowledged "complications" in contract negotiations with the investment fund expected to lead development of a new administrative capital east of Cairo.
Mustafa Madbouly declined to speak in detail about the talks, which began after Capital City Partners [CCP] signed an initial agreement for the mega-project at a March economic summit in Egypt.
"There are very many complications. We are still in the negotiations stage for this project," Madbouly said on the sidelines of a business conference in Cairo
, adding the negotiations were "very sensitive".
When asked about reports that UAE
businessman Mohamed Alabbar, the founding partner of CCP, did not want the government to have a 24 percent share in the project, Madbouly told al-Arabiya television: "The memorandum of understanding includes this issue. This is what was signed, and we cannot change anything in it. All the talk is just speculation, but until now we are still in the negotiation stage."
CCP was not immediately available for comment.