Egypt’s Planning, Transport Ministers discuss the transportation investment plan for FY 2023-2024
17 March 2023
H.E. Dr. Hala El-Said, Minister of Planning and Economic Development met recently with Lieutenant General Kamel Al-Wazir, Minister of Transport, via video conference, to discuss the investment plan of the Ministry of Transport for the next FY 2023/2024, as well as to find out the executive position of the plan for the current fiscal year.
The meeting witnessed the presence of Dr. Ahmed Kamali, Deputy Minister of Planning and Economic Development, Dr. Fathi Saqr, economic advisor to the minister, Dr. Jamil Helmy, Assistant Minister for Follow-up Affairs of the Sustainable Development Plan, Kamal Nasr, Assistant Minister for Technical Office Affairs, Eng. Nihad Morsi, Head of the Infrastructure and Service Activities Sector.
During the meeting, Dr. Hala El-Said stressed the importance of the transport sector, which occupies special importance within the scope of the national projects adopted by the state to strengthen the foundations of the country's infrastructure.
El-Said explained that transportation networks represent the arteries of economic life, based on which economic and social development plans and programs are built, through which production centers and consumer markets are linked.
El-Said added that the transport sector occupies fundamental importance in the national economy due to Egypt's privileged geographical location in the middle of international transport routes, and its proximity to major markets in Europe, Africa, and the Middle East, which makes it a global center and hub for transport, warehousing and logistics services, especially with its widespread use of the multimodal transport system and the significant economic savings it achieves.
As El-Said explained, transportation investments at the national level are characterized by diversity and integration between their services, which encompass all parts of the country and link its population and urban areas.
Dr. Hala El-Said explained that many meetings were held between representatives of the two ministries regarding the distribution of targeted investments in the transport sector and various outsourcing agencies.
El-Said referred to the efforts made by the Ministry of Transport in the system, and the extent to which public transportation, for example, has developed to become suitable for the Egyptian people.
El-Said confirmed the effort made in the transportation system and new projects such as the LRT light rail project, which contributed to affecting the fuel system and its use and crowding.
As El-Said explained, the investments are being allocated according to the determinants and targets set based on surplus and deficit rates, requiring a reduction in spending without affecting employment.
El-Said noted the need to direct spending to areas that target rapid production and provide quick service, stressing the need to complete projects that will be used by citizens during the next year, which contributes to reducing inflation rates.
El-Said added that the next fiscal year is exceptional as a result of geopolitical wars, explaining that under these circumstances, projects whose implementation rate exceeds 50% must be completed, to collect returns from them and maximize what was spent on them so that citizens can benefit from this spending as a product and service.
The two parties stressed the importance of directing investments to what contributes to increasing production and reducing imports.
For his part, Lieutenant General Kamel Al-Wazir affirmed that the success achieved by the Ministry of Transport during the last period is nothing but a collective effort of the Egyptian government, but rather of the Egyptian state as a whole.
Kamel Al-Wazir explained that among the successes achieved by the transportation system was what was positively reflected through citizens resorting to relying on the LRT train, instead of relying on private cars, which contributed to saving nearly $8 billion in terms of impact on fuel.
Kamel Al-Wazir pointed out that this year involved 311 projects with a total value of EGP 232 billion. He also highlighted the Western Upper Egypt Road project, of which H.E. President Abdel Fattah El-Sisi inaugurated two phases.