Work is part of $4.9 billion aid package from the Emirates.
Egypt and the United Arab Emirates said on Saturday that they had contracted the Arab Organisation for Industrialisation, a state-run company, to build wheat silos that are part of the UAE’s $4.9 billion aid package to Egypt, Reuters reported.
In October, the UAE said it would assign part of its aid package to build 25 wheat silos with a storage capacity of 60,000 tons for each silo. The project is set to boost Egypt’s storage capacities which in turn would help it reduce wheat imports. Egypt is the world’s largest wheat importer, with imports of 10 million tonnes per year.
The General Company for Silos and Storage, another state-run company affiliated with the Supplies Ministry, will be implementing the project on behalf of the Egyptian government, the state news agency MENA reported.
UAE Minister of State Sultan Ahmed Al-Jaber said work had started on the project, with the building of the first two silos which are expected to be finished within 18 months. Al-Jaber added that construction of more silos would begin in November. The two silos cost $46 million and would be built in the two cities of Damietta and Al-Amereya.
The UAE has been firmly supporting Egypt following the removal of Islamist president Mohamed Morsi in July last year. Along with Saudi Arabia and Kuwait, the UAE provided Egypt with $12 billion in aid in the form of grants, loans and petroleum products.