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FINANCIAL NEWS
Egypt govt to resolve TMG dispute
27 Sep 2010
(MENAFN) Egyptian Cabinet spokesman Magdy Rady said that the government has agreed on a legal committee’s plan to resolve a land line around Egypt’s biggest listed developer’s flagship project, Reuters reported.
Egypt is going to scrap the original contract for Talaat Moustafa Group’s (TMG) worth of $3 billion Madinaty project and shift it to the firm by direct order. This scrap was due to the rule a court had taken and said that the contract with TMG should be cancelled because it was illegal.
Egypt’s government sold land to TMG for its estimated $3 billion Madinaty project five years ago. A court ruled in June the deal was illegal because the land was not publicly auctioned, according to the spokesman.
Besides allocating state land to be sold for housing and business development, the government gives land for a variety of other uses, including agriculture, tourism and public services.
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