A massive Chinese-led plan to develop Egypt’s new administrative capital has been shelved following financial disagreements between the two sides, Bloomberg reports.
Egyptian authorities officially terminated a two-year negotiation process by advising China Fortune Land Development Co. (CFLD) that the government was withdrawing from the deal. The project was to develop 15,000 acres of land over 25 years in the country’s new capital east of Cairo.
“We didn’t hear back,” said Ahmed Zaki Abdeen, chief of the Egyptian company overseeing the new capital’s construction. “The talks have stopped.”
Officials say that they couldn’t strike an agreement with CFLD on how to share the revenue generated from the project. The cancellation is likely to raise further doubt over Egypt’s ability to attract foreign investment, which has tanked in recent years.