Monday, January 12, 2009

Egyptian Government at risk

The Egyptian Government may not survive the backlash of its people against its support for the Israeli attack on Gaza. DeepLode has written on this topic before and expressed concerns for Egypt's stability post Gaza. Even if Israel comes out on top of the current unrest it and Egypt are at risk of years of insurgent attacks from beyond Gaza.
In my opinion any short term gains won, at an appalling human cost, will be just that............ short term.
As well, in DeepLode's opinion, Egypt's octogenarian President Hosni Mubarak and his Government will not survive.
And investments in Egypt are at risk. One in particular is the joint venture between Tantalum Egypt and Gippsland Limited.
Directors of GIP advised recently that the Abu Dabbab project's definitive feasibility study has been reviewed and that the total capital expenditure will amount to US$173 million, an increase of US$48 million over the previous November 2007 estimate.
Also they are hoping that the Egyptian Government will rebuild Port Turumbi an old unused port close to Abu Dabbab (mind you the road network is non existent as yet also).
This is just one example of projects facing funding difficulties in Egypt.
Development Banks have already contributed to this project with no progress seen and private equity is on the back foot.
One can only hope there is a turn around.
There is a very interesting GIP thread on site worth visiting!
DeepLode hopes Gippsland gets its project off the ground..It could be massive...but another partner is badly needed.

No comments: