Egypt to import coal despite environmental concerns
Egypt appears likely to import coal for energy production, despite strong objections from the Ministry of Environmental Affairs.
CAIRO — Egypt’s public debate over coal is still smoldering, despite another Cabinet news release supporting its use for power generation. On April 2, a statement from the prime minister’s office announced that private companies could import coal, provided they behave themselves environmentally.
The Cabinet still has to vote on the matter and opponents are digging in for a fight, but this latest notice and the huge sums of money changing hands in the cement sector imply that the importation of coal is a likely outcome.
The Arabic-language newspaper Al Mal reported March 19 that South Valley Cement was in the final stages of signing a $172 million loan from CIB and the Arab African International Bank. Board member Ahmad al-Miqaty told the newspaper that half of the loan would be used to buy coal-grinding equipment from companies in France and Germany and that it would be ready for use by December.
Yet it’s still technically illegal in Egypt for businesses to import or use coal without a special permit from the Ministry of Environmental Affairs — an authorization not one cement company has obtained so far — and there’s confusion over if or when this situation will change.
