Industrial Development in Sohag

Contents Subject Page No. Chapter 1 Preface 1 Industrial Development in Sohag Governorate 3‐7 Sohag Industrial Map Industrial establishments Registered in IDA Industrial Zones in Sohag 8 1‐ El‐Kawthar Industrial Zone 8 2‐ El‐Ahaiwa East Industrial Zone 9 3‐ West of Tahta Industrial Zone 10 4‐ West of Gerga Industrial Zone 11 Future Plan for Sohag Industrial Zones 12‐15 Chapter 2 ‐ About Sohag 16 ‐ Information about Sohag 16 ‐ Location – Area ‐ Administrative Division 17 ‐ Population ‐ Education – Health 18‐21 ‐ Manpower 22 Chapter 3 ‐ Raw and Natural Resources 23 First: Agricullltural Resources 24 Second: Fishery Wealth 25 Third: Natural Resources 26 : Infrastructure 27‐29 Chapter 4 Investment Advantages in Sohag Governorate 30 Investment Opportunities in Sohag Governorate 31 Proposed Projects in Sohag Governorate 32 Preface Within the framework of the states' direction of establishing industrial zones in different governorates to achieve industrial development in the Arab republic of Egypt, the State began developing the Upper Egypt region, which includes many promising governorates for investment such as Sohag in which new industrial zones were established because of its Natural resources (such as clay ‐ marble ‐ calcite ‐ limestone ‐ Essawy stone [strong type of limestone] ‐ sand).

Furthermore, Sohag Governorate has many industries such as sugar, spinning and weaving, oil hydrogenation, semolina flour and macaroni. In addition, Sohag has some handicrafts industries such as carpets and cabinet work, where the number of Existing Establishments registered in IDA is 358 with estimated investment costs of LE16 million, employing about 9134 workers, distributed to all industrial activities, the most important of which are food and beverage industries, followed by electronics & engineering industries and wood & its products manufacturing.

Moreover, Sohag has a number of industrial zones such as Kawthar District, El‐Ahaiwa East, West of Tahta and West of Gerga. There is a future plan for Sohag's industrial zones including projects for producing chemicals, foods, building materials, engineering, textile and fodder industries as well as a number of different small industries.

1 Besides, investment in Sohag Governorate depends on the basic components represented in the Infrastructure of roads, transportations, energy, drinking water and sewerage. Sohag is also characterized by Sohag University, which provides its students with the highest degree of university Education represented in specialized institutes help out the best skilled manpower in various scientific, administrative and professional fields, providing investors with a wide range of human skills appropriate to their needs.

Sohag's outstanding position in the center of Upper Egypt facilitates marketing its production in and outside the Governorate.

The proposed Small-Scale Projects, which depend on Sohag's economic resources are pottery, lime bricks, optical devices, marbleartifacts, mosaic, excellent tiles, glass, lhleather tanning, fdfood oils and onion drying.

There are many Proposed Projects based on waste industry like fodder, pppaper, cardboard, plastic bags, chipboard, organic fertilizers andnitratesaswellasmanufacturingmolassestoproduceethyl alcohol, methyl alcohol, vinegar, acetic acid, glycerol and yeast.

Basedontheforegoing,thisresearchwillexplainindetailthe proposed industries in Sohag Governorate, and a brief info about its available resources.

2 Industrial Development in Sohag Governorate Sohag Industrial Map

Sohag is participating with a number of industries such as sugar, spinning and weaving, oil hydrogenation, semolina flour and macaroni. There are also handicraft industries such as carpets and cabinet work. There are also many giant projects in several industrial zones. The following table shows the total number of Sohag's factories registered at IDA in accordance with the industrial activity. (Value in LE1000) Activity Establishments Investment Labor No. CtCosts No. Food ,beverages & tobacco 119 15742356 5765 Textile, garments and leather 23 53815 1436 products Wood and its products 55 8953 260 Paper & its Products, Printing 16 11629 168 and Publishing Basic chemicals & its 42 125421 745 products Building materials, 35 27772 220 chinaware, porcelain & calilorie Basic minerals 5 9608 43 Engineering, Electronic & 58 33992 488 Electrical Industries Other transformational 1 150 1 Industries Service & Maintenance 4 8387 8 Centers Total 358 16022082 9134 Source: General Department of Information Technology

3 Statement of the Total Number of Industrial Establishments registered in IDA in Assuit Distributed according to the Activity in Each City

(Value in LE1000)

Activi ty Establis hme nts Investm en t Labor No. Costs No. Sohag Police Station I Food ,beverages & tobacco 17 1444204 565 Textile, garments and leather 4 48761 1186 products Wood and its products 2 29 6 Paper & its Products, Printing and 2684 Publishing Basic chemicals & its products 2 494 8 Building materials, chinaware, 14 215 55 porcelain & calorie Basic minerals 2 23 4 Engineering, Electronic & Electrical 9 2828 47 Industries Service & Maintenance Centers 1 183 4 Total 53 14494644 1879 Sohag Center Food and beverages 14 113586 881 Textile, garments and leather 1 161 9 products Wood and its products 1 58 6 Paper & its Products, Printing and 7 824 44 Publishing Basic chemicals & its products 5 782 30 Building materials, chinaware, 7 10204 29 porcelain & calorie Engineering, Electronic & Electrical 9 1124 50 Industries Total 44 126739 1049

4 Statement of the Total Number of Industrial Establishments registered in IDA in Assuit Distributed according to the Activity in Each City

(Value in LE1000)

Activity Establishments Investment Labor No. Costs No. Akhmim Center Food ,beverages & tobacco 11 389009 825 Textile, garments and leather 5 277 40 products Basic chemicals & its products 2 4605 252 Building materials, chinaware, 2 225 7 porcelain & calorie Engineering Industries 2 121 11 Total 22 394236 1135 El‐Balyana District Food ,beverages & tobacco 5 27340 234 Basic chemicals & its products 3 227 11 Building materials, chinaware, 1 1200 45 porcelain & calorie Total 9 28767 290 El‐Maragha Center Food ,beverages & tobacco 1 99 6 Total 1 99 6 El‐Menshah Center Food ,beverages & tobacco 3 1016 21 Building materials, chinaware, 2326 porcelain & calorie Total 5 1048 27

5 Statement of the Total Number of Industrial Establishments registered in IDA in Assuit Distributed according to the Activity in Each City

(Value in LE1000) Activity Establishments Investment Labor No. Costs No. Dar El‐Salam Center Food ,beverages & tobacco 2 2433 18 Engineering, Electronic & striesElectrical 1503 Indu Total 3 2832483 21 Girga Center Food ,beverages & tobacco 9 414995 1173 Basic chemicals & its products 3 195 9 Engineering, Electronic & Electrical 3 4090 72 Industries Total 15 419280 1254 Western Giheina Center Food ,,gbeverages & tobacco 1 114 2 Engineering, Electronic & Electrical 1 130 5 Industries Total 2 244 7 Saqultah Center Food ,beverages & tobacco 2 217 15 Basic chemicals & its products 1 325 15 Engineering, Electronic & Electrical 1486 Industries Total 4 590 36 Sohag Police Station II Food ,beverages & tobacco 1 111766 745 Total6 1 111766 745 Statement of the Total Number of Industrial Establishments registered in IDA in Assuit Distributed according to the Activity in Each City

(Value in LE1000) Activity Establishments Investment Labor No. Costs No. Tama Center Food ,beverages & tobacco 16 136449 294 Textile, garments and leather 3 248 17 products Wood and its products 3 24 7 Paper & its Products, Printing and 3 457 18 Publishing Engineering, Electronic & 2355 Electrical Industries Total 27 137213 441 Tahta Center Food ,beverages & tobacco 20 12670 334 Textile, garments and leather 3 482 30 products Wood and its products 27 333 103 Paper & its Products, Printing and 34012 Publishing Basic chemicals & its products 6 300 27 Building materials, chinaware, 38413 porcelain & calorie Engineering, Electronic & 17 1060 88 Electrical Industries Total 89 14969 607 "Gerga police Station" Food ,beverages & tobacco 1 175 14 Total 1 175 14

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Industrial Zones in Sohag 1‐ El‐Kawthar Industrial Zone El‐Kawthar industrial zone is located on the East bank of the Nile in El‐ Kawthar district on an area of 500 feddans and it is located 12 km far from the city of Sohag. 166 projects were given the approval to be establishedinEl‐Kawthar District industrial zone with investment costs of LE790.784 million providing 11667 job opportunities. 91 of these projects started production with investment costs of LE259.914 million providing 4703 job opportunities and 58 projects are under construction and operation. LE27.44 million have been spent on infrastructure (roads ‐ electricity ‐ water). The following table illustrates the existing industrial establishments of El‐ Kawthar industrial zone and registered at IDA in accordance with the idindus tiltrial activity it . (Value in LE1000) Activity Establishments Investment Labor No. Costs No. Food ,beverages & tobacco 15 87445 528 Textile, garments and leather products 6 3134 147 Wood and its products 12 8509 138 Paper & its Products, Printing and 1 10240 90 Publishing Basic chemicals & its products 18 116198 370 Building materials, chinaware, 5 5812 45 porcelain & calorie Basic minerals 3 9585 39 Engineering, Electronic & Electrical 13 24504 201 Industries Other transformational Industries 1 150 1 SiService & MitMaintenance CCtenters 3 8204 4 Total 77 273781 1563 Source: General Department of Information Technology Small‐scale industries Complex in El‐Kawthar: In coordination with the Ministry of Trade and Industry, Sohag established a complex of small industries in El‐Kawthar district including 718 units for small, feeding and craft industries on an area of 58 Feddans. 118unitsofwhichhavebeenhandedoverinthiscomplexfor establishing 102 projects and 9 of them started production.

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2‐ El‐Ahaiwa East Industrial Zone El‐Ahaiwa East industrial zone is located on the East bank of the Nile at the South of El‐Kawthar industrial zone (15 km) on an area of 250 feddans and it is located 27 km far from the city of Sohag. 26 projects were obtained the approval to be established in El‐Ahaiwa East industrial zone with investment costs of LE118.7 million providing 1734 job opportunities, 1 of which started production with investment costs of LE800,000 providing 25 job opportunities and 14 projects are under construction operation. LE13.45 million have been spent on infrastructure (roads ‐ electricity ‐ water).

The following table illustrates the existing factories of El‐Ahaiwa East industrial zone and registered at IDA in accordance with the industrial activity. (Va lue in LE1000)

Activity Establishments Investment Labor No. Costs No. Food ,beverages & tobacco 1 3000 10 Building materials, chinaware, 1 10000 20 porcelain & calorie Total 2 13000 30 Source: General Department of Information Technology

9 3‐ West of Tahta Industrial Zone It is located in the West of the town of Tahta on an area of 912 feddans and it is located 50 km far from the city of Sohag. 40 projects were obtained the approval to be established in this industrial zone with investment costs of LE130.470 million providing 2260 job opportunities, 6 of which started production with investment costs of LE13.5 million providing 280 job opportunities and 8 projects are under construction and operation. LE12.63 million have been spent on infrastructure (roads ‐ electricity ‐ water).

The following table illustrates the existing factories of West of Tahta industrial zone and registered at IDA in accordance with the industrial activity. (Va lue in LE1000)

Activity Establishments Investment Labor No. Costs No. Textile, garments and leather 1 752 7 products Total 1 752 7

Source: General Department of Information Technology

10 4‐ West of Gerga Industrial Zone ItislocatedintheWestofGergaCityonanareaof1086feddansandis located 50 km far from the city of Sohag. 15 projects were obtained the approval to be established in this industrial zone with investment costs of LE55.4 million providing 1095 job opportunities, and 5 projects are under construction and operation. LE7.97 million have been spent on infrastructure (roads ‐ electricity ‐ water).

The following table illustrates the existing factories of West of Gerga industrial zone and registered at IDA in accordance with the industrial activity. (Value in LE1000)

Activity Establishments Investment Labor No. Costs No. Basic chemicals & its products 2 2295 23

Total 2 2295 23

Source: General Department of Information Technology

11 Future Plan for Industrial Zones in Sohag Governorate

‐ Future Plan for El‐Kawthar Industrial Zone (Stage 1 – Stage 2) ‐ Future Plan for El‐Ahaiwa East Industrial Zone ‐ Future Plan for West of Tahta Industrial Zone ‐ Future Plan for West of Gerga Industrial Zone Future Plan for Industrial Zones in Sohag Governorate

1. Future Plan for Projects in El‐Kawthar Industrial Zone (Stage 2)

Industries Classification Projects No. Chemical Industries 50 Food Industries 78 Building materials 17 Engineering Industries 16 Textile Industries 35 Fodder Industries 10

2‐ Future Plan for Projects in El‐Kawthar Industrial Zone (Stage 3) Only maps of the planned areas to establish future projects thereon.

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2‐ Future Plan for El‐Ahaiwa East Industrial Zone

Industries Classification Existing Projects Planned Projects Food Industries 1 6 Chemical Industries 32 Small‐scale Industries 14 Building materials 1 26 Engineering Industries 9 Textile Industries 10 Fodder Industries 8 Total 2 105

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3‐ Future Plan for West of Tahta Industrial Zone

Industries Classification Planned Projects Textile Industries 53 Food Industries 100 Chemicals Industries 76 Building materials 70 Engineering Industries 106 Fodder 32 Total 437

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FtFuture Plan for WtWest of Gerga IdIndus tiltrial Zone

Industries Classification Planned Projects Small‐scale Industries 33 Food Industries 104 Chem ica ls IIdndus titries 90 Textile Industries 44 Building materials 21 Engineering Industries 26 Services 16 Total 240

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Chapt er 2 Raw and Natural Materials

‐ About Sohag ‐ IfInforma tion abtbout ShSohag ‐ Location –Area ‐ Administrative Division ‐ Population ‐ Education – Health ‐ Manpower Location Sohag Governorate is located 467 km far from Cairo. The Governorate is bordered in the North by Assuit, in the South by Qena, in the East by the Red‐Sea Governorate and in the West by the New Valley Governorate. Area The total area of Sohag Governorate is about 11022 km2 , 15,934 km2 of which is a populated area. The rural sector is about 84% or an area of about 9258 km2. Administrative Division Sohag Governorate consists of 12 centers, including 12 cities, 51 main villages, 270 affiliated villages and 1445 manors, country estates and small villages.

Source: Central Agency for Public Mobilization And Statistics (CAPMAS )

16 Sohag's Centers, Cities and Main Villages

ID Center & Affiliated Villages Location In Sohag City 1Sohag It Includes 10 rural units: (Rawafea El‐Koseir Capital of the ‐ Idfa – El‐salaa – ‐ Awlad Azaz ‐ Araba ‐ Abu Governorate Dahab ‐ Balasfura ‐ El‐Kewamil Bahari ‐ Geziret Shandawil). Beside, it includes 3 districts: East District ‐ West District –El‐Kawthar District 2 Akhmi m It iildncludes 3 rural units: Nida ‐ El‐HhHwawesh 3 km east of ShSohag ‐ El‐Kola 3 Sakaltah It Includes 2 rural units: Syflaq –El‐Galawaia 17 KM north‐east of Sohag 4Dar El‐ It includes 4 rural units: El‐Galawia ‐ Aulad 60 km south‐east Salam Yihya Bahari ‐ Aulad Salem Bahari –El‐Kashh of Sohag 5El‐ It includes 5 rural units: El‐Batakh – 20 km north of Maragha Shandawil –Banaweit –Awlad Ismail –El‐ Sohag h Ghrezat 6Tahta It includes 5 rural units: Banga –El‐Sawama 33 km north of West –El‐Safeha ‐ Nazlet El‐qady – Shattura Sohag 7Tama It includes 5 rural units: El‐Rayanaia El‐ 50 km north of Moalak –Umm doma –El‐Modamer – Sohag Salamoon –Mashta 8GiheinaIt includes 3 rural units: –El‐Talehat ‐ Anis 25 km north‐west of Sohag 9El‐ It includes 5 rural units: Zwalik El‐Gharbaia ‐ 16 km south of Manshaa Rawafea El‐Eisawia ‐ Aulad Hamza – Aulad Sohag h Salama –El‐dawerat 10 Gerga It includes 5 rural units: El‐braia ‐ Bait Alam 33 km south of –Bait Daoud –El‐Awamer Bahary –El‐ Sohag Mgabra 11 Elbeliena It includes 4 rural units: Araba Abydos – 50 km south of Bardis ‐ Awlad Eliwa ‐ Bany Hameil Sohag 12 El‐ Usayrat

17 Population The following table shows the population distribution of Sohag Governorate including both rural and urban areas, according to the statistics of the Central Agency for Public Mobilization and Statistics in 2006:

Sohag Governorate Males Females Total Population Settled Population 407962 393413 801375 Rural Population 1488375 1457539 2945914 Total Population 1896337 1850952 3747289

Population of Sohag in 2009 reached about 3,953,923 persons

Source: Central Agency for Public Mobilization And Statistics (CAPMAS

18 Education The development of education considered a national project which the government aimed at upgrading its services. This is through providing the educational buildings, technical equipment, teachers and technology in order to qualify this generation to enter labor market with the modern scientific techniques needed. Pre‐University Education: Total number of pre‐university education schools is (1347) schools general education school, (917) schools of them are in the rural sector by 73.5%. Besides, there are (317) Azhari schools, (311) of them are in the rural sector.

University Education: The main campus of the University of Sohag is Located in one of the most beautiful areas on the river Nile and in the eastern side of the city of Sohag in a region called Nasser City. The main campus of the University includes faculties of: Education, Science, Arts, Medicine, Commerce, and Veterinary Medicine, In addition to the faculty of Agriculture in El‐Kawthar city and the Faculty of Engineering and Industrial Education in Sohag city.

19 Health The following table shows the number of hospitals and the number of workers in the governmental hospitals in Sohag in 2007.

No. of No. of Nursing GdGender Admi ni st rat ors Hospitals Doctors Staff 62 Males 204 56 841 Females 70 2070 371

The following table shows the number of hospitals and the number of workers in the governmental hospitals in Sohag in 2007

No. of No. of Nursing Gender Administrators Hospitals Doctors Staff 11 Males 99 6 6 Females 20 2 2

Sou rce: Central Agenc y for P ublic Mobili z ation And Statistics (CAPMAS

20 The following are the most important hospitals of the Directorate for Health and Population in Sohag Governorate

1 Sohag General Hospital 2 Tama Central Hospital, 3 Tahta General Hospital 4 El-Maragha Central Hospital 5 Giheina Central Hospital 6 Gerga Central Hospital 7 Dar El-salam Central Hospital 8 Akhmim Central Hospital 9 El-Manshaah Central Hospital 10 Sakaltah Central Hospital 11 El-Balyana Central Hospital 12 Al-Amal Hospital 13 Makka Al-Mokarama Specialist Hospital 14 El-Moalmeen Hospital 15 Sohag Teaching Hospital, 16 Cancer Institute

21 Manpower: The percentage of the labor force in the Upper Egyptian governorates decreases due to labor migration searching for better job opportunities. in the governorate of Sohag, the percentage of the labor force of (15 years and over) hits 26% of the total population. Besides, women represent 18.2% of the total labor force. As for the distribution of the workforce on economic activities it is observ ed that the agricult ure sector accounting for the lion's share of the workforce by 45.9% while the manufacturing sector shares with about 10.7% and the services sector shares with only 2.34%. The ratio of professionals to total workforce is about 11.2%

22 Chapt er 3 Primary Natural Resources

First: Agricultural Resources SdSecond: Fish ery WlthWealth Third: Natural Resources Forth: Infrastructure Primary Natural Resources: First: Agricultural Resources Planted Areas Total of planted areas is (305911 Feddan) Total area of reclaimed lands is (59,473 Feddan) Total area of cultivated: old and reclaimed lands is (365,383 Feddan) Total area of lands able to be reclaimed (30,000 Feddans) Planted crops The most important crops planted in Sohag Governorate are (wheat – local bean – thin corn - maize – small onion - sesame - peanuts - clover - tomatoes - sugar cane - Gardens .... Etc)

Winter Crops

Crop Planted Area Average production Rate Wheat 171739 19.69 (Ardeb) Local Beans 2585 8.56 (Ardeb) Garlic 338 11.7 (Ton) Small Onions 9649 17.40 (Ton)

23 Summer crops

Crop Plant ed Area Average prodtiduction RtRate Tomato 13397 6.50(Quintal) Potato 122250 35.50(Ardeb) Cucumber 1620 20.38(Ardeb) Watermelon 1521 5.17(Ardeb) Okra 17107 52(Ton) Quintalob 99938 16.44(Ardeb) Vegetable Crops

Crop Planted Area Average production Rate Tomato 18404 26 PttPotato 3505 15.95 Cucumber 2523 13.48 Watermelon 765 17.22 Okra 961 9.8 Quintalob 50 9 Fruit Crops

Crop Planted Area Average production Rate Banana 3133 17.4 orange 1443 8.3 Mandarin 934 7.4 Lime 516 4.2 Pomegranate 139 6.5 Guava 196 7.46 Grape 557 12.4 Mango 243 4.6 In cooperation with the Agricultural Policy Reform Project (APRP) and Cooperative societies specialized in the export of horticultural crops, the Directorate of Agriculture in Sohag Governorate made training course for agricultural engineers and workers in the production project. The course aims to prepare the trainees for cultivating and processing the agricultural production according to the importers' requirements. Agricultural associations contributed in marketing wheat and maize through encouraging farmers to supply their surplus production to nearer ports in order to facilitate the transport operations.

24 Second: Fisheries in Sohag Fisheries Wealth: Tama - Sheikh Yusuf - Akhmim - Gerga - Siflaq 1 – Siflaq 2 - Siflaq 3 - Tahta - Geziret Shandawil – El-Manshah – El-Balyana – El-Maragha - Sohag - Toak – Kenana.

Fish Species in the governorate of Sohag:

Tilapia – Carpe - Bagrus bayad - Nile Perch - Nile Carp

25 Third: Natural Resources in the governorate of Sohag 1‐ Potter's Clay: There are large quantities of this resource in the region between Dar El-Salaam district and El-Sawmah in the north. The industries that can be established on potter's clay are (brick-making clay brick - cement - pottery and ceramics - Land Reclamation). 2‐ Marble: Previous studies revealed the availability of huge reserves of marble in the area stretching from the Al‐Ahaiwa east in the south and El Sawmah in the north. The industries that can be established on the marble are (Marble Sawing, Polishing and Processing, to be used in different purposes such as: Buildings Fronts, Tile Industry, the Production of Mosaic, which is used in the manufacture of tiles).

3‐ Calcite It is available in eastern and western hills of Sohag governorate. The industries which can be established on calcite metal are (optical devices (lenses) ‐ adornment and decoration ‐ leather tanning).

4‐ Limestone Limes tone Reserves ltdlocated in bthboth EtEastern and western hills is estimated at 5400 million tons. Industries which can be established on limestone are (Cement (through mixing it with potter's clay) ‐ Construction ‐ Various types of Limestone Brick).

26 5‐ Essawy Stone: It is the mostos commo ntypes of soli d limesto ne wwchich Soha g is famous foro . It is used in building barrages and in covering the sides of River Nile and sides of canals. It is also used in buildings and bridges construction. 6‐ Sand: It is Available in both eastern and western deserts of the governorate. Sand used in construction, paving and glass industry.

7‐ Molasses and Bagasse They Are remnants of the Sugar factory Gerga. Industries upon them are (Ethyl Alcohol ‐ Methyl Alcohol ‐ Vinegar ‐ Acetic Acid ‐ Brewer's Yeast ‐ Paper and compressed wood‐ Fodder ‐ Nitrates).

Forth: Infrastructure of Sohag Governorate

2007/2012 Five‐YearsPlanaimstoimprovewaterandsanitation.It focuses on the completion of clean drinking water projects and provision of adequate quantities of drinking water for all population. Besides, the plan aims at the expansion of existing plants to increase the per capita share of water. In addition, the Five‐Year Plan also aims to accelerate the proviiision of saniiitation services and to continue thereplacement and renewal of the sanitation networks and stations. Therefore, a plan has been developed for drinking water and sanitation in the governorate of Sohag, where the quantity of drinking water and sanitation amounting to 140 thousand m3 per day in 1982, as now it reached 440 000 m3 per day, up 300.000 m3 per day. The quantities of produced water will reach 720 thousand m3 per day after completing the implemented projects so that the rate of 170 liters per capita per day in 2007 would up to 250 liters after completing the projects. Total investments of the development projects of drinking water and sanitation in Sohag Governorate reached LE1790 million and scheduled to reach LE2470 million after completing the currently implemented projects.

27 El‐Maragha drinking water plant: El-Maragha drinking water plant works with production capacity of 34,000 m3 per day, and total costs of LE100 million. The plant serves 300.000 people in districts of Maragha and Giheina and their villages. This project is one of group of projects and programs implemented within President Mubarak's election program. The election program aimed at increasing the per capita share of drinking water and accelerating the provision of sanitation services. Beside, the election program aimed at continuing the replacement and renewal of the sanitation networks and plants. El‐Balyana drinking water plant: El‐Balyana drinking water plant works with production capacity of 68,000 m3 per day, and total costs of LE160 million. The plant serves the people in the district of El‐Balyana and its villages Tahta Sanitation plant Tahta Sanitation plant works with production capacity of 35,000 m3 per day, and total costs of LE150 million. The plant serves 320.000 people. Desert Thaheer Housing Project This project aims to build more housing units in Sohag's desert instead of building on agricultural land. This is through the reclamation of desert lands neighboring to the villages cultivation and building new urban and industrial communities on it to provide new job opportunities for workers in those areas. This project contributes in solving the problems of building on agricultural lands due to the population increase in upper Egypt.

28 Sohag Airport Project: Sohag airport designs and location were settled, as the road between Sohag and Red Sea has been carried out on a regular basis. The airport will be ready to run at the end of 2009. Gas delivery to the governorate of Sohag: Within the framework of the ongoing development in Upper Egypt, the gas networks in the Upper Egyptian governorates is about to be finished. The gas will arrive to the governorate of Sohag in 2009. There are also many projects aimed to be established in the Upper Egyptian governorates, stressing the State's interest in developing Upper Egypt. Roads and Bridges: A. Sohag ‐ Hurghada road, which links Sohag city with the Red Sea cities with length of 412 km. the first phase of the Upper Egypt‐Red Sea road was finished, which is represented in the road that links Sohag with Safaga with length of 275 km. B. Sohag‐New Valley axis, which was created to open new vistas of investment in this region.

29 Chapt er 4

Advantages of Investment in Sohag Governorate Investment Opportunities in Sohag Governorate Proposed Projects in Sohag Governorate Advantages of Investing in Sohag Governorate  There are industrial zones with all facilities needed to establish investment projects. Facilitated lands free of charge are granted to investors who build industrial projects within these areas.  Sohag has mild climate and excellent geographical location, as it is in the center of the upper EtiEgyptian governorates.  Sohag has local road network linking its villages and its cities as well as regional road network linking Sohag with other governorates.  Investor's participation in the local and foreign exhibitions to boost marketing.  By the executive arm of the industrial zones, the needed facilities (Water - Electricity - Telephone - Building permit and all what is necessary to the project) are delivered easily.  All the approvals from the concerned authorities are to be obtained on behalf of investors.  There is a branch of the general authority for investment and free zones (GAFI) in all governorates to complete all the procedures related to: (Companies formation – obtaining commercial registration – obtaining tax card).  Overcoming and solving all the problems and obstacles facing investors. Trained graduated labor force from technical schools and training centers are available. Cheap raw materials are available.  Facilitating the procedures related to land allocation and establishing new projects in the governorates' industrial zones.  The existing projects inside and outside the industrial zones to maintain guarantees and exemptions mentidioned inthe investment law no. 8 of 1997 and its emplementing regulations .

30 Investment Opportunities in Sohag Governorate Many investment opportunities within the industrial zones are available in Sohag Governorate. Many vacant facilitated lands, which can be used in various types of industrial projects, such as (Food - Chemical - Furniture - Metals - Marble - Cartoon – Air conditionals- Fodder - Textile - Handicrafts and Other Industries ), benefiting of the incentives of The Law No. 8 of 1997 Proposed Projects depend on natural resources in Sohag

1. Governorate 2. Pottery products 3. Limestone brick 4. Optical devices (lenses 5. Marble artifacts 6. Mosaic, which is used in the manufacture of tiles). 7. Excellent tiles 8. Leather tanning and manufacturing 9. Onion drying 10. Cooking oil

31 Feeding Industry proposed projects

1. Producing fodder from untraditional materials and wastes 2. Manufacturing paper from paper wastes 3. Producing cartoon boxes from paper wastes 4. Plastic bags 5. Compressed wood 6. Producing organic fertilizers from agricultural wastes 7. Producing ethyl alcohol and methyl alcohol from molasses 8. Producing glycerol from molasses 9. Producing Fresh yeast from molasses 10. Nitrates

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