CAIRO, November 16. /TASS/. The master plan for the creation of Russia’s industrial zone in Egypt has been presented in that country, the press service of the Industry and Trade Ministry told TASS on Tuesday. The presentation was conducted by a joint delegation of the ministry, the VEB.RF state corporation and representatives of Russian companies, that visited Egypt from November 14 to 16.

The master plan of the Russian industrial zone was developed by the Association of Industrial Parks of Russia.

The management of the main directorate of the Suez Canal economic zone highly appreciated the master plan of the project and will soon start its official approval, said Roman Chekushov, head of the department for international cooperation and licensing in foreign trade at the Industry and Trade Ministry.

Following negotiations with Yehia Zaki, Chairman of the Main Directorate of the Suez Economic Zone, the main terms of the development contract were signed, including the lease period for the land plot, its size and coordinates, the deadline for the completion of the site preparation by the developer for the location of resident production facilities, as well as the rental rate.

At the same time, during the working trip, potential residents visited the site chosen for the Russian Industrial Zone in the city of Ain Sokhna, located on the banks of the Suez Canal.

"The representatives of Russian business gave positive feedback on the location of the site, its access to transport and logistics infrastructure, namely the proximity of the site to the port of Ain Sokhna - the largest cargo port in Egypt on the Red Sea <...>. Among the potential residents of the zone are representatives of the leading branches of the Russian industry: mechanical engineering, chemical industry, metallurgy, pharmaceuticals," Chekushov said.

In July, during negotiations with the Egyptian side, the Industry and Trade Ministry agreed and initialed the text of the protocol on amending the intergovernmental agreement on the creation and provision of conditions for the operation of the industrial zone, approved the roadmap for joint actions of the parties to launch the zone.

Russian industrial zone in Egypt

In 2018 Russia and Egypt signed an intergovernmental agreement on creation of a special zone in the east of Port Said with a simplified tax regime for Russian resident enterprises. The full implementation of the project is expected to take 13 years. It is planned that resident companies will be able to start producing products as early as 2022. They will receive rental holidays, preferential tariffs for energy resources, a special preferential tax regime, and a ready-made site.

The start of construction of the industrial zone was scheduled for 2020, but due to the pandemic of the new coronavirus, the dates were shifted. In the first two or three years, about 50 resident companies will appear in the zone. Russian state investments in the development of the primary infrastructure of the zone are expected to amount to $190 mln, the total volume of private investments is estimated at $7 bln.