UAE to build 2 wheat silos in Egypt

The UAE and Egypt have awarded contracts to build two wheat silos in northern Egypt as part of an assistance package financed by the UAE, and more deals are expected soon, a UAE state minister told a newspaper on Monday.

Along with money to build clinics, schools and housing, the Gulf Arab state has offered to fund a project in Egypt's strategic wheat sector - the construction of 25 wheat silos that could help the world's biggest wheat importer lower its huge food bill.

"Contracts to build two wheat silos in Amiriya and Damietta have been awarded and it is expected that contracts to build more silos that are financed by the UAE will be awarded soon," minister Sultan Al Jaber told UAE local daily Al Khaleej.

The total storage capacity for the 25 silos will be 1.5 million tonnes, added Jaber, the UAE official in charge of aid to Egypt. A source in the minister's office confirmed the comments made to the paper and said any deals are awarded according to an agreement by both the UAE and Egypt.

The Egyptian government wants to boost its wheat storage capacity to reduce its reliance on international markets.

The silos project is part of the UAE's $4.9 billion (Dh18 billion) aid package announced in October. The government says the silos project should help prevent the loss of 1.6 million tonnes - around half-a-billion dollars - worth of wheat a year.

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