Egypt, UAE choose army-linked firm to build wheat silos

CAIRO — Egypt and the United Arab Emirates (UAE) have contracted a state-run company headed by a retired Egyptian army officer to build wheat silos that are a key part of the UAE's $4.9 billion aid package to Cairo.

The UAE is taking a hands-on role in supporting Egypt and is funding a range of development projects including the wheat silo-building effort that could help the world's biggest importer of the commodity lower its huge food import bill.

Reuters reported in March that the UAE was working directly with the Egyptian army to ensure the silo-building was conducted efficiently.

The UAE pledged last October to build a total of 25 wheat silos with a storage capacity of 1.5 million tonnes to help prevent the loss of billions of dollars worth of wheat per year.

The project targets addressing problems in the strategic wheat sector. Millions of poor Egyptians rely on government subsidised bread, but the wasteful and corrupt system for providing it strains government finances. Egypt wants to boost its storage capacity to reduce reliance on imports.

Though the UAE and Egyptian government ministers appeared together at a news conference in Cairo to announce the details of the construction of the first two silos, their choice of a Egyptian army-affiliated company to do the construction work confirmed the military's connection to the project.

UAE Minister of State Sultan Ahmed Al Jaber, who handles the aid projects, announced the signing of the cooperation agreement with Cairo alongside Egypt's Supplies Minister Khaled Hanafi and Planning Minister Ashraf El Araby.