Why Egypt's New Administrative Capital is NOT Bankrupting the Country

Egypt's New Administrative Capital Sisi-City Could Bankrupt Egypt - Is it an Ozymandian Nightmare? Egypt has faced an urgent issue: the overpopulation of its bustling capital, Cairo. To address this challenge, Egyptian authorities embarked on a visionary project in 2015 – the construction of a new administrative capital in the vast desert, aptly named the New Administrative Capital (NAC).

In this episode, we will focus on the assistance provided by other countries in this project, but for now, let’s delve into how Egypt itself is coping with this endeavour. In this part of Egypt, 95% of the entire population resides, leaving the rest of the territory practically uninhabited.

This is Cairo – the current capital of Egypt. Approximately 28 miles east of Cairo, a new capital is under construction, poised to become a modern marvel and a symbol of Egypt’s ambitions. Initially estimated to cost $48 billion, the construction faced delays and challenges exacerbated by the global pandemic, resulting in an increased investment of $58 billion, with the figure still fluctuating.

A key element of the new capital project is its ability to accommodate a growing population, with projections suggesting that 6.5 million people will inhabit it. The desert east of Cairo provides an ideal space for this ambitious project, allowing planners to create a city that not only addresses the issue of overpopulation but also offers a unique environment.

One of the main goals of the NAC project is to consolidate government ministries, currently scattered across different locations, in one central place. This move aims to increase efficiency and connectivity, ensuring that key administrative buildings are concentrated, fostering collaboration and improving management efficiency.

Alongside this, there is also a goal to construct a massive defence ministry and a central bank. The city has the potential to become an educational hub, offering numerous universities to attract new students. In terms of housing, residential complexes are being built, with plans for 20 such centres, six of which are already completed.

The city will also feature modern sports complexes, a mosque, a cathedral, and tall buildings, essential for such a luxurious location. All these facilities will be connected by a central park, set to be six times larger than Central Park in the USA.

The integration of these elements aims to create a vibrant urban fabric, attracting not only residents but also tourists seeking a deeper experience of modern Egypt, significantly impacting the country’s economy.

However, there are challenges. As is often the case with large projects, the future new capital raises scepticism. Economists express concerns about Egypt’s financial capability to sustain such a colossal project. There is also scepticism about whether the new capital will be accessible only to the wealthy. The initial price for housing in the new city is an impressive $80,000, positioning the city as a haven for the affluent and raising doubts about the feasibility of accommodating 6 million people in this location.

From the outset, the idea of creating the NAC has sparked controversy. According to its opponents, the construction costs exceed the country’s budgetary capacity. Voices are suggesting that President Abdel Fattah el-Sisi, driven by lofty „imperial” ambitions, is indebting the country while simultaneously raising taxes and cutting public sector spending.

Experts also note that the NAC and other mega-projects of the president will consume too much precious water from the Nile. Egyptians working in the New Administrative Capital also complain about the cost of living in the city, preferring to commute from Cairo and other towns instead of relocating to the NAC.

While the new capital is expected to bring significant economic benefits, Egypt is already experiencing a crisis. A substantial portion of public funds has been allocated to this project, raising concerns about financial responsibility and transparency. justification of investing in a new administrative capital.

The city is expected to house 6.5 million people, and so far, tens of thousands of initial residents have moved to the New Administrative Capital. Primarily, these are Egyptian officials along with their families, working in the new office spaces and ministerial buildings constructed in the first phase of the NAC’s development. The city already has 100,000 apartments and houses.

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