Mr Ahmed Nazif PM of Egypt announced this week a third stimulus package to the People’s Assembly amounting to EGP 11.2 billion.

In October, the government said that a third wave of stimulus would follow the EGP 15 billion issued in October 2008 and the EGP 8 billion included in the June 2009 state budget.

Mr Magdy Rady cabinet spokesman said that initial projections of EGP 10 billion rose after discussion in the People’s Assembly. We increased some expenses so it became a little over 11.

Similar to its predecessors, the stimulus package will fund infrastructural development projects. Investment bank Beltone Financial reported that water and water treatment projects will receive EGP 9 billion and the additional EGP 1 billion will go to miscellaneous social projects and programs.

Unlike Egypt’s previous stimulus packages, which were drawn from the state budget and heightened concerns around deficit spending, the latest stimulus will be financed by so called economic authorities, primarily the New Urban Communities Authority. The money, therefore, depends on the sale of land plots.

(Sourced from Daily News Egypt)