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Egypt’s New Cities: Neither Just nor Efficient

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The government agency responsible for the new cities – the New Urban Communities Authority (NUCA) – is planning to invest billions of pounds in the proposed new Egyptian administrative capital, and it continues to invest billions in its new cities across the country. Hence, raising questions about the real benefits of this new city is an imperative and timely matter. While billions are spent on the new cities, Egypt’s older cities continue to suffer from insufficient public resources and deteriorated services. This has increased the inequality between existing cities which house millions and the new urban areas that have been repeatedly described in the media as “ghost cities”.

Published in: Real Estate

Egypt’s New Cities: Neither Just nor Efficient

  1. 1. Egypt’s New Cities: Neither Just nor Efficient www.tadamun.info New Egypt’s New Cities: Neither Just nor Efficient www.tadamun.info Planning [in] Justicewww.tadamun.info
  2. 2. = 200,000 Greater Cairo Region Population = 21 million Growth of Egyptian Cities Egypt’s population has been historically concentrated along the Nile Valley. Over the past few decades, the population density has increased significantly to accommodate the growing population. Sūhāg 4.3million Asyūt 3.9million al-Minyā 4.8million Beni Suef 2.6million Giza 7.6million Damietta 1.2million Alexandria 4.6million al-Buhayra 5.4million Kafr al-Shaykh 2.8million al- Gharbiyya 4.5million al-Munūfiyya 3.7million Aswān 1.3million al-Daqahliyya 5.6million al-Qalyūbiyya 5.2million Cairo 9.3millionQinā 2.8million Egypt’s New Cities: Neither Just nor Efficient www.tadamun.infowww.tadamun.infoSource: Ministry of Planning, 2015
  3. 3. www.tadamun.info Story & Concept of New Cities The policy of establishing new cities and urban communities in the desert was developed as a way of controlling future urbanization and growth, and directing it towards new urban communities on the peripheries of existing cities and outside of the Nile Valley. Recently, the New Urban Communities Authority (NUCA) has been playing a leading role in implementing land and housing policies that focus on revenue generation. New
  4. 4. New New Goals of New Cities Originally, new cities and urban communities were established to fulfill a social and economic role. Fulfilling these roles successfully required attracting people away from existing cities to limit ongoing urban expansion on agricultural land and to provide affordable housing to lower- and mid-income groups. However, NUCA has consistently deviated from this social role and acted as a real estate developer instead. www.tadamun.info
  5. 5. New Qinā New Tiba New Luxor al-Shurūk New Cairo New ‘Alam ayn al-`Ubūr SheikhZayed Badr 15th ofM ay New Borg al-`ArabNew Dam ietta al-Sadāt New Salheyya New BeniSuef New M inyā NewNubareyya New Asyūt New Sūhāg New Fayyūm New Farafra New Asw ān New Toshka East`Uaynāt 6th ofOctober 10th of Ram adan North SuezBay Costal Resorts East PortSaid First Generation Second Generation Third Generation Under construction New Cities & Urban Communities Map Since 1979, Egypt built 28 new cities and urban communities over three generations with more under construction. Egypt’s New Cities: Neither Just nor Efficient www.tadamun.infowww.tadamun.infoSource: NUCA
  6. 6. Egypt’s New Cities: Neither Just nor Efficient www.tadamun.infowww.tadamun.infoEgypt’s New Cities: Neither Just nor Efficient Did New Cities Achieve their Goals? www.tadamun.info
  7. 7. First Generation Second Generation Third Generation Target Population Current Population (= 200,000 ) New Tiba al-Shurūk New Cairo al-`Ubūr Sheikh Zayed Badr 15th ofM ay New Borg al-`ArabNew Dam ietta al-Sadāt New Salheyya New BeniSuef New M inyā NewNubareyya New Asyūt 6th of October 10th of Ram adan Population of New Cities Not a single new city has reached its target population and the vast majority haven’t even achieved 50% of their target, even among the first ones established during the 1970s. Egypt’s New Cities: Neither Just nor Efficient www.tadamun.infowww.tadamun.infoSource: NUCA
  8. 8. Current PopulationTarget Population 4%New Assiut New Minia 6% New Tiba 10% Correlation between Spending & Success New Assiut, New Minia, and New Tiba have received the highest amount of spending on services per capita among all the new cities since their establishment, and yet, they have only achieved, respectively, 4%, 6%, and 10% of their target populations. www.tadamun.infoSource: NUCA
  9. 9. MonthlyHouseholdConsumption 2012/2013(EGP) 0 500 1000 1500 2000 2500 3000 3500 4000 5000 Lower Income Group Middle Income Group Richest Income Group Poor Group Minimum mortgage payment to own an average apartment in New Cities Housing not Reaching the Poor The monthly income of almost 60% of the population does not exceed EGP 2,000, while the monthly mortgage payment required to own an apartment in Badr City is EGP 3,625 on average. www.tadamun.infoSource: Shawkat, 2014 (based on HIECS 2012/2013)
  10. 10. 0 5 10 15 20 25 30 35 M inistryof Health M inistryof Education M inistryof Housing NUCA PublicInvestmentsin2015/2016 inEGPbillion Where do Public Invesments Go? NUCA’s budget in 2015/2016 is EGP 64.6 billion. NUCA’s gross investment in new cities is almost four times the total public investment in the entire national education sector, and more than five times the total public investment in the health sector during the same year. www.tadamun.infoSource: Ministry of Finance, Public Budget 2015/2016
  11. 11. 8billion EGP 64billion EGP New Cities are Costing Too Much & Generating Too Little Revenue The government adopted a philosophy of capi- talizing on Egypt’s land resources as a means to boost public revenues. However, despite new cities utilizing a budget of EGP 64 billion in 2015/2016, NUCA only gave back EGP 8 billion to the public treasury, which is only 1% of public expenditure. www.tadamun.infoSource: Ministry of Finance, NUCA’s Budget 2015/2016
  12. 12. New People did not move Unaffordable houses NUCA did not generate revenues New Cities are Neither Just nor Efficient Relying on NUCA to provide affordable housing and to generate adequate revenues through executing the current housing and land management policies does not seem to be effective. Yet, the government continues on the same track. www.tadamun.info
  13. 13. Planning [in] Justice The project aims to collect and analyze data and increase public awareness regarding the absence of spatial justice in the distribution of public resources between different urban areas. This is in addition to examining the institutional causes that enable this situation in Egypt, with a special focus on the Greater Cairo Region (GCR). In pursuing this aim, the project works on develop- ing tools to identify, measure and address these inequalities and making these tools available to other active groups in Egypt. Planning [in] Justice is a project of TADAMUN: The Cairo Urban Solidari- ty Initiative. www.tadamun.info
  14. 14. Egypt’s New Cities: Neither Just nor Efficient www.tadamun.info www.tadamun.info Planning [in] Justicewww.tadamun.info

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