Funding of Egypt’s New City Faces Criticism Amid IMF Aid

Funding of Egypt’s New City Faces Criticism Amid IMF Aid

For the past eight years Egypt has been building a new city in the desert. Dubbed the “New Administrative Capital”, its goal is to ease congestion in Cairo and boost the economy.

According to reporting by CNN, around 48,000 government employees currently work there, residents are moving in and large businesses are preparing to relocate there. 

The cost of the project has been projected at 58 billion dollars.  Funding is reportedly coming from land sales and government spending. 

At a time when Egypt’s economy is under tremendous pressure, critics are concerned about the expense. They also question its necessity. 

The IMF recently agreed to increase aid to Egypt by 5 billion dollars contingent on the country slowing down infrastructure spending. 

Egypt’s government reportedly remains resolute. It told CNN the city will continue to be developed and will not be affected by the IMF’s recent announcement. 

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