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Syria to collect $550 million from mobile operators in 2008
The Syrian government has forecasted $550 million in revenues from the country’s two mobile operators, MTN and Syriatel. The new figure represents a 31% increase over the 2007 collection due to the build, operate and transfer (BOT) nature of the project. This entitles the government to collect 50% of the revenues instead of 40% in 2007. The Syrian Telecommunication Establishment (STE), a state-owned monopoly fixed-line operator, collects the royalties on behalf of the government. STE, which is expected to have a $1.2 billion of revenues in 2008, is planning on investing $1.5 billion over the next five years in expanding its fixed-line network into remote parts of the country.
Citigroup inks $2.8 billion Yemeni gas project
Yemen’s $2.8 billion gas-liquefication plant, considered the country’s biggest financed project, has been finalized by Citigroup ahead of its June deadline. The project will be financed by a number of entities that include: $120 million loan from Japan Bank for International Development, $400 million loan from Export Import Bank of South Korea, an additional $1.1 billion loan from the French export credit agency Coface. The seven mandated lead mangers will also provide another $1.1 billion in loans. The lead managers are Tokyo-Mitsubishi Bank, BNP Paribas, Citigroup, ING, Royal Bank of Scotland, Société Générale and Sumitomo Mitsui Banking Corporation.
Egypt’s inflation at 15.5%
The Economist Intelligence Unit (EIU) has forecasted an average 15.5% inflation this year, from 9.7% in 2007. The surge in inflation comes at a time of increasing oil prices where the Egyptian government increased fuel prices by 57%, 32% and 35% for 95 octane, 92 and 90 octane fuels respectively. Diesel prices also rose by 47%. Tax on tobacco was increased by 10%. The hikes in fuel prices and cigarettes taxes were implemented to offset increases in public sector wages and subsidies.
The EIU is also forecasting inflation to peek to 22% this year and gradually decrease to 9.1% in 2009. The Egyptian Central Bank has made inflation targeting its main policy and is likely to use monetary measures to curb inflation. The Central Bank has already raised interest rates three times this year with overnight deposit and lending rates standing at 10% and 12% respectively. Rates are likely to be raised by no more than 100 basis points in the coming 18 months in the wake of balancing economic growth and inflation control.
