The early beginning of creating urban communities in Egypt go back to the civilization of ancient Egypt that emerged since the dawn of the Egyptian history. However, the Egyptian cities have, during the second half of the 20th century, witnessed an increasing and unprecedented urban expansion. A huge urban leap took place; transforming Egypt from an agricultural rural country, where rural population accounted for more than 90 percent of total population at the beginning of the 20th century to a country, where urban population mounted to 45 percent of total population by the end of the century.
At the beginning of the sixties, due to a number of political and social changes resulted in the decrease of the private sector's contribution in the field of housing which, in turn caused the decrease of the supply of housing units, the issue of housing and reconstruction was a serious problem. Though urban expansion imposed a number of challenges, Egypt has succeeded in facing them during the last two decades through several long-term strategies that targeted, in the first place, increasing the populated areas. The state managed to achieve a housing and urban boom which led to increasing the populated area from 4 percent to 5.5.
It also managed to create new urban communities to help in moving from the narrow Valley to uninhabited desert areas.
This will contribute to realizing optimum distribution of population, and create new pivots for development in various cities and new urban communities.
First: Housing
The state has exerted great efforts to provide suitable housing units at affordable prices for low-income and other categories especially youth. The State's housing policy over the past years has been basically oriented to realizing social stability and welfare for the Egyptian citizens through establishing hundred thousands of economy-level housing units equipped with an integrated basic service network in various regions.
Low-Cost Housing Units for low-Income Brackets
The State, over the past two decades, has been basically oriented to provide housing for low-income brackets known as “low-cost housing”. This is reflected in the huge volume of investments allocated by the state to build hundred thousands of housing units for low-income brackets; both in the existing towns and cities and in new cities and urban communities. These housing units mount to 86 percent of the total implemented housing units. Moreover, the State gives priority to low-income housing by allocating necessary lands and soft housing loans estimated annually at LE 625 million, each for LE 15,000 repayable in installments over 40 years at a 6 percent interest rate. These loans were oriented to popular and economy-level housing units of a maximum area of 70 m2 and monthly installments of LE 73 percent/ unit.
Mubarak's National Project for Youth Housing
Mubarak's National Project for Youth and the Future Housing Project for low-income brackets are two important comprehensive model housing projects. As youth is the mainstay of any society, President Mubrak has paid due attention to providing suitable model housing units for youth. As a contribution to solving youth housing problem, the state finances 40 percent of the cost of each unit. Hence, such giant national project has begun with three phases providing 140,000 housing units distributed among 13 new cities. In December 1987, the first phase was inaugurated in the 6th of October City.
Besides, the State provided lands equipped with necessary utilities for implementing The Future Housing Project for low-income brackets of youth, along with providing the basic services and cooperative loans.
Encouraging Real-estate Investments Attracting the Private Sector
Egypt's housing policy at this stage focuses on encouraging the private sector to participate in housing field. This policy focuses, in the first place, on amending the State's role in providing houses by expanding its role in drawing up the overall housing policy and dividing execution responsibility among various parties such as private real-estate development companies, local and cooperative societies, the general public, banks and governmental finance institutions.
This would turn new cities into great attracting centers for the private sector's investments. Besides, the State develops censorship and follow up mechanisms that would guarantee considering the social perspective and protecting the interests of the poor classes. Within this framework, the private sector, surrounded by several encouraging incentives provided by the State, takes part in owning and administrating the new cities and urban communities. Salient incentives are decreasing fees and taxes, increasing tax-exemption and establishing utility and services networks by the State as they are difficult to be established by other sectors. Real-estate mortgage law, in effect since March 2004, is considered one of the legislative solutions provided by the State to encourage investment private sector to build and finance housing projects. Applying such law contributed to building more than 30,000 housing units up till now.
250,000 Housing Units during 2004
During the years 2004-05, total investments allocated for the housing sector mounted to LE 16.4 billion, of which LE 10.5 billion implemented by the private sector, accounting for 64 percent of total investments.
96.8 percent completed by the private sector including 115,000 economy-level housing units at a rate of 46 percent of total housing units.
Achievements also included 40,000 medium-level housing units, 10,000 upper-medium-level units and 85,000 housing units in rural and reclamation areas.
Second: Public Utilities; a Vital Sector in Egypt
The State pays due attention to public utility sector as being one of the factors of upgrading basic services in Egypt. The objectives of public utilities sector focus on two basic pivots:
1- Maintaining the citizen ‘s health:
This would be achieved by providing fresh potable water in appropriate quantities and according to standard specifications.
2- Increasing per capita share of potable water and sanitary drainage services and increasing coverage percentage of these services all over the Republic.
New Specialized Bodies for Improving Service Quality and Quantity
Within the framework of surpassing provision concept to the concept of excellence in providing services, a number of steps have been taken recently so as to improve performance in public utilities sector through unifying the authorities responsible for implementing, administrating, and operating the projects of potable water and sanitary drainage. Therefore, the Holding Company for Potable Water and Sanitary Drainage and 41 affiliated companies were established in accordance with presidential decree no. 135 of 2004 giving administration and operation responsibility of public utilities sector to such company.
In accordance with presidential decree no.136 of 2004, a body for organizing potable water and sanitary drainage and protecting consumer was established. This creates a new mechanism that enjoys independence, effectiveness, and credibility and plays its role in periodical follow up and supervision on potable water and sanitary drainage concerning quality and price so as to guarantee the citizens' interests and rights.
1-Pot able Water; A Noticeable Increase
The increase of per capita share of fresh potable water and the increase of the produced water quantity indicate the great progress achieved by potable water sector. In 2005, potable water network coverage reached 100 percent in all cities and 95 percent in villages. So, population access to safe water reached 191.3 percent. In addition, total average per capita share of potable water increased from 78.5 litre/day in 1981, to 305 litre/day during 2004-05. Total available productive capacity of potable water plants increased from 4.65 million m3/day in 1981, to 21 million m3/day in 2004. Total length of water networks increased from 6,000 km in 1981, to 27.85 thousand km during 2004-05.
The National Project for Covering 240 Villages
In order to extend fresh potable water to each citizen in Egypt and within the framework of working for increasing the amount of potable water network coverage from 95 percent to 100 percent, the implementation of national project for potable water coverage for 240 deprived villages, has started at a virtual cost of LE 2 billion, partially financed by the Arab Fund for Economic and Social Development mounting to Kuwaiti Dinar 47 million and the rest by Investment Bank. This project will be completed by the end of the present five-year plan 2002-07.
2-Sanitary Drainage; an Increase in Covered Areas.
Sanitary drainage is one of the most important sectors that affects man's life and his surrounding environment. Increasing urban and rural area covered by sanitary drainage services is a salient objective of the comprehensive national plan for sanitary drainage projects in Egypt.
During the year 2004-05, sanitary drainage sector has accomplished a number of achievements. Available absorption capacity for sanitary drainage discharge increased from 1.45 million m3/day in 1981 to 13.51 million m3/day in 2004. Moreover, total available treatment capacity increased from 850,000 m3/day in 1981 to 11.35 million m3/day in 2004. Besides, total length of sanitary drainage networks rose from 5,000 km in 1981 to 22.38,000 km in 2004.
Achieving 100 Percent Coverage:
So as to achieve 100 percent sanitary drainage coverage for all the Republic's villages by the end of the coming five-year plan, developed economic techniques have been used to modernize the national plan for sanitary drainage of the Egyptian villages. A plan was drawn to apply the new economic system at the same cost of the traditional ones in 150 villages.
Project; A Civilized Development in Sanitary Drainage Field
Afforestation projects are a great civilized development in the field of sanitary drainage projects as they contribute to realizing safe and effective sanitary drainage discharge which was a main cause of pollution, when poured into water courses, because of the harmful organic wastes it contains.
Afforestation projects are financed under the plan of the National Authority for Potable Water and Sanitary Drainage, which is responsible for financing all requirements of these forests.
Third: Reconstruction: Modernizing 's Population map
Several Years ago, urban expansion and desert construction have been a main challenge in the field of urban development. During those years, the state managed to move to unpopulated desert areas in Sinai, the New Valley, Northern Coast and Red Sea, in addition to areas in Greater Cairo.
The main objective of building such new urban communities is to keep abreast of world developments through modernizing Egypt's urban and population map. Since urban and population growth is currently focused within 5 percent of Egypt's total area, this policy aims to redistribute population, in the near future, over an area representing 25 percent of Egypt's total area.
During the period from 1981 to 2004, reconstruction sector witnessed a number of achievements, salient of them are:
- Extending 6007 kms of main and sub water nets; of which 510 kms extended in 2004.
- Establishing 76 water treatment stations and units; of which 11 stations established in 2004.
- Extending 849 kms of main and ancillary sanitary drainage nets; of which 34 kms extended in 2004 that also witnessed the establishment of 400 housing units in different urban areas.
New Cities; Out of the Narrow Valley
The policy of establishing new urban communities started in late 1970s, when the city of “ the 10th of Ramadan” has been established. The city offered an example of the first generation of the new cities later followed by several cities and new urban communities until they formed three generations. At present, number of new cities are in Egypt reaches 23 cities and urban communities; of which 19 cities under construction in different stages. In addition to that, at the beginning of the 2002-03 plan, work has started to build three new cities, as well as “a Qena New City” whose implementation has started at the beginning of 2003/04 plan.
The new cities in Egypt are distributed as follows:-
1- Eight near to Greater Cairo, i.e. 10th of Ramadan, 15th of May, 6th of October, Badr, el-Obour, el-Sheikh Zayed, el-Shorouq, and New Cairo.
2- Six in Lower Egypt, i.e. New Beni Sueif, New Menya, New Assuit and New Thebes.
3- Three under construction, i.e. New Sohag, New Aswan and Toshka.
Achievements in New Cities
Urban development policy in the new cities has contributed to completing infrastructure works for these cities through extending roads, bridges, and electricity and telecommunication networks. This resulted in creating integrated urban communities within an integrated urban planning.
Hence, the year 2004/05 has witnessed establishing 900 housing units in the new cities, in addition to 5 water treatment stations and units, 6 sanitary drainage stations , 15 power stations, transformer and distributors, as well as establishing 20 health units and hospitals, and 40 kindergartens and various schools. Besides, 97 kms of main and sub water nets and 110 kms of sanitary drainage nets have keen extended.
In order to provide more job opportunities in the new cities, number of productive factories in such cities rose from 896 in 1991/92 to 3322 in January 2005.
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