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Egyptian industry faces problems

CAIRO, Dec. 31 -- The daily English-language Egyptian Gazette commented editorially Saturday on environment as one of the problems facing industrial producton saying in part: 'The pattern of public versus private ownership in Egypt has changed radically as a result of the government's reform programme. 'Several important service companies had already been sold to the private sector by the end of 1993, and by early 1994 two major bottling companies, Pepsi Cola and Coca Cola, had also been privatized.

'Law 230, of 1989, permitting complete ownership of manufacturing companies by non-Egyptian investors, has stimulated a strong growth of private and foreign investment. 'Since the late 1970s, the government has also established several new cities on non-agriculture land which, in addition to decreasing urban congestion in Cairo, Alexandria and other parts of lower Egypt, are aimed at attracting new industries. 'In addition, the government has also established several free zones in Cairo, Alexandria, Port Said, Suez and Ismailia, which provide special incentives to investors. 'One of the main problems facing industrial production is the environment. As the rapid expansion of industry in recent years has exacerbated the already serious enviromental problems caused by the high population density and the acceleration of urbanization, especially in Cairo, Alexandria and Nile Delta. 'This prompted the People's Assembly to enact a comprehensive environmental protection bill in February this year which gives special powers to the Environmental Affairs Agency (EAA) to enforce clean air regulations and to monitor pollution. 'Measures to establish an environmental police unit are also being considered. 'Under the new law, all proposed industrial and tourism projects must be subjected to environmental impact studies prior to approval.

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