| ||AWB signs Heads of Agreement with Egypt|| ||
AWB today signed a Heads of Agreement with the Egyptian Government to establish a framework to explore a number of mutually beneficial opportunities to both parties.
AWB Managing Director, Andrew Lindberg, and the Egyptian Minister of Supply and Internal Trade, Dr Hassan Khedr, signed the agreement in Canberra that establishes a framework to pursue a number of initiatives including the opportunity for a long-term supply contract of wheat.
“The agreement seeks to build on the successful trade relationship AWB has had with Egypt for over fifty years and in 2003/04 AWB is positioned to export in excess of 2.3 million tonnes to Egypt,” said Mr Lindberg.
The agreement also seeks to investigate the possibility of future investment in grain silos at Ain Sokhna Port in Egypt by AWB.
AWB is also investigating the possibility of arranging a credit facility for Egyptian wheat purchases and opportunities for increasing Egyptian exports such as fertilizer is to be explored.
Mr Lindberg said the parties will first establish a joint project team to conduct a feasibility study to develop the details in the Heads of Agreements. The timetable for completion of the study is in the third quarter 2004.
“Once the feasibility study is completed and its benefits confirmed the parties will be in a position to sign a contract later in the year, which would formalise the deal,” said Mr Lindberg.
“Such an agreement has the potential to lead to a long term supply arrangement for wheat between AWB and Egypt which would provide financial benefits and security to Australian wheat growers.
“The agreement covers a number of areas which need to be further developed and investigated, however, any potential deal must deliver dollars to the pockets of Australian wheat growers,” said Mr Lindberg.
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