Egypt’s Sisi defends mega-projects with economy under strain

Egypt’s Sisi defends mega-projects with economy under strain

CAIRO - Egyptian President Abdel Fattah al-Sisi on Monday defended mega-projects undertaken since he took power, saying they were not to blame for economic turmoil that has seen the currency plummet and inflation accelerate.

Since Sisi became president in 2014, Egypt has embarked on an infrastructure splurge spearheaded by the military that has included the expansion of the Suez Canal, the construction of a new capital in the desert, and extensive road building.

Critics have questioned why the government poured tens of billions of dollars into the projects at a time when Egypt has struggled to contain its debt burden and provide public services such as health and education to a growing population.

The government in early January issued an order for the postponement of projects with a large foreign currency component, and cuts to non-essential spending.

In a Nov. 30 letter of intent to secure a $3 billion financial rescue package from the International Monetary Fund, Egypt pledged that "spending on public projects including national projects would be slowed down and adjusted to limit pressures on the foreign exchange market and inflation."

In comments to mark Egypt's annual police day, Sisi said, "I will speak about what's being circulated, that the national projects are