GEF: - Governance and Knowledge Generation

Socio-economic Evaluation of Maritime Activities

Mediterranean Regional Activity: Egypt, Lebanon, Morocco, Tunisia

Project ID: P118145

Borrower/Bid No: FC006

Report, Egypt

June 2015

Hussein Abaza

i

Acknowledgment

This report benefitted from the extensive research and input provided by the team of experts and

researchers from the Egyptian Environmental Affairs Agency (EEAA) listed below:

Ahmed Kasem Kasem Sheta, General Manager of Environmental Crises, Ayman Ahmed Abdel Wahed,

Central Operations Room Director – Crises and Environmental Disasters Management, Yosra Abdel

Aziz, Environmental Researcher - Central Operations Room – Crises and Environmental Disasters

Management, Hala Ibrahim Mohamed, Environmental Researcher - Central Operations Room – Crises

and Environmental Disasters Management, Ahmed Sedek Ali, Director, Budget Management - Finance

Affairs, Mahmoud Fawzy Kamel, Environmental Researcher-Nature Conservation Sector, and Mohamed

Said Abd El-Warith, Environmental Researcher-Nature Conservation Sector.

The report also benefitted from the valuable contribution made by Moustafa Mokhtar Ali Fouda, Advisor

to the Egyptian Minister of Environment on Biodiversity, Mostafa H. Abaza, Economist, and Rana Nayer

Fayez, Economist.

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Table of Contents

Executive summary

I. Introduction……………………………………………………………….……………..……………….….1

II. Implementing the Project in Egypt………………………………….……….…….............................…2

III. Current State of the Coast and the Marine Ecosystem…………………………….…………………...6

IV. Assessing the Socioeconomic Impact of Key Sectors……………………….....................................16

. 1) Coastal Tourism …………………………………………………………………………………………...18

2) Fishing and Marine Aquaculture…………………………………....................................................23

3) Maritime Transport Sector..……………………………………….....................................................35

4) Offshore Oil and Gas Industry…………………………………………..............................................47

5) Energy Production……………………………………………………….………...….………………….57

6) Submarine Telecommunications……………………………….……..…………….…………………...62

7) Extraction and other environmentally damaging activities……………………...…………………..64

V. Cost of Environmental Degradation……………………………………………………..…………………...66

VI. Conclusions and Recommendations……………………………………………………………………..…..77

Annex I……………………………………………………………………………………………………….……...80

Annex II………………………………………………………………………………………………………..….....85

References…………………………………………………………………………………...…..…………………..89

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List of Tables

Table 1:Data for assessing the impact of economic activities on the environment……...…………………4

Table 2: Key Socio-economic Characteristics of the Northern Coastal Directorates……..........................16

Table 3 Impact of tourism on coastal and marine ecosystems ………………...………….........................22

Table 4: Value of Agriculture Production in Egypt in 2012……………………………………………....24

Table 5: Changes in Lake Area for the Four Nile Delta Lakes (2008)…………………………………....26

Table 6: Landing sites along the E Egyptian Mediterranean zone………………………………………..30

Table 7: Total volume of traffic through the Egyptian ports in 2013…………….…….............................36

Table 8: Number of Egyptian ports………….……………………………………………………….........37

Table 9: Egyptian commercial ports with regard to vessels, cargo, containers and passengers traffic

during the period between 2011-2013……………..…………………………..……………….……..…..38

Table 10: Number of ships and vessels passing through the canal 2004-2014……………………………43

Table 11: Energy generated by province……………………………....……………….…........................57

Table 12: Weekly wages in Electricity, Gas and the Water Supply sectors………….………………...…59

Table 13: Percentage of electricity generated from different sources of energy in Egypt……………..…60

Table 14: Operational cables, their length and transmission speeds….……………………………..........63

Table 15: Wages received per week by workers within mining and quarrying and manufacturing……....65

Table 16: Impact of Environmental Degradation on Future Generation and the Poor ……......................67

Table 17: Staff Salaries in Regional EEAA Offices ……...….………......................................................73

Table 18: Expenditures on services and fixed assets………………………..…………………………….74

Table 19: Expenditures related to the management of natural reserves in outposted locations ………….74

Table 20: Expenditures related to the Monitoring Programme for Egyptian Mediterranean coast ……...74

Table 21:Average cost of expenditures directly related to the Mediterranean coast……….......................74

Table 22: Share of costs of monitoring and purchasing of services and equipment related to the

Mediterranean Sea…………………………………………………………………………………………75

Table 23: Cost of Environmental Degradation of the Egyptian Mediterranean Coast in LE (000)………76

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List of Figures

Figure 1: Mediterranean Sea Coast of Egypt…………………………………………………………………...1

Figure 2: Driver-Pressure-Response…………………………...……………………………………………….17

Figure 3: Number of Tourists visiting Egypt in 2010 -2014………………..……...………………………….19

Figure 4: Number of Hotels and Resorts in Northern Governorates………………………………………….20

Figure 5: Percentage of Hotels in Northern Governorates…………………………………………………….20

Figure 6: Tourist pressure on Mediterranean coast……………………………….…………………………...21

Figure 7: Total Fish Production (in tonnes) 2001-2012……………………………………………………….24

Figure 8: Total Fish Production by Source 2001……………………………………………………………...25

Figure 9: Total Fish Production by Source 2012……………………………………………………..……….25

Figure 10: Total fish production in Northern Lakes.……………………………………………………...........27

Figure 11: Total fish production in Sinai.............................................................................................................27

Figure 12: Motorized vessels divided by engine Horse Power (HP)……………………………...……………29

Figure 13: Sailing Boats Fishing Fleet in the Northern Lakes (3rd Class)……………………………………..29

Figure 14: Number of Licenses in Northern Lakes & Coastal Lagoons According to Duration (2012).............30

Figure 15:Number of Licenses in the Mediterranean According to Duration (2012)……………………….….30

Figure 16: Number of Licenses in the Mediterranean According to Type (2012) Area……………………..…31

Figure 17: Number of Licenses in Northern Lakes & Coastal Lagoons According to Type (2012)...................31

Figure 18: Location of Aquaculture farms in Egypt….…………………………………………………...........32

Figure 19: Contribution of aquaculture to fisheries production.………………………………………………..32

Figure 20: Maritime transport routes in the Mediterranean….………………………………………..……….36

Figure 21: Traffic of local containerized and non-containerized cargo…………………………………...........39

Figure 22: Traffic of Transit containerized and non-containerized Cargo……………………………………..39

Figure 23: Vessel calls according to DWT in 2013…………………………………………………………….40

Figure 24: Age Classification According to the Type of Vessels (2013)……………………………………....41

Figure 25: Number of Maritime Laborers in Egypt (2013)……….....................................................................42

Figure 26: Growth Rates of Suez Canal Indicators (2005 2014)…………………………………………….....44

Figure 27: Contributions of the Suez Canal and the transport and storage sector to GDP Growth………...…..44

Figure 28: Accidents in Egyptian Ports by Type of Accident (2013)……………………………………..........45

Figure 29: Structure of the Petroleum industry in Egypt……………………………………………………….48

Figure 30: Gas explorations in Egypt………………………………..................................................................49

Figure 31: Oil Production and Consumption in millions of tonnes (2003-2013)………………………………50

Figure 32: Natural Gas Production and Consumption in billion cubic meters (2003-2013)…………………...50

Figure 33: Map of Oil and gas fields in Egypt………………………………………………………………….51

Figure 34 Oil and gas routes in Egypt ………………………………………...………………………………..52

Figure 35:Production rates in the Oil and Gas Sector (2010-2014)……………………………………………53

Figure 36: Contribution to GDP Growth of the Oil and Gas Extractions Sector.…………………………....…53

Figure 37: Oil and Gas rigs in Egypt………………………………………………………………...................54

Figure 38: The impact of offshore drilling….………………………………..…………………………………55

Figure 39: Trends in carbon emissions in Egypt 1980-2012……………………………………………...........56

Figure 40: Egyptian National Grid and all of the power plants connected to the National Grid……………….58

Figure 41: Distribution of Energy Sold by Purpose of Use (2013……………………………………………...58

Figure 42: Distribution of Energy Sold by Purpose of Use (2013)……………………………………………..59

Figure 43: Capacity (M.W) of Turbines in Northern Governorates……………………………………………60

Figure 44: No. of Turbine in Northern Governorates ………………………………………………………….60

Figure 45: landing locations for cables in Egypt ………………………………………………………………62

Figure 46:Cost of environmental degradation in a number of Middle Eastern Countries,including Egypt........68

Figure 47:Egypt Carbon dioxide emissions (thousands of tonnes) during the period between 1960-2010........71

v

Acronyms

BP British Petroleum Company

CAPMAS Central Agency for Public Mobilization and Statistics

CERA Cambridge Energy Research Associates

DPRIR Driver-Pressure-Response

DWT Deadweight tonne

ECHEM Egypt Petrochemicals Holding Company

EEAA Egyptian Environment Affairs Agency

EGAS The Egyptian Holding Company for Natural Gas

EGPC Egyptian Petrochemicals Holding Company

EMRA Egyptian Mineral Resources Authority

ESA Economic and Social Analysis

GAFRD General Authority for Fish Resource Development

GANOPE The South Valley Holding Company for Petroleum

GDP Gross Domestic Product

IUU Illegal, unreported and unregulated

NGOs Non-governmental organizations

NTRA The National Telecommunications Regulations Authority

MAP Mediterranean Action Plan

MCIT The Egyptian Ministry of Communications and Information Technology

ONS Offshore North Sinai

OPEC Organization of the Petroleum Exporting Countries

TEEB The Economics of Ecosystems and Biodiversity

TFE Twenty-Foot Equivalent

TDA Transboundary Diagnostic Analysis

TDA Tourism Development Association

SUMED Suez Mediterranean Pipeline

UNCED United Nations Conference Environment and Development

UNEP United Nations Environment Programme

UNWTO United Nations World Tourism Organization

WTP Willingness to Pay

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Executive Summary

More than two decades ago the international community has acknowledged the importance and

necessity of adopting a sustainable development path. However, in spite of efforts by

governments to follow this path, progress has been modest and was not commensurate with the

urgency of the matter. Acknowledging the need to adopt sustainable development policies started

with the United Nations Conference on Environment and Development (UNCED) held in Rio in

1992. One of the main obstacles to achieving sustainable development has been and continues to

be the lack of integration of environmental as well social considerations in sectoral and

macroeconomic policies. In many instances environmental policies continue to be developed in

isolation from mainstream economic policies with little or no regard for environmental and

social considerations. Low priority given to the environment and social aspects over economic

considerations has resulted in negative implications for the environment, society and ultimately

the economy. One of the main reasons for the lack of integrated policy making is the lack of

awareness and recognition of the negative impacts of adopted policies on the environment with

its social implications and the cost to the economy as a result of ecosystem and environmental

degradation. Unless policy and decision makers are fully aware of the negative implications of

unsustainable policies on the environment, society, and the economy, there will be little chance

in adopting integrated policy making by governments across the world.

Concerned with the health of the Mediterranean Sea and its coastal areas, countries both north

and south of the Mediterranean Sea have negotiated and signed in 1976 what is referred to as the

Barcelona Convention for the Protection of the Mediterranean Sea. Moreover, contracting parties

to the Convention have recognized the importance of adopting an ecosystem approach for the

management of socio-economic activities related to the Mediterranean zone and have initiated

efforts to follow this path. Recognizing the importance of these efforts, the Blue Plan has

launched as part of the Regional Governance and Knowledge Generation Project (GEF grant), a

study on the Socio-economic Evaluation of Maritime Activities in the Mediterranean region. The

project covers four Southern Mediterranean countries: Egypt, Lebanon, Morocco and Tunisia.

The main objectives of the study are twofold. First is to assess the socio-economic importance of

key maritime sectors in each country, with the aim of identifying key socio-economic indicators.

The second is to estimate the cost of degradation of the marine environment resulting from the

priority socio-economic activities identified. The ultimate aim of the project is to illustrate to

policy makers the potential costs of damaging and unsustainable socio-economic activities to the

environment and the economy.

The innovative nature of the project is therefore its focus on providing a socio-economic

assessment of marine ecosystems with the primary objective of enhancing knowledge and

identifying potential impacts of human and economic activities on the ecosystem and cost of

environmental degradation on the economy.

Eight sectors were identified to be the main focus of the study. These were sectors that mainly

depend on the Mediterranean Sea for their activities, and with deteriorating conditions of the

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Mediterranean Sea, the sustainability of these activities would be directly affected. Main socio-

economic activities identified for the study are: fishing and marine aquaculture, maritime

transport, cruising and pleasure boating, coastal tourism, energy production, extraction of marine

aggregates, offshore oil and gas industry, and sub-marine telecommunication and electric cables.

Located in the northern corner of Africa, Egypt has the entire northern part of the country

bordering the Mediterranean Sea. The Egyptian coastline extends over 1,550 km from Rafah to

Sallum. The main Egyptian cities overlooking the Mediterranean are Alexandria, Port Said,

North Sinai and Marsa Matruh. The northern coastal zone of Egypt consists of three

geographically distinct regions: the Nile Delta Coast, which stretches from Alexandria eastwards

to Port Said; and the North Eastern Coast stretching from Port Said to the border with Gaza.

More than 20% of Egypt’s total population lives along the northern coastal zone of the country,

with more than 40% of its economic activities concentrated along the coast. Main economic

activities in the northern coastal area include industry, agriculture, tourism, petroleum and

mining activities, and urban development. Information regarding the exact contribution of the

sub region to the national economy is unfortunately not available.

The north coast is home to several cities, towns and villages. Main population concentrations are

in Alexandria, Port Said, Sallum, Marsa Matruh, El Dabaa, Damietta and many more. The

largest Egyptian city on the Mediterranean is Alexandria. It hosts around 4.7 million inhabitants.

Other large cities in the region are Damietta (1.3 million), the Beheira Governorate (5.6 million

inhabitants with about 1 million spread across the Mediterranean coast), the Kafr el-Sheikh

Governorate (3.1 million with about 800mn on the coast), Port Said governorate (654,000), and

Al Arish (165,000) (CAPMAS, 2014). This figure increases by about 1 million during the

summer season due to local visitors to the north coast. With population growth rates at the

national level estimated at 1.6% (World Bank, 2013), and with the government policy to develop

the northern coast to absorb population growth, it is expected that the north coast will experience

higher levels of population growth rate exceeding the national level. This necessitates the

adoption of sustainable development policies and programmes that do not negatively impact the

Mediterranean coastal zone and impair socio-economic activities that depend on its integrity and

wellbeing.

The methodology adopted in this study followed the “Methodological Guidance for the National

Case Studies” developed by Blue Plan for this project. It has also benefited from the work of

national experts who carried out similar assessments in Lebanon, Morocco, and Tunisia.

Activities undertaken to complete the study included: identifying the priority socio-economic

sectors that have the most significant impact on the Egyptian Mediterranean coast; main

institutions, resources persons and stakeholders to be consulted, and experts to be mobilized for

the study. It also included meeting with senior administrators, and gathering and analyzing data

from existing studies. A large part of the study focused on assessing the impact of priority socio-

economic activities carried out along the Egyptian Mediterranean coast on environmental

degradation and pollutions, and on local habitats and marine ecosystems. The final part of the

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study provides an estimation of the environmental cost resulting from the main socio-economic

activities carried out along this zone.

The Egyptian coastline of the Mediterranean is considered to be between arid and hyper-arid

marked by scarce water resources and limited sporadic periods of rainfall. Twelve major habitats

were identified in the northern Mediterranean, these are: coastal dunes, sand formation, Sallum

plateau, salt marshes, saline depression, non-saline depression, inland ridges, inland plateau,

wadis, cultivated lands, road sides, and summer resorts. The Mediterranean coast of Egypt is one

of the richest areas in biodiversity in the entire country. Twenty endemic and twenty-one near

endemic species are recorded in the western Mediterranean Desert. Fifty-three species in the

Western Mediterranean Desert were recorded in the Red Data List of the vascular plants of

Egypt. The Mediterranean coastal belt of the western sector represents the richest herpetofauna.

There are around 170 resident and migratory bird species that exist in the Mediterranean coastal

area and desert, 48 of them occur in the western coastal belt. Mediterranean marine life is

characterized by its low biomass and high diversity, and clearly reflects the prevailing abiotic,

environmental features particularly the nutrient deficient water, low tidal amplitude and

temperature regime. A range of human activities threatens the biodiversity of the Mediterranean

Basin. Among the most endangered marine vertebrate species are the Mediterranean monk seal;

common bottlenose dolphin, short-beaked common dolphin, striped dolphin, sperm whale, green

turtle, leatherback turtle, loggerhead turtle, and cartilaginous fishes (sharks, rays, and chimaeras).

Negative impacts on the Northern Mediterranean coast of Egypt include over-exploitation

beyond sustainable limits, chemical contamination, coastal development and sprawl,

eutrophication, invasive non-indigenous species, changed hydrographic conditions, state of

biodiversity, sea-floor integrity, and marine noise.

The Mediterranean Sea and the area surrounding it represent the grounds for the majority of

fishing activities taking place in Egypt. In addition to the coastal belt along the Mediterranean

Sea in the north of Egypt, there are a number of Egyptian Mediterranean brackish water lakes

and lagoons situated along the Nile Delta, those are Manzala, Borollus, Edku and Mariout, and to

the east of the Suez Canal, Port-Fouad and Bardawil.

Tourism is one of the more important sectors in Egypt contributing 11.3% of GDP and with

12.6% of the total labour force employed in the sector in 2013. Tourism in the Egyptian

Mediterranean is characterized by the dominance of internal tourism as opposed to foreign

tourism. Apart from the traditional destination cities such as Alexandria, Port Said, Matrouh and

Al-Arish, the north coast extending from Alexandria to Matrouh has emerged as a main

attraction for local tourism during the last two decades. About two million Egyptians visit the

north coast in the summer season extending from May to September. This has been accompanied

by extensive developments of resorts along the Mediterranean coast thus representing an

increased pressure on the coastline and the ecosystem. It is the intention of the Government to

further develop the north coast to absorb the future population growth in the country and to make

it an attraction for foreign tourists and investors. With the stabilization of the political situation in

Egypt, it is expected that foreign tourism will even exceed the figures prior to 2011 levels of 14.7

million tourists. However, environmental degradation of the northern coastal areas will be a

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discouraging factor for foreign tourists to visit main Egyptian Mediterranean cities. The

environmental impacts on coastal areas will be further exacerbated by increased levels of

urbanization, volume of transport and consequently fuel consumption and CO2 emissions,

cruising and pleasure boating, as well as increased levels of ground water consumption and

wastewater and solid waste generation and disposal.

In 2014, the agriculture, irrigation and fisheries sector contributed 14.7% to GDP up from 13.4%

in 2012. The contribution to GDP from the fisheries sector in both 2012 and 2014 was 0.4%.

Average GDP growth for the years 2012 and 2014 was estimated at 2.1% in both years. More

than 250,000 fishermen are employed in the fisheries sector in Egypt. A disruption in the sector

is therefore likely to have an impact on direct and indirect employment.

Agricultural exports constitute about 10% of total export activities in Egypt1. Data for fisheries

contribution to the sector is included in figures for the agriculture sector and is not disaggregated.

In recent years Egypt has experienced a boom in fish production, where it has increased from

790,000 tonnes in 2001 to 1.4 million tonnes in 2012. This increase in fish production has been

mainly attributed to the expansion of aquaculture, which represented 74% of the total catch in

2012. This is in comparison to a decline in fish catch from other sources, with a percentage

decrease from 55% in 2001 to 26% in 2012. Expansion in aquaculture in Egypt in recent years

can be linked to the reduction of fish catch from the Mediterranean (88,900 tonnes in 2008 to

69,3000 tonnes in 2012). Main reasons for the decline in fisheries from other sources (excluding

aquaculture) have been identified as over fishing, illegal fishing, overlap between coastal and

offshore uses, lack of planning, pollution, and lack of regulations regarding fishing periods to

take into account breeding seasons and the use of non-selective fishing gear. This is in addition

to other unsustainable fishing practices, including the use of trawls and other mobile bottom

gear, the use of dynamite and poison, and the disposal of debris such as food containers and

plastics, and vessel debris. It should be pointed out that the size of four of the northern lakes,

namely Manzala, Burullus, Edku, and Mariout have drastically declined reaching up to 95.5%

reduction in size in some cases, as is the case for lake Edku. Moreover, the northern lakes have

been exposed to serious environmental degradation due to the disposal of industrial and

agricultural waste, as well as municipal waste. Climate change is also expected to impact

fisheries in Egypt as a result of the potential increase in seawater temperature and pH.

Based on the figures available from Central Agency for Public Mobilization and Statistics

(CAPMAS), average decline in fish catch for the years 2010-2012 from the Mediterranean Sea

and the northern lakes was estimated that the decline in fish catch from the Mediterranean and

the northern lakes to be between 700 -1000 tonne/annually over the next 10 years. If we use the

average cost per tonne of LE. 20,000 this would amount to between LE. 140 million – LE. 200

million over the next ten years.2. This figure is likely to be much higher due to the increasing

environmental deterioration of the Egyptian Mediterranean waters and the northern lakes and

increased cost of fish.

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Maritime Transport represents another import sector in Egypt. The strategic location of Egypt

and with the Suez Canal connecting the Mediterranean Sea with the Red Sea linking East to

West attracts a great deal of maritime traffic along the Egyptian Mediterranean coastal zone.

Major ports in Egypt are located in Alexandria, New Damietta and Port Said. These ports also

have oil and natural gas terminals. Smaller fishing ports are located at a number of designated

fish landing facilities in addition to most major ports. Naval port facilities are also found along

the Mediterranean coast. Egypt has 6 commercial ports on the Mediterranean out of a total of 15

ports, 3 petroleum ports out of the total 11 and 3 out of the 4 fishing ports. There are no mining

or tourist ports on the Mediterranean.

Oil shipping through the Suez Canal and along with the Egyptian oil terminals makes the

Egyptian Mediterranean coast among the most important oil shipping routes in the

Mediterranean basin. The importance of this facility is expected to be further enhanced with the

completion and inauguration of the new parallel canal in August 2015. Seaports are considered

to be the backbone of the state's foreign trade and its access to the world.

About 7% of total employment in Egypt in 2013 is in the transportation sector. However, there

are no data available on the total number employed by the sector in the Egyptian Mediterranean

coast. Based on the share of ports in the Mediterranean coast, number of workers employed in

the Mediterranean maritime transport sector is about 2000 workers. The number of ships passing

through the Suez Canal in 2014 has reached 16,774, down from 21,080 in 2008 before the

financial crisis had its impact on world trade. Regarding the contribution of the sector to the

national economy, though there is no data specifically available for maritime transport, the

transport sector as a whole has been a positive contributor to GDP, with an average share of 5%

in the past several years. There have been however, negative impacts on the ecosystem due to

maritime transport and pleasure boating. Some of these causes are more specifically, illegal

dumping of waste, marine accidents, ship and vessel maintenance resulting in changes in water

quality, introduction of alien and invasive species, and sound pollution to name a few.

Increased maritime transport due to an increase in the volume of trade and tourist activities is

likely to further increase pressures on the Egyptian coastal areas, if necessary measures are not

introduced. It is therefore essential that the Egyptian Government introduce necessary measures

to address the negative impacts resulting from maritime activities. These include the introduction

of standards, monitoring and enforcement measures with respect to CO2 emissions, the disposal

of waste, oil spills and other harmful chemicals and waste. Moreover, the local capacity in terms

of personnel and equipment need to be enhanced to adequately monitor, control and manage the

sector.

It is evident that from current and expected future urban development in general and that which

is associated with tourism along the Egyptian Mediterranean coast, that if proper measures and

actions are not introduced, environmental damage to the coastal zone will continue with

irreversible damage to some of the natural ecosystem. Policies therefore need to be developed

and implemented to promote sustainable and ecotourism that recognizes the importance of the

environment and natural resource as being the backbone for the economic viability and further

development of the sector and the economy.

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As for the offshore oil and gas industry, the most significant contribution the sector has made to

the economy was in 2006. During the years when the Egyptian economy was steadily growing

from 2006 to the financial crisis in 2009, the sector averaged a contribution of 0.75%. Starting

2012 the sector began contributing negatively to GDP growth, averaging a contribution of -0.3%,

reaching -0.9% in the financial year 2014. The Egyptian Mediterranean coast though offers

promising ground for gas discoveries, particularly in deep waters. Most activities of the sector

are not located in the Mediterranean or the Delta, with only 7% of the rigs in Egypt located in the

Mediterranean or the Delta and the majority located in the Western Desert.

With increased stability in the country accompanied by the payment of arrears to foreign petrol

companies, explorations have resumed with 53 exploration agreements signed. Fourteen of those

explorations are in the Mediterranean Sea: West El Arish off shore, east Port Said, north

Rommana, north Ras El Esh, west El Temsah, south Tennin, north El Hammad, and east

Alexandria. Linked to the oil industry is the petrochemical industry, with plans to expand

activities in this sector. The Government has plans to increase the production of lighter products,

petrochemicals and higher-octane gasoline by expanding and upgrading existing facilities and

promoting new projects.

Environmental safeguards should be introduced to ensure that exploration activities as well as

operations and petrochemical activities do not represent a hazard to the environment. Oil and gas

companies operating throughout Egypt should follow strict environmental standards that require

the use of appropriate technologies and procedures to ensure the protection of the environment

and the ecosystem. Contingency plans should be put in place in order to deal with oil spills and

accidents related to explorations, drilling and oil and gas transport.

The significance of the energy sector in Egypt to GDP is represented in its support to the

different economic activities, particularly the industry sector that contributes 37.5% to GDP. In

2013, the electricity sector employed 226,200 workers across Egypt, of these, 3,000 were

employed in the Damietta governorate, 400 in Port Said, 12,500 in the Alexandria governorate,

3,600 in the North Sinai governorate and 2,300 in the Matrouh governorate. The importance of

this sector as far as the environment is concerned is with regards to the type of fuel used to

generate electricity. Heavy reliance on fossil fuels for energy generation represents a problem in

Egypt. Increased CO2 emissions resulting from the burning of fossil fuels and their impact on

climate change and sea level rise and the potential negative implications on coastal areas and the

Delta is of particular concern to Egypt.

Due to its strategic location, Egypt is a hub for submarine cables. Cables passing through Egypt

connect Asia with Europe and North America. There are four main landing locations for cables

in Egypt: Zaafarana, Suez, Abu Talaat and Alexandria. The Egyptian Ministry of

Communications and Information Technology (MCIT) is working on adding more cables and

improving the already existing ones. Contribution of this activity to GDP is minimal. In terms of

employment, the sector as a whole employs a total of 189,300 workers, which represents about

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0.8% of the total employed in the economy in 2013. No specific data is available on the

Mediterranean submarine telecommunications sector. Main environmental problems associated

with the sector is the risk associated with the installation of the cables. However, this does not

represent a significant problem for the Egyptian Mediterranean coast.

When it comes to the extraction of marine resources in Egypt, there is little or no data available

specific to activities in the Mediterranean coast. It is safe to state that when it comes to the

Mediterranean Sea, extraction activities with serious environmental implications are negligible.

There are though a number of activities along the Mediterranean coast that have negative

environmental impacts on the marine ecosystem. These include, mining and quarrying, and

drilling related activities.

It is apparent from the assessment that the identified socio-economic activities do have negative

impacts on the Egyptian Mediterranean coast. This is mainly represented in increased air and sea

pollution, pressure on the ecosystem, degradation of biodiversity and local habitat. This is mainly

attributed to unsustainable physical development along the coast associated with internal

tourism, the dumping of agricultural, industrial and municipal waste and urban encroachment on

the northern lakes, increased surface and maritime transport, offshore and onshore drilling and

oil and gas explorations and operations. Other environmentally negative practices include

overgrazing, overfishing, hunting of wild animals, illegal bird hunting, over collection of plants,

and the impact of invasive species.

The Egyptian Government realizing the importance of protecting the environment has in 2002

supported a World Bank study on the cost of environmental degradation. The study has

estimated the cost of environmental degradation at 4.8% of GDP. Coastal zone degradation alone

was estimated at LE. 0.6-1.2 billion or 0.2 - 0.4% of GDP. According to the World Bank study,

environmental degradation if not adequately addressed is likely to impact current and future

generations, with the poor suffering the most.

In order to estimate the cost of environmental degradation resulting from the key identified

maritime related socio-economic activities the cost-based method was used in this study. This

mainly involved estimating costs related to the protection of the marine environment and costs

imposed on uses of the marine ecosystem due to its degradation. Though cost of CO2 emissions

resulting from surface transport to north coast destinations are not directly related to maritime

activities, they were found to be significant. Cost to the economy was estimated at around LE.

10 billions annually. Other costs included cost of installing catalytic converters to curb car

emissions resulting from surface transport of local tourists to the north coast was estimated at

LE. 500,000,000.

According to the study annual costs are those related to loss of foreign tourists estimated at LE.

2.295 billion, costs related to loss of fisheries from the Mediterranean Sea and the northern lakes,

estimated at LE. 20 million, costs of dealing with solid waste generated by urban centres along

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the coast estimated at LE. 134, 685, and cost related to the management and operations of coastal

areas estimated at 23.5 million

A number of recommendations are proposed to mitigate and eventually avoid the negative

impacts of economic activities on the marine environment, local communities and the country as

a whole. Those include ensuring the integration of environmental as well as social considerations

in economic activities, and the adoption of sustainable practices and measures in tourism,

fisheries, and marine transport sectors as well as in other activities such as urban development,

industry, and agriculture. There is also a need to have in place a good governance system in

order to ensure the strict adherence to environmental regulations, and an adequate and effective

monitoring system that ensures compliance and adherence to environmental standards and

regulations. Policy and decision makers should be made aware of the real cost to society and the

economy of unsustainable economic activities and the need to ensure that environmental and

social considerations are fully taken into account in the design and implementation of economic

activities. Moreover, local capacities in the assessment and monitoring of marine related socio-

economic activities and their potential impact on the marine ecosystem should be further

strengthened. The table below provides a brief general description of the sectors analyzed, key

economic indicators, and the importance of the sectors to the country.

i

General description of the sectors analyzed, key economic indicators, and the importance of the sectors to the country

Name of the

sector

General description of the sector

(including sub-sectors, future

development)

Key economic indicators (to be disaggregated per

sub-sector if relevant) Importance of the sector for the country

Turnover

(M$)

GVA

(M$)

Direct

employment

Indirect

employment

% of

national

GDP

% of

national

employment

Other issues (including social) and

indicators

Maritime

transport

Egypt has 6 commercial ports on

the Mediterranean out of a total of

15 ports, 3 petroleum ports out of

the total 11 and 3 out of the 4

fishing ports. There are no mining

or tourist ports on the

Mediterranean

_ 3,8761 2, 210

2 2,900

3 0.14%

4

0.019% of

total

employed

labour force5

Main source of pollution through the use of

old and degrading vessels. 74% of the

pollution caused by sinking vessels other

marine units, and the dumping of waste and

ballast water.

Fisheries &

aquaculture

Total of 3,046 vessels of which

1,233 are motorized long line

vessels (40% of the Mediterranean

motorized gears), while trawlers

numbered 1,098 (36%), vessels

using trammel nets were 478

(16%) and purse seine vessels were

237 (8%)

- 433.76 36,000

7 - 0.15%

8 0.13%

9

Mismanagement of fisheries, unsustainable

fishing practices, including, use of

inappropriate fishing gear, overfishing,

dumping of industrial, municipal, and

agricultural waste are leading to the rapid

depletion of the fish population.

Coastal

Tourism

166 hotels & resorts in the north

coast area. The north coast area

between Alexandria and Matrouh

are mainly villas and vacation

compounds. Most of the tourists in

this area are local not foreign.

18,000 120,000 0.0113% 0.126% 10

Unsustainable construction practices, and

tourist activities place a great deal of

pressure on the ecosystem. Sensitive

environments are susceptible to all forms of

tourist related activity, whether it be

dredging by heavy machinery, disposal of

municipal waste, or simply human

populations interacting with the coral reefs.

1 Calculated using the 0.14% of the contribution to GDP from the maritime sector x 272 bn (GDP of Egypt in FY 2014) = 3.876 bn

2 12 out of the total number of ports 42= 28.5% x 7,756 (total number of employed) 3 Estimated using the figures calculated in % of national employment and the total labour force of 27.2 mn 4 28.5% of 5% (Total contribution to GDP from the maritime transport sector) = 0.14% 5 28.5% of 7% (Total number of labour employed in the maritime sector from the total employed labour force) = 0.019% 6 Calculated using 0.156 % of total GDP(272bn) = 433.7. Alternatively, 13.4% of 272bn = 36.4 bn. That times 8.5% = 3.098bn. Lastly, that times 14%= 433.7 m 7 Fish production tonnes out of the total 1,371 = 14.4%. 14.4% of 250,000 (total fisherman in Egypt) = 36,000 8 Agricultural contribution is 13.4% of GDP , of which 8.5 % is in fisheries(0.11%). Of that only 14% is from the Mediterranean, which comes to about 0.15%. 9 This was calculated using the total labour force (27mn) divided by 36,000 which = to 0.13% 10 These figures were calculated based on the assumption that only 10% of the total tourism in Egypt is attributed to the Mediterranean.

ii

Name of the

sector

General description of the sector

(including sub-sectors, future

development)

Key economic indicators (to be disaggregated per

sub-sector if relevant) Importance of the sector for the country

Turnover

(M$)

GVA

(M$)

Direct

employment

Indirect

employment

% of

national

GDP

% of

national

employment

Other issues (including social) and

indicators

Submarine

Communica

tion cables

Due to its strategic location, Egypt

is a hub for submarine cables. The

relatively small land area between

the Red Sea and the Mediterranean

Sea has allowed for cables to

connect Asia with Europe and

North America passing through

Egypt. There are 4 main landing

locations for cables in Egypt:

Zaafarana, Suez, Abu Talaat and

Alexandria. The 2 landing

locations that are on the

Mediterranean are Abu Talaat and

Alexandria through which 11

cables go through. The cables

mostly come from Asia through to

Europe.

- - 189,30011

- - 0.8%12

High risks to the environment are associated

with the installation of cables that may cause

irreversible damaged to coral reefs and

natural habitats.

Energy

Power generation is a very

important sector, not only for the

direct impact of the sector, but for

how the sector serves and supports

other economic and service sectors.

Industry, an intensive energy user

contributes 37.5% to GDP, as

compared to agriculture 14.5%,

and services 48% in 2013 (2015

CIA World Fact book and other

sources). Most industries within

the manufacturing sector are

energy intensive, such as cement

- -

226,000

(Total)[3000

Damietta,

400 Port

Said, 12,500

Alexandria,

3,600 North

Sinai)

- - 0.07%13

Egypt has become a net importer of natural

gas, which is overburdening the nation. This

is especially detrimental considering 75% of

all the electricity generated is done using gas

while renewables, including hydro make up

for around of the total energy mix.

11 There are no available data for the number of employed in the Mediterranean 12 Same as above 13

Total workers = 3000+400+12500+3600 = 19,500. Total work force = 27mn. 19,500 / 27 mn= about 0.07%

iii

Name of the

sector

General description of the sector

(including sub-sectors, future

development)

Key economic indicators (to be disaggregated per

sub-sector if relevant) Importance of the sector for the country

Turnover

(M$)

GVA

(M$)

Direct

employment

Indirect

employment

% of

national

GDP

% of

national

employment

Other issues (including social) and

indicators

and steel. Power plants are mainly

located in the cities of Port Said,

Abu Qir, Sidi Kerir and Matrouh.

In 2013, the electricity sector

employed 226,200 workers across

Egypt, of these, 3,000 were

employed in the Damietta

governorate, 400 in Port Said,

12,500 in the Alexandria

governorate, 3,600 in the North

Sinai governorate and 2,300 in the

Matrouh governorate. Total

production of energy according to

the Egyptian Electricity Holding

Company Annual Report

2012/2013 was estimated at

148,594 GWh. Data specific to the

Mediterranean coast are not

available. No specific data are

available for the Mediterranean

northern coast.

Oil & gas

extractions

The most significant contribution

the sector has made to the economy

was in 2006. Prior to that, the

contribution of the sector was close

to zero. During the period from

2006 to 2009, the sector averaged a

contribution of 0.75%. As

explained in the above section, the

sector was hit hard after the 2011

Revolution and starting 2012 the

- - 22,600 - -0.9%

(2014) 0.08%

14

The gap between consumption and

production has been growing in recent years.

This is due to decreased levels of production

and increased demand to support economic

activities and increased household

consumption.

14 22,600/27 mn = 0.08%

iv

Name of the

sector

General description of the sector

(including sub-sectors, future

development)

Key economic indicators (to be disaggregated per

sub-sector if relevant) Importance of the sector for the country

Turnover

(M$)

GVA

(M$)

Direct

employment

Indirect

employment

% of

national

GDP

% of

national

employment

Other issues (including social) and

indicators

sector began contributing

negatively to GDP growth,

averaging a contribution of - 0.3%,

reaching - 0.9% in FY14.

Most activities of the sector are not

located in the Mediterranean or the

Delta. As can be seen from the

figure below, only 5% of the rigs in

Egypt are located in the

Mediterranean. The majority of the

rigs are located in the Western

Desert.

Regarding employment, the

manufacturing sector in general

employs 2,570,700 individuals, of

these only about 22,600 works in

oil and natural gas manufacturing 3.

Extraction

of coastal

resources

No data could be found regarding

salt extraction along the

Mediterranean coast. - -

41,400

(Mining and

Quarrying in

Egypt)

0.15%15

Numerous threats to the Western

Mediterranean coast include, but are not

limited to: increased loss of biodiversity,

overgrazing, over collection of plants, illegal

bird hunting and climate change.

15 41,400/27mn = 0.15%

I. Introduction4 5 6 7

Egypt was included in this study late 2015, with actual work starting in January 2015 after the

launch Workshop that was convened on the 12 of January 2015. The time allowed to complete

the study represented a real challenge. This was also due to the size of the country and the

amount of data that needed to be gathered to undertake the assessment. Moreover, it was found

necessary that in order to come up with a credible assessment and outcome, a transparent and

participatory approach needed to be followed. This was also necessary in order to ensure the

active involvement and participation of relevant government officials in the study. Work started

with the preparation of a Scoping Study that helped in providing a brief overview of the status of

the socio-economic sectors to be covered in the study and their potential impact on the Egyptian

Mediterranean zone and on the national economy as a whole. The study also identified the main

data to be gathered, sources of this data, and relevant reference material to be consulted.

Egypt is located in the northern corner of Africa with the entire northern part bordering the

Mediterranean Sea. The Egyptian coastline extends over 1,550 km2 from Rafah to Sallum. The

main urban concentration is Alexandria with a population of about 4.4 million, followed by Port

Said with a population of about 630,000, north Sinai 400,000, and Marsa Matrouh 400,000.

Egypt has substantial marine and coastal resources along its Mediterranean coast with a number

of urban centres situated along the coast. The northern coastal zone of Egypt consists of three

geographically distinct regions:

i. The north western coast stretching from the border with Libya up to Alexandria;

ii. The Nile Delta coast, which stretches from Alexandria eastwards to Port Said; and

iii. The north eastern coast stretching from Port Said to the border with Gaza.

Figure 1: Mediterranean Sea Coast of Egypt

Source: UNEP/MAP/MED POL: Transboundary Diagnostic Analysis (TDA) for the Mediterranean Sea,

UNEP/MAP, Athens, 2005

2

As more than 40% of Egypt’s industries are located in the Mediterranean coastal zone, this

region is extremely important economically, with substantial capital investment. However, the

Egyptian Mediterranean coast and its marine environment have been and continue to be subject

to many unsustainable developments during the past decades. The coastal environment has also

been degraded at many places; this degradation has a negative impact on the human use of the

coastal zone, causing loss of important economic assets. Irrational land use, water pollution,

shoreline erosion, flooding and deterioration of natural resources and habitats are the main

challenges to be addressed and managed. Moreover, these challenges will be exacerbated due to

the foreseen climate change impacts, represented in sea-level rise and land subsidence, causing

prolonged vulnerability to flooding and coastal erosion.

The study launched by Plan Bleu in collaboration with the Egyptian authorities aims at assessing

the socio-economic importance of human activities that rely on the Egyptian marine

environment. The innovative nature of the project is its focus on undertaking a socio-economic

assessment of maritime activities with the primary objective of enhancing knowledge and

identifying potential impacts of human and economic activities on the ecosystem and cost of

environmental degradation to the economy. This is expected to illustrate how an integrated

approach balancing the three dimensions of sustainability namely, environmental, social, and

economic, and how the interrelationship between them can help support the decision-making

processes related to the management of marine and coastal ecosystems.

II. IMPLEMENTING THE PROJECT IN EGYPT

Methodology

The methodology that has been followed in the present study builds on earlier methodological

guidance that has been developed and further refined based on inputs from national experts who

carried out similar assessments in Lebanon, Morocco, and Tunisia. Activities undertaken to

complete the study included the following:

a) Identifying sectors that have the most significant impacts on the Egyptian Mediterranean

coast to be considered in this assessment, and the main indicators that need to be investigated

and estimated.

b) Identifying the main institutions, resources persons, and experts to be mobilised to help

adequately understand the sectors covered by the study.

c) Meeting with the senior administrators at the Ministry of Environment and the focal point for

the project, as well as other experts involved in marine related activities. Other ministries and

government entities consulted in the study included, Ministry of Tourism, Ministry of

Transportation, Ministry of Agriculture and Land Reclamation, Ministry of Planning, General

Authority for Fish Resources and Development, and Ministry of Tourism as well as other

relevant authorities.

3

d) Identifying relevant stakeholders to be interviewed for their potential input in the study;

mainly the Ministry of Industry, Ministry of Water Resources and Irrigation, Egyptian

Mediterranean Governorates, Institute for Desert Research, National Institute for

Oceanography and Fisheries and relevant non-governmental organizations (NGOs) involved

in coastal and marine ecosystem activities.

e) Gathering data from existing studies for illustrating the socio-economic costs and their impact

on economic activities as a result of environmental pollution and degradation of local habitats

and marine ecosystems.

f) Analysing the data collected and identifying key socio-economic indicators for each sector

investigated.

g) Initiating the development of the framework for conducting the national report for Egypt.

The socio-economic analysis is intended to focus on marine economic activities by the industrial

and artisanal small-scale sectors, which have a direct link to Mediterranean marine and coastal

ecosystems.

The following activities will be considered in the study:

Fishing and aquaculture

Agriculture and land reclamation

Maritime transport

Cruising and pleasure boating

Coastal tourism

Energy production

Extraction of marine aggregates (aggregates, salt, fresh water via desalination)

Offshore oil and gas industry

Sub-marine telecommunication and electric cables (when possible)

Data identified in the following table were used to assess the impact of the main economic and

human activities on the environment and the cost to society due to the degradation of the marine

and coastal ecosystems and the services they provide.

4

Table 1: Data to be used in assessing the impact of main economic activities on the environment

Activity Data Reference

Fishing & marine

aquaculture

Fishing

Size of fishing fleet

Traditional fishing

Common Fishing gears

Fisheries production

Per capita fish consumption

Average price per kg of the production

Aquaculture

In-land and coastal aquaculture

Off-shore aquaculture

EEAA annual reports,

GAFRD* annual reports,

FAO annual statistical

reports, CAPMAS

Maritime transport /

Cruising and

pleasure boating

Types of pollution

Pollution impacts

Solid waste

Commercial and specialist ports

Ship building and maintenance

Impacts resulting from the introduction of invasive

species

EEAA annual reports,

statistical data of

transportation ministry,

Egypt’s Description by

Information Report, Suez

Canal Authority, Egyptian

Authority for Maritime

Navigation Safety,

CAPMAS

Coastal tourism Number of hotels & touristic resorts

Tourism trends

Impact of coastal tourism on soil, land degradation,

water quality degradation, wastewater and solid waste

pollution, noise pollution, increased demand on seafood,

loss of the natural landscape, and pressure on local

natural resources

Direct and total contribution of travel & tourism to GDP

Statistical Data of Ministry

of Tourism, Egypt’s

Description by Information

Report,

Off-shore oil and gas

industry Exploration and extraction timeline

Oil spill contingency planning

Challenges: geological risks, deep water environment

(frilling at depths>1000 m), sensitive areas, emerging

industries

Accidents and pollution risks

Impact on marine biodiversity

Ministry of Petroleum, BP

Annual Statistics Report, Oil

and Gas Egypt, US Energy

Information Administration,

International Energy

Agency, CAPMAS

Energy production Power generation in Mediterranean of Egypt mainly

concentrated on energy production.

Many environmental pressures generated by power

plants

No. of Wind energy/wind farms

Statistical Data Ministry of

Electricity and Energy,

Annual Reports of the

Ministry, Egypt’s

Description by Information,

CAPMAS

Extraction of marine

resources Extraction of sand from the sea bed

Extraction of salt (local/ traditional)

Impact of illegal extraction

Limited data available

Sub-marine

telecommunication

and electric cables

The activity cables: power transmission and

telecommunication

Impact on marine biodiversity

Limited data available

* General Authority for Fish Resource Development

5

Process adopted in undertaking the study

The methodology used for the study was to adopt a participatory and transparent approach

involving all relevant stakeholders from government, academia and research institutions. The

launching workshop convened in January 2015 was mainly intended to publicly announce the

main objectives of the study, proposed approach in undertaking it, and the main outcome. It was

emphasized at the workshop that the study should be seen as a collaborative effort between all

relevant stakeholders, including the public and private sector, academia, and research

institutions. It was also emphasized that the main objective of the study is to highlight the

economic and financial costs associated with unsustainable and environmentally damaging

practices on the economy for better informed decision-making.

Availability and reliability of data represented one of the main constraints facing the study.

Moreover, due to the current political situation in the country with the Government functioning

under strict security measures, the release of information is very restrictive and controlled and

only allowed under strict measures. This is in addition to the fact that when data was available it

is provided in an aggregated level and not specific to the Mediterranean zone. It was therefore

difficult in many instances to disaggregate data for the Mediterranean area to be used for

identifying the environmental impacts and the associated costs on maritime related activity and

consequently Egyptian economy in general.

Relevant stakeholders were involved in the project in order to facilitate securing the necessary

data needed to undertake the study as well as to ensure that recommendations resulting from the

study are fully taken on board by practitioners and policy and decision-makers in Egypt. Specific

effort was made to mobilise key experts and stakeholders through the organisation of stakeholder

workshop and direct contacts.

Initial arrangements for undertaking the study suggested that two national workshops (Inception

& Final) were to be organized. Both workshops were attended by the study’s regional

coordinator. The initial workshop was convened on 12 January 2014 to launch the project. It

briefed relevant institutions about its objectives, and solicited their support in conducting the

study. The final workshop was convened in April to present and validates the study’s main

findings and policy recommendations.

Continuous contact was maintained between the Egyptian consultant assigned to undertake the

study and officials of the Ministry of Environment – Egyptian Environmental Affairs Agency

(EEAA) throughout the duration of the project. These meetings have resulted in the identification

of the main reference documents that were used for the study, along with the main institutions

and experts contacted and those invited to attend the two national workshops, the first workshop

to launch the study in January 2015 and the Validation Workshop convened in April 2015.

Apart from the various relevant departments within the Ministry of Environment, other

participants in the workshops included officials from the following relevant Egyptian

Government institutions:

6

Representation from Coastal Governorates and EEAA regional Offices (Alexandria, Port

Said, Mansoura, North Sina, Marsa Matrouh)

Ministry of Agriculture and Land Reclamation

Ministry of Planning/Planning Institute

Ministry of Electricity and Renewable Energy

Ministry of Housing, Utilities, and Urban Development

Ministry of Transport

General Authority for Fish Resources and Development

Ministry of Tourism/Tourist Development Authority

Ministry of Industry

Ministry of Agriculture and Fisheries

Gas Holding Company

General Authority for Petroleum/Representatives form Oil and Gas

Central Agency for Public Mobilization and Statistics (CAPMAS)

The Egyptian Authority for Maritime Safety

The Arab Academy for Science and Technology and Maritime Transport

General Authority for Fish Resources and Development

III. Current State of the Coast and the Marine Ecosystem

Description of the Egyptian Northern Coast and Marine Environment 8 9 10

11

12

The Egyptian coastline of the Mediterranean is considered to be between arid and hyper-arid.

Consequently, the availability of water as the most critical resource plays a decisive role in

determining the types and distribution of natural habitats. Differences in rainfall as well as

landform features, which control the redistribution and availability of water from local to remote

sources, are therefore of particular importance in determining the nature, distribution and

abundance of plant and animal life. Two major groups of habitats are recognized in the

Mediterranean coastal zone: the natural and the human made / human modified habitats.

Natural Habitats

Beaches (sandy or rocky) and coastal dunes

Coastal rocky cliffs and slopes

Compounded coastlines (beaches and rocky cliffs mixed)

Coastal lagoons

Salt pans and playas

Swamps / marshes

Continental shelf water

Human-made / human-modified Habitats

Irrigated agriculture

Dry / Rain-fed agriculture

Urban development

7

Sandy beaches are the most dominant beach type, particularly in relatively protected and low-

lying parts of the coast. It is characterized by a wide coastal plain with a series of altering ridges

and depressions running parallel to the coastline. North of these ridges, are rows of coastal dunes

running parallel to the coastline, and fringes of the seashore. The sand deposits in the entire

beachfront are oolitic in nature. At a few locations, patches of rocky beaches and even rocky

ridges interrupt the sandy beaches. Examples of these are a small area in the Sidi Abdel Rahman

Bay, Ras El-Hekma, RasAlam, El Runn and others.

Numerous short wadis drain the Libyan plateau into the Mediterranean seas. These occasional

streams carry relatively small volumes of floodwater into the sea. This drainage network,

however, effectively harvests rainwater, creating important enclaves of freshwater that support

diverse plant and animal life.

Continental shelf waters of the Mediterranean coast vary considerably in width. It is generally

wider in the east than the west. This is due to the influence of the sea current, which moves from

west to east carrying coastal deposits with it.

Terrestrial Biodiversity

The Mediterranean coast of Egypt is one of the richest areas in biodiversity in the entire country.

The milder climate and the periods of rainfall support a more or less continuous vegetation cover

of about 968 species and a wide variety of animal species.

Flora

Twelve major habitats were identified in the Northern Mediterranean (coastal dunes, sand

formation, Sallum plateau, salt marshes, saline depression, non-saline depression, inland ridges,

inland plateau, wadis, cultivated lands, road sides, and summer resorts). Twenty endemics and

twenty-one near endemic species are recorded in the western Mediterranean desert. Most

endemic species are restricted to one habitat and are very rare; while near-endemic species are

restricted to Egypt, Palestine and Libya, most of them have small phyto-geographical

distribution, restricted habitats and are very rare.

Forty-two species were recorded as introduced species, some of them are invasive species such

as Paspalumdistichum. A total of 211 species are recorded as weeds, mostly in barley fields, fig

farms, clover fields and wheat fields. The medicinal species mostly represented in Sallum

Plateau provide 14 poisonous species as well as human edible species and those used for grazing.

Fifty-three species in the western Mediterranean desert were recorded in the Red data List of the

vascular plants of Egypt (one extinct Ceruanapratensis), 20 endangered, 3 vulnerable, 20 rare,

and 9 indeterminate). Most of these species are restricted to one habitat and are very rare.

There are a number of ecological units in the coastal land, each with its distinct plant life. The

coastal dunes immediately on or near the shoreline are dominated by Ammophilaarenaria,

Euphorbia paralias, Lotus polyphyllos and Thymelaaea hirsute. Coastal ridges of consolidated

8

oolitic sand are characterized by Pituranthos tortuosus. Away from the shore, the dune plant

cover becomes dominated by Urigina maritime and Thymeleae ahirsuta.

The inland rocky ridges are characterized by a vegetation cover dominated by Thymus Pitatus

and Salvia lanigera. Saline depressions between these ridges often support salt marsh plant

communities dominated by Arthrocenemum macrostachyum whereas non-saline depressions are

dominated by Anabasis articulate, Zygophylum album, Artemisia monsperma and other species.

In the western region, Capparisspinosa and Ephedra aphylla grow on the limestone escarpments,

whereas Gymnocarposdecandrum grow on the slopes of the wadi sides. In non-cultivated wadi

courses, the dominant plants are Zillaspinosa and Atriplexhalinus. On the plateau top, Artemisia

monosperma and Scorzonera alexandrine are the dominant plants.

Animal life

The Mediterranean coastal belt of the western sector represents the richest herpatfauna (46

species of reptiles and two amphibian species). The Egyptian tortoise Testudokleinmanni,

formerly a common and characteristic species of the Mediterranean coastal desert has been

mostly eliminated from its natural habitats by commercial collectors and habitat alternation. It is

listed in the IUCN Red list of threatened species.

There are around 170 resident and migratory bird species that exist in the Mediterranean coastal

area and desert, 48 of them occur in the western coastal belt. Two resident species, the Barbary

Partridge Alectoris barbara and the Raven Corrus carax are known only from the western

coastal habitat.

A total of 57 species of mammals (62% of the Egyptian terrestrial mammalian fauna) have been

recorded as originating from the Mediterranean coastal terrestrial land, and 40 species from the

western coastal land. They are mostly rodents. The dorcas gazelle, Gazella dorcasdorcas used to

be common, but their population has been declining at a rapid pace due to hunting. The same is

true for the slandered-horned gazelle that is found now only in the Siwa region.

Marine Biodiversity

Mediterranean marine life is characterized by its low biomass and high diversity, and clearly

reflects the prevailing abiotic, environmental features particularly the nutrient deficient water,

low tidal amplitude and temperature regime. Biodiversity is dominated by smaller sizes and a

shorter life cycle. Primary productivity is relatively low, with pelagic phytoplankton blooms

being quite variable and largely associated with seasonal variation in temperature and salinity

gradient.

The richest marine biodiversity are phytoplankton (661 species), consisting mostly on diatom,

dinoflagellates and to a much lesser extent chlorophytes and cyanophytes. Marine olgal and

seagrasses are mostly Posidonia oceanica, Zostera sp.,Sargassum sp., Caulepra prolifera,

Halimeda sp. and other green algae.

9

Zooplanktons are represented by 184 species, mostly copepods, whereas macro benthic fauna

(annelids, mollusks, echinoderms, arthropods, ascidians) are not abundant in biomass but high in

species diversity. For example, a total of 51 sponge species, 126 polychaete species, 57

crustacean species, 7 bryozoa species, more than 100 mollusk species, and more than 300 fish

species have been recorded from the coastal waters of the Mediterranean.

Sea turtles are represented by loggerhead, green turtles and leatherback turtles. These are

endangered, and are very rare in the northern coastal waters. Similarly, 9 species of marine

mammals (dolphins and whales) are also known in the Egyptian waters (e.g. common dolphins,

pilot whale, Risso's dolphins, striped dolphins, bottle-nosed dolphins). The monk seal Moachus

monachus, which used to be seen in rocky areas and caves disappeared 3 decades ago. However,

only one alive monk was recently spotted near Marsa Matrouh.

State of Mediterranean Sea Biodiversity

A range of human activities threatens the biodiversity of the Mediterranean basin . Among the

most endangered marine vertebrate species are the Mediterranean monk seal; common bottlenose

dolphin, short-beaked common dolphin, striped dolphin, sperm whale, green turtle, leatherback

turtle, loggerhead turtle, and cartilaginous fishes (sharks, rays, and chimaeras).

Seabird conservation includes preservation of their habitat in the Western and Eastern

Mediterranean. In the eastern Mediterranean, seabirds are threatened by habitat water diversion,

changes in annual water regime, eutrophication, reed cutting, landfills, chemical pollution and

hunting.

Threats to environment, ecosystem and biodiversity

a) Invasive Species

Invasive species are the second important drivers of biodiversity loss. In the western

Mediterranean, a total of 42 species were recorded as introduced species, some of them are

invasive species such as Paspalumdistichum, Impomveacarnea, Bassiaindica,

Azollafiliculoidescrassipes and Vossia cuspidate. Agricultural practices have changed from rain

fed to Nile water through al-Hammam canal. This has led to the presence of numerous weeds in

barley, figs and wheat fields, as well as the newly cultivated crops allowed by the Ministry of

Agriculture. Similarly, a large number of water wells were constructed in recent years around

Marsa Matrouh, which led the Bedouins to change their lifestyle from pastoralists to settle down

in communities around the newly cultivated fields. It is worth mentioning that the introduction

of alien invasive species is not a new event in Egypt. During World War II, UK brought soldiers

from everywhere, from South Africa, to as far as Australia. Some of invasive species were

found in the shoes of an Australian soldier brought from home to the western Mediterranean.

In Siwa, which used to be completely isolated in the western desert, Bedouins have brought

farmers from the Nile Delta to work in cultivated lands. Those new arrivals have brought with

them not only seeds, but also soil to enhance soil fertility in Siwa. In addition, the new arrivals

to Siwa, are practicing the same Nile agriculture system in Siwa. This has led to the presence of

10

many invasive species such as the Red Palm Weevil, Rhynchophorusferruginews, and other

weeds, that have greatly affected native agriculture and wild species.

b) Overgrazing

The western Mediterranean coast has a natural pastoral area of about 4 million acres, which

represents 40% of all areas all over Egypt. The carrying capacity for grazing does not exceed

750,000 sheep and goats. The current situation is the pressure of more than 1.5 million goats and

sheep, affecting the vegetation cover by more than 30%. Several attempts were made to control

overgrazing in the Omayed Biosphere Reserve, where agreements with locals were concluded to

allow them exclusive use over the resources and denying other people living outside the reserve.

This has resulted in considerable improvement of the vegetation cover. However, outside

Omayed overgrazing is a serious matter where locals use their vehicles to transport their sheep

and goats. The situation became even worse during the last three years because Bedouins are

expanding their activities due to the political instability in the region. This has resulted in a loss

of biodiversity and particularly the flora, which represents about 50% of the entire Egyptian

flora. Perhaps the only remaining area, which still maintains high biodiversity is where land

mines exist since World War II. The situation of overgrazing in Siwa is quite minimal as

vegetation cover is very limited, and the area is occupied mostly by sand dunes.

c) Over collection of plants

Wild plants all over Egypt are threatened by over collection. These plants have different

purposes, including medicinal, fodders, food and others. In the western Mediterranean, the

fungus known by locals as El-Kama (Terfeziaceae), which is a delicious food has been entirely

harvested, leading to habitat loss. Medicinal plants are being extensively collected, as they

became very popular in recent years as an alternate medicine for locals. In Siwa, the situation is

minimal, whereas in the southern Red Sea, it is moderate.

d) Hunting of wild fauna

Wild fauna include gazelles, ibex, foxes, sand cats, wild rabbits, hares and reptiles (Lizards and

Snakes). In Siwa, wild animals are hunted by visitors from Gulf states, where the white slender-

horned gazelle (Gazellaleptoceros) became very rare. Similarly, the Egyptian gazelle,

Gazellagazelle, and ibex are extensively hunted. The leopard, Pantherapardus, which is a native

species in the western desert and south Sinai, became extinct. The situation in the western

Mediterranean has worsened in recent years as more people now use machineguns for hunting.

In addition, extensive collection of lizards and snakes for education and scientific research is a

widespread practice.

e) Illegal Bird Hunting

Bird hunting, particularly the migratory quails and wintering birds are managed through a

ministerial decree where a special number of permits are given every year. In recent years and

because of the political instability in the region, smuggling of military weapons through Libyan

boarders has been extensive, with many residents with unlicensed machineguns. This has

increased hunting of animals and birds in the region. This has caused serious problems to the

11

extent where Green Peace Europe is launching a campaign against Egypt, thus impacting tourism

negatively. In addition, it became apparent that locals have brought (or imported) sound

equipment to attract migratory birds making them an easy prey. Several videos and articles in

national and even international television (National Geographic) were released recently

displaying the indiscriminate hunting of animals. The situation in the western Mediterranean and

Siwa is much worse than in the southern Red Sea, where there are reasonable controls by rangers

as well as the coast guard.

f) Climate Change

The impact of climate change on biodiversity particularly in protected areas has been

documented in recent years. Evidence has shown that rainfall has decreased drastically and

temperature has increased which has led to a gradual shift in plant communities from lower

elevation (about 1000 m. above sea level to higher elevation (>2000 m. above sea level).

In the Omayed Bioshpere Reserve, temperature and rainfall patterns over a 20 years period (1978

to 2001), have shown that rainfall was quite high in the late seventies (1978 and 1979) and the

year of 2000, compared to data of about 50 years ago. On the other hand, the trends in

temperature did not show significant increase except in a few years where it showed very slight

increase that did not exceed 0.2°C. However, anthropogenic activities (cultivation, over grazing,

soil erosion, over collection of plants and animals) were significant. It was concluded that the

combined effects of climatic factors and anthropogenic activities will speed up the process of

micro climate change, and hence have significant impacts on biodiversity. The situation is

different in the marine environment of the Mediterranean Sea, where seawater temperature in

deep areas has increased by 1°C and is expected to have significant impacts on marine biota.

This needs to be studied further in Egypt since most of the coast is subjected to major touristic

developments and activities resulting in coastal erosion in many sites.

During 2004 an assessment was made on natural resource changes, by using remote sensing

satellite imagery, ground observation and integrated with geographic information system (GIS)

technique for land cover/land use charge for 10 years. It was found that halophytes (including

wet sabkhas and dry sabkhas) increased by 15%, high vegetation cover converted into low

vegetation cover by 43.5%, halophytes (3.2) and calcareous sediments (4.4%). The coverage of

low vegetation was also converted to bare rock (32.8%), settlements and orchards (1.3%) and

calcareous sediments (2%). The calcareous sediments have increased at the expense of

halophytes by 18%. Settlements and orchards have also increased at the expense of halophytes

by 14%. It was concluded that bar rocks, which are related to human activities visually covers

about 30% especially in the non-saline habitats. Thus, there was continuous deterioration in

vegetation land cover as detected in 1988 and is continued until now. There was a strong spatial

relationship between the degradation of land cover and the patterns of land use in the Omayed

Bioshpere Reserve.

Furthermore, a recent study was undertaken in 2012 on the impacts of human induced changes

on the distribution of important plant species in the northwestern coastal desert of Egypt

(Omayed Bioshpere Reserve). The random forest modeling approach was applied to climatic and

land-surface parameters to predict the distribution of selected important plant species in an arid

12

landscape in the north western coastal desert of Egypt. The impact of changes in land use and

climate on the distribution of the plant species was assessed. The results indicate that the

changes in land use in the area over the last 23 years have resulted in habitat loss for all the

modeled species. Projected future changes in land use reveals that all the modeled species will

continue to suffer habitat loss. The projected impact of modeled climate scenarios (A1B, A2A

and B2A) on the distribution of the modeled species by 2040 varied. Some of the species were

projected to be adversely affected by the changes in climate while other species are expected to

benefit from these changes. The combined impact of the changes in land use and climate pose

serious threats to most of the modeled species. The study found that all the species are expected

to suffer loss in habitat except Gymnocarposdecanderus. The study highlights the importance of

assessing the impact of land use/climate change scenarios on other species of restricted

distribution in the area and can help shape policy and mitigation efforts to protect and preserve

biodiversity in desert of Egypt.

Climate change has caused range shifts and extinction of many species in the past. In a recent

study by one of the Egyptian rangers (Ahmed El-Gabbas 2012) the effects of climate change on

75 species of the Egyptian reptiles, as representative of the Egyptian fauna, was investigated for

the first time using species distribution models. For each species, possible changes in range were

calculated and used to assess future threat status.

Climate change is predicted to vary in its effects spatially, with same areas are characterized by

increased richness while others show declines. Future range changes are predicted to vary

among species and among different projections, from the loss of the entire range

(Tarentolamindiae and Hemidactylusobustus) to large gains in range (H. faviviridis). No species

was predicted to lose its entire suitable range under all scenarios. T. mindiae and H. robustus

were predicted to become extinct from Egypt in the future in at least one future projection.

Another 8 species were predicted to lose more than 80% of the current situation in the future.

According to IUCN guidelines and criteria, under current conditions, 3 species were classified as

nationally Endangered and 24 species as Vulnerable.

Human impacts on the Mediterranean marine and coastal environment

The net cumulative impact of pressures affecting different locations within the Mediterranean,

though difficult to accurately determine, can be classified as follows:

Coastal development and sprawl - driven by urban and touristic development, leading to

fragmentation, degradation and loss of habitats and landscapes, including the destabilisation

and erosion of the shoreline.

Wastewater and solid waste disposal – increased resort development and visitors to the north

coastal cities and other locations extending along the coast represents one of the main sources

of pollution to the Mediterranean and northern lakes.

Over-exploitation beyond sustainable limits - affects many of the commercially exploited

fish stocks of the Mediterranean. The result is changes in species diversity, with some species

regarded as endangered, vulnerable or near-threatened.

Chemical contamination - sediments and biota caused by pollution from urbanisation,

industry, anti-foulants, and atmospheric transport.

13

Eutrophication - caused by human-mediated input of nutrients into marine waters is a source

of concern, especially in coastal areas near large rivers and/or cities.

Marine noise - on biota, especially marine mammals and fish.

Invasive non-indigenous species - increased in recent years mainly through the discharge of

untreated ballast water, particularly in the easternmost reaches of the Mediterranean and is

expected to further increase due to the inauguration of the parallel Suez Canal in August this

year

Sea-floor integrity - affected mainly by bottom fishing, but also by dredging and offshore

installations.

Changed hydrographic conditions - caused by local disruption of circulation patterns by

human-made structures, changes in freshwater fluxes to the sea, brine release from

desalination plants, or climate change influence both near-shore and offshore areas

State of biodiversity - reflects the cumulative effects of pressures affecting the Mediterranean

coastal and marine environment.

Laws and Entities Governing the Environment in Egypt

The Egyptian Government has issued a number of environment laws. These include the

following:

Law number 102, year 1983 regarding the protection and conservation of natural reserves

Law number 124, year 1983 regarding the protection of fisheries and marine species and the

management of aquaculture.

Law number 4, year 1994 regarding the environment Article 1 (7) Environmental Pollution,

(8) Environmental degradation, (9) Environmental Protection, (10) Air Pollution, (12) water

pollution (fresh and sea water), (13) Polluting substances and factor causing pollution, (14)

Substances polluting the marine environment (oil spills, hazardous wastes included in

international conventions, any other polluting substances-solid, liquid, gaseous-, untreated

waste industrial substances, poisonous military containers, all substances referred to in

international agreements and their annexes, (15) All types of crude oil and its products, (16)

Substances containing oil, (17) Polluted water contained in ship water tanks, (18) Dangerous

substances to the environment and humans, (19) Hazardous substances, (20) Movement of

material, (21) Waste management, (22) waste disposal, (23) Recycling of Waste, (24) Liquid

substances harmful to the marine environment, (26) Disposal of polluting substances in the

Nile, waterways, and the Sea, (27) Disposal of polluting substances and waste from ships,

planes, peers, and industrial installations, and inland sources.

Article 69 states that it is forbidden to dispose of any waste or untreated wastewater from

industrial, commercial, touristic facilities or municipal services that will contaminate beaches

or water.

Other articles dealing with coastal management and protection include articles 73, 74, 75.

Articles dealing with prevention of oil spills and pollution from vessels include articles 76,

77, 80, 81, 82, 83. Other articles deal with penalties on institutions and individuals not abiding

by the different articles of the law.

14

A number of decrees were also issue in 1995 reinforcing those issued in 1994 that deal with the

protection of marine ecosystems, those include those related to maritime transport: Articles 50,

51, 52, 53, 54, 55, 56; those related to pollution from land based sources: Articles 57, 58, 59, 60.

The main Egyptian Authority responsible for environment related matters is the Egyptian

Environment Agency (EEAA). According to the Law 4/1994 for the Protection of the

Environment, the Egyptian Environmental Affairs Agency (EEAA) was restructured with the

new mandate to substitute the institution initially established in 1982. There are also other

entities that have created departments within their existing structures to deal with environment

related matters such as the Egyptian Authority for the Safety of Marine Transport, the Egyptian

General Authority for Coastal Protection, and the General Directorate for Surface Water Guards.

The main functions of the EEAA are the following:

Formulating environmental policies and regulations.

Preparing environmental protection and environmental development projects, and following

up on their implementation.

Promoting environmental cooperation between Egypt and other countries as well as regional

and international organizations.

Ensuring the compliance with international and regional environmental agreements for which

Egypt is a signatory, and their implementation are consistent with and supportive to national

objectives and priorities.

Main coastal management-related activities undertaken by EEAA

Recognizing the importance of the environment to the economy and human welfare, the

Egyptian Constitution has included a specific Article 20 to the environment where it states “The

country will take on itself to protect its coastal areas, seas, waterways, and lakes, and protect its

natural resources and heritage and remove any damage that it may endure”.

Apart from EEAA a number of institutions in Egypt are involved in marine related activities.

Those include: the Egyptian Marine Safety Agency, the Suez Canal Authority (SCA), the Port

Authorities in Egypt, the General Egyptian Organization for the Protection of the Coast, the

Egyptian General Petroleum Corporation (EGPC), the General Department of Surface Water

Police, and the Tourism Development Authority.

Specific actions and measures taken by EEAA in recent years in the field of integrated coastal

management, protection of the sea and lakes include the following:

Implement a programme related to the rehabilitation of the northern lakes in line with the

protocol of cooperation between the Minister of Irrigation and Water Resources, the State

Minister for Scientific Research, Minister of Agriculture and Land Reclamation, and State

Minister of the Environment.

Issue Ministerial decrees for the implementation of programmes related to the rehabilitation

of the northern lakes and the establishment of a technical committee for the screening and

approval of related projects.

15

Promote cooperation with the General Authority for Fisheries and the National Institute for

Marine Sciences, and the preparation of guidelines for the further development of the

aquaculture sector in Egypt.

Promote cooperation with the Ministry of Irrigation and Water Resources with respect to the

three projects related to black sand and its uses, the use of matter resulting from dredging for

beach development (Damietta Port) and the clearing of the strait of Edku as part of the

integrated coastal management system.

Review conditions related to the integrated development of lake Marriout and discussing the

proposed measures to reduce pollution loads in the lake as well as El Qalaa drainage canal.

Initiate the development of executive plans for the preparation of the integrated coastal

management plan for the governorates of North and South Sinai.

Prepare a proposal and study for the principles for estimating the real cost and value of

activities undertaken in natural reserves.

Two main activities at the international cooperation level of particular importance were

undertaken, the first one is in relation to the ongoing discussions with the European Union

with respect to integrated coastal zone management policy for better governance for the

Mediterranean in coordination with the Ministry of Foreign Affairs. The other one relates to

the preparation of a proposal for joint cooperation between Egypt and China with respect to

combatting pollution and the assisting with the challenges related to maritime transport.

Promote cooperation with BP through the conclusion of a memorandum of understanding in

the field of marine pollution and the organization of a series of training courses for EEAA

staff and relevant national institutions on combatting and dealing with pollution of the sea

resulting from oil spills.

Thirty-one reports were prepared on the accidents that occurred in 2012 related to marine

pollution with compensations for environmental damage estimated at LE 11,260,000.

Field visits were undertaken 20km South of El Tore city to oversee work related to the

removal of oil spills accumulated over the years, with the cost of environmental damage

estimated at US$ 7,763,250.

Inspection activities included covering an area of 750 km2 with an estimated environmental

damage cost of US$ 22,500, in addition to penalties. The other was for an area of 32,546 km2

with an estimated environmental damage cost of US$ 390,768, in addition to penalties.

A study was undertaken for the environmental conditions of lake Mariout, including the

impact of industrial waste, whether disposed of directly or indirectly, as well as municipal

waste. The study revealed that there has been relative improvement in the quality of water of

the lake as a result of the projects being implemented by the EEAA.

An inspection field review was undertaken to oversee the environmental management system

in 8 ports (1 commercial, 2 oil, 1 tourism, and 4 fishing) with recommendations for

streamlining activities provided.

Continuous follow up to track emissions from cracks in the earth and seabed in Gamasa and

petrol leakage from oil wells.

This is in addition to capacity building activities as being one of the main components of the

EEAA programme. Most recent coastal zone management training activities included

training with respect to the implementation of Articles 7 and 8 of the Integrated Coastal

16

Management Protocol, participating in the Committee established with the purpose of

identifying requirements for the improvement of the environmental performance with respect

to the marine environment, and participated in the training course on the Sustainable

Management of Water and its relationship with integrated coastal management event held in

Algiers.

IV. Assessing the Socioeconomic Impact of Key Sectors

Introduction 13

14

15

16

17

18

19

20

More than 20% of Egypt’s total population live along coastal areas, including the Red sea.

Moreover, more than 40% of economic activities are concentrated on the coastal zone (industry,

agriculture, tourism, petroleum and mining activities, and urban development), thus exerting

pressure on the Egyptian Mediterranean coastal and marine ecosystem. The following table

presents some key socio-economic characteristics of the northern coastal directorates that are

part of the Mediterranean region, which are the focus of the present study.

Table 2: Key Socio-economic Characteristics of the Northern Coastal Directorates

Matrouh

Alexan

dria

El-

Beheira

Kafr El-

Sheikh Damietta

Dakahl

eyia

Port

Said

North

Sinai

Total populated

areas km2 3,921.4 1,675.5 7,093.84 3,466.69 668.87

3,538.2

3

1,320.6

8 2,100.48

Total population

Thousand person 322.4 4,110 4,737.1 2,618.1 1,092.3 4,985.2 570.8 339.8

Total area of

cultivated land

Thousand feddans

303.5 176 1,557 602.1 108.8 646.6 51.38 119.4

Industry activities

Establishments 16 2,420 571 367 928 1,409 289 55

Industrial workers 1,009 199,688 51,092 6,638 13,032 35,874 23,533 1,289

No. of hotels &

resorts 32 64 2 2 23 11 22 10

No. of rooms 2,589 5,954 45 72 825 572 1,550 757

Ratio of room

occupancy 57.50% 70.50% 0% 0% 45.00% 46.70% 90.50% 41.20%

No. of garbage

recycling stations 1 3 3 3 2 5 1 1

No. of land fills for

solid wastes 4 1 2 1 0 2 1 0

Capacity of

Sanitation thousand

m3/ Day

25 1,397 303.1 132 221.2 550.5 251 78

Total consumption of

electricity Million

kwh./yearly

386 8,731 3,873 1,741 1,213 4,017 676 443.2

Source: Egypt’s Description by Information 2007, 7th Edition, The Cabinet Information and Decision Support

Centre 3Vols.

17

In Egypt, there is unfortunately limited information about the economic importance of specific

regions, for instance the GDP of the country is always presented as a total but never on the

governorate or regional level. And so, it is difficult to estimate the contribution of the

Mediterranean region to the national Egyptian economy. However, the population in eight

governorates mentioned in the above table make up 20% to 25% of the total population of Egypt,

which represent a significant share of the total population of the country.

In this section, the main socio-economic activities along the Egyptian Mediterranean cost are

assessed. Those include fisheries activities (fishing and marine aquaculture); transportation

activities (maritime transport and fishing ports); touristic activities (cruising and pleasure boating

and coastal tourism); energy production activities (extraction of offshore oil and gas industry and

others); extraction of marine resources; and submarine telecommunication and electric cables.

The relationships between the development of these activities and the status of the marine and

coastal ecosystems will be identified and attempts made to estimate the cost of environmental

degradation and biodiversity loss.

The diagram below illustrates the different components of the marine ecosystem structured under

the Driver-Pressure-Response (DPSIR) framework, which will guide the valuation of

environmental degradation of the Egyptian Mediterranean zone.

Figure 2: Driver-Pressure-Response

Source: Pierre Strosser, Methodological Guidance for the National Case Studies, GEF:

Governance and Knowledge Generation, Socio-economic Evaluation of Maritime Activities, 2014

18

1) Coastal Tourism

Introduction

The Mediterranean basin, if considered as a single area, is by far the largest global tourism hub,

attracting almost a third of the world’s international tourists (306 million out of 980 million

worldwide) and generating more than a quarter of international tourism receipts (190 out of 738

billion Euro worldwide). It is forecasted that the Mediterranean region will reach 500 million of

international arrivals by 2030 (UNWTO 2012). The bulk of tourists are of European origin

(81.1% in 2010), followed by tourists from the Middle East (6.4%), and the Americas (5.7%).

Domestic tourism is also significant in the region. Out of a total of 450 million visitors each

year, including both domestic and international tourists, 100 million stay on the Mediterranean

coast of their own country, considerably increasing human concentrations there (UNEP/MAP

2012).

At the national level, tourism is a vital part of Egypt’s economy and an extremely important

source of employment and foreign currency (when it is foreign tourism) in addition to the Suez

Canal. It is also a big contributor to GDP (also mostly in the case of foreign tourism). Tourists

come to Egypt from many countries around the world with the aim of enjoying all of the

different attractions the country has, including its sandy beaches and rich history.

The Egyptian Mediterranean tourism sector depends very little on foreign tourists and mostly on

domestic tourists. It includes Egyptians returning to their homeland (from Gulf countries and

Europe) during the summer holiday period, which produces a noticeable flow of visitors over a

short period of time. In addition, millions of resident Egyptians mostly from Cairo and the Nile

Delta visit the coast. Initially, Alexandria city was the main attraction, but over the last 4

decades, there has been a significant increase in the number of resorts stretching from Al-Arish

(Sinai), Port Said, Damietta, Baltim, Gamasa, Alexandria and up to Matrouh city. In addition to

resorts and hotels, a huge number of private houses along the coasts were built recently over at

least 500 km2 of the coast, particularly from Port Said to Matrouh. Furthermore, the Government

is currently implementing a development plan along the northern coast to attract international

tourists, where several cities such as Al-Alamein, and Al-Omayed, will be established.

Foreign tourism in the Egyptian Mediterranean basin is primarily seasonal, peaking in July and

August, whereas in the Red sea, it is all year round, with most tourists coming from Europe and

the Middle East.

Social Considerations

Tourism provides an important source of employment in Egypt. Many workers from Upper

Egypt and the Delta head to the coasts, whether the Mediterranean or the Red Sea coast seeking

employment opportunities. In 2013, tourism in Egypt provided employment for 12.6% of the

entire work force, which is equivalent to about 3 million jobs. Out of these 3 million, 1.8 million

were direct employment, while the remaining 1.2 million were indirect.21

19

Economic Contribution of the Tourism Sector to the National Economy

As stated earlier, the tourism sector is a very important one in the Egyptian economy as it is one

of the main sources of foreign currency along with the Suez Canal. The sector was one of those

hit the hardest in 2011 after the Revolution as the political situation was very volatile. Many

countries put travel bans on several locations in Egypt causing the number of tourists to decrease

dramatically. On the Mediterranean coast and for domestic tourism in general, the decline came

from the security situation as well. As the roads leading to the coast were not secure, some

domestic tourists were discouraged from making the trip. Tourist numbers therefore seriously

suffered from the political situation in the country. Prior to the January 2011 Revolution, in

2010, 14.7 million tourists visited Egypt. As can be seen from the chart below, in 2014, only 9.9

million tourists visited Egypt. The year 2013 was an especially hard year for the sector with only

9.5 million tourist visits.

Source: CAPMAS Website

Tourism had an 11.3% share of GDP in 2013, and had been contributing positively to GDP until

the January 2011 Revolution. After the Revolution, the contribution of the tourism sector to GDP

was mostly negative. However, in recent months, tourism has been recovering and has started to

contribute positively to GDP.22

In 2013, tourism also represented 45% of export services and 14.4% of foreign exchange in

Egypt. However this is mostly attributed to the Red Sea and not the Mediterranean23

.

The data on domestic tourism in the Mediterranean and foreign tourism in the Mediterranean is

unavailable and so estimates about the contributions of the sector in terms of the Mediterranean

are hard to make.

The amenities and recreational opportunities for tourism provided by the Mediterranean’s marine

and coastal ecosystems form the foundation for the total value of economic benefits provided by

0

2000

4000

6000

8000

10000

12000

14000

16000

2010 2011 2012 2013 2014

Figure 3: Number of Tourists visiting Egypt

2010-2014

20

these ecosystems, and a considerable percentage of total international tourists spending (which as

previously stated is limited in the Mediterranean and mostly concentrated in the Red Sea).

The Egyptian coast of the Mediterranean has always attracted a large share of domestic tourism.

The last two decades however, have witnessed an unprecedented rate of tourism development,

particularly along coast between Alexandria and Marsa Matrouh, and in El Arish in northern

Sinai, though to a lesser extent. Recently, over 500 km2 of the coast from Port Said to Marsa

Matrouh have been urbanized and developed with private houses and resorts.

Throughout this vast coastline, the typical development has been the summer resorts, commonly

referred to as “tourist villages”. These resorts cater mostly for domestic tourism and comprise

mostly of privately owned summer homes. These summer homes are mostly occupied by their

owner, or rented out only during the summer season.

The extent of urbanization and development of the coast is presented in the figures 1-3 in Annex

I. Development along the coast is strictly linear and they are confined to a narrow strip of land

rarely exceeding a few hundred meters in width. All of these resorts are required to comply with

a 200 meters beach setback where no permanent structures are permitted.

The Mediterranean coast from Alexandria to El Alamein has witnessed a sweeping rate of resort

development. The area, which was once an empty wilderness, has undergone a building boom,

with thousands of vacation villas and flats being constructed. These tourist villages, however,

remain virtually unoccupied during most of the year as the peak season is between June and

September. There are plans to develop the rest of the north coast to absorb future population

increase in Egypt. Only a few hotels have been developed in the area, and mostly on the Sinai

coast and in Alexandria. While privately owned summer homes are the dominant type of

development throughout the western sector of the coastline, Northern Sinai and Alexandria are

more dominated by hotels and time-share resorts.

Source: Ministry of Tourism Annual Report, 2013

0

20

40

60

80

Mat

rouh

Ale

xan

dri

a

El-

beh

era

Dam

iett

a

Dak

ahle

yia

Po

rt S

aid

No

rth S

inai

Figure 4: Number of Hotels

and Resorts in Northern

Governorates

Matrou

h

19%

Alexan

dria

39%

El-

behera

1%

Kafr

El-

sheikh

1%

Damiet

ta

14%

Dakahl

eyia

7%

Port

Said

13%

North

Sinai

6%

Figure 5: Percentage of

Hotels in Northern

Governorates

21

Urban development is taking place in the north coast at a very rapid pace, to the extent that most

of the structures found currently along the coasts of the region have been erected in the past five

to ten years, and new developments are being established at an accelerated rate. Many of these

developments were built as a result of land speculation, with the expectations that real estate

prices will be higher in the future.

There is no comprehensive data available regarding the number of foreign tourists visiting the

Mediterranean zone. Main cities with four and five stars hotels along the Mediterranean coast are

Alexandria, Matrouh, Port Said, and Damietta. Due to the political instability during the last

three years, the number of tourists visiting Egypt has dramatically declined. It is expected that by

2025, there will be almost 5 thousand tourists per kilometer of coast during the peak season,

almost 5 times as much as there was in 2000. As the chart below demonstrates (Figure 6), the

pressure on the coast will only increase with time. The estimates from the chart below indicate

that by 2025, there will be almost 5 thousand tourists per kilometer of coast during the peak

season; almost 5 times as much as there was in 2000.

Figure 6

Environmental Considerations

24

Tourism contributes to CO2 emissions, mostly through increased use of air and road

transportation. Beyond that, the major direct pressure from coastal tourism on the marine and

coastal environment is the demand for space, both in the coastal zone, resulting mainly in

urbanization, and on the coastline itself, through construction of marinas and other infrastructure.

Increased tourism also results in an increase of cruising and pleasure boating with its negative

environmental consequences. The concentration of tourism in specific locations, particularly

cities, within a limited time period increases pressure on natural resources and leads to higher

rates of wastewater and solid waste generation and underwater consumption. Coastal tourism is

by definition located in sensitive habitats within the coastal zone, such as beaches, sand dunes,

and wetlands. The unavoidable result is a change in the state of habitats and their associated

ecosystems, as well as economic impacts on other activities that benefit from coastal ecosystem

With pressure expected to increase in the

future, the Ministry of Tourism has created

the Tourism Development Association

(TDA) to better manage land used for new

developments on the coast. The two tourism

centres Fouka and Bagos were established to

cope with current and expected future tourist

development. These tourism centres have

been created with the aim of concentrating

tourism activities within defined areas to

limit the effects of the expansion of tourism.

The defined areas for touristic development

follow an approved master plan.

22

services. Unsustainable development of mass tourism will result in the rapid degradation of

fragile natural habitats. Five protected areas were therefore demarcated along the northern coast

(Zaranik, Al-Ahrash, Ashtom el-Gamil, Burullus, Al-Omayed, and Salloum), and more on the

Red Sea and Gulf of Aqaba, to minimize degradation of sensitive habitats.

The rapid development and urbanization of the coast has led to the complete destruction and

degradation of vast areas of habitats in the development area and its surroundings. The

degradation of coastal habitats, which are considered essential for many of the marine species

such as marine turtles, has reduced water quality, as well as led to high levels of pollution and

wastewater resulting from touristic and coastal development activities.

Tourism, especially mass tourism – threatens biodiversity not only in tourism development

zones, but also within both operationalized and planned protected areas. Pressures vary across

the landscape in time and space. Some areas only experience seasonal impacts, while other areas

are not heavily impacted, with no guarantee that they remain so in future. The threats from

tourism may be divided into direct and indirect categories (Fouda, M. M. 2014, Impact of

tourism on coastal and marine ecosystems in Egypt. Report submitted to UNEP/Egypt).

Table 3: Impact of tourism on coastal and marine ecosystems

Threats Siwa Western

Mediterranean

Southern Red

Sea

Tourism development and activities

Direct Threats

1 Tourism Development + +++ +++

2 Unsustainable activities + +++ +++

3 Solid waste ++ +++ +++

4 Unsustainable surface / ground water +++ +++ ++

5 Effluent change + +++ +++

Indirect Threat

1 Increase access to road development + +++ +++

2 Over exploitation of natural resources ++ +++ +++

3 Displacement of local populations + ++ +++

Other Threats

1 Invasive species + +++ +++

2 Climate change ++ +++ +++

3 Over grazing + +++ ++

4 Over collection of wild plants + +++ +++

5 Over collection of wild animals ++ +++ +++

6 Illegal bird hunting ++ +++ ++

7 Mines + +++ ++

8 Nuclear power station +++

9 Unsustainable Quarrying and mining + +++ ++

10 Pollution ++ +++ +++

11 Land ownership + +++ +++

Degree of threat + low; ++ medium; +++ high

23

As can be seen from the table above the threats from tourism on the Mediterranean coast are very

high in several areas. Tourism development means extensive construction, which causes the loss,

degradation and fragmentation of natural ecosystems. This can occur in the area where the

activity is being undertaken, but also occurs as a result of the disposal of building debris and on

site extraction of the resources in the area.

Other problems can occur when tourist operators carry out unsustainable activities in sensitive

environments such as off-roading and other similar activities. Solid waste accumulation is also

an issue as hotels and resorts generate a significant amount of diversified solid waste, which is

often just dumped and not treated. Annex II provides an account of the direct and indirect threats

of tourism on the environment and biodiversity in Egypt.

2) Fishing and Marine Aquaculture

Introduction

As earlier stated, Egypt borders two water bodies: the Mediterranean Sea and the Red Sea.

Fishing activities take place in both Seas, however the Mediterranean Sea and the area

surrounding it represent the grounds for the majority of fishing activities taking place in Egypt.

In addition to the coastal belt along the Mediterranean Sea in the north of Egypt, there are five

Egyptian Mediterranean brackish water lakes and lagoons situated along the Nile Delta namely,

Manzala, Borollus, Edku and Mariout and to the east of the Suez canal is lake Bardawil. All of

them - with the exception of Lake Mariout - are directly connected to the sea25

.

Role of Fisheries in the National Economy

Fishing in Egypt represents the main economic activity and employment of most of the

population in the northern coast of Egypt. It is also the main source of cheap protein for a

growing population.

Moreover, a significant share of Egypt’s Gross Domestic Product (GDP) is directly linked to the

use of biological resources. Agriculture production in 2012, accounted for 13.4% of Egypt’s

GDP (81.3 billion Egyptian pounds) and employed 27% of the total work force (more than 6

million jobs in agriculture and fisheries). Agricultural exports constitute about 10% of total

export activities26

Unfortunately, the data related to the fishing sector’s contribution to GDP is somewhat limited as

it is counted within the agriculture sector. In 2012, fishing activities made up about 8.5% of the

total agriculture production as seen by the table below.

24

Table 4: Value of Agriculture Production in Egypt in 2012

Total Agriculture Net Income (EGP Million) Percentage of Total

Plant 128,652 71.60%

Animal 35,703 19.87%

Fish 15,321 8.53% Source: Annual Statistical Report of the General Authority for Fish Resources Development, 2012 and CAPMAS

Statistical Yearbook, 2014.

In 2014, the agriculture, irrigation and fisheries sector contributed 14.7% to GDP up from 13.4%

in 2012. The contribution to GDP from the fisheries sector in both 2012 and 2014 was 0.4%

Average GDP growth for the years 2012 and 2014 was estimated at 2.1% in both years27

.

The latest data available for fish production is from 2012. The graphs below provide some

information about the fish production in the past 10 years. Total fish production amounted to

1,371,800 tonnes in 2012. The majority of fish production came from fishery cultivation

(Aquaculture), which made up 74.2% of total production in 2012. The northern lakes and the

Seas (Mediterranean and Red) make up the two second largest contributors to total production

(9.35% and 8.32% respectively). Total fish production has generally been increasing, however

the past three years have seen stagnation in production as can be seen from the graph below28

.

Source: CAPMAS Statistical Yearbook, 2014

The variation in the sources of production from 2001 and 2012 are worth noting. As

demonstrated by the graph below, in 2001, aquaculture only contributed 45% of total production,

while the northern lakes contributed 19% of production. In 2012 fisheries from the northern

lakes represented 9.35%. The situation is similar for internal water (the Nile mainly) and the total

seas, which decreased by about 9% from 2001 to 2012. Aquaculture production has experienced

0

200

400

600

800

1000

1200

1400

1600

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Figure 7: Total Fish Production (in tonnes)

2001-2012

25

a marked increase from 2001 to 2012 (from 45% to 74.2%) and has been the main driver of the

increase in fish production, while production from other sources has been declining.

Source: CAPMAS Statistical Yearbook, 2014

Source: CAPMAS Statistical Yearbook, 2014

The Mediterranean Sea makes up about 60% of the total seas production with the Red Sea

making up the remaining 40% in 2012.

17%

19%

0% 5%

14%

45%

Figure 8 : Total Fish Production by Source

2001

Total Seas

Total Northern Lakes

Total Coastal Plains

Total Internal Lakes

Total Internal Water

Total Fishery Cultivation

(Acquaculture)

8,32%

9,35% 0,28%

3,00%

4,85%

74,18%

Figure 9: Total Fish Production by Source

2012

Total Seas

Total Northern Lakes

Total Coastal Plains

Total Internal Lakes

Total Internal Water

Total Fishery Cultivation

(Acquaculture)

26

As referred to above, among the main factors causing the decline in the production of fisheries

(excluding aquaculture) are first, the lack of application of the Mediterranean coast two months

fishing ban over the past four years due to the volatile political and economic situation in the

country. The second is the unavailability of energy sources such as fuel for the boats to run, thus

negatively impacting fishing efforts. The third is the change in fishing practices over the past few

years causing a reduction in the amount of the total catch. Fourth, and most importantly is the

change in the size and nature of the northern lakes.

As demonstrated by the table below, the four northern lakes have lost much of their size due to

land reclamation for agriculture and water drainage. The lake with the most damage is lake

Edku, which has lost about 95% of its original surface area. Lakes Manzala and Mariout have

each lost about 75% of their original surface area while lake Burullus has lost about 68% of its

original size29

. Based on the figures available from CAPMAS average decline in fish catch for

the years 2010-2012 from the Mediterranean Sea and the Northern lakes was estimated at 4,000

tonnes annually. This figure is likely to be much higher for 2014/2015 due to the increasing

environmental deterioration of the Egyptian Mediterranean waters and the northern lakes.

Table 5: Changes in Lake Area for the Four Nile Delta Lakes (2008)

Lake Area Prior to 1950

(Feddan) Area in 2008 (Feddan)

Percentage of Lake Surface

Areas Lost

Manzala 350,000 90,000 74.3%

Burullus 220,000 70,000 68.2%

Edku 220,000 10,000 95.5%

Mariout 66,000 16,000 75.8%

Source: Egypt’s Fifth National Report to the CBD

The situation is further aggravated by the fact that the water quality of what remains in the lakes

has been seriously compromised through the systematic discharge of waste in them. There are

further threats to the fishing sector, as over fishing is practiced as well as illegal fishing.

Pollution is also a problem for the sector caused by unsustainable economic activities along the

Mediterranean coast, and the disposal of untreated municipal waste in the sea. Another problem

facing the sector is the lack of regulations when it comes to deciding fishing periods, while

taking into account breeding seasons30

.

Other recommendations provided by EEAA Regional Offices included the development of a plan

for the monitoring of the quality of coastal waters, increasing the capacity of the offices and

providing sufficient financial support for the industrial wastewater treatment plants to prevent the

disposal of industrial waste into the lakes.

Fish Production in Egypt

A boom in fish production has been achieved in Egypt, rising to 1.4 million tonnes in 2012 from

about 790,000 tonnes in 2001, almost doubling in 10 years, bringing the per capita production in

Egypt to more than 20.55 kg/year, which is more than the per capita in the world production.

27

This is a direct result of expansion of aquaculture and improved management practices

introduced by of the General Authority for Fish Resources Development (GAFRD)31

.

Generally, the Mediterranean is globally considered as an oligotrophic sea, and the gradual

decline in nutrient content as the water moves from west to east leads to an overall reduction in

productivity32

. The Egyptian Mediterranean fisheries contribute about 60% of the marine capture

production, while Red Sea fisheries contribute the remaining 40%.

Egyptian total fish production in the Mediterranean region during 2003 - 2012 is divided into

marine fisheries produced in the northern four brackish water lakes (Manzala, Burullus, Edku

and Mariout) and coastal lagoons (Bardawil and Port Fouad) and in the Mediterranean Sea

production.

Fish production of the northern four brackish water lakes (Manzala, Burullus, Edku and Mariout)

and the coastal lagoons (Bardawil and Port Fouad) are shown in the figures below33

.

Figure 10: Total fish production in Northern Lakes Figure 11: Total fish production in Sinai

Source: CAPMAS Statistical Yearbook, 2014

There have been fluctuations and even a decline in production in the case of the coastal lakes.

The reasons for these fluctuations and decline are related to the threats the sector has been facing

over the past several years.

Many threats face the fisheries sector in Egypt such as over fishing, illegal fishing, overlap

between coastal and offshore uses, lack of planning, pollution, and lack of regulations regarding

fishing periods to take into account breeding seasons. These issues should be fully taken into

account by stakeholders and decision makers in order to ensure the sustainable management of

the fisheries sector in Egypt.

Climate change is also expected to impact fisheries in Egypt as a result of the potential increase

in seawater temperature and pH. This may cause a shift in species’ distribution and structure, and

0

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6000

20

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09

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10

20

11

20

12

Total Fish production (tonnes) in Sinai Coastal Lagoons along 10 years

0

50000

100000

150000

20

03

20

04

20

05

20

06

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07

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08

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20

12

Total Fish production (tonnes) in Northern Lakes along 10 years

28

pathogenic spread. Sea-level rise is expected to negatively impact water front buildings within

the next few decades, particularly those planned on low laying land34

.

Management Applied to Main Fisheries

GAFRD strives to achieve responsible fishing by introducing the following measures:

Controlling the fishing effort. This in turn is achieved by (i) reducing the number of vessels

(ii) refrain from issuing any new fishing licenses, and (iii) preventing vessels from changing

their habitual fishing area;

Vessels are: (i) not permitted to change type of gear used; and (ii) not allowed to increase the

engine power. In addition, GAFRD promotes the use of modern tools and equipment in order

to improve the ability of fishing vessels to go off shore and fish in deep waters.

Controlling gear mesh size used in accordance with regional agreements.

Updating the marine law, based on studies undertaken by the National Institute of Marine

sciences in the Mediterranean, and by establishing closed seasons for the protection of

spawning areas in the Red Sea.

Identifying, jointly with neighboring countries, new fishing areas; and,

Producing accurate statistical data.

Mediterranean Egyptian Fishing Fleets

The world fishing fleet consisted of about 4.7 million vessels in 2012, relatively stable since

1998, with 68% in Asia, followed by Africa, Latin America and the Caribbean, North America

and Europe35

.

In Egypt, there is a very large diversity in units of Egyptian fishing fleet suiting the different

environments that vary from the Mediterranean to the Lakes fisheries marine environment.

Similar to the global trend, the Egyptian fishing fleet did not undergo a significant change during

the last decade.

Most Egyptian vessels fish in the Mediterranean Sea. Fishermen fish in the continental shelf off

the Nile Delta and venture to the eastern side of Port Said, but rarely west of Alexandria. The

continental shelf is at its widest off the central Delta region. The seabed is flat, mostly muddy to

sandy, off the middle and eastern coast. Limited grounds for trawling are available on the

western coast. There were about 1,233 motorized long line vessels in 2012 (40% of the

Mediterranean motorized gears), while trawlers numbered 1,098 (36%), vessels using trammel

nets were 478 (16%) and purse seine vessels were 237 (8%).

The figure below shows motorized vessels divided by engine Horse Power (HP) from 10 HP into

more than 800 HP.

29

0

1000

2000

3000

4000

5000

6000

Maryout Edko Burullus Manzala Bardawil

Figure 12: Motorized vessels divided by engine Horse Power (HP)

The fleet of Sailboats in the Mediterranean is classified into 3 grades, and consists of 24 small

boats “1st Class” (about 2% of the sailboats operating in the Mediterranean), 465 “2

nd class”

(about 33%) and 929 “3rd

class” (about 65% of the sail boats operating in the Mediterranean).

“Grade 3 sail boats” are less than 4 meters long, have a crew of not more than 4 and fish mostly

during daylight36

.

The fishing fleet in the northern lakes shows that there are no 1st or 2

nd class boats. This is

important to note as 1st and 2

nd class boats are more modern and better equipped and thus less

detrimental to the environment. 3rd

class boats on the other hand are more detrimental to the

environment as they are older with outdated technology.

Figure 13: Sailing Boats Fishing Fleet in the Northern Lakes (3rd Class)

long line 40%

trawlers 36%

trammel 16%

purse seine 8%

Motorized Vessels in the Mediterranean

30

Mediterranean fish landings represent a small fraction of the worldwide total – just over 1% of

the total landings by volume. However, this is a significant level of fishing pressure, given that

the Mediterranean Sea represents less than 0.8% of the global ocean surface. In Egypt, the data

of fish capture are estimated by specialist data collectors who are located at fishing ports and

landing sites in the Mediterranean northern lakes and coastal lagoons37

.

The table below shows landing sites along the Egyptian Mediterranean zone:

Table 6: Landing sites along the E Egyptian Mediterranean zone

Table Fishing ports and landing sites in the Mediterranean Egypt Coast

Damietta Eastern of Delta Middle of Delta Western of Delta

1 2 1 5 Source: Annual Statistical Report of the General Authority for Fish Resources Development, 2012.

In addition to the ports and landing sites on the Mediterranean, there are many other landing sites

in each of the northern lakes and coastal lagoons.

Fishing Communities

Fishermen live mostly in small villages. Most members of the fishermen families are involved in

some aspect of fisheries or in transporting, processing and the selling of fish.

According to the annual report of the GAFRD, 2012, licenses are divided into 2 categories:

duration and type. In terms of duration there are either one or five year licenses and in terms of

type there are amateurs, fishermen without boat “Parar”, lobster, birds, shellfish or set net. The

graphs below show the fishermen licenses in the Egyptian Mediterranean zone, including the

northern lakes38

.

0

500

1000

1500

2000

2500

Maryout Edko Burullus Manzala Bardawil

Figure 14: Number of Licenses in Northern Lakes & Coastal Lagoons

According to Duration (2012)

one year five years

0

2000

4000

6000

8000

10000

12000

Figure 15:Number of Licenses in the Mediterranean According to Duration

(2012)

one year five years

31

Source: CAPMAS and Annual Statistical Report of the General Authority for Fish Resources Development,

2012

The majority of licenses given are for a one-year duration, thus requiring licenses to be renewed

annually. An interesting aspect to point out is that there is often a discrepancy between the

number of fishermen actually carrying out fishing activities and the number of licenses given.

The number of fishermen actually fishing is greater than the number of licenses. This is what

contributes to illegal and over fishing causing the sector to experience difficulties.

In addition to regular fisheries, aquaculture represents a large component of fish production in

Egypt and has boomed in recent years. Most aquaculture activities are in the Northern Nile Delta

region and around the Nile39

. In the figure below, the blue circles represent aquaculture farms in

Egypt. As is demonstrated, the majority are in the governorates bordering the Mediterranean,

which are the subject of this study.

0

1000

2000

3000

4000

5000

6000Figure 16: Number of Licenses in the Mediterranean According to Type (2012)

amateurs fisherman without boat “Parar” lobster birds shellfish set net

0

10

20

30

40

50

60

70

80

90

Maryout Edko Burullus Manzala Bardawil

Figure 17: Number of Licenses in Northern Lakes & Coastal Lagoons According to Type (2012)

amateurs fisherman without boat “Parar” lobster birds shellfish set net

32

Figure 18: Location of Aquaculture farms in Egypt

Figure 19: Contribution of aquaculture to fisheries production

Source: CAPMAS Statistical Yearbook 2014

As demonstrated by the graph above, the contribution of the aquaculture sector to fisheries has

grown from 45% in 2001 to 74% in 2012, while other sources have decreased from 55% in 2001

to 26% in 2012. These figures are a clear indication of the current trend in the fisheries sector,

demonstrating that aquaculture has been and continues to be the main driver of the sector40

.

0%

10%

20%

30%

40%

50%

60%

70%

80%

2001 2012

Developments in Fish Production Sources

Aquaculture Other Fisheries

33

Social Considerations Related to the Fisheries Sector

There are about 250,000 fishermen in Egypt working in the fisheries sector including men,

women and children that are directly employed. During harvesting and other periods of intense

activities, the number can increase by 12,000. Fishermen are all part of co-operative unions. In

addition the sector generates employment in fish processing, transport, retailing, boat and net

manufacturing41

.

There are a total of 87 fisheries cooperatives and 10 aquaculture cooperatives. Co-operative

unions have an insurance scheme that covers fishermen against economic loss in case of

accidents or loss of vessels. It also represents the fishermen in Parliament and is a member of the

GAFRD Administrative Board42

. According to GAFRD, there are 3,046 marine fishing vessels, 9

fishing ports and landing sites and more than 30,000 fishermen represented by more than 30

cooperatives in the Mediterranean coastal zone of Egypt43

. There are also those that are

indirectly employed in the sector through fish processing, transport, retailing and boat and net

manufacturing, but little data is available on those.

Environmental impact of unsustainable fishing activities

Some of the better-documented fishing activities that have potential negative impacts on the fish

population in Egypt, include:

1) Overfishing and excessive fishing can reduce the spawning biomass of a fishery below desired

levels such as maximum sustainable or economic yields. When there is sustained overfishing,

changes in species composition and biodiversity can occur with progressive reduction of large,

long-lived, and high value predator species and the increase in small, short-lived, and lower

value pelagic and prey species, a process described as 'fishing down the food chain'.

2) Fishing gear that is not modified to exclude small fish, turtles, or seabirds, and as a result, may

take a significant by catch of juvenile fish, benthic animals, and marine mammals that are often

discarded dead.

3) Ghost fishing can occur when certain gear such as pots or gillnets have either been lost or

abandoned at sea and, although untended, continue to catch and kill fish until the gear falls

apart.

4) Impacts on the bottom can result from the intense use of trawls and other mobile bottom gear

(e.g. dredges) can change bottom structure, microhabitats, and benthic fauna. The effect is

particularly obvious when these gears are used in sensitive environments.

5) The use of dynamite and poison in fishing.

6) There are also other less conspicuous or debated environmental impacts of fisheries-related

activities. Some relate to the direct dumping of debris (gear, twine, food containers, plastic

bands, etc.) or the unintentional dumping and accidental introduction of unwanted organisms,

pathogens, and non-indigenous/foreign/alien species by fishing vessels. Other impacts include

34

the organic pollution from at-sea processing and the pollution caused by unregulated wastes

and effluents from coastal processing plants. Finally, fishing vessels and processing plants also

have the potential to contribute to global warming through exhaust fumes and refrigerant gases.

There are several impacts from unsustainable fishing activities. As stated above, over fishing

and illegal fishing can be a problem as it reduces the amounts of fish and prevents the proper

breeding of certain species affecting species composition and biodiversity. This will also cause

the fish remaining to be small, short lived and of lower value.

The boats used to fish are old boats that release a considerable amount of CO2 in the

atmosphere and into the water having a negative impact on the ecosystem as a whole. The risks

associated with land reclamation in the northern lakes as mentioned earlier causes heavy

pollution of the waters of the northern lakes and the surrounding area.

In spite of Marine fisheries being an important sector to the economy and wellbeing of coastal

communities, maintaining the long-term prosperity and sustainability of marine fisheries is not

only of political and social significance but also of economic and ecological importance, the

sector continues to face major challenges. These range from illegal, unreported and unregulated

(IUU) fishing to harmful fishing practices, wastage, and poor governance.

All of these challenges can be overcome with greater political will, strategic partnerships and

full engagement with civil society and the private sector. There is a need to foster good

governance by ensuring the uptake and application of international instruments such as the Port

State Measures Agreement. There is also a need to spur innovative solutions with businesses

and industries in order to enable fisheries and aquaculture to thrive responsibly and sustainably

for present and future generations. The Government should demonstrate political will to take all

necessary action to prevent all sources of pollution to the Mediterranean Sea and the northern

lakes. The Government should impose strict penalties on violators. The capacity of wastewater

treatment plants should be enhanced in order to recycle municipal wastewater resulting from

existing and future development, as well as agricultural and industrial waste. Innovative

approaches should be adopted to address the problem, including generating electricity from

wastewater (sludge).

Fishers and fish workers organizations need to be strengthened in terms of their ability to

exercise the right to organize and participate in policy dialogues and resource management

initiatives, as well as their access to markets, financial services and infrastructure. In addition,

in order to ensure sustainability and efficiency of the sector, human capital development must

be made a core function of any organization through capacity development for youth, specific

leadership training, business and administrative capacities, and negotiating a more creative role

for women.44

Eng. Mohammed Seif El Islam Ibrahim, General Port’s Authority, Port Said, at the national

Workshop held in April 2015 to validate the outcome of the study proposed specific actions to

address the pollution of the northern lakes, these include the following:

Demarcate a buffer zone between the industrial area South of Port Said and lake Manzala.

35

Erect industrial nets at the connecting canal to prevent the discharge of any solid waste into

the lake.

Close the municipal wastewater disposal pipe extending from Port Fouad to the Island

number 5 area.

Build a solid waste disposal facility for the recycling of waste in the Island number 5 area in

order address the solid waste problem in the city.

Furthermore, additional actions to address the pollution of the northern lakes as proposed by the

General Port’s Authority of Alexandria at the same workshop included the following:

Convene a conference with the objective of preparing a protocol for the validation and

updating of national data related to combatting the pollution of the Mediterranean Sea. It is

proposed that this event is organized under the sponsorship of EEAA jointly with the

Marine Transport Authority, General Ports Directorates, the General Petroleum Authority,

and relevant local authorities in the Mediterranean governorates.

Develop a comprehensive system for combatting marine pollution, including making

available two Skimmer units, two launches for cleaning oil spills, and floating barriers

(Mohammed Abd El Hady, Director for the Marine Protection department, Alexandria Port

Authority, April 2015).

3) Maritime Transport Sector

Introduction

Mediterranean maritime transport represents another strong traditional economic sector in Egypt.

The Mediterranean Sea is among the world’s busiest waterways, accounting for 15% of global

shipping activity by number of calls and 10% by vessel deadweight tonnes (dwt). More than

325,000 voyages occurred in the Mediterranean Sea in 2007, representing a capacity of 3,800

million tonnes. Almost two-thirds of the traffic was internal (Mediterranean to Mediterranean),

one-quarter was semi-transit voyages of ships mainly of small size, while the remainder was

transit voyages, mainly by large vessels travelling between non-Mediterranean ports through the

Mediterranean’s various straits: the Straits of Gibraltar, the Straits of the Dardanelles, and the

Suez Canal45

.

Egypt has a unique geographic location at the centre of crossroads between Europe and the

Americas and South East Asia and between Africa, Europe and Americas. With the Suez Canal

linking the Mediterranean Sea with the Red Sea and shortening the trade route between different

continents makes Egypt an attraction for vessel traffic carrying cargo and passengers from

different parts of the world. The construction of a parallel canal in Suez is expected to further

attract more traffic through the canal. The construction of ports, including expansion in the

Egyptian Mediterranean zone has experienced an increase since 1970 with increased cargo

transport in major Egyptian ports (Alexandria and Dekhila, Port Sid and El Arish, and Damietta).

36

Figure 20: Maritime transport routes in the Mediterranean

file://localhost/skype/gueter_alj

Egyptian Maritime Transport Sector

Egypt’s geographical location, at the junction of three continents and bordering two seas, gives it

several advantages. It has a total length of coasts reaching about 2,000 km2, which give it easy

access to the external trade and foreign countries. Furthermore, Egypt has the Suez Canal, which

connects the Mediterranean Sea with the Red Sea and makes maritime transport from East to

West much quicker and easier. Egypt’s foreign seaborne trade makes up about 90% of its total

foreign trade volume, which is an indication of how important maritime transport is for the

economy. The table below shows the total volume of traffic through the Egyptian ports in 2013.

Table 7: Total volume of traffic through the Egyptian ports in 2013

(From 2013-01-01 To 2013-12-31)

Record Thousand Tonnes

Total volume of imported Cargo to Egyptian ports 78,018

Total volume of exported cargo from Egyptian ports 43,977

Total number of imported containers to Egyptian ports 2,956,000

Total number of exported containers from Egyptian ports 3,117,000

Total number of passenger arrivals to Egyptian ports 979,581

Total number of departing passengers from Egyptian ports 922,293

Source: Egyptian Authority for Maritime Navigation Safety

37

Several major marine ports are located along the Mediterranean coast of Egypt. Port facilities in

Alexandria are the largest and busiest of all Egyptian marine ports. Other major marine ports are

found in New Damietta and Port Said. Oil and natural gas terminals are also found in these cities.

Smaller fishing ports are located at a number of designated fish landing facilities in addition to

most major ports. Naval port facilities are also found along the Mediterranean coast.

Considerable volume of maritime transportation passes through the Mediterranean coastal waters

of Egypt. This is linked to the Suez Canal traffic, which represents the most important maritime

trade route between Europe on one hand, and the far east, and the oil-producing region in the

near east on the other. Oil and gas terminals on the Egyptian Mediterranean coast are responsible

for the shipping of large quantities of these products every year.

Table 8: Number of Egyptian ports

Number of Ports in Egypt

Total Number of Commercial Ports 15 Ports

Total Berths' Length of Main Maritime Commercial

Ports 32.4 Km

2

Total Area of Main Maritime Commercial Ports 481.54 km2

- Total land Area 76.49

- Total water Area 405.04

Number of specialized ports 27 Ports

- Tourist ports 5 ports

- Petroleum ports 11 Ports

- Mining ports 7 Ports

- Fishing ports 4 Ports

Source: Egyptian Authority for Maritime Navigation Safety

Out of the ports mentioned in the table above showing the number of ports in Egypt, there are 6

commercial ports on the Mediterranean out of the 15, 3 petroleum ports out of the total 11 and 3

out of the 4 fishing ports. There are no mining or tourist ports on the Mediterranean. Those

activities are limited to the Red Sea in Egypt, which means that maritime transport for touristic

purposes is limited to the Mediterranean.

The traffic that passes through Egyptian ports is considerable, which is enabled by the existing

capacity of ports. The petroleum ports are also vital to the traffic on the coast as they connect the

Mediterranean to the SUMED pipeline, which then links to the Red Sea. It is currently the only

alternative to the Suez Canal for oil and gas to pass from the Red Sea to the Mediterranean.

Table 1 in Annex I details the capacity of the busiest ports on the Egyptian Mediterranean coast.

As the table shows, some ports, notably Damietta and east Port Said are used well beyond their

capacity, which really stretches the resources on the ports and causes management problems.

38

Other ports are used below their capacity, which indicates that there is a chance for increased

traffic in the area.

Shipping oil through the canal along with the Egyptian oil terminals makes this part of the

Mediterranean among the most important oil shipping routes in the Mediterranean basin. The

importance of this facility is expected to be further enhanced by the end of 2015 after the

completion of the parallel canal, currently being dug.

Seaports are considered the backbone of the state's foreign trade and its access to the world, as

well as the main link in the multimodal transport chain. This is in addition to its vital role in

supporting the economic development process. Due to global development, it was essential to

continuously develop and modernize the ports, as well as raising its performance level in order to

cope with the pace of international developments.

A review of activities in the Egyptian commercial ports with regard to vessels, cargo, containers

and passengers traffic during the period between 2011- 2013, is presented below.

Table 9: Egyptian commercial ports with regard to vessels, cargo, containers and

passengers traffic during the period between 2011-2013

Damietta Port Said & El Arish Alexandria & Dekheila

Cargo & Containers Cargo & Containers Cargo & Containers

2011 2012 2013 2011 2012 2013 2011 2012 2013

General goods

10,211

9,691

7,602

4,532

5,642

5,466

21,180

20,256

20,572

Dry bulk

11,100

9,369

9,598

2,375

1,648

1,052

17,501

16,469

19,685

Liquid bulk

1,178

1,393

1,600

281

311

211

6,499

6,196

6,570

Trans shipped

Containers

6,733

5,496

5,076

34,231

26,818

27,959

462

585

647

Total

29,222

25,949

23,876

41,419

34,419

34,688

45,642

43,506

47,474

39

Cargo Throughput

Total volume of cargo handled during 2013 reached 121.998 million tonnes, with an average of

10.167 million tonnes/month. In November 2013 Egypt achieved the largest handled volume

where it reached 11.364 million tonnes with an average of 9.3%, compared with the lowest

handled volume during February with an amount of 8.852 million tonnes with an average of

7.3%. Total volume of containerized cargo was 58,946 million tonnes, with an approximate

percentage of 48%, compared to 63,051 million tonnes of non-containerized cargo.

Volume of imported cargo (local and transit) reached 78.019 million tonnes, with a percentage of

64%, compared to the volume of exported cargo (local and transit), which amounted to 43.979

million tonnes 36.7%.

On the other hand, the volume of local cargo (import and export) was 88,258 million tonnes,

with a percentage of 72%, compared to the volume of transit cargo (import and export), which

amounted to 33.740 million tonnes, with a percentage of 28%.

Container Traffic

Total containers handled in Egyptian ports were 6.073 million TEUs, carrying 58.946 million

tonnes. The percentage of containerized cargo was 48% of the total volume of cargo handled

during 2013. Average monthly handled containers were 506,000 twenty-foot equivalent (TEU).

December showed the highest handling volume of 547,000 TEUs with a percentage of 9%

carrying 5.410 million tonnes, while February showed the lowest handling volume of 437

thousand TEUs with a percentage of 7% carrying 4.314 million tonnes.

Figure 21 Figure 22

40

Vessels Traffic

Total number of vessel calls on Egyptian Ports in 2013 reached 17,513 voyages aboard 4,588

vessels, with a decrease of 1.6%, 4.2% respectively compared to 2012. Average rate of vessels

calls was 1,459 voyage /month in 2013.

Analyzing data according to “DWT" (Figure 21) revealed that the small tonnage vessels of less

than 10,000 tonnes constituted 50%, followed by vessels of tonnage between 10,000 – 30,000

tonnes a percentage of 23%. Vessels of medium tonnage between 30,000 – 50,000 tonnes

recorded 11%, while larger tonnage vessels of more than 50,000 tonnes recorded 17%. Tables 2

and 3 in Annex I show classifications according to type of vessel and age classification

according to the type of vessels consecutively.

Figure 23:Vessel calls according to DWT in 2013

Source: Egyptian Authority for Maritime Navigation Safety

RORO/LOLO GENERAL CARGO

2%

FISHING 0% TUG / SUPPLY

(ORSV) 7%

TUG 9%

CONTAINER SHIP 1%

OTHER SPECIAL SER.SALVAGE TRA.

3%

GENERAL CARGO 9%

BULK CARRIER 10%

OTHER PONTOONS 1% RORO

CARGO/CONTAINER SHIP 2%

SERVICES & TUGGING VESSELS

6% LANDING SHIP

2%

PASSENGER/RO-RO CARGO SHIP

6%

RORO CARGO / FERRY

2%

DREDGER 1%

PASSENGER SHIP 2%

CONTAINER / GENERAL CARGO

1% OTHER SPECIAL

SERVICE 23%

PASSENGER LAUNCH

0%

PASSENGER FERRY 0%

OIL TANKER 13%

Ratio of vessels/Operating units

41

Source: Egyptian Authority for Maritime Navigation Safety

The Suez Canal

The description of the Suez Canal on the Suez Canal Authority website goes as follows: “The

Suez Canal is an artificial sea-level waterway running north to south across the Isthmus of Suez

in Egypt to connect the Mediterranean Sea and the Red Sea. The canal separates the African

continent from Asia, and it provides the shortest maritime route between Europe and the lands

lying around the Indian and western Pacific oceans. It is one of the world's most heavily used

shipping lanes.

The Suez Canal is one of the most important waterways in the world. Modern ships extensively

use it, as it is the fastest crossing from the Atlantic Ocean to the Indian Ocean. Tolls paid by

vessels represent an important source of income and foreign currency for the Egyptian

Government.

The Suez Canal is a sea level canal and the height of water level differs slightly and the extreme

tidal range is 65 cm in the north and 1.9 m in the south. The banks of the Canal are protected

against the wash and waves, generated by the transit of ships, by revetments of hard stones and

steel sheet piles corresponding to the nature of soil in every area. On both sides of the Canal,

there are mooring bollards every 125 m for the mooring of vessel in case of emergency, and

kilometric sign posts helping locate the position of ships in the waterway. The navigable channel

is bordered by light and reflecting buoys as navigational aids to night traffic.

Most of the Canal is limited to a single lane of traffic, but the Canal has 4 double zones with 6

bypasses (total length 80.5 Km2) and this allows the transit of ships in both directions.”

46 One of

the most important environmental concerns over the digging of the parallel canal is the potential

0

5

10

15

20

25

30

35

Till 5 5-10 10-15 15-20 >20

Figure 24: Age Classification According to the Type of Vessels

(2013)

SERVICES & TUGGING VESSELS PASSENGER/RO-RO CARGO SHIPRORO/LOLO GENERAL CARGO BULK CARRIERGENERAL CARGO TUG / SUPPLY (ORSV)

42

negative impact of invasive species. This in addition to the impact of expected increase in vessel

traffic in the Mediterranean and the resultant air and water pollution.

Social Contributions of the Sector

According to CAPMAS, the transportation and storage sector (including the Suez Canal,

employed about 7% of the total employed labour force in 2013. That is a considerable percentage

of the employed population in Egypt. Unfortunately there are no data available to assess the

number of workers employed by the sector on the Mediterranean coast, but one can make the

assumptions that with the size of the Egyptian marine fleet and the importance of the Suez Canal,

that the Mediterranean employment commands about 2000 workers out of the total share 7%47

.

Table 4 in Annex I shows the breakdown of the number of workers in the maritime sector with

licenses to operate the different vessels. The table also includes their breakdown by age. It is

worth noting that the sector employs people of all ages with a majority of those employed being

between the ages of 20 to 50. There are certain limitations to this data as people younger than 20

are also employed in the sector, however the licenses are only issued to people above 20 years of

age.

There are seven different licenses/certificates that a worker in the maritime sector can obtain

with varying levels of training and years of experience.

Source: Egyptian Authority for Maritime Navigation Safety

Contribution of the Maritime Transport Sector to the National Economy

As mentioned earlier, the Suez Canal is a very important part of the Egyptian economy, as it is

one of the main sources of foreign currency along with tourism. The Suez Canal is very much

affected by global international developments. The financial crisis has had a negative impact on

0

200

400

600

800

1000

1200

From 20-30 Years From 30-40 Years From 40-50 Years From 50-60 Years More than 60 Years

Figure 25: Number of Maritime Laborers in Egypt (2013)

shipmaster Chief officer

2nd navigation officer 3rd navigation officer

Senior maritime engineer 2nd maritime engineer

3rd maritime engineer

43

international trade as a whole, and so naturally the Suez Canal was affected. As can be seen from

the table and graph below, the number of ships and vessels passing through the Canal in 2009

decreased to 19,354 from 21,080 in 2008 after having been increasing since 2004. Revenues

from the canal also took a hit due to the financial crisis. Unfortunately the global economy has

not quite recovered from the crisis, which is reflected in the number of vessels passing through

the canal. However, due to increased fare on vessels and allowable tonnage, revenues have

reached their pre-2009 level in 2014 despite the drop in the number of vessels as compared to the

year 2012.48

Table 10: Number of ships and vessels passing through the canal 2004-2014

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Ships &

Vessels

(No.)

16,174 17,334 18,476 19,419 21,080 19,354 17,504 18,050 17,664 16,665 16,774

Net

Tonnage

(Million

Tonnes)

579 646 702 793 891 811 787 897 939 912 931

Revenues

(Millions

USD)

2,848 3,307 3,559 4,170 5,155 4,721 4,517 5,053 5,227 5,027 5,369

Source: CAPMAS and Ministry of Finance of Egypt

Source: CAPMAS and Ministry of Finance of Egypt and Author’s Calculations

-15,0%

-10,0%

-5,0%

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

30,0%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Figure 26: Growth Rates of Suez Canal Indicators

(2005-2014)

Ships and Vessels (No.) Net Tonnage (Million Tons)

Revenues (Millions USD)

44

Data is generally lacking for the maritime transport sector. However, there is information about

the general transport and storage sector. Although that breakdown includes land transportation

and storage as well, it is a good indicator for the maritime transportation sector. Generally the

sector has been a positive contributor to GDP growth and has averaged a share to GDP of about

5% in the past few years. Recently though the sector has been experiencing limited growth and

so its contribution to growth has decreased.

Source: Ministry of Planning of Egypt and Author’s Calculations

Environmental considerations

There are significant negative impacts of maritime transport/cruising and pleasure boating on the

marine and coastal environment, namely: (1) sea water pollution caused by ship and vessel

maintenance, (2) pollution from marine accidents and from antifouling-paint biocides (3) illegal

and accidental waste dumping from ships into the sea, (4) noise and sound pollution caused by

shipping and marine transportation that generate disturbances and noise, which can affect

sensitive marine species, (5) marine and coastal ecology degradation as well as changes of water

quality, and (6) the introduction of alien and invasive species.

Despite the regulation and eventual banning of the discharge of waste at sea, the practice of

dumping waste and other harmful substances continues to occur. Ongoing marine dumping, plus

the legacy from past dumping, continues to subject the marine environment to considerable

pressure.

With regards to the coastal zone, the development of maritime transport is inherently linked to

the development of coastal infrastructures such as ports, motorways and railways connecting

inland areas to the ports. The development of large logistic coastal infrastructures brings,

amongst others, fragmentation of coastal landscapes and habitats, changes in the land use and

increased pollution loads.

-0,4%

-0,2%

0,0%

0,2%

0,4%

0,6%

0,8%

FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014

Figure 27: Contributions of the Suez Canal and the

transport and storage sectorto GDP Growth

Suez Canal Transport and Storage

45

Based on available data, it is evident that Egyptian ports handle a large volume of goods where

these are a liability for different sources of pollution such as ballast water, fouling, oil spill,

noise, marine debris and others. The general view of vessels causalities during 2013 indicates

sinking of marine units is a major source of pollution, accounting for 47%, followed by sinking

of vessels 27%. These are serious concerns that affect the health of the marine environment in

Egypt.

Source: Egyptian Authority for Maritime Navigation Safety

Negative impacts of maritime transport, cruising and pleasure boating cause degradation of

marine and coastal ecology. The main causes of environmental damage are vessel accidents, oil

spills, CO2 emissions, antifouling-paint biocides, illegal and accidental waste dumping, noise and

sound pollution. Moreover the introduction of alien and invasive species represent another

concern for the Egyptian Mediterranean coast, particularly after the digging of the additional

Suez Canal.

Unsustainable maritime transport practices and the potential increase in related activities as a

result of increased global trade and potential increase of local and international tourism along the

Mediterranean coast is expected to exacerbate the level of pollution and environmental damage

along the Mediterranean. This is very much likely to have a negative impact on marine life,

fisheries, tourism, quality of life and health of the population.

Pollution from maritime transport, cruising and pleasure boating is likely to increase in the future

if it goes on unabated. With plans to construct additional ports such as the El Alamein port,

pressures to the environment are likely to increase. Strict standards for emission control should

be introduced with appropriate penalties commensurate with the extent of damage imposed on

violators. An adequate monitoring system to track accidents and oil spills should be made

Sinking of

Marine Unit

47%

Sinking of

Vessels

27%

Running Aground

at Coral Reefs

18%

Collision or

Friction between

Two Vessels

2%

Collisi

on

betwee

n

Vessels

and a

Tug

2%

Vessel Fire

2%

Incident at

Machinery Room

2%

Figure 28: Accidents in Egyptian Ports by Type of Accident (2013)

46

available in order to track accidents immediately with proper response measures and actions

taken in order to reduce the extent of the damage to the environment and the ecosystem.

Necessary up to date equipment and technologies should be used to deal with accidents resulting

in oil spills and dangerous chemical substances, with enhanced capacities of local personnel for

monitoring, assessment and dealing with pollution resulting from maritime activities.

47

4) Offshore Oil and Gas Industry

Introduction

Historically, the oil and gas industry in Egypt has always been of particular importance.

According to the US Energy Information Administration, Egypt is the largest consumer of both

oil and gas in Africa. It is also the largest non-OPEC oil producer and the second-largest dry

natural gas producer in Africa, after Algeria. The country also serves as a major transit route for

oil shipped from the Arab Gulf to Europe and the United States. Egypt plays a vital role in

international energy markets through the operation of the Suez Canal and the Suez-

Mediterranean (SUMED) Pipeline49

as previously mentioned.

The oil industry plays a pivotal role in the Egyptian economy. It used to be one of the main

sources of foreign exchange. Oil production in Egypt comes from four main areas: the Gulf of

Suez, the Western Sahara, the Eastern Desert, and the Sinai Peninsula. Egypt has the potential

that qualifies it to increase its production capacity of oil and natural gas and with increased

investments in solar energy increase its export potential of energy to the outside world. At the

moment, refining capacity exceeds production rates, resulting in the need to import crude oil for

processing and re-export. Egypt is still exporting petroleum products to key countries, including

India, Italy, China and Israel. It is also possible to increase the storage capacity in Egypt on the

Red Sea and the Mediterranean ports so that they can take advantage of the infrastructure of

national networks for exporting oil and gas to meet international demand, particularly for the

European Union.

History of oil and gas explorations in Egypt

The first oil field was discovered in Egypt in 1869 and began production in 1910. At that time,

the Egyptian English Oil Company was created as a joint venture between Shell Company and

the British Petroleum Company (BP) and was the main operator in this area. It continued

exploration and development operations even though it was nationalized in 1964. In 1962, the

Egyptian General Petroleum Corporation was founded to become the main operator in Egypt. In

2000, the Ministry of Petroleum has taken promising steps to enhance the oil sector in Egypt. A

complete restructuring of the industry and the separation of natural gas and petrochemical

activities and the General Petroleum Corporation’s activities marked this action.

The new structure for the petroleum industry in Egypt is as follow:

The Egyptian Holding Company for Natural Gas (EGAS)

Egyptian Petrochemicals Holding Company in January (EGPC)§§§§

§§§§

The Egyptian General Petroleum Corporation (EGPC), the national oil company, is charged with managing upstream and

downstream activities. EGPC’s subsidiary, General Petroleum Company, holds several exploration licenses in the Sinai, the Gulf

of Suez, and the Western Desert (9). EGPC owns and operates much of the country's refining capacity as well. International oil

companies also play a large role in Egypt’s upstream oil sector, holding shares in producing assets in partnership with EGPC.

According to IHS CERA BP, Eni, BG, and Apache are the major oil and gas players in Egypt, with the first three primarily

investing in offshore, and Apache in the onshore Western desert.

48

The South Valley Holding Company for Petroleum (GANOPE)

Egyptian Mineral Resources Authority (EMRA), which was annexed activity of the

Ministry of Petroleum in October 2004

Egypt Petrochemicals Holding Company (ECHEM)50

Figure 29: Structure of the Petroleum industry in Egypt

Natural gas has not been found in quantities suitable for commercial exploitation, until in 1967,

when -Abu Madi- field was discovered in the middle of the Delta, which marked the beginning

of major exploration of natural gas in Egypt. This was followed by Abu Qir offshore field, which

was discovered in the Mediterranean in 1969, the first natural gas offshore field in Egypt. This

was followed by the Gharadig field in Western Sahara in 1971, which resulted in encouraging

results leading to the expansion of search operations in the Delta, the Western desert and in the

Mediterranean. Initial explorations began in 1975, with intensive exploration campaigns not

starting before 1995 to lead to many commercial gas discoveries since 1998 until now. In light of

the growing volume of gas discovered in Egypt in recent years, proven reserves of natural gas

reached 67 trillion cubic feet in 2006, compared to 36 trillion cubic feet in 1999. The

Mediterranean region offers promising grounds for gas discoveries, particularly in deep waters.

Fields in which discoveries were made included Rashid, Saffron, Simian, King Marriout, and

other discoveries in the Western Sahara region, and the most important place was Elbida and

Matrouh.

49

Figure 30: Gas explorations in Egypt

These discoveries have contributed greatly to the increase in natural gas reserves and resulted in

an increase in daily production, which helped Egypt to be an exporter of liquefied natural gas, as

well as of natural gas through the Arab Gas Line project. At the same time, Egypt is working to

balance the growing domestic demand with exports and due to the increased domestic demand,

has become a net importer.

Trends in oil and gas production and consumption

In the past two decades the sector has experienced steady growth and expansion with the

discovery of new exploration sites and the increasing demand for energy locally due to the

growing economy and the expansion of energy intensive industries. In recent years however, the

sector has experienced several changes and several problems have arisen due to the political

instability following the 2011 Revolution and due to the manner in which the entire sector has

been managed. Subsidies on oil and gas products have distorted the consumption patterns

contributing to the energy crisis in the past couple of years that was exacerbated by the political

situation in the country.

As shown in the chart below, oil production has slightly declined since 2010, while consumption

has experienced a steady albeit minimal increase. As of 2012, Egypt has become a net importer

of oil due to the increasing demand for consumption and the growing gap arising from reduced

levels of local production.

50

Source: BP Statistical Review of World Energy, June 2014

During the period between 2011 and 2013, consumption increased by approximately 6%, while

production has decreased by 0.3%, causing a shortage in supply. It is worth noting that oil

production in Egypt has been fairly steady over the past 10 years and that the consumption has

been on a steady rise, causing the shortages the country is currently facing.

As for natural gas, prior to 2011 both consumption and production were on a steady rise causing

the sector to grow. Natural gas first started to be exploited in the 90s in Egypt, as the prices were

very low the country came to rely on natural gas for the majority of its energy production. With

the growing demand for energy, production grew as well. However, the sector experienced some

difficulties starting 2011, where production has been on the decline and consumption has been

increasing as shown by the graph below. Since 2011, production has declined by almost 9%,

while consumption has increased by 4%.

Source: BP Statistical Review of World Energy, June 2014

Major producing areas are located in the West Delta Deep Marine concession, where five

reservoirs – Scarab, Saffron, Simian, Sienna and Sapphire – were brought into production

between 2003 and 2005. Other major producing areas include the Western Desert, the Nile Delta

0

10

20

30

40

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Figure 31: Oil Production and Consumption in millions of tonnes

(2003-2013)

Production

Consumption

0

10

20

30

40

50

60

70

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Figure 32: Natural Gas Production and Consumption in billion cubic

meters

(2003-2013)

Production

Consumption

51

and the Gulf of Suez oil fields. The country’s gas production still has the potential to grow in the

coming years with the following fields to overcompensate for the decline of more mature fields:

The Western Desert – the Khalda area and Alam El Shawish West

The Nile Delta and Mediterranean Sea – Abu Qir, North Alexandria, North Bardawil, North

Edku, Temsah, West El Manzala and the West Mediterranean Block 1 offshore

Offshore North Sinai – ONS (Seti Plio Tao and Kamose)51

Another issue that the sector has had to deal with are the arrears owed to foreign oil companies.

Due to the current political situation, Egypt has not been able to pay oil companies operating in

the country for the period between 2011 to the end of 2013 causing stagnation in oil exploration

agreements and in the sector as a whole. However, since the end of 2013, Egypt has begun

repaying foreign oil companies. About US$3.1 billion remain to be paid by mid-2016.

Due to the resumption of payments, foreign oil companies have started operating in Egypt once

again. Since November 2013, 53 exploration agreements have been signed with foreign oil

companies, about 14 of those are in the Mediterranean Sea. In addition, international natural gas

tenders for eight offshore exploration blocks in the Mediterranean have been announced by

EGAS. The blocks are: West El Arish off shore, East Port Said, North Rommana, North Ras El

Esh, West El Temsah, South Tennin, North El Hammad, and East Alexandria.

Most oil and gas fields in Egypt are in the Western Desert, on the Mediterranean Coast and in the

Gulf of Suez. The map below shows existing oil and gas fields (each made up of several blocks)

in the Mediterranean area, the majority are gas fields where the Government plans on offering

them for exploration in the next couple of years.

Figure 33: Map of Oil and gas fields in Egypt

Oil Fields Gas Fields

Source: Ministry of Petroleum

52

Mediterranean Oil Refineries

Egypt's strong petroleum industry supports key chemical products such as fertilizers,

petrochemicals, polymers and other chemicals. Plans are also underway to expand the

petrochemical industry in Egypt. It has the largest refining sector on the African continent, with

ten refineries and a combined crude oil-processing capacity of 975,000 bbl/d. The largest

refinery is the 146,300-bbl/d El-Nasr refinery at Suez, which is owned by the Egyptian

Government. Other refineries along the Mediterranean mainly in Alexandria include, Alexandria

Petroleum in EL Mex 115,000 barrel per day, Middle East Oil Refinery in Sidi Kerir with

100,000 barrels per day, and Ameriya Pertroleum Refinery with a production capacity of 75,000

barrels per day. The Government has plans to increase the production of lighter products,

petrochemicals and higher-octane gasoline by expanding and upgrading existing facilities and

promoting new projects52

.

In addition, Egypt also serves as a major transit route for oil shipments from the Arabian Gulf to

Europe and the United States. As the figure below shows, the oil and gas infrastructure in the

country allows for the transfer of the products from the Red Sea to the Mediterranean Sea. The

Suez Canal is also a route through which many of these shipments uses, with the only alternative

route for the oil and gas being the SUMED pipeline, which makes Egypt a strategic location for

the transportation of oil and gas from the Red Sea to the Mediterranean Sea.53

Figure 34: Oil and gas routes in Egypt

Source: US Energy Information Administration

Role of the Oil and Gas Sector in the National Economy

The figures below show the contribution of oil, natural gas, and oil refining to the GDP and the

rate of growth during the period between FY2010 and FY2014.

53

In line with the production patterns the oil and gas sectors have been growing at a decelerated

rate or even shrinking (especially in the case of the gas extractions sector). Oil refining has also

been experiencing fluctuations in growth.

It should be noted that the contribution of the oil and gas sector to GDP in years when the

economy was booming were not significant in comparisons to other sector such as the

manufacturing and tourism sectors. The chart below details the contributions to growth of the oil

and gas extractions sector during the period between 2006 and 201454

.

Source: Ministry of Planning of Egypt

As the chart shows, the most significant contribution the sector has made to the economy was in

2006. Prior to that, the contribution of the sector was close to zero. During the years when the

Egyptian economy was steadily growing from 2006 to the financial crisis in 2009, the sector

averaged a contribution of 0.75%. As explained in the above section, the sector was hit hard after

-15%

-10%

-5%

0%

5%

2010 2011 2012 2013 2014

Figure 35: Production rates in the Oil and Gas Sector

(2010-2014)

Oil Natural Gas Oil Refining

-1,50%

-1,00%

-0,50%

0,00%

0,50%

1,00%

1,50%

2,00%

FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14

Figure 36: Contribution to GDP Growth of the Oil and Gas

Extractions Sector

54

the 2011 Revolution and starting 2012 the sector began contributing negatively to GDP growth,

averaging a contribution of - 0.3%, reaching - 0.9% in FY14.

Most activities of the sector are not located in the Mediterranean or the Delta. As can be seen

from the figure below, only 5% of the rigs in Egypt are located in the Mediterranean. The

majority of the rigs are located in the Western Desert.

Regarding employment, the manufacturing sector in general employs 2,570,700 individuals, of

these only about 22,600 works in oil and natural gas manufacturing 55

.

Figure 37: Oil and Gas rigs in Egypt

Environmental concerns related to offshore-related activities

Main environmental implications resulting from the targeted socio-economic activities have been

identified. This section will particularly focus on pollution and environmental damage associated

with offshore-related activities, with emphasis on negative impacts on biodiversity. Offshore

drilling for instance endangers the sea’s biodiversity and pollutes the water of the Mediterranean.

Though natural gas fields may be less dangerous than oil wells, an accident is still possible (in

the form of an explosion after a gas leak). The first environmental hit (Figure 47) occurs at the

beginning of oil exploration activities. Oil exploration involves seismic surveys that stun marine

55

animals and diving birds, interfering with their navigation and communication abilities. This can

be deadly for individuals and species.

The second largest volume of waste is produced through drilling. This includes extracted water

mixed with oil and other contaminants, drilling “muds” (including toxic chemicals and heavy

metals) to cool and lubricate the equipment, and other forms of industrial waste. These inevitably

end up in the ocean and are ingested by marine life of all sizes.

Some of the smallest marine creatures, foundational to our ecosystems and generally known as

plankton, are particularly susceptible to crude oil pollution and suffer population reductions. The

third environmental hit occurs as a result of inevitable oil spills, and the fourth is the carbon

dioxide emission from the consumption of fossil fuel.

Pollution

All forms of pollution (air, soil and water) represent another threat to the Egyptian

Mediterranean coastal zone. Marine pollution results from oil exploration and exploitation in

both the Mediterranean coast and desert area, oil spillage from the ever increasing ships working

in the territorial waters as well as those that cross the Suez Canal into the Mediterranean thus

threatening both marine and terrestrial habitats. Solid waste, due to the limited number of

landfills is also causing considerable damage to all natural habitats and ecosystems. Air pollution

from quarrying can be seen from the roads. Although all forms of pollutions are prohibited by

Law 4/1994 (amended by Law 9/2009), law enforcement is rather limited.

Figure 38: The impact of offshore drilling

56

Figure 39: Trends in carbon emissions in Egypt 1980-2012

Oil Sector Management

As referred to earlier, oil and gas is one of the more important activities in Egypt and plays an

important role in the Egyptian economy.

In the past two decades the sector has experienced a steady expansion with the discovery of new

exploration sites and the increasing demand for energy. However, in recent years, the sector has

encountered several changes and several problems resulting mainly from the current transition

period the country is going through. According to available information, oil production has

experienced a decline in 2013 as compared to 2010 levels. However, consumption continued to

increase and is expected to further increase with population growth and increased levels of

economic activities. Production and consumption of natural gas has experienced a similar

situation with production declining since 2009 and consumption increasing since 2003. Though

the production of natural gas has a lower environmental footprint compared to oil, increased

consumption of both result in increased CO2 emissions and the consequence this has on the

environment and health.

Extension of oil and gas explorations are expected in the next few years resulting in extensive

activity along the Mediterranean zone. This is likely to have negative impacts on the number of

local and international tourists to the Mediterranean coast. Moreover, oil spills and accidents of

oil and gas operations and their impact on fisheries, marine life, and tourism will result in costs

to the economy unless measures are taken mitigate them.

Environmental safeguards should be introduced to ensure that oil and gas exploration activities

including off shore activities operations as well as petrochemical activities do not represent a

hazard to the environment and the Mediterranean ecosystem. Oil and gas companies operating

throughout Egypt should follow strict environmental standards that require the use of appropriate

technologies and procedures that ensure the avoidance of environmental hazards resulting from

their operations.

57

5) Energy Production

Introduction

Electricity production in Egypt has recently been facing a number of challenges. The gap

between supply and demand for electricity is growing. During the peak summer months over the

past couple of years Egypt has been facing many power cuts. The Ministry of Electricity and

Renewable Energy is the entity that manages electricity generation in Egypt through five-

generation companies in these areas: Cairo, East Delta, Middle Delta, West Delta and Upper

Egypt. The sector is mostly managed by the public sector although a small percentage of the

electricity generated comes from the private sector. Table 16 shows energy generated by

province in 2012-2013. For the purpose of this study, we are concerned with the Middle, East

and West Delta Companies as they are the ones operating the governorates we are interested in.

These three companies combined contribute 56% of the total electricity generated from the

public sector in Egypt56

.

Table 11: Energy generated by province

Generation Company

Energy

Generated

(GWh)

Percentage of

Total Generation

Cairo 31,208 21%

East Delta 31,012 21%

Middle Delta 27,223 18%

West Delta 24,857 17%

Upper Egypt 21,173 14%

Hydro plants 13,121 9%

Total of Generation Companies 148,594 100%

Source: Egyptian Electricity Holding Company Annual Report 2012/2013

Below is a map of the Egyptain National Grid and all of the power plants connected to the

national grid, this map is released by the Ministry of Electrcity and Renewable Energy.

58

Figure 40:Egyptian National Grid and all of the power

plants connected to the National Grid

Source: Ministry of Electricity and Energy

Electricity generated in Egypt is mainly used by the industry (28%) and the housing sectors

(43%), as can be seen from the chart below.

Source: CAPMAS Statistical Yearbook, 2014

Industry 28%

Agriculture 4%

Utilities and Public Lighting

9% Governmental

Authorities 6%

Houses and Housing Companies

43%

Shops and Others 10%

Figure 41: Distribution of Energy Sold by Purpose of Use (2013)

59

Power generation is a very important sector, not only for the direct impact of the sector, but for

how the sector serves and supports other economic and service sectors. Industry, an intensive

energy user contributes 37.5% to GDP, as compared to agriculture 14.5%, and services 48% in

2013 (2015 CIA World Fact book and other sources). Most industries within the manufacturing

sector are energy intensive, such as cement and steel. The electricity sector serves them so that

they can in turn produce and contribute to the country’s economy57

.

In 2013, the electricity sector employed 226,200 workers across Egypt, of these, 3,000 were

employed in the Damietta governorate, 400 in Port Said, 12,500 in the Alexandria governorate,

3,600 in the North Sinai governorate and 2,300 in the Matrouh governorate. Weekly wages in the

sector are detailed in the table below58

.

Table 12: Weekly wages in Electricity, Gas and the Water Supply sectors

Industrial Sector Sector Type Average Female Wages

per Week in LE

Average Male Wages per

Week in LE

Electricity, Gas and Water

Supplies

Public 830 842

Private 897 807

Source: CAPMAS Statistical Yearbook, 2014

Source: CAPMAS Statistical Yearbook, 2014

The majority of energy that was generated in 2013 was from natural gas, about 75%, with oil

being the second source accounting for 16% leaving the remaining 9% to be generated with

hydro, solar PV and wind. As indicated earlier, Egypt is heavily dependent on natural gas for the

generation of its electricity.

Industry 28%

Agriculture 4%

Utilities and Public Lighting

9% Governmental Authorities

6%

Houses and Housing Companies

43%

Shops and Others 10%

Figure 42: Distribution of Energy Sold by Purpose of Use (2013)

60

Table 13: Percentage of electricity generated from different sources of energy

In Egypt

Production from…

% of total

production of

electricity

Oil 16%

Gas 75%

Hydro 8%

Solar PV 0.1%

Wind 1%

Source: International Energy Agency, 2013

The map of the national grid above, shows major power plants located in the main northern cities

in Egypt. These power plants are mainly located in the cities of Port Said, Abu Qir, Sidi Kerir

and Matrouh. The Port Said power plant is under the control of the East Delta Company while

the remaining three power plants are under the control of the West Delta Company. Al Arish

power plant can also be of interest although it is not directly on the coast. The Port Said power

plan is a gas power plant while the Abu Qir, Sidi Kerir, Al Arish and Matrouh plants are all

steam energy plants. The graphs below detail the number of turbines at each plant and the

capacity of the turbines.

Source: CAPMAS Statistical Yearbook

Nuclear Power Station

The Government plans to build a nuclear power station at El-Daabaa close to the shore. A large

area was allocated for this project for many years and the project was supposed to start in the

0

1

2

3

4

5

6

7

8

Figure 44: No. of Turbine in Northern Governorates

0

500

1000

1500

2000

2500

Figure 43: Capacity (M.W) of Turbines in Northern Governorates

61

early eighties, but was put on hold because of the catastrophic nuclear power plant accident in

Chernobyl. In recent years, due to the increasing demand on energy, and the limitation of

conventional energy sources (oil, natural gas, coal), it was decided to go ahead with the nuclear

power station. This is happening whilst the Government plans to expand tourism and also

agriculture in the western Mediterranean. The concept, approaches, and principles of sustainable

development are not practiced in this very important region that is considered one of the most

important hot spot for biodiversity in Egypt. As far as we know, there is no Strategic Impact

Assessment of this project yet, and the government is currently calling for offers from abroad to

submit their interest to construct the nuclear power station. Experience elsewhere has shown

negative impacts of nuclear power stations for people and the environment. Let alone the risks of

accidents, which will jeopardize the entire region with catastrophic consequences on human and

natural life.

Available data on the energy sector was provided at the aggregate national level and not specific

to the Mediterranean coastal region. It was not possible therefore to estimate the cost of marine

degradation attributed to the energy related marine activities in Egypt.

62

6) Submarine Telecommunications

Introduction

Due to its strategic location, Egypt is a hub for submarine cables. The relatively small land area

between the Red Sea and the Mediterranean Sea has allowed for cables to connect Asia with

Europe and North America. There are four main landing locations for cables in Egypt:

Zaafarana, Suez, Abu Talaat and Alexandria. The two landing locations that are on the

Mediterranean are Abu Talaat and Alexandria through which 11 cables go through. The cables

mostly come from Asia and then go to Europe.

The figure below shows the four landing points and the different cables landing in Egypt through

the Red Sea and the Mediterranean Sea.

Figure 45: landing locations for cables in Egypt

Source: Telegeography Global Bandwidth Research Service, Submarine Cable Map.

http://www.submarinecablemap.com/#/country/egypt

There are currently 11 cables landing in the two locations on the Mediterranean Sea. Nine of the

eleven cables are fully functional fiber optic with two additional cables due to be operational in

2016. The table below highlights the currently operational cables, their length and their

transmission speeds.

63

Table 14: operational cables, their length and transmission speeds

Point of

Connection Cables

Cable Length

(km2)

Transmission

Capacity (Gbit/s)

Alexandria

Aletar 787 5

FLAG Europe-Asia (FEA) 28,000 10

Hawk 3,400

IMEWE 12,091 480

SeaMeWe-3 39,000

SeaMeWe-4 20,000 1,280

Abu Talaat

Europe India Gateway (EIG) 15,000 3,840

Middle East North Africa (MENA)

Cable System/Gulf Bridge International 8,000 5,760

North/TGN-

Eurasia/SEACOM/Alexandros 3,634

Source: Telegeography Global Bandwidth Research Service, Submarine Cable Map.

http://www.submarinecablemap.com/#/country/egypt

The Egyptian Ministry of Communications and Information Technology (MCIT) is working on

adding more cables and improving the already existing ones. The National Telecommunications

Regulations Authority (NTRA) is the body that provides licenses for the construction of the

cables and ensures that they are built according to international regulations. In the past two

decades the NTRA in collaboration with the MCIT has worked on improving the business

environment and allowing for better transparency in providing the licenses to build the cables59

.

(MCIT and NTRA).

The geographical location of Egypt gives it a big advantage in this sector in terms of putting the

country on the map as a hub for internet cable development. However, in terms of actual

contributions to GDP, the contributions made by this particular sector are very minimal.

Data available pertains to the broader information and communications sector as no data relating

specifically to the submarine telecommunications sector was found. In 2013, the information and

communications sector employed a total of 189,300 workers directly. This represents

approximately 0.8% of the total employed in all sectors of the economy in 2013. The sector is a

64

relatively small one within the Egyptian economy. With this data one can safely assume that the

employment generated from the submarine telecommunications sector is fairly small60

.

The first risk that comes from marine cables is in the installation, as they disturb the habitat and

create a change in the ecosystem when they are being installed. Installed cables disturb the

seabed and the environment itself as the machine work to lay the cables.

The main long-term impact of submarine cables is the presence of the cable itself and any

accompanying protective structures. These can provide artificial hard habitats that attract flora

and fauna that may not be typical of the area. However, since it is confined to the cable route

itself, such change in the surrounding area and natural habitat is not likely to be significant61

.

7) Extraction and other environmentally damaging activities

Extraction of marine resources

Sea-sand is necessary for beach formation and to protect from storm surges and waves. This

affects weather micro-patterns, tourism, swimmer safety, fish habitat and reproduction,

invertebrate animal habitat and as a heavy metal and toxin sink. Thus, extraction of sand from

shorelines has large impacts on the structure of beaches and on marine biodiversity.

Sea-sand mining may cause serious ecological changes that could affect the entire continental

shelf ecosystem. In addition, sand extraction affects the ecosystem of the seabed, which support

fisheries. Most larval species of fish use this area as nursing grounds. By disturbing this

ecosystem, the livelihood of fishermen is negatively impacted.

There is very limited data when it comes to extractions of marine resources in Egypt. Moreover,

when it comes to the Mediterranean coast, there is very little extraction of marine resources,

including salt extraction, and the Government is taking necessary measure to try to keep the

coast intact without removing any resources from it or altering its natural state. There are though

a number of activities along the Mediterranean coast that have negative environmental impacts

on the marine ecosystem. These are represented in the following main activities:

Mining and Quarrying

Quarrying has been used extensively in the western Mediterranean to build summer coastal

resorts and road construction. This has led to the destruction of coastal natural habitats and hence

resulted in biodiversity loss. Quarrying is brought from the calcareous dunes that host endemic

flora and also fascinating landscape of the Mediterranean. Unsustainable salt extraction from

both the western Mediterranean and Siwa have transferred natural saline ecosystems into

fragmented habitats which have been dumped in many places along the region.

The Mining and Quarrying sector employs approximately 41,400 individuals as of 2013. The

table below details the wages received per week by workers within both sectors62

. Data

pertaining specifically to the Mediterranean coastal area are not available.

65

Table 15: Wages received per week by workers within mining and quarrying and

manufacturing

Industrial Sector Sector Type Average Female Wages

per Week in LE

Average Male Wages

per Week in LE

Mining and Quarrying Public 595 663

Private 624 607

Manufacturing Public 471 613

Private 258 354

Source: CAPMAS Statistical Yearbook, 2014

V. Cost of Environmental Degradation

Valuation Studies in Egypt Evaluating environmental impacts of policies and development plans and estimating costs of

environmental degradation to the economy would induce preventive action for environmental

degradation thus resulting in net gains to the economy. Protecting the environment and curbing

degradation should be viewed within the framework of environmental and sustainable

development policies. Regulatory measures, monitoring and enforcement, and other measures

are needed to arrest environmental and ecosystem degradation.

In 2002 the Egyptian Government has recognized the importance of improving the environment,

and the necessity of integrating environmental considerations in economic development. In an

earlier study undertaken by the World Bank entitled “Middle East and North Africa

66

Environmental Strategy” environmental damage for the region was estimated.63

This was mainly

attributed to health impacts resulting from lack of sanitation and safe water, air pollution, and the

cost of the degradation of natural resources, mainly soil salinity and erosion and degradation of

forests and rangeland. Country specific studies were then undertaken to estimate cost of

environmental degradation during the 1990’s in a number of African countries, including

Egypt.64

The World Bank study on the cost of environmental degradation conducted in 2002 was a first

step towards integrating the environment in economic and social development.65

It used damage

and remediation cost to estimate the cost of environmental degradation for priority

environmental issues. The cost of environmental degradation in 1999 using damage cost was

estimated at LE. 10 - 19 billion annually. This amounted to about 3.2-6.4% of GDP, with an

estimated mean of LE. 14.5 billion or 4.8% of GDP. Cost of air pollution was estimated at LE.

3.3 - 9.6 billion or 1.1-3.2 of GDP (urban outdoor and rural indoor). Soil degradation was

estimated at between LE. 3 -4.2 or 1.0 -1.4% (salinity and erosion). Damage cost for water was

estimated at between LE. 2.1- 3.6 billion or 0.7 -1.2% of GDP. Coastal zone degradation was

estimated at LE. 0.6-1.2 billion or 0.2 - 0.4% of GDP, while waste management was estimated at

LE. 0 - 6 billion or 0.2% of GDP.

Cost of environmental degradation in Egypt estimated at 4.8% according the World Bank is

double than in industrialized countries. The study attributed this to a number of factors, those

being:

Increased incidence of mortality and morbidity due to lack of sanitation and safe water.

Health impacts resulting from air pollution.

Soil degradation thus resulting in reduced productivity.

Cost of pollution caused by industrial and agricultural activities and the dumping of wastewater

in coastal waters, rivers and lakes was estimated at 0.07% of GDP annually. Costs were

attributed to the reduction of recreational value and the deterioration of the quality of life. The

willingness to pay method (WTP) was used to estimate costs. An amount of LE.3.5 (based on

international experience) per month per household was used to calculate costs.

The study estimated cost of loss of fisheries due to increased pollution of the northern lakes and

the Nile River was estimated at about 0.1% of GDP.66

All these estimates are at the national

level. No estimates were provided specifically for the Egyptian Mediterranean zone. Due to the

increased level of pollution during the last decade, cost of environmental damage is expected to

be much higher than those estimated by the World Bank.

Cost of air pollution was estimated on the basis of average concentration levels of PM10 for

Alexandria, it was estimated that 20,000 people are dying prematurely every year. Including

illnesses, an estimated 450,000 Disability Adjusted Life Years (DALAYs) are lost each year.

This represents between 0.7-2.35% of GDP. Tourism losses in Cairo was estimated at between

0.2-0.35% of GDP.

Health impacts resulting from environmental degradation was estimated using the Disability

Adjusted Life Years (DALAYs) methodology. The WHO and the World Bank have developed

67

and applied this methodology to measure the impact of disease on premature deaths and

illnesses. This methodology has its shortcomings. First, it assumes that the life of a disabled

person is of lesser value than that for a person without disability. Second, it assumes that a

person with disability is less entitled to health services that would extend his life.67

Tourism losses due to environmental degradation at the Red Sea was estimated at between 0.2-

0.3% of GDP. These estimates were based on a study by Hubers and Bennett (2000) on the WTP

for environmental quality. Coastal degradation resulting in tourism losses was estimated at

0.05% of GDP. Cost to fisheries due to coastal degradation and water pollution was estimated at

0.03-0.04% of GDP annually62

.

Regarding impacts on future generations, environmental degradation if not adequately addressed

may be expected to impact current as well as future generations. However, impacts on natural

resource may be irreversible thus denying future generations from the benefits and services

provided by these resources and the ecosystem as a whole. The table below shows the potential

impact of environmental degradation on future generations as well as on the poor.

Table 16: Impact of Environmental Degradation on Future Generation and the Poor

Environment Media Future Generations The Poor Water

Health

Ecosystem

L

H

H L to

H *

Air

Health (indoor air)

Health (outdoor air)

L

L

H L

Soil

Salinization/erosion/desertification

H L to H *

Waste

Municipal collection

Municipal waste collection

Industrial/hospital

L

L to H

H

H L to H

*

*

Coastal Marine environment ecosystem H

H

L* L*

L= Expected low impact H= Expected high impact * Further assessment needed

According to the World Bank study as shown in the table above, the poor were found to bare the

most of the burden from environmental degradation. Impacts are represented in indoor air

pollution, water contamination, and fish contamination.

According to the World Bank study remediation cost of the northern lakes and the Nile Delta and

Fayoum due to the dumping of partially treated and untreated municipal and industrial

wastewater was estimated at 0.4% of GDP. The estimate was derived from the cost of treatment

of municipal and industrial waste. Again given the rate of population growth, the level of

economic activity and extent of environmental damage this figure is likely to go beyond 1% of

GDP. According to the World Bank, the costs of protecting coastal areas, including the

Mediterranean and the Red Sea, accounting only for cost of wastewater treatment (excluding

those accounted for earlier – natural resources and water) was estimated at 0.2% of GDP.

68

The table below shows the cost of environmental degradation in a number of Middle Eastern and

North African countries, including Egypt as a percentage of GDP. Egypt is ranked the second

highest after the Islamic Republic of Iran, with air pollution contributing the highest share in

environmental damage, followed by land degradation, water pollution, coastal degradation, and

waste pollution.

Figure 46: Cost of environmental degradation in a number of Middle Eastern Countries,

including Egypt

Source: The World Bank 2010, The Cost of Environmental Degradation, Case Studies

from the Middle East and North Africa, Lelia Croitoru and Maria Sarraf

It should be pointed out that it couldn’t be assumed that actions to address environmental

damage will completely eliminate it. Moreover, remedial action will also be insufficient to

address damages. This is in addition to the fact that monetary valuation of environmental damage

can never be entirely accurate.

It is important to identify benefits of remediation that exceeds costs. According to the World

Bank study however, estimated remediation cost to address impacts on ecosystem, which

covered municipal and industrial wastewater by far exceeded estimated benefits (reduction in

damage cost). One reason being that impacts of water pollution on agriculture was not assessed.

Moreover, according to the report, damage cost of the degradation of coastal areas in Egypt is

significant. This is particularly the case for the Red Sea due to the negative implications on

foreign tourism 62

.

Regarding loss of biodiversity as a consequence of unsustainable activities and the resulting

negative impacts on the marine ecosystem, these are generally difficult to cost. Valuation of

ecosystem and biodiversity in economic terms assist policy makers identify the benefits they

provide and consequently factor them in the decision making process 68

.

69

Recognizing value: When valuing the ecosystem one need to recognize the wide range of

services provided by the ecosystem represented in provisioning, regulating, habitat/support,

and cultural services.

Demonstrating value: use economic methods and tools to highlight the importance of the

services nature provides in economic terms in order to support assist decision makers assess

the real benefits and costs of different policy options.

Capturing value: integrate biodiversity and ecosystem benefits in the decision making

process through price signals and incentives.

Evaluation methodology used in the study

This section is intended to highlight the impact of the maritime sector on fisheries and

aquaculture coastal tourism. The state of marine had little or almost no impact on other sectors

such as energy, oil and gas and marine transport, and sub-marine telecommunication and electric

cables. Attempts will also be made to estimate the cost of environmental degradation on fisheries

and aquaculture and tourism. Based on the assessment undertaken by the study, four key sectors

emerged as important marine related activities of particular importance to the Egyptian economy

and that are at the same time relying heavily on the marine ecosystem as the main support system

for those activities. Those being fishing and marine aquaculture, maritime transport including,

cruising and pleasure boating, coastal tourism, and the offshore and gas industry. Other activities

such as energy production, extraction of marine aggregates, and submarine telecommunication

and electric cables when considered by the study, were not found to have significant impacts on

the marine ecosystem. This also applied to activities such as marine scientific research and

education, defense and military related activities. Ship construction activities were considered as

part of the marine transport related activities.

The European Guidance on Economic and Social Analysis (ESA) proposes three approaches for

assessing the cost of environmental degradation, namely the ecosystem service approach, the

thematic approach, and the cost-based approach.

For the purpose of this study, the cost-based approach was used for estimating the cost of

environmental degradation resulting from the key identified socio-economic activities, which

included the following:

The identification of existing legislations to improve the marine environment.

Assessment of the costs of the legislation to the public and private sector.

Assess the proportion of this legislation that can be justified as it affects the marine

environment.

Costs related to the protection of the marine environment.

Costs imposed on uses of the marine ecosystem due its degradation (Loss of tourism

revenue, decline in fisheries and costs associated with that, costs due to depletion or

banning….)

70

Tourism

The Egyptian Mediterranean north coast has experienced extensive resort development,

particularly over the last two decades. The majority of visitors are mainly Egyptians either

residing in the country or expatriates visiting Egypt during the summer season. There is no

disaggregated figures on the number of tourists visiting the north coast locations.

The increased level of development along the Mediterranean coast and the increased number of

visitors contributes to higher levels of CO2 emissions, pressure on coastal areas and increased

generation of solid waste and wastewater. This is impacting negatively on the coastal marine

ecosystem and vast areas of habitats along the Mediterranean coast. Moreover, increased level of

economic activities and associated building and construction, and infrastructure development and

the resulting increase in CO2 emissions has negative implications on climate change and

consequently on sea level rise. The degraded quality of the marine ecosystem and the potential

impact of increased waste generation and CO2 emissions is likely to increasingly make the north

coast a less attractive destination for local and international tourism. Moreover, if the

Government proceeds with the Dabaa nuclear power plant, this will have further negative

impacts on the number of tourists visiting the north coast.

It is worth noting that Egypt Carbon dioxide emissions (thousands of tonnes) during the period

between 1960 to 2010 was estimated at 77516.93 kt with a minimum of 16054.13 kt in 1960 and

a maximum of 204776.28 kt in 2010 as shown in the figure below

(http://www.theglobaleconomy.com/Egypt/Carbon_dioxide_emissions/#.VRLr5LztKQs.gmail)

Figure 47: Egypt Carbon dioxide emissions (thousands of tonnes) during the

period between 1960- 2010

71

The construction of the Nuclear power station

in El Dabaa is also likely to result in negative

impacts on land and real estate value as well as

local foreign tourists and visitors to the area. It

is also likely to have negative impacts on the

natural growth and urban development of the

north coastal zone, and its ability to attract and

absorb population expansion in Egypt.

The Ministry of Finance estimates that one

tourist night for FY13/14 generates about US$

70, a decrease in the number of tourists will

mean a decrease in the revenue from one tourist

night as well as a decrease in the total revenue

generated from foreign tourism. Estimating one

domestic tourist night is harder as data is not

available. However, it is likely that any damage

to the environment will also cause less revenue

to be generated from domestic tourism. More

importantly, it will cause the real estate value of

the houses on the Mediterranean coast to decrease.

In 2010 number of tourists visiting Egypt reached

14.7 million visitors. Value of tourism in that year

Generally, the potential negative impacts

of climate change in Egypt as a result of

increased CO2 emissions include the

following:

Agriculture production is estimated to

decrease between 8-47% by 2060.

Unemployment to increase by 39%.

Welfare losses in agriculture is

estimated at between 40-234 billion

LE by 2060

Food prices to increase by 68%.

Increased particulate matter and heat

could cause about 2,000-5,000

additional deaths annually, which is

equivalent to between 20-48 billion

LE annually.

(Potential impacts of climate change on

Egyptian Economy, UNDP 2013).

According to the UNFCCC (1999), a rise

of 25cm in sea level would inundate 60%

of Alexandria and large areas of the

Delta, Rosetta, Port Said, Matrouh and

Arish, with about 2 million people in the

Delta to be resettled. This has dire

consequences on the economy

represented in loss of revenue from

tourism, agriculture, and other supporting

activities. Moreover the potential

inundation of the Delta, Rosetta Port

Said, Matrouh, and Arish will involve the

displacement of large number of

residents of these locations and the need

to construction of new communities and

the creation of new economic activities

of the displaced population.

Cost of reducing emissions from vehicles

can be estimated on the basis of cost of

installing catalytic converter at least on all

new cars and cost of inspection and

maintenance programmes. If we assume

that during the summer season around 2

million visitors visit the main Egyptian

Mediterranean cities (Alexandria, Rosetta,

Port Said, Matrouh and Arish) and the

northern coast extending to Matrouh are to

install catalytic converters at a cost of

1,000 LE per vehicle in their cars to reduce

CO2 emissions an estimated cost of LE.

500 million will be required. This may be

considered as a one off cost with additional

cost to accommodate additional vehicles

entering the market and replacement and

maintenance costs.

72

reached US$ 12.5 billion. Number of tourists in 2013 reached US$ 9.4 million with a decline in

revenue amounting to US$ 5.9 billion (CAPMAS). Egypt’s plan is to reach once again the

number of tourists reached in 2010 in the next few years, and eventually exceed that number in

the next several years.

Assuming that 10% of outside tourists visit the Mediterranean cities a total number of about 1

million tourists visit these cities annually. If we further assume that increased pollution and

environmental degradation of the marine ecosystem will result in a decline of between 40-60%

of incoming tourists this will result in a reduction of between 400,000 - 600,000 of tourists

annually with a cost of US$ 200 million- 300 million annual loss (calculated on the basis of US $

100 per night over a one week stay period).

Fisheries

Current practices in the sector over the last decade have had a negative impact on the fisheries

sector. These are represented mainly in overfishing, use of inappropriate fishing gear,

unsustainable fishing practices, and the dumping of solid waste and untreated municipal

wastewater as well as agricultural and industrial waste, particularly in lakes. The significant

reduction of the size of lakes (Manzala, Burullus, Edku, and Mariout) in some instances reaching

95.5% in case of Edku and 74.3% in case of Manzalla of their original size to land reclamation is

another negative impact on fisheries.

Though there has been an overall increase in fish catch in Egypt over the last decade, this has

been mainly attributed to the expansion of aquaculture farms. As indicated earlier the share of

aquaculture to the total fish catch has increased from 45% in 2001 to 74% in 2012. It should be

noted though that the expansion of aquaculture fisheries has their environmental consequences.

These are mainly represented in the excessive use of scarce water resources, thus impacting

negatively on underground water resources, diverting the use of water resources from agriculture

related activities thus a negative impact on agricultural output.

Reduced fisheries from the Mediterranean and the northern lakes have also a negative social

impact. This is represented in the reduced number of small fisherman engaged in fishing in the

Mediterranean Sea and the northern lakes, and negative impacts on the availability of fish as a

relatively affordable source of protein, particularly for the local communities. Though the

number of fishermen engaged in fishing in the Mediterranean Sea and the northern lakes are

reduced these may be compensated by increased labour in aquaculture fisheries. Negative health

impacts are represented in the increased incidence of the contamination of fish due to the

disposal of untreated municipal wastewater, industrial and agricultural waste in the

Mediterranean Sea and the northern lakes.

Contribution of the sector to GDP is likely to continue to increase due to the continued expansion

of aquaculture at least in the short run. The sustainability of such an expansion is dependent

though on water availability and the extent to which underground water can sustain the

expansion of fisheries in Egypt. An assessment of water availability should therefore be

undertaken to determine the extent to which water availability can sustain aquaculture expansion

in Egypt.

73

It is estimated that over the 10 years period 2001-2012, the loss in fish production from the

Mediterranean Sea and the northern lakes amounted to about 6,700 tonnes of fish or about 700

tonnes annually based on fish catch estimates from the Mediterranean and the northern lakes for

the period between 2001-2012. If the current trends were to continue, production from these

sources will be negatively affected at an accelerated rate. It can be assumed that the decrease in

fish cash may be reduced to between 7,000 – 10,000 tonnes or between 700 -1000

tonne/annually over the next 10 years. If we use the average cost per tonne of LE. 20,000 this

would amount to between LE. 140 million – LE. 200 million over the next ten years.69

).

Cost of operations, equipment and staff salaries

In order to further estimate the costs involved in the protection of Egyptian Mediterranean

marine ecosystem, this section provides estimated cost of protection, including staff costs,

equipment and operations as provided by EEAA. As indicated earlier there are also other entities

that have created departments within their existing structures to deal with environment related

matters such as the Egyptian Authority for the Safety of Marine Transport, the Egyptian General

Authority for Coastal Protection, and the General Directorate for Surface Water Guards.

However, data was only possible through EEAA.

Table 17: Staff Salaries in Regional EEAA Offices

Regional

Offices

Suez (North

Sinai)

Alexandria &

Beheira (Marsa

Matrouh)

Tanta (Kafr El

Sheikh &

Central Delta)

El Mansour

(Port Said &

Damietta)

Total

Annual salaries 2,474,819 3,366,271 6,028,122 4,469,323 16,338,535

Table 18: Expenditures on services and fixed assets

Year Suez (North

Sinai)

Alexandria &

Beheira (Marsa

Matrouh)

Tanta (Kafr El

Sheikh &

Central Delta)

El Mansour

(Port Said &

Damietta)

Total

2011/2012 18697 112061 96481 102227 329466

2012/2013 25528 633464 40705 28729 728426

2013/2014 159487 387391 75442 57446 679766

2014/2015 28759 380745 73930 42595 526029

Table 19: Expenditures related to the management of natural reserves in out posted locations

Year Borollos, El

Omaid, El

Salloum

Ashtom El

Gamil

El Zaraneek El Ahrash Total

74

2012/2011

12432 13707 56968 17822 100929

2013/2012

159836 15000 15000 25000 214836

2014/2013

13000 32000 30000 55000 130000

2015/2014

15000 48000 56750 38250 158000

Table 20: Expenditures related to the Monitoring Programme for Egyptian Mediterranean coast

Year Coastal water

monitoring programme

for the Mediterranean

Marine Science Institute

for monitoring coastal

waters

Total

2012/2013 364492 328130 692622

2013/2014 364492 328130 692622

2014/2015 364492 328130 692622

2015/2016 364492 328130 692622

Table 21: Average cost of expenditures directly related to the Mediterranean coast

Type of Expenditure/Cost Average Expenditures

2011-2014

Expenditures on services and fixed assets 579,219

Expenditures related to the management of natural reserves in out posted locations 148, 588

Expenditures related to the Monitoring Programme for Egyptian Mediterranean coast 692,622

Total 1,420,429

Table 22: Share of costs of monitoring and purchasing of services and equipment related to the

Mediterranean Sea

Type of Expenditure/Cost Average Expenditures

2011-2014

Estimated Percentage for

Mediterranean Sea

(40%)

Management cost for coastal areas 2,509,050 1,003,620

Management and operations of the Oil

Pollution Prevention Centre

2,640,000 1,056,000

Purchase of equipment for the central

and regional laboratories and

maintenance cost

5,921,192 2,368,477

Total 11,070,242 4,428,097

Table 23 below provides estimated costs of environmental degradation to the economy as a result

of economic activities targeted in this study. Cost estimates are based on available data and

calculated on the basis of assumptions and international standards. Estimates provided are

intended to provide a rough estimate of the level of magnitude of loss to the economy resulting

75

from unsustainable economic activities and should not be taken to capture the full cost of the

damage to the environment and the Egyptian economy. Estimates are based on current prices

and are expected to be much higher if calculated for future years due to expected increases in

remedial costs, increased cost of fisheries, expenditures by tourist, increased costs of solid waste

management, cost of health care, and salary increases as well as subcontracts for outsourcing of

activities and services. Moreover, Cost of biodiversity damage and loss of habitats due pollution

and environmental degradation are also not accounted for in these estimates. As the tables shows

expected annual cost to the economy resulting from unsustainable economic activities along the

Egyptian Mediterranean cost can be rounded up to about 11 billion LE in 2014 increasing

annually to reflect inflation and level of activities if continue at the same level. However, with

increased population and level of economic activities and in the absence of necessary measures

and policies to arrest the potential negative impacts resulting from these activities, cost of

environmental damage for future years is likely to be much higher than those estimated in this

study for 2014.

Table 23: Cost of Environmental Degradation of the Egyptian Mediterranean Coast in LE (000)

Sources of pollution & degradation

Impacts on the

Economy

Basis for calculation Annual Cost

Reduction in size of northern lakes as

a result of physical development &

pollution of lakes and Mediterranean

Sea due to disposal of partially &

untreated wastewater

Loss of fisheries 1,000 tonnes of fish lost

annually x 20,000 LE

average cost/tonne

20,000

Solid waste to include municipal Negative impact on

health and the

environment

12,300/day x 365 x 30

EGY/tonne

134, 685

Increased air pollution, sea and land

resulting form the disposal of

partially & untreated wastewater,

uncollected/ unprocessed solid waste

Loss of foreign tourism Expected decline in

share of the

Mediterranean cities

calculated on the basis

of 60% decline out of

the assumed 1 million

foreign tourists

(600,000 tourists x US$

100 x 5 days using an

2,295

76

exchange rate of 7.65

for 1US$)

Cost of EEAA staff involved in the

protection of the marine environment

---

Estimated time

allocated by regular full

time EEAA staff

involved in the

management,

monitoring &

assessment of the

Mediterranean coastal

zone

17,715.186

Cost of monitoring, purchase of

equipment and services and sub-

contracting to institutions for the

management of the northern lakes &

the Mediterranean Coast

--- Costs calculated on the

basis of average costs

incurred during 2011-

2014

5,848.526

Total Cost 180,543.712

77

VI. Conclusion and recommendations

The study reveals that the main negative impacts on the marine ecosystem result from the

unsustainable practices in the fisheries and tourism sectors. There are also negative impacts

resulting from maritime transport and pleasure boating resulting from illegal dumping of waste,

marine accidents, ship and vessel maintenance resulting in changes in water quality, introduction

of alien and invasive species, and sound pollution. The study also provides estimates for the cost

of environmental degradation on fisheries and tourism.

Continued deterioration of the Mediterranean Sea and the northern lakes resulting from increased

socio-economic activities, dumping of wastewater, overfishing and encroachment on lakes is

expected to have negative impacts on fisheries and tourism and the economy as a whole. Increase

in fish production in Egypt has been mainly attributed to the expansion of aquaculture, which

represent 74% of the total catch in 2012. This is in comparison to a decline in fish catch from

other sources, with a percentage decrease from 55% in 2001 to 26% in 2012. Expansion in

aquaculture in Egypt in recent years can be linked to the reduction of fish catch from the

Mediterranean (88,900 tonnes in 2008 to 69,3000 tonnes in 2012). Main reasons for the decline

in fisheries from other sources (excluding aquaculture) have been identified as over fishing,

illegal fishing, overlap between coastal and offshore uses, lack of planning, pollution, and lack of

regulations regarding fishing periods to take into account breeding seasons and the use of non-

selective fishing gear.

According to the study it is estimated that cost of the marine degradation for the tourism sector is

estimated at LE. 2.295 billion annually and for fisheries LE. 20 million annually. Costs of

management, equipment and operations of the Mediterranean coastal zone are estimated at LE.

23.5 million annually.

Increased maritime transport resulting from increased volume of trade and tourist activities is

likely to further increase pressure on the Egyptian coastal areas if necessary measures are not

introduced. It is therefore essential that the Egyptian Government undertake necessary action to

address the potential negative impacts resulting from maritime activities.

Environmental safeguards should be introduced to ensure that exploration activities as well

operations and petrochemical activities do not represent a hazard to the environment. Oil and gas

companies operating throughout Egypt should follow strict environmental standards that require

the use of appropriate technologies and procedures that ensure the avoidance of environmental

hazards resulting from their operations. Contingency plans should be in place in order to deal

with oil spills and accidents related to explorations, drilling and oil and gas transport.

The main challenge facing the study was the lack of relevant data, particularly those related to

the Egyptian Mediterranean coastal zone. In many instances, were data was available they

pertained to the sector at the national level and not specifically to the targeted study area. In

order to relate the data to the Mediterranean coastal area a number of assumptions were made. In

order to estimate the number of foreign tourists visiting the northern coastal cities and locations

and based a 10% of tourists visiting Egypt has been used to calculate the number of tourists

expected visit these locations. Though this percentage may seem to be on the low side, it is

78

however most likely to be close to reality given the low level of attraction the northern cities

offer foreign tourists, the number of 5 star hotels available, and increased level of urbanization in

the main coastal cities such as Alexandria and Port said.

It is evident from the study that there are costs currently being borne by the economy due to the

environmental degradation resulting from the socio-economic maritime activities along the

Egyptian Mediterranean coast. These costs are expected to be significant in future if necessary

measures and policies are not introduced to address them. The following are policy measures

proposed to be introduced to mitigate and eventually avoid negative impacts resulting from these

activities.

Ensure compliance, enforcement and monitoring of environmental regulations, including

those related to the Mediterranean ecosystem.

Promote the integration of environmental and social considerations in sectoral economic

policies in order to ensure the long-term sustainability of activities and their contribution to

sound and sustainable economic development, environmental integrity, and human health

and welfare.

Raise public awareness to the importance of adopting sustainable practices and policies by

the different socio-economic activities that reduces and eventually avoids negative impacts

on the marine ecosystem.

Promote sustainable and ecotourism as a means to attract tourists and hence its net positive

contribution to GDP.

Encourage sustainable fisheries practices that promote and revitalize fish stock and

consequently its contribution to local communities as well as the national economy.

Promote sustainable urban development, green housing and construction in order to reduce

the negative impacts of unsustainable practices on the Mediterranean ecosystem.

Introduce market incentives that discourage negative environmental practices on the marine

ecosystem and encourage positive ones. These include applying the polluter pays principle

by economic sectors and individuals as well as payment of ecosystem services.

Strengthen local capacities in the sustainable management of natural resources, monitoring

and assessment of socio-economic activities in order to optimize the benefits derived from

the use of natural resources through more sustainable practices.

Promote investment in the marine environment through stricter monitoring and management

systems, training, research and development as well as in the form of physical facilities such

as wastewater treatment facilities, recycling of solid waste, production of compost and biogas

from organic waste.

Strengthen early warning systems for oil spills resulting from oil exploration activities and

maritime transport accidents.

Subject all marine related activities to an environmental assessment, particularly those related

to mega projects such as those proposed in to build a power plant in El Dabaa, port facilities,

and urban development.

Communicate to policy and decision makers involved in the targeted sectors to the

significance of the damage to the marine environment and ecosystem on the functioning,

economic viability and sustenance of the economic sector in question. This should eventually

79

be extended to other sectors such as urban development, housing and construction, industry,

and agriculture activities.

Further strengthen the capacity of EEAA in the assessment and monitoring of marine related

socio-economic activities and their potential impact on the marine ecosystem.

80

Annex I

Table 1: Capacity of the busiest ports on the Egyptian Mediterranean coast

Source: Egyptian Authority for Maritime Navigation Safety

Port

Area Max. Capacity Achieved Capacity During

2012 Containers Berths

Total no of Berths

(Including Containers

Berths)

Total (K

m2)

Land

(Km2)

Cargo

(M.Tonnes

s)

Containers

(M. TEUs)

Cargo

(M.Ton

ness)

Containe

rs (M.

TEUs)

Passen

gers

(M.)

No. Length

(m)

Draugh

t (m) No.

Lengt

h (m)

Draught

(m)

Alexandria 8.4 1.6 36.8 0.5 20.9

0.6

0.1 6.0 914.4 12.8 59.0

7,624

.7 12.8

El Dekeila 6.2 3.5 22.1 0.5 24.3

0.8

- 6.0 1,520.0 12.0 20.0

4,586

.0 20.0

Damietta 11.8 8.5 19.8 1.2 23.9

0.7

- 4.0 1,050.0 14.5 19.0

5,100

.0 14.5

Port Said 3.0 1.3 12.8 0.8 5.0

0.5

0.0 3.0 350.0 13.2 32.0

4,452

.0 13.2

El Arish 0.2 0.1 1.2 - 0.9 -

- - - -

2.0 364.0 8.0

East Port

Said 72.1 70.6 12.0 2.7 28.6

3.0

- 4.0 2,400.0 15.0 4.0

2,400

.0 15.0

Total 518.5 113.8 140.5 6.1 120.6

6.2

1.9 24.0 6,984.9 67.5 186.0

34,36

8.1 83.5

81

Table 2: Age classification according to the type of vessels

Vessel type

Till 5 5-10 10-15 15-20 > 20

years years years years Years

No Tonne No Tonne No Tonne No Tonne No Tonne No Tonne

SERVICES &

TUGGING VESSELS 1 0 4 5400

1 836 6 6236

PASSENGER/RO-RO

CARGO SHIP 2 1131

1 7107 1 3133 4 11371

RORO/LOLO

GENERAL CARGO 2 16701

1 9371 3 26072

BULK CARRIER 5 357129

6 400000 1 22031 12 779160

GENERAL CARGO 1 80469

2 12038

33 179889 36 272396

TUG / SUPPLY

(ORSV) 1 2932

7 9431 8 12363

TUG

1 1791

1 2320 9 11112 11 15223

OTHER SPECIAL

SERVICE 1

25 26250 26 26250

DREDGER

1 10801 1 10801

CONTAINER /

GENERAL CARGO 1 26225

1 26225

CONTAINER SHIP

1 40301

1 5100 2 45401

OTHER SPECIAL

SER.SALVAGE TRA. 3 8551 3 8551

LANDING SHIP

3 7477 3 7477

PASSENGER

LAUNCH 1 675

1 675

PASSENGER SHIP

4 11903 4 11903

OTHER PONTOONS

1

1 0

PASSENGER FERRY

1 450 1 450

FISHING

2 1332 2 1332

RORO

CARGO/CONTAINER

SHIP

3 13108 3 13108

RORO CARGO /

FERRY 1 6000

1 120 1 18877 3 24997

OIL TANKER

1 600 1 95416 13 133806 15 229822

Total 9 439363 10 27955 4 52939 12 531863 116 548697 151 1600817

Source: Egyptian Authority for Maritime Navigation Safety

82

Table 3: Classification according to the type of vessels

Vessel type Operating units

Non-operating

units Total

Number Tonnage Number Tonnage Number Tonnage

RORO/LOLO GENERAL

CARGO 2 20072

2 20072

FISHING

2 1332 2 1332

TUG / SUPPLY (ORSV) 8 12363

8 12363

TUG 10 14217 1 1006 11 15223

CONTAINER SHIP 1 8551

1 8551

OTHER SPECIAL

SER.SALVAGE TRA. 3 8551

3 8551

GENERAL CARGO 10 156038 26 116358 36 272396

BULK CARRIER 11 757129 1 22031 12 779160

OTHER PONTOONS 1 0

1 0

RORO CARGO/CONTAINER

SHIP 2 9975 1 3133 3 13108

SERVICES & TUGGING

VESSELS 6 6236

6 6236

LANDING SHIP 2 6400

2 6400

PASSENGER/RO-RO CARGO

SHIP 6 6236

6 6236

RORO CARGO / FERRY 2 18997

2 18997

DREDGER 1 10801

1 10801

PASSENGER SHIP 2 1169 2 10734 4 11903

CONTAINER / GENERAL

CARGO 1 26225

1 26225

OTHER SPECIAL SERVICE 25 25147 1 1103 26 26250

PASSENGER LAUNCH

1 675 1 675

PASSENGER FERRY

1 450 1 450

OIL TANKER 14 194982 1 34840 15 229822

Total 115 1424493 36 176325 151 1600818

Source: Egyptian Authority for Maritime Navigation Safety

83

Table 4: Maritime Workers (2013)

Certificate of competence From 20-

30 Years

From 30-

40 Years

From 40-

50 Years

From 50-

60 Years

More than

60 Years Total

Shipmaster 35 305 545 403 185 1,473

Chief officer 212 390 160 40 15 817

2nd

navigation officer 980 530 201 70 30 1,811

3rd

navigation officer 35 190 120 60 9 414

Senior maritime engineer 8 135 300 225 150 818

2nd

maritime engineer 30 360 195 50 37 672

3rd

maritime engineer 465 865 292 89 40 1,751

Total 1,765 2,775 1,813 937 466 7,756

Source: Egyptian Authority for Maritime Navigation Safety

Figures 1-3: Extent of urbanization and development of the coast

84

Source: Tourism Development Authority Website: http://www.tda.gov.eg/El-SahelElShmaly/ElSahel-EN.aspx

85

Annex II

Theats of tourism on the environment and biodiversity in Egypt

1) Development of hotels, holiday homes and related other tourism infrastructure

These include the provision of roads, which contribute to the loss, degradation and fragmentation

of natural ecosystems. It also includes the on-site destruction of natural habitats during hotel and

road construction and extensive scarring of adjacent landscapes, the dredging/smothering and

mining of coral reefs, and the widespread uncontrolled disposal of building debris. Off-site

extraction of building materials, especially sand and stone (along Egypt’s north-west

Mediterranean coast the unique coastal calcareous dunes hosting endemic flora are being heavily

quarried) is another activity disrupting the environment. This is especially relevant, as tourism

development often occurs in or near ecologically valuable areas. The loss of connectivity

between different habitat blocks poses a significant risk to biodiversity in Egypt and undermines

the utility of Protected Areas as critical storehouses of biodiversity. The degree of threats to the

environment and biodiversity varies from high in the Southern Red Sea and the Western

Mediterranean to relatively low in the Siwa oasis.

2) Unsustainable activities by tourists and operators in sensitive environments

These include activities within designated and planned protected areas causing disturbance and

habitat degradation. Pressures on biodiversity stem from off-road vehicle use, plant collection

and trampling, uncontrolled trekking and climbing, hunting and fishing, reef impacts from

diving, boat anchoring, etc. This is a particular concern for Egypt’s arid vegetation (which is

often sparse and fragile given shallow soils and slow growth rates), for coral reefs and for highly

sensitive animal species such as the endangered Slender-horned Gazelle. In highly frequented

areas, the sheer numbers of visitors lead to habitat disturbance, such as at diving sites in marine

protected areas, calling for effective visitor management. Reasonable management exists in

Wadi El Gemal National Park, but outside the park, diving sites suffer greatly, affecting the

health of the Red Sea coral reefs. In the western Mediterranean coast, tourist summer resorts and

activities are witnessing serious coastal erosion and biodiversity loss, due to infrastructure

development that has changed the landform of the coast and as a result of the many boats that are

used for fishing and recreational activities. The only remaining coast that is still in pristine

condition extends from Marsa Matrouh to Sallum at the border with Libya, except in a few

places where local populations exist. In the Siwa oasis, tourist activities are to a great extent

controlled due to the isolated nature of the oasis, small number of tourists that do not exceed

20,000 every year, and also the presence of rangers and locals that encourage eco-tourism in

Siwa oasis. Hence the impact is minimal compared with the other two areas.

3) Solid waste accumulation

Hotels and residential areas in cities and towns along the southern Red Sea and Mediterranean

coasts and desert generate a significant amount and variety of solid waste, which is often dumped

in ecologically sensitive areas. This has changed animal behaviour – waste dumps attract

scavenging species such as vultures and gulls – and results in the accumulation of plastics and

86

toxic compounds in the ecosystem and food chain. This is evident in all the three areas (Southern

Red Sea, the Western Mediterranean and the Siwa oasis), but less in protected areas. Everywhere

in the desert and along the coasts of the Mediterranean and Red Sea, garbage, mostly plastics and

cans, became common features, as landfills are so small in number. The situation became much

worse in the last three years due to the political instability in the country, and almost the absence

of law enforcement. This threat is significant in the three areas.

4) Unsustainable abstraction of surface and groundwater resources

Excessive use of surface water especially in wadis is a serious problem as it threatens the fragile

and disappearing natural habitats that are often rich in biodiversity. In the southern Red Sea a

large number of wells were constructed through the World Food Programme (WFP) to expand

agricultural activities, which resulted in depleting the freshwater that is being replaced with

brackish water. In the western Mediterranean coast, a huge project was implemented by the

World Bank to allow nomadic Bedouins to settle down in small villages and change their life

style to become farmers. Huge amount of ground waters have been depleted around Marsa

Matrouh, leading to complete habitat fragmentation. In Siwa oasis, there are more than 20,000

acres that are being cultivated. However, this is associated with a huge problem of soil logging as

the agricultural drainage water is very difficult to be drained in the Siwa depression thus

resulting in more saline lakes. This threat is significant in the three areas.

5) Effluent discharges including from desalination

In spite of improvements in private recent upmarket developments, hotel complexes and related

urbanised areas still emit largely untreated discharges into the environment causing pollution

affecting biodiversity and the environment in general. Also, seawater desalination is becoming

an increasingly frequent response to growing water scarcity, but can add additional

complications. This is represented in the residual saline brine, which also contains residual

chemicals and heavy metals, thus causing local biodiversity impacts. Although there are

regulations regarding effluent discharges from desalination, these are not enforced by hotels;

hence both the marine and desert environments are at high risks from desalination. There is no

available information on the number and capacity of desalination plants, but they are much

higher and larger in the southern Red Sea than in the western Mediterranean. There are no

desalination plants in Siwa oasis.

Indirect Threats

a) Increased access due to road development

The placement of roads around tourism regions/zones provides easier access to ecologically

important areas. Unless planned to incorporate biodiversity values and adequately monitored,

this could have the inadvertent effect of increasing pressures exerted by both tourists and

residents (e.g. poaching, better access for pastoralists). Most roads were constructed very close to

the shore in both the southern Red Sea and the western Mediterranean where international roads

are being used for trade with both Sudan and Libya, where very large vehicles are increasing

considerably. Vehicle drivers are causing serious problems along the roads, and there have been

many cases of illegal trade where drugs and military weapons are now available to local

87

residents where they use machine guns to kill many endangered animals like gazelles and ibex.

This threat is significant in the three areas.

b) Increased exploitation pressures on natural resources

The demand from tourism establishments and newly established local residents – as well as

changes from nomadic to sedentary lifestyles in Bedouin tribes in particular – can lead to such

increased exploitation by local populations, leading also to encroachment on protected areas.

Pressure on the environment is also in the form of wood collection for charcoal making to meet

demands from nearby coastal hotels for barbecue charcoal. Similarly an increase in agriculture

and animal grazing can occur to satisfy rising demand for food produce from tourism, causing

additional pressure on biodiversity and potentially leading to habitat degradation. Over-fishing

and destructive fishing practices have already led to a significant degradation in many of Egypt’s

coral reefs. Huge projects have been implemented without conducting environmental impact

assessment (EIAs), including water and agricultural as well as mining and quarrying and also

collection of plants for medicinal purposes and wild animals by locals.

c) The displacement of local populations to make place for tourism development

The displacement of local communities for tourism development has led to consequential

pressures on other areas, including protected areas. A large number of Egyptians from Nile Delta

have moved during the last three decades into these three areas where tourism, agricultural

projects (particularly in Siwa oasis), oil and mineral exploration and exploitation are being

implemented, leading to male societies along the coasts and desert. Similarly, local nomadic

Bedouins have changed their life style from pastoralists to settlers, where they now claim more

lands. Bedouins have been marginalized for a very long time, and now are causing serious

political problems related to land ownership in tourist locations and other desert areas. Socio-

economic activities of these new populations of locals and others from the Nile Delta are

changing dramatically, which may end up losing the cultural identity of Egyptians in these new

destinations. This threat is significant in all the three areas, but not quite so in the protected areas

where there are regulations that are being implemented with varying degrees of success,

depending on the number and experience of the rangers.

Of all the above impacts and threats, the most critical and irreversible impact of tourism

development in Egypt is the deployment of physical infrastructure, when it occurs in ecologically

sensitive areas of high biodiversity value. Much of Egypt’s tourism sector growth is reflected in

infrastructure development in the Nile Valley and along the country’s extensive coastlines on the

Red Sea and Mediterranean. The coastal developments typically occur in a narrow ribbon that is

continuous in the already fully developed areas, and intermittent in areas undergoing expansion.

Already almost 35% of the 510 km2 of coastline west of Alexandria, 20% of the 1100 km

2 of

Red Sea coast (between Suez and the Sudanese border) and 35% of the 250 km2 along the Gulf

of Aqaba have been converted into tourist resorts and holiday homes. The intermittent nature of

the expansion/growth pattern however resulted in few long stretches of undeveloped coastline

remaining. The tourism sector’s ambitious expansion plans imply that these trends will likely

continue unabated. In this context, it is worth noting that the expansion and strengthening of

Egypt’s protected area system over the last years has been an encouraging trend. However PA

representativeness and coverage remain incomplete, management often weak and tourism

88

representing increasing pressure on the ecosystem is mounting. Unless the Government promotes

sustainable tourism practices and integrates environment as well as social considerations in all

direct and indirect related tourism activities, environmental damage will continue some of which

may be irreversible. The resulting consequences are not only environment, but social in the form

of loss of jobs and negative health implications, and economic in the form of reduced

contribution to GDP due to the loss of foreign tourism and the flight of local tourism.

89

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