Proposals have been submitted to the Italian Government for the construction of a €3bn underground system in Rome. A decision is expected later this year.
The minister for International Co-operation, Fayza Abul-Naga, has announced that the World Bank is to lend $270m to fund railway development in Egypt, to be spent in 2007 and 2008.
The European Investment Bank has agreed to provide a €120m loan towards the cost of building a 15km light rail route in Le Mans, France, with a total of 30 stops. The total cost of the project, due to be completed by the end of 2007, is €230m.
Sofia subway to connect railway to airport
The new subway in Sofia will connect the central railway station to the Sofia International Airport and a part of the subway will pass through the centre of the Bulgarian capital.
The proposals for the project will be presented to the Bulgarian Finance and Transport Ministries in August. Changes were introduced based on recommendations from the Transport Ministry, so that the project could apply for EU funding.
The subway will connect all major transportation in the capital and construction should begin in 2008 at a cost of €233m. The project will take no more than four years to complete, according to initial analysis.
Underground stations close to the airport will enable passengers to enter the airport directly for passport control. According to the plan, each underground station is expected to have its own parking lot
A Tallinn-Riga rail connection at last?
A regular passenger train service between the Latvian and Estonian capitals could be launched next year, according to a representative at Latvian passenger railway company Pasazieru Vilciens (Passenger Train).
Passenger Train board member Ivars Zalais, announced this week that the company planned to resume service on the route Riga-Sigulda-Cesis-Valmiera-Valga. From Valga, which is on the Latvian-Estonian border, passengers could be transported to Tallinn by an Estonian train.
“ Estonia is open to negotiations”, said Zalais.
A fast train might be put on the new route, since the distance from Riga to Valga was quite long, he added.
Passenger Train would not give any specific time when the Riga-Valga train could start running, but Board Chairwoman Linda Baltina said the company would launch the route in six months if it was approved by the Latvian Government.
However, Latvian Transport Minister Krisjanis Peters said the Riga-Valga train could be launched in the next few years, but it was unlikely to happen this year.
Currently there is no direct passenger railway service between Riga and Tallinn. The Riga-Valga line was functional until March 2001.
Passenger Train, which carried 25.5m passengers last year, is the passenger service subsidiary of the state-owned railway company Latvijas Dzelzcels (Latvian Railway).
New Turkish villages and attractions planned
Turkey has announced that it intends to open up several plots of public land in order to develop new holiday villages and tourist attractions. Plans include a new golf resort in the Yilanli Ardicovasi region and a ski resort on the Bolu Koroglu mountain.
Thirty year mortgages may soon also be available, according to Turkey’s Deputy Prime Minister Abdullatif Sener.
Commercial property in Western Europe to outperform UK
The commercial property market in Western Europe is set to produce average total returns of over 8% over the next five years, compared with forecasted returns of around 7% from the UK commercial property market, according to the commercial property fund manager, SWIP.
SWIP forecasts that the European warehousing sector will be the strongest performing property asset over the next five years, followed by retail and then the office sector.
Ian Hally, head of Property Research at SWIP, commented: “The European property market has seen record volumes of transactions in 2005 as strong returns and diversification benefits have increased the attractiveness of real estate as an asset class. Over the medium term, we expect returns in the European market to be driven by rental growth, providing an average annual return ahead of our forecasts for the UK property market, where we expect returns to average around 7%.
"Improved transparency and the harmonising of legal and reporting regimes across Europe have improved the accessibility of the real estate market. As a result, investors are increasingly looking at Europe as a single real estate market with convergent return prospects.”
3,000 new Flextronics jobs in Hungary
Flextronics plans to create approximately 3,000 new jobs in Hungary during 2006 due to increased client orders. Approximately 1,000 jobs each will be created at the three main Hungarian plants in Zalaegerszeg, Sarvar and Nyiregyhaza, and the company's first Hungarian production site in Tab, will increase its workforce by 100-150.
Also, Elcoteq Hungary, a subsidiary of Finnish electronics components maker Elcoteq, plans to build a third factory in Hungary. Elcoteq Hungary Ltd started its operations in Pécs in 1998. The production activity in Hungary occupies an area of 150,000sqm altogether, from which 41,000sqm is used for manufacturing. The current number of employees of Elcoteq Hungary is nearly 6,000 and the new plant is expected to employ a further 2-3,000.
Nippon to open plant in Czech Republic
Japanese automotive parts firm Nippon Kayaku has announced plans to construct a factory in the Czech Republic to make gas generators for its airbag inflators. The plant is to be completed in February 2007.
The capacity of around 1,000 tons a year, entirely for captive consumption, is similar to that at the company's Himeji factory in Japan, which employs 240 people. The new factory will supply Japan for now, but the company intends to expand in regions it exports to as the manufacture of inflators diversifies and grows.
Two new plants in Poland
Rexam, the British plastic packaging company has opened its first plant in Poland. The new facility, located in Lodz, southwest of Warsaw, is the first manufacturing plant dedicated to Rexam Home & Personal Care in Central and Eastern Europe. The company has over 23,000 workers worldwide.
Meanwhile, Italian car components and systems producer Magneti Marelli, part of Italian industrial group Fiat, will invest the equivalent of €7.9m in Poland. The automobile parts producer will lease production space from Fiat Auto Poland in the Katowice Special Economic Zone and create 400 new jobs.
Worldwide News
India to invest over $5bn on its railways
With revenues growing by 10-18% a year, Indian Railways has announced its largest ever cash outlay of over $5bn in the 2006-2007 period. Major technological up-grades are planned and over 550km of new lines will be introduced. A 150km/hour speed train recently began operation from Delhi to Agra and this will be extended from Delhi-Kanpur-Lucknow.
Over 6,000 new staff have already been recruited this year and in Mumbai alone, 200 modern ticket vending machines are being installed. The good news for passengers is that there will be no increase in fares this year.
Trump to enter Beirut property market
A 377ft residential skyscraper is to be built in Beirut, despite recent Israeli strikes on the country's only airport.
DAMAC Properties said: " Beirut has become a leading destination for business and tourism from around the world. This economic growth and investment will continue in the long term, regardless of short term political issues."
The $150m, 35 storey tower, which will contain 127 apartments is the first of a series planned under La Residence by Ivana Trump (ex-wife of Donald Trump).
South African price inflation continues to slow
House price inflation in South Africa is at its lowest level for over four years, according to South African bank Absa.
A recent Absa price survey reveals that year-on-year growth for June stood at 13.6%, down from 14.3% in the previous month, the lowest annual price increase since January 2002.
Chinese impose new housing restrictions
The Chinese government has struck an agreement to curb foreign investment in China's property market.
Foreign firms or individuals will now have to use their real names when buying residential property in China. The rule also states that foreigners can't buy residential accommodation in the country, unless it is for their "own use or own habitation."
Professor Xu Dianqing of the China Centre for Economic Research of Peking University, said: "The measure provides a premise for the government to impose a property tax, which has been very popular in most developed countries.
"A property tax would demand a register of names, and it would be the best way to restrain speculation on the property market."
