The board of Northern Upper Egypt Development and Agricultural Production (NUDAP) has cancelled the company’s plan to build a biofuel plant due to inadequate financial resources.

The plant's cost was estimated at nearly EGP 50 million and was going to be financed from the company's capital increase, the company said in a bourse statement.

However, the company hasn’t completed its capital hike, only raising capital by EGP 33 million, with EGP 10 million allocated for establishing a riddling station, meaning that the remaining EGP 23 million isn’t enough for the biofuel plant project.   

The EGP 23 million will be directed for the foundation of an investment company, the company’s statement said.

NUDAP suffered EGP 248,200 in losses in 2014, compared to EGP 2.5 million for 2013.

The company is capitalised at EGP 63.5 million, distributed across 6.3 million shares at EGP 10 par value each.