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Monday, 5 December 2016

Egypt’s construction sector is facing a cost crisis –MEED

Egypt’s construction sector is facing a cost crisis –MEED. The imposition of the value-added tax, cuts to fuel subsidies and the float of the EGP are “requiring the construction sector to change the way it prices and delivers projects,” MEED writes. While contractors on public works projects have been promised “some sort of compensation … in a replica[ation of] a similar arrangement in 2003,” the news isn’t as good for private-sector builders: “Large private developers are unlikely to renegotiate contracts with firms already working on Egypt’s many schemes. … The cost of construction also affects developers, who may be forced to change their development and financial models moving forward.” The story carries no interviews or data, but we’re treating it as a canary in a coal mine.

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