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Thursday, 20 June 2019

Egypt’s Finance Ministry finalizes PPP law amendments

LEGISLATION WATCH- FinMin finalizes PPP Act amendments: The Finance Ministry has put the final touches on draft amendments that would streamline public-private partnership (PPP) contracts, according to a cabinet statement. The draft received cabinet approval late last year and has been with the government since then.

What is changing? The amendments would cut the time to issue tenders for public-private partnership (PPP) projects and introduce new mechanisms for private sector contracting. Private sector players would be allowed to submit unsolicited proposals, and the government to negotiate directly with a sole bidder without needing to take the project through the competitive bidding process. The sector will also be able to participate in a wider range of projects — particularly when it comes to infrastructure, public services, and utility developments. A specialized committee will be set up with members from the finance and planning ministries to assess project proposals and determine which could be executed under a PPP model.

What’s next: It is unclear whether it will make it to the House of Representatives before the expected end of the legislative session next week. In any case, it is highly unlikely it could pass committee and make it to the floor for a vote before MPs recess for the summer — look for the bill to be on the agenda when the House reconvenes on or before the first Thursday in October.

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