Back to the complete issue
Sunday, 3 November 2019

Gov’t issues Public Contracts Act executive regulations

REGULATION WATCH- Gov’t issues executive regulation for Public Contracts Act: The government has issued the executive regulations of the Public Contracts Act, according to a Finance Ministry statement on Friday. The statement was very light on details, but reiterated previous statements that the regs would set up an e-procurement system for the government. It would also mandate that the government solicit the participation of SMEs in national projects through the SMEs Development Authority to stimulate their contribution in national projects. The regulations lengthen the payment period for tender participants, and cap the required insurance to bid on the project at 1.5% of the estimated value of the project.

The statement does not address concerns that the new act would allow the government to expand the use of no-bid contracts except to say that the regs would fight “monopolies” and “concentration of economic power.” The Madbouly Cabinet had signed off on recommendations from a government committee allowing the government to use no-bid contracts for unspecified projects. While the recommendations still require that direct order agreements comply with the Public Contracts Act (previously known as Auctions and Tenders Act), the decision had gotten flak from the foreign press, which claimed the move would open the door for corruption.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.