Public Contracts Act amendments get nod from Egypt’s cabinet
CABINET WATCH- Public Contracts Act amendments get nod from cabinet: The Madbouly cabinet has signed off on changes to the Public Contracts Act that allow the government to make payments it owes to contractors through FRA-licensed non-banking financial service providers, alongside the existing option of paying through banks, according to a cabinet statement. Prior to the amendments, the law only allowed contractors to request banks to pay subcontractors for parts or all of their contractual obligations. Contractors are not permitted to request that the government make these payments.
What is the Public Contracts Act? The Public Contracts Act (previously known as Auctions and Tenders Act) was passed in 2018, and recently had its executive regulations published. The act outlines the general framework which governs any contract to which a government entity is party. You can find the full text of the 2018 law here.
Cabinet also approved during its weekly meeting:
- Amendments introducing harsher penalties for those violating a 2015 law regulating electricity use;
- A cabinet decree to regulate the new Planning and Economic Development Ministry;
- Licensing the major shareholders to move ahead with setting up a company to manage the Egyptian Commodity Exchange;
- Licensing the ICT Ministry’s ITIDA to set up a new company that will invest in digital infrastructure on behalf of the government.