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Thursday, 16 January 2020

Egypt’s PPP Act amendments get final committee approval

LEGISLATION WATCH- PPP Act amendments get final House committee approval: The House Planning Committee has approved amendments to the PPP Act that would streamline public-private partnership (PPP) contracts, committee chair Hussein Eissa said. The changes will now make their way to the House general assembly for a final vote, before being handed over to President Abdel Fattah El Sisi to be signed into law.

What would the changes entail? According to Eissa, the proposed changes would explicitly state that government authorities are allowed to partner with private companies on infrastructure and utility developments in sectors including transport, energy, communications, and healthcare. They also add provisions meant to ensure higher quality standards by changing an article of the 2010 law (pdf) on how to calculate the minimum five-year post-project engagement period. This minimum period would start from the date the government signs off on a formal document accepting the work done on a certain project, rather from the project delivery date.

Other details we know about the amendments: The amendments would cut the time to issue tenders for PPP projects and introduce new mechanisms for private sector contracting, including allowing private sector players to submit unsolicited proposals. The government would also be allowed to negotiate directly with a sole bidder without needing to take the project through the competitive bidding process. The government is looking to encourage private sector involvement in infrastructure, public services, and utility developments, particularly in the new cities.

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