Back to the complete issue
Tuesday, 1 September 2020

Madbouly issues ultimatum on wildcat building

Madbouly takes hard line on wildcat building after El Sisi’s warnings: Illegal builders have until the end of September to settle building code violations or see their buildings demolished, Prime Minister Moustafa Madbouly warned, stressing in a statement that the deadline is non-negotiable. Governorates will be getting new powers to monitor and report violations to a central administration, and police forces will be called on to secure the demolition of unsettled buildings, the PM added. The government will also show no tolerance when it comes to building over agricultural land, which it considers a “matter of life and death,” Madbouly said. Madbouly’s comments came after President Abdel Fattah El Sisi last week threatened to deploy the army to crack down on those who build without permits or flagrantly violate construction code.

Progress in clearing violations: The Local Development Ministry said it has addressed 11k cases of construction violations in its 16th stage of reclamations (which ends with the 15 September deadline), recovering 2.9 mn square meters of state property and 211k feddans on agricultural lands, in a statement on Monday. It has cleared 16k contracts to proceed with construction, collecting EGP 4.4 bn, and received another 769k settlement requests, collecting a further EGP 4.6 bn.

Background: The government recently extended until mid-September a deadline to settle building code violations in an effort to tackle the long-standing issue. The fees would be submitted alongside settlement applications, and deducted from the overall charges if the applications are accepted. Under executive regulations to a recent law, settlements can be processed no later than the end of September. Demolition procedures would commence right away for rejected applications.

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; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.