Back to the complete issue
Monday, 21 November 2022

House gives initial approval to contractor compensation bill

MPs are giving contractors a break, approving in principle yesterday amendments that would allow builders who have suffered losses on state projects due to recent economic reforms to receive compensation from the government.

Widening the scope: A 2017 law⁠ ⁠— which was originally drafted for economic reforms undertaken between March and December 2016 — will be extended to cover all periods of reform. That means a contractor impacted by the impact of year’s EGP float on its work on a state project will be able to file a compensation claim. The bill will set up a designated committee to assess claims, Parliamentary Affairs Minister Alaa El Din Fouad said. Contractors who have their complaints rejected would be able to resort to courts to ask for compensation, he said. Senators approved the bill last month.

What’s next: House Speaker Hanafi El Gebali said the bill will be up for a final approval vote in an upcoming session. If passed, it will be signed into law by President El Sisi.

ALSO GETTING A NOD- MPs also approved in principle a law restructuring Al Azhar. The three-article bill would put Al Azhar’s teachers on an equal footing with their counterparts in public schools in terms of employment, promotion, salaries, bonuses and incentives. A final approval of the bill will be postponed to an upcoming session.

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; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.