The law regulating contracts concluded by public authorities focuses on clear procedures to ensure contractors obtain their financial rights within 30 days, according to Minister of Finance Mohamed Maait.
The law, which also outlines executive regulations regarding these contracts, stipulates that contractors should receive their financial dues in under 30 days from the date of examination, acceptance, and approval.
In a statement on Thursday, Maait added that a letter that meets the terms of the contract is to be submitted to the administrative authorities. The financial dues outlined in business contracts will be disbursed within 60 days from the date of the relevant authorities receiving the letter.
He stated that in the event that the amounts due to the contractors are not fulfilled in the specified timeframe, the administrative authorities will foot the bill with the contractors.
This will ensure contractors receive the equivalent financing cost for the value of the claim covering the delay period according to the Central Bank of Egypt’s (CBE) announced credit and discount rate at the time of disbursement. The person or entity who caused the delay in payment will be referred for investigation, and will bear the value.
The minister noted that the government is keen to ease procedures for paying investor and contractor dues with the administrative authorities. The move will maintain their financial position and their ability to continue to implement their contractual obligations.
Maait pointed out that these facilities are new guarantees to stimulate investment and reduce disputes. This will do so by contributing to the implementation of development projects within the specified dates whilst improving the level of services provided to citizens.