Contractors to be paid compensation “in days”: Federation

CAIRO – 16 July 2017: Compensation for Egyptian contractor losses due to local currency devaluation will be paid in days, Head of the Egyptian Federation for Construction and Building Contractors (EFCBC) Hassan Aziz said Sunday.

The value or percentage to be given to contractors, who are working on government projects, is yet to be determined.

Last week, President Abdel Fatah al-Sisi has officially issued law 84 of 2017 approving compensation for the contractors who have endured losses.

Contracting and construction companies have been challenged by economic hardships such as the devaluation of local currency, increases in custom taxes and Value Added Taxes (VAT).

As a result, companies have demanded that the government provide compensation for the differences in construction material prices before the devaluation and their current prices.

Due to a delayed approval of the law, all related project deliveries have also been delayed.