New Law to compensate Contractors, Suppliers and Services Providers
A new law is issued on 9 July 2017 (Law No.84 of 2017) for compensating contractors, suppliers and service providers who signed contracts with the government or any of its affiliated entity and who were affected by the national economic decisions taken in 2016 (such as the decision to free float the EGP).
The Law however is not yet in effect. The Cabinet still need to name first the members of what is a called the ‘Supreme Committee for Compensations’. This committee will be the one responsible of setting out the criteria, conditions, and percentages of the compensation to be given to an aggrieved party. The committee will report to the Cabinet which will ratify decision taken by competent authorities to pay compensation according to the Law. The Ministry of Housing is mandated to issue the executive regulations of the Law within 30 days from appointing the members of the Committee.