The rates at which contractors will be compensated for losses incurred as a result of the EGP float was published in the Official Gazette this week, Al Borsa reports. Previous estimates had put it at a range of 15-60% of the contract size, depending on the type of project, the equipment used, and whether materials had been imported. Compensations apply to contracts signed between March and December 2016 for the supply of steel, cement, generators and engines, as well as road works and development projects. Payments are due within a maximum 90 days from when the official request is made. We had previously reported that social housing project deliveries were facing delays as a result of the holdup in disbursing payments under the Contractors Compensation Act.

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