{"id":549240,"date":"2022-09-08T04:00:40","date_gmt":"2022-09-08T04:00:40","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2022\/09\/08\/cabinet-approves-usufruct-land-rights-streamlines-executive-regulations-for-ppp-act\/"},"modified":"2022-09-08T04:00:40","modified_gmt":"2022-09-08T04:00:40","slug":"cabinet-approves-usufruct-land-rights-streamlines-executive-regulations-for-ppp-act","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2022\/09\/08\/cabinet-approves-usufruct-land-rights-streamlines-executive-regulations-for-ppp-act\/","title":{"rendered":"Cabinet approves usufruct land rights + streamlines executive regulations for PPP Act"},"content":{"rendered":"

<\/a> Investors could have an easier time bidding for PPP projects and paying for the <\/strong>right to use industrial land<\/strong> after the Madbouly Cabinet approved a series of draft decisions and amendments at its weekly meeting yesterday.<\/p>\n

PPP RULES COULD BE CHANGING-<\/strong><\/p>\n

Among the proposed amendments to the executive regulations of the PPP Act:<\/p>\n

#1- Consortiums would no longer be a necessity: <\/strong>Individual companies will be allowed to bid on projects and submit documents for pre-approval, cabinet said in a statement<\/a>. This change would remove the need for private sector companies to bid as part of a consortium.<\/p>\n

#2-<\/strong> The right to appeal:<\/strong> Investors who have their pre-approvals rejected would be given the right to appeal the decision.<\/p>\n

#3- You don\u2019t necessarily have to wait for the state \u2014 private sector firms could propose <\/strong>projects:<\/strong> Companies would be able to submit proposals to implement new projects, provided they handle the feasibility studies and the financing. The statement also says that projects must be \u201cinnovative\u201d and \u201cachieve the government\u2019s economic or social interest.\u201d<\/p>\n

Why is this important?<\/strong> The amendments cut some of the time-consuming groundwork needed to land a PPP, including finding other companies to join the bid or waiting for the state to carry out feasibility studies and decide to offer the project. That last bit is key: If you believe in a project, you can now put it on the state\u2019s radar all by your lonesome.<\/p>\n

The state\u2019s ambitious state ownership policy document notes the gov\u2019t will sell down assets to private sector firms <\/strong>through PPPs<\/a><\/strong> \u2014 and industries including electric and gas utilities<\/a>, pharma<\/a>, and education<\/a> have been pushing for more involvement through a more efficient and flexible PPP framework. It\u2019s also good news on the IMF talks front, as mobilizing private sector investment in state-funded mega-projects is one aspect under the lamplight.<\/p>\n

PPPs have so far been slow moving:<\/strong> Passed in 2010, the legislation sought to put in place a regulatory framework to attract more private investment into government projects. Last year a total of USD 5.23 bn<\/a> was spent on infrastructure PPPs with Bombardier, Orascom and Arab Contractors accounting for the bulk of it through the Cairo monorail<\/a> contract.<\/p>\n

USUFRUCT FEES ARE SET-<\/strong><\/p>\n

Cabinet approved a draft decision that sets the prices of industrial land offered to <\/strong>investors under the usufruct system<\/strong>, it said in a statement<\/a>. Companies would pay an annual fee equal to 5% of the cost of the land for the first four years. A 7% annual increase would be tacked onto the fee in the fourth and fifth years. The fee would then be set at 10% of the cost of the land for the remainder of the arrangement. The statement refers to \u201ca detailed breakdown of the prices\u201d outlining the price structure for industrial land but does not provide further details.<\/p>\n

Why is this important? <\/strong>It\u2019s a step in the right direction as part of a package of measures cabinet plans to take, all with the aim of helping expand local manufacturing, something that industrial players<\/a> have been pushing for. The government says<\/a> pricing has been determined according to the cost of utilities, which it says reduces the cost for investors. This will help manufacturers direct investments towards production lines, machinery and equipment, instead of spending more of their capital in paying land fees, it says.<\/p>\n

CLARIFICATION- This story was amended on 8 September, 2022 to correct the annual fee increase for industrial land under the usufruct system. The original story incorrectly stated that the fee would rise to 7% in the fourth and fifth years of the contract. <\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Investors could have an easier time bidding for PPP projects and paying for the right to use industrial land after the Madbouly Cabinet approved a series of draft decisions and amendments at its weekly meeting yesterday. PPP RULES COULD BE CHANGING- Among the proposed amendments to the executive regulations of the PPP Act: #1- Consortiums […]<\/p>\n","protected":false},"author":1,"featured_media":549241,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7306],"tags":[282,228,72,1350,404,343],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-549240","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cabinet-watch","tag-cabinet-watch","tag-cop27","tag-enterpriseam","tag-madbouly-cabinet","tag-public-private-partnership","tag-regulation","wpautop","entry"],"acf":{"mongo_id":"c9144d66-b060-44dd-936a-8c9da3a903df","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2022\/9\/163.jpg","photo_position":"above","related_issue":[549228],"teaser":"","voice_url":""},"yoast_head":"\nCabinet approves usufruct land rights + streamlines executive regulations for PPP Act - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2022\/09\/08\/cabinet-approves-usufruct-land-rights-streamlines-executive-regulations-for-ppp-act\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Cabinet approves usufruct land rights + streamlines executive regulations for PPP Act\" \/>\n<meta property=\"og:description\" content=\"Investors could have an easier time bidding for PPP projects and paying for the right to use industrial land after the Madbouly Cabinet approved a series of draft decisions and amendments at its weekly meeting yesterday. 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The regulations were published in the Official Gazette yesterday,\u2026","rel":"","context":"In "REGULATION WATCH"","block_context":{"text":"REGULATION WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/regulation-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/9\/269.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":605136,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/12\/23\/egypts-cabinet-nods-to-ppp-law-amendments\/","url_meta":{"origin":549240,"position":1},"title":"Egypt\u2019s cabinet nods to PPP law amendments","author":"enterpriseam admin","date":"23 December 2018","format":false,"excerpt":"CABINET WATCH- Cabinet greenlights PPP law amendments: Cabinet approved on Thursday legislative amendments to streamline public-private partnership (PPP) contracts, according to a statement. The proposed amendments, which the Finance Ministry began drafting earlier this month and which now go to the Council of State for review, are designed to make\u2026","rel":"","context":"In "Speed Round"","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":599184,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/06\/20\/egypts-finance-ministry-finalizes-ppp-law-amendments\/","url_meta":{"origin":549240,"position":2},"title":"Egypt\u2019s Finance Ministry finalizes PPP law amendments","author":"enterpriseam admin","date":"20 June 2019","format":false,"excerpt":"LEGISLATION WATCH- FinMin finalizes PPP Act amendments: The Finance Ministry has put the final touches on draft amendments that would streamline public-private partnership (PPP) contracts, according to a cabinet statement. The draft received cabinet approval late last year and has been with the government since then. What is changing? The\u2026","rel":"","context":"In "Speed Round"","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":591527,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/12\/09\/egypt-parliament-committees-approve-ppp-act-amendments-dispute-resolution-bill\/","url_meta":{"origin":549240,"position":3},"title":"Egypt parliament committees approve PPP Act amendments, dispute resolution bill","author":"enterpriseam admin","date":"9 December 2019","format":false,"excerpt":"LEGISLATION WATCH- House planning committee approves PPP Act amendments in principle: The House Planning and Budget Committee gave a preliminary nod yesterday to proposed amendments to the PPP Act that would streamline public-private partnership (PPP) contracts and is set to continue discussing the bill today, according to Al Shorouk. The\u2026","rel":"","context":"In "Speed Round"","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/1\/662.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":545025,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/03\/31\/cabinet-is-working-on-a-roadmap-for-reducing-the-states-involvement-in-the-economy\/","url_meta":{"origin":549240,"position":4},"title":"Cabinet is working on a roadmap for reducing the state\u2019s involvement in the economy","author":"enterpriseam admin","date":"31 March 2022","format":false,"excerpt":"The government has an outline of its long-term strategy to encourage private sector involvement in the economy: The Madbouly Cabinet reviewed the broad strokes of its strategy to encourage private sector involvement in the economy at its weekly meeting yesterday, according to a statement. The framework will provide a roadmap\u2026","rel":"","context":"In "Cabinet watch"","block_context":{"text":"Cabinet watch","link":"https:\/\/enterpriseam.com\/egypt\/category\/regulation\/cabinet-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/3\/713.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":555485,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/11\/16\/house-gives-final-approval-to-ppp-act-amendments\/","url_meta":{"origin":549240,"position":5},"title":"House gives final approval to PPP Act amendments","author":"enterpriseam admin","date":"16 November 2021","format":false,"excerpt":"It\u2019s about to get easier for the private sector to bid for public infrastructure projects after lawmakers yesterday gave final approval to amendments designed to encourage more public-private partnerships (PPP). Changes to the PPP Act passed by the House yesterday explicitly allow public entities to partner with private companies on\u2026","rel":"","context":"In "LEGISLATION WATCH"","block_context":{"text":"LEGISLATION WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/legislation-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/11\/466.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/549240","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=549240"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/549240\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/549228"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/549241"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=549240"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=549240"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=549240"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=549240"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=549240"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}