International Construction Law Review
THE NEW REGULATORY FRAMEWORK FOR PPPs IN EGYPT: A PRO INVESTMENT STEP?1
SHARIF YOUSSEF2
BSc, MSc, MCIArb, Contracts and Claims Manager at Orascom Construction Sharif.Youssef@outlook.com
“The difficulty lies not so much in developing new ideas as in escaping from old ones” – John Maynard Keynes.
ABSTRACT
The dissertation analyses the new regulatory regime for PPPs in Egypt. It argues that the PPP Law enacted in 2010 is pro-investment and a departure from standing legal norms. It discusses the nature of the contract highlighting the ambiguous nature of the PPP contracts and its effect on a PPP project. It analyses the procurement regime introduced by the PPP Law and argues that it is much better than the public procurement regime. It argues that dispute resolution mechanisms adopted by the law and the contracts, to a great extent, are effective and provide access to justice.
1. INTRODUCTION
In 2010 Parliament enacted Law No 67 of 2010 governing the Public Private Partnership transactions in Egypt. This was followed by pertinent Executive Regulations by the Cabinet in 2011. The PPP regulatory regime aims at promoting and increasing private sector involvement in the country’s economic and social development plan, stimulating investment and consumption thus boosting growth and attracting FDIs.3
This paper analyses the PPP regulatory regime to see whether it provides a better ground for investment than what already existed. First, the paper will address the Egyptian legal framework which governs or interfaces with PPP transactions; Secondly, how the government selects its private partner and to what extent the process matches the international good practices; Thirdly, the paper will discuss PPP implementation under the PPP regulatory regime. Finally, the paper will discuss the dispute resolution mechanism provided by the PPP framework and to what extent it provides access to justice.
1 This article is based on dissertation submitted by the author in part fulfilment of an MSc degree in Construction Law and Dispute Resolution, King’s College London, Centre of Construction Law 2016.
2 The author of this paper acknowledges the generous support of Mr John Barber and Professor John Uff of King’s College London, Dr Mohammed Salah Abdel Wahab, Dr Mariam Al Awa, Ms Amira Abdellatif, Orascom Construction specifically, Dr Engy Serag and Mr Khaled El Degwy.
3 http://www.pppcentralunit.mof.gov.eg/Content/Home/Pages/Home_en.aspx (last accessed 23 August 2017).
Pt 4] The New Regulatory Framework for PPPS in Egypt
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