Minister of Finance, Dr. Mohamed Maait, stresses that the government contracting law is considered a significant progress in the performance of the contracting system for entities subject to its provisions. The said law shall contribute in achieving the set goals of the reform program, which mainly aim at increasing development rates, upgrading the economy's structure and boosting productivity and competitiveness rates in conformity with the sustainable development strategy "Egypt Vision 2030", the minister notes.
This has been announced during the minister's meeting with a group of employees at the central department of procurement at the General Authority for Governmental Services and the Office of Government Contracts Follow-up, on the sidelines of proceedings of the specialized training sessions designed for enhancing skills of the ministry's staff.
The ministry has embarked on laying down introductory procedures for drafting the executive regulation of the said law immediately upon its issuance. The said regulation shall entail simple and clear regulatory and executive rules in a way that conforms with the rationale and concepts underling the new law enacted for organizing contracting procedures executed by public entities, Dr. Maait adds.
With respect to key facilities provided by the said law, Mr. Khaled Nofal, finance minister's assistant for administrative and technical development, notes that the new law allows for the first time ever the application of an electronic procurement system through a number of steps, as well as for deciding the tenders not exceeding the value of EGP 300 thousands, all through one committee only. The new law, he adds, lays down a new system for dealing with sub-contracting transactions executed in government contracts. Such step aims at enhancing the quality of agreed upon businesses, curbing non-formal economic practices, limiting registering into local tenders of value less than EGP 2 millions only to small projects so as to provide them with a genuine opportunity for winning tenders of government contracts and to give them privileges related to insurance payment procedures, by virtue of provisions of Law no.5 / 2015, on giving preference to Egyptian products in governmental contracts.
Subject to the said law, administrative entities are obliged to assign not less than 20% of their needs to owners of small and micro projects.
Mr. Nofal, also underlines the significant role of the General Authority for Governmental Services - Central Department of Procurement - in developing the system of governmental procurement, anchoring framework agreement system, and upgrading public inventory department; pointing out that the budget chapter related to purchasing goods and services for operating the State's administrative body, occupies a remarkable percentage of the State's general budget allocations.