Due to Egypt’s current economic condition following the floatation of the pound and price increase of materials and production cost, many contractors have decreased the development rate at the Administrative Capital, Invest-Gate reports.

“The high prices on construction materials, indeed, have hindered the work rate at the New Capital and, therefore, the Ministry of Housing, Utilities, and Urban Communities is to finance the price differences to help constructors until the compensation law is officially issued,” Hassan Abdel Aziz, head of Egyptian Federation for Construction & Building Contractors tells Invest-Gate.

Abdel Aziz confirms that private and public contractors have not suspended their projects in the New Capital but are currently awaiting the ministry’s financial support.

Construction work at the Administrative Capital are based according to the market price rate prior to the floatation of the Egyptian pound; now that the prices on all commodities have more than doubled, the ministry is to compensate contractors with the price difference and the government is to issue a compensation law to protect its ongoing developmental projects and that includes the Administrative Capital.