Mohamed Abdel Raouf, a member of the Egyptian Federation for Construction and Building Contractors, said the current time is the best to expand the base of contracting companies collaborating with the state in the coming development projects, Invest-Gate reports.

“It is becoming a necessity for the government to offer development projects via tenders instead of the direct assignment mechanism,” Abdel Raouf highlighted, adding that more opportunities should be offered for contracting companies that have technical capabilities and large labor force.

Abdel Raouf made it clear that assigning a large number of projects to a limited number of contractors over the past years is highly risky; they may not be able to complete the projects, given current challenges, or adhere to the required quality and set timelines.

He highlighted the importance of pumping new blood in the contracting market, which is characterized by having a large number of companies wishing to expand and obtain equal opportunities.

Earlier, Egypt’s Prime Minister Mostafa Madbouly announced the proposed investment budget for FY 2020/21 will rise to 230 bn from EGP 150 in the previous year.

Madbouly highlighted the proposals presented by the property sector’s representatives concerning the financial facilitations demanded from the Central Bank of Egypt have been referred to the bank’s governor Tarek Amer, who promised to look into the matter. He also ordered to speed up the payment of all financial dues to contracting companies.