Egyptian parliament’s General Committee gave preliminary approval for the draft law on reconciliation in building violations on January 25, which is expected to provide the government with about EGP 150 bn when issued, Invest-Gate reports.

Commenting on the draft law, Member of Parliament’s Housing Committee Mohamed Abdel Ghany exclusively told Invest-Gate that the government is giving the highest priority to completing discussions on the Reconciliation of Building Violations Law, noting that the state will direct the money generated via this law towards the development of the country’s infrastructure and land reclamation projects.

The draft law stipulates that the request for conciliation shall be submitted within six months from the date of the issuance of the law’s executive regulations, after paying an examination fee up to EGP 5,000, provided that the applications for conciliation submitted to reconciliation committee shall be settled within a period not exceeding four months.

It also states that a reconciliation committee will be established in each governorate to determine the value of reconciliation – not less than 30% of the value specified in resolution no. 214 of 2017 and not exceeding four times the value stated in the same decision.

The law authorizes the payment of the value in installments as determined by the executive regulations. It stipulates that the proceeds of the reconciliation shall be allocated to the public treasury as follows: 15% of the value of reconciliation will be allocated for the Social Housing Fund and development projects, 30% for infrastructure projects, 7% for the establishment of parking space, 10% for the administrative bodies to be allocated for removal of occupancy and violating buildings, and 3% to reward members of committees stipulated in the law and employees in the competent administrative authority.

Speaking of further draft laws in the pipeline, Abdel Ghany confirmed that the issuance of a Unified Building Law to organize and restrict building on agricultural lands, especially in rural areas. In addition, the Tenders Law will boost competitiveness among real estate companies, while eliminating corruption.