The volume of business for construction companies affiliated to the Holding Company for Construction (HCC) have declined by 40% and 60% after the Central Bank of Egypt (CBE) decided to liberalise the exchange rate of the local currency. Several companies affiliated to the HCC have demanded quick payment of compensations for the remaining businesses in the projects to be undertaken. Ahmed Fouad, member of the board of directors of the Construction and Housing Company of the HCC, said that the cabinet has not provided any compensation to any construction company affiliated to the HCC, despite the Compensations Law which was approved by parliament last month. Fouad explained that the construction companies affiliated to the HCC are preparing a study to look into the impact of the Egyptian pound’s flotation. The Housing Committee in the House of Representatives is preparing a draft law for compensating construction companies, supplies, and public services contracts with the government for price increases incurred in those contracts after the pound’s flotation.

Source: Daily News Egypt January 16, 2017 07:14 UTC