Abdel-Azim: Reducing the preferential 15% for the local product is the most prominent of the proposed amendments
Abdul Karim: Preparing a report on the required amendments to the law and submitting it to the “ministers”
The Federation of Egyptian Industries is studying with the Ministry of Trade and Industry some amendments to Law No. 5 of 2015 regarding the preference for local products in government contracts, in preparation for taking the necessary measures to be discussed and approved by the House of Representatives.
Khaled Abdel Azim, Executive Director of the Federation of Egyptian Industries, said that the most important proposed amendment is to reduce the preference rate for the local product to 15%, given that some ministries see that this carries a greater price difference.
The Local Product Preference Law stipulates that government agencies or companies in which the government owns a controlling share may not conclude contracts to purchase industrial products that do not meet the percentage of the local industrial component, unless the products that are fulfilled do not comply with the approved standard specifications, or if they are not available or available. In insufficient quantities, or if the price of the product that meets the percentage of the Egyptian industrial component exceeds its imported counterpart by more than 15%, or if the public interest so requires in the cases in which a decision is issued by the Prime Minister.
The law has set a clear definition for the product that meets the percentage of the Egyptian industrial component as every industrial product in which the percentage of the local component exceeds 40% of the cost of the product, and the percentage of the industrial component is calculated by deducting the value of the imported components from the cost of the product.
During the seminar organized by the union through “video conference” technology with members of the Metal Industries Chamber to review the supply mechanisms within the “Decent Life” initiative to develop Egyptian villages, Abdel Azim added that the Union and the concerned authorities noticed the presence of some items that need to be modified during the last stage.
He explained that the number of conditions brochures studied by the General Secretariat of the Committee for Preference for Local Product increased significantly after adding a clause in the Bidding and Tender Law No. 182 of 2018 by reviewing all the specifications of the conditions in the secretariat to ensure that they comply with the law.
He pointed out that the data of companies complaining about the failure to activate the law by some government agencies is dealt with with complete secrecy to ensure that his interests are not at risk.
The investments of the Syrian villages development project are estimated at 500 billion pounds, of which industrial products and supplies will acquire between 200 and 300 billion pounds, according to the Council of Ministers.
The services of the project include the delivery of drinking water and sanitation to the various areas within those centers, as well as projects for electricity, public lighting, roads, transportation, the delivery of natural gas to homes, and the establishment of health units and educational buildings to serve the residents of these centers.
Mohamed Abdel Kareem, Executive Director of the Industrial Modernization Center, said that the Council of Ministers formed a local product governance committee to avoid the non-application of Law No. 5 of 2015 regarding the preference for local product in government contracts.
He added during his speech, that the role of the committee is to set a specific framework through which government procurement passes, thus avoiding not applying the law from the same source.
He explained that the center, in cooperation with the authorities concerned with the application of the law, will send a report to the Council of Ministers of the required amendments to avoid implementation problems from the beginning of the bidding and government contracts.
The article “Industries”: The study of proposed amendments to the Law on “Preferring Local Products” to be sent to “Representatives” was written in the Stock Exchange newspaper.