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Legislative framework

Relevant legislation

What is the relevant legislation regulating the award of public contracts?

There is no unified legislation in Egypt governing public contracts. The Egyptian Constitution has set a general principal whereby disposing of the state’s public property is prohibited, while disposing of the state’s private property, the granting of natural resources exploitation rights and public utility concessions are all allowed in accordance with the laws promulgated in this regard. The main laws regulating the award of public contracts are as follows.

Law No. 89of 1998Organizing Biddings and Tenders

Law No. 89(the Tenders Law) and its executive regulations is the main body of law regulating government procurement. It applies to all the administrative units of the state such as ministries, authorities and agencies with special budgets; municipalities; and general authorities (whether economic or services authorities). However, some public entities and some sectors are excluded from the application of the Tenders Law by other special laws issued in this regard.

The Tenders Law governs the purchase, sale and lease of movable real property, contracting of construction works and services, and licensing for exploitation and use of real property where the afore­mentioned public entities are party.

Law No. 67of 2010on Partnership with the Private Sector in Infrastructure Projects, Services and Public Utilities

Law No. 67of 2010(the PPP Law) and its executive regulations apply to PPPs in relation to consultation and implementation contracts concerning infrastructure projects, services and public utilities.

Other major laws in this area are Law No. 129of 1947regarding the Public Utilities Concessions, as amended, regulating the obligations related to the public utilities concessions and the Prime Minister Decree No. 695of 2001Constituting a Ministerial Committee and a Working Group to Organize Local and National Projects awarded under BOT (build-operate-transfer) or BOOT (build-own-operate-transfer) Regimes as amended by Decree No. 512of the year 2002.

However, this chapter is based mainly upon the Tenders Law and its executive regulations, as it is the general Egyptian law organising public procurement.

Sector-specific legislation

Is there any sector-specific procurement legislation supplementing the general regime?

Some sectors have been carved out from the general legislation governing the award of public contracts. It is not possible to include an exhaustive list of such sectors, but they include the following.

General Investments in specific sectors

In October 2017, the Council of Ministers approved the executive regulations of the new Investment Law promulgated under Law No. 72of 2017which aimed at attracting FDI inflows.

Telecoms

The Egyptian Telecommunication Company was established by a special Law No. 19of 1998and is deemed a legal person pursuant to its mandate. Furthermore, Telecommunication Regulation Law No. 10of 2003states that the National Telecom Regulatory Authority is competent to import, by itself or by virtue of a third party, all it needs in terms of materials, equipment, spare parts, technical tools and transportation means, etc, provided that there are no suitable national products and within the limits of its budgets. Such importation shall be in accordance with the rules and requirements of the Authority’s internal regulations.

Mineral resources

Law No. 198of 2014stipulates that the General Egyptian Mineral Resources Authority’s board of directors may issue resolutions to offer areas for the exploitation of and research into mineral resources’ exploitation, after gaining the approval of the minister or governor concerned. The offering shall be according to specific regulations mentioning the contracting, offering and awarding methods and procedures, and the criteria of choosing the best offer, without being subject to the Tenders Law.

The Offering and Awarding Regulations were issued by virtue of Prime Minister Decree No. 1966of 2015.

Electricity

Law No. 100of 1996amending Law No. 12of 1976regarding the Establishment of the Egyptian Electricity Authority states that said Authority shall have the competence to take all the necessary actions and works for the accomplishment of its purposes. The Authority has the right to contract directly with persons, companies, banks and national and international entities, according to its internal regulations. In addition, it may grant the concession of public utilities for national and foreign investors, without being subject to the provisions of Law No. 129of 1947regarding the Public Utilities Concessions and Law No. 61of 1958regarding the Natural Resources Investment.

The Egyptian Electricity Authority was transformed into the Egyptian Electricity Holding Company by virtue of Law No. 164of 2000, and this holding company has the right to directly contract with third parties pursuant to its own procurement rules and not that of the Tenders Law.

Airports

Law No. 3of 1997stipulates that it is possible to grant the concession of public utilities to foreign or Egyptian investors in order to establish, prepare, operate, maintain and exploit airports, landing sites or parts thereof, without being subject to the provisions of Law No. 129of 1947regarding the Public Utilities Concessions and Law No. 61of 1958regarding the Natural Resources Investment and according to Civil Aviation Law No. 28of 1981.

Public roads

Public Roads Law No. 229of 1996amending Law No. 84of 1968provides that public utility concessions may be granted to Egyptian and foreign investors in relation to the construction, management, exploitation and maintenance of highways and freeways, as well as the exploitation of the areas adjacent to said roads, without being subject to the provisions of Law No. 129of 1947regarding the Public UtilitiesConcessions.

Nuclear

Law No. 209of 2017regarding the Establishment of the Executive Authority for the Supervision of the Nuclear Power Plant Establishment Projects stipulates that said Authority shall have the competence to take all the necessary actions and works for the accomplishment of its purposes.

The Authority may also has right to contract directly with persons, companies, banks and national and international entities etc. inside or outside Egypt, according to its internal regulations and without being subject to any other laws.

Space

Law No. 3of 2018regarding the Establishment of the Egyptian Space Agency stipulates that the Agency shall have the competence to take all the necessary actions and works for the accomplishment of its purposes. The Authority may also have the right to contract directly with persons or companies, whether national or international, without prejudice to the national security requirements and according to the executive regulations of this Law (these have not been issued yet).

Tunnels

Draft Law amending Law No. 113of 1983regarding the National Authority for Tunnels stipulates that it is possible to grant public utilities concessions to Egyptian or foreign investors for the establishment, management, exploitation and maintenance of subway lines and railway transportation by electric tractors projects, without being subject to the Public Utilities Concessions Law and Law No. 61of 1958regarding the Natural Resources Investment and according to the rules and procedures mentioned in the draft law.

This draft law has not been approved before parliament and accordingly it may be subject to further amendments.

Industry

In August 2017, the executive regulations of new Industrial Licensing Law No. 15of 2017were published, which aim to streamline industrial licensing procedures.

Gas

In February 2018, the executive regulations of the Organization of Gas Market Law No. 196of 2017were promulgated, aiming to liberalise the gas market in Egypt.

International legislation

In which respect does the relevant legislation supplement the EU procurement directives or the GPA?

We are not aware of the European Union regulations as it is not within the scope of our work. However, Egypt is a member of the World Trade Organization (WTO). Therefore, the Egyptian laws are in compliance with the rules, regulations and agreements of the WTO as ratified byEgypt. However, to date, Egypt has not acceded to the WTO’s Agreement on Government Procurement (GPA).

Proposed amendments

Are there proposals to change the legislation?

We are not aware if there are any official proposals to change the legislation to comply with EU regulations as far as public procurement isconcerned.

Applicability of procurement law

Contracting authorities

Which, or what kinds of, entities have been ruled not to constitute contracting authorities?

As mentioned above, some state-owned entities and sectors are excluded from the application of the general government procurement laws by means of special laws and decrees. In addition to such entities, companies regulated by the Public Business Sector Companies Law No. 203of 1991are divided into holding companies that are fully owned by the state and the subsidiaries of such holding companies, which can either be fully or partially (at least 51per cent of their share capital) owned by public entities. They are organised as joint stock companies and are deemed legal persons. These companies are free from applying the Tenders Law when contracting; however, it is worth noting that such entities usually adopt procurement rules based on the general principles and regulations provided for under the Tenders Law.

Contract value

Are contracts under a certain value excluded from the scope of procurement law? What are these threshold values?

Exclusions from the application of the general government procurement laws are not based on value thresholds.

However, the value of the contract may have an impact on the manner of contracting under the Tenders Law. Under said Law, the main method for tendering is holding a public tender or a public practice (negotiation), but another four methods are recognised:

  • local tenders;
  • limited tenders;
  • limited practices (negotiations); and
  • direct contracting.

Contracting shall be by way of a local tender for values not exceeding 400,000Egyptian pounds. In this case, the tender shall be limited to local suppliers and contractors whose activity falls within the boundary of the governorate wherein the implementation of the contract shall take place.

In addition, the value of the contract may have an impact on the procedures taken for contracting, such as the determination of the competent authority issuing the required approvals in case of direct contracting. Direct contracting may apply in urgent matters that cannot endure the lengthy procedures of a tender or a practice; however, it requires certain approvals and the level of approval is impacted by the contract value as follows:

  • for purchase of movables, services, consultations and transportation contracts with a value that does not exceed 500,000Egyptian pounds and for construction works with a value of 1million Egyptian pounds, the approval of the head of the government authority is required;
  • for purchase of movables, services, consultations and transportation contracts with a value that does not exceed 5million Egyptian pounds and for construction works with a value of 10million Egyptian pounds, the approval of the competent minister or governor is required; and
  • for contracts with a value that exceed the above-mentioned values, the approval of the prime minister is required.

Finally, it is worth mentioning that one of the criteria for the application of the PPP Law in relation to projects carried out by means of a PPP is that the value of the contract should not be less than 100million Egyptian pounds.

Amendment of concluded contracts

Does the legislation permit the amendment of a concluded contract without a new procurement procedure?

The Tenders Law permits the amendment of a concluded contract without a new procurement procedure in the following cases.

With respect to construction contracts with terms that last for six months or more, the contracting authority shall - at the end of each three months of the contract - amend the contract value as per the decrease or increase of costs of the contract items, which arises after the date set forth for opening of the technical bids or following the contract date that is based on the direct award order, this shall be in accordance with pricing factors as allowed by the Tenders Law and as set out by the contractor in its bid and upon which the contract was concluded. Such amendments shall be binding upon both parties.

The Tenders Law also allows for variation orders whereby the administrative authorities may modify the quantities or volume of its contracts by increasing or decreasing them within the limits of 25per cent for each item under the same conditions and prices. The contractor shall not have the right to claim any compensation in relation thereof. In case of emergency and with the approval of the contractor, the above-mentioned percentage may be increased. In all cases of contract amendment, the approval of the competent authority shall be obtained, in addition to the existence of the necessary financial appropriation. The amendment shall be issued during the term of the contract.

As for the PPP Law, the law allows for the inclusion of clauses in the contract to allow the administrative authority to amend the conditions of construction, equipment, rehabilitation and other works as well as the services availability payment agreed upon under the PPP contract and to amend the rules of operation or utilisation including the sale prices of products or services. Furthermore, it is allowed to agree in the contract to amend its clauses in case of the occurrence of unforeseen circumstances after execution of the PPP contract, including amendments to laws or regulations that were enforceable at the time of execution of the PPP.

Has there been any case law clarifying the application of the legislation in relation to amendments to concluded contracts?

The Egyptian Administrative Court has upheld the principle that the tendering authority has the right to a variation order within the limits allowed by the Tenders Law.

Privatisation

In which circumstances do privatisations require a procurement procedure?

There are several methods for the execution of privatisation; the Egyptian legislator has left companies the right to choose the most suitable method, depending on their financial structure and their objects. The different methods of privatisation are, for example, tender or practice (whether public or limited or any other type), sale of the shares on the Egyptian stock exchange, or sale of the shares to employees.

Public-private partnership

In which circumstances does the setting up of a public-private partnership (PPP) require a procurement procedure?

The setting up of a PPP under the PPP Law requires a procurement procedure be used in all cases.

Advertisement and selection

Publications

In which publications must regulated procurement contracts be advertised?

With respect to the Tenders Law and its executive regulations, the announcement of the public tender or public practice (negotiation) shall be made in two widely read daily newspapers. In addition, the announcement may be made in other widely read media, including electronic media, subject to the approval of the competent authority and pursuant to the importance and the value of the contract.

In case of external tenders (in Egypt or abroad), the announcement shall be in both Arabic and English. Foreign countries’ embassies or consulates, according to each case, shall be requested to notify those operating in the relevant sector of the announcement in their respective countries.

Participation criteria

Are there limitations on the ability of contracting authorities to set criteria or other conditions to assess whether an interested party is qualified to participate in a tender procedure?

According to the Tenders Law, there are no limitations on the ability of contracting authorities to set criteria or conditions to assess whether an interested party is qualified to participate in a tender procedure or not.

However, the contracting authority may have the right to set any criteria or conditions, provided the compliance of said criteria and conditions with the provisions of the Tenders Law and its executive regulations. The setting of the criteria and conditions depend on the subject matter and the specific circumstances of the contracting.

Is it possible to limit the number of bidders that can participate in a tender procedure?

Generally, contracting shall be by virtue of public tenders or public practices. However, the Tenders Law permits a contract to be entered into by other means, such as limited tender, local tender or limited practice (negotiation) or direct contracting, if the competent authority issues a decree authorising it.

Contracting by virtue of a limited tender or local tender limits the number of bidders participating in the tender procedure. The invitation to participate in a limited tender is addressed to the largest possible number of persons operating in the relevant sector and whose names are registered in the relevant administrative authority’s register. Contracting by virtue of a local tender shall be limited to local suppliers and contractors whose activity falls within the boundary of the governorate wherein the implementation of the contract shall take place.

However, generally, it is worth noting that the contracting authority shall have the right to limit the number of bidders that can participate in a tender procedure, depending on the conditions and requirement of the tender and the authority needs.

Regaining status following exclusion

How can a bidder that would have to be excluded from a tender procedure because of past irregularities regain the status of a suitable and reliable bidder? Is the concept of ‘self-cleaning’ an established and recognised way of regaining suitability and reliability?

Pursuant to the Tenders Law, the General Authority for Governmental Services shall hold a register for the registration of the names of persons who are prohibited from dealing with any public authority; whether such a prohibition is stipulated by law or by an administrative decree.

However, a bidder that was excluded from a tender procedure because of past irregularities may request to be re-registered in the importers or contractors’ registers, in case that the reason of the prohibition has been negated by virtue of public prosecutor’s decision stating that there are no grounds for filing a criminal case against him or her, or by means of administratively archiving it or by rendering a final judgment acquitting him or her of the acquisition attributed thereto.

The decision of re-registration shall be presented before the above-mentioned Authority for its publication.

The procurement procedures

Fundamental principles

Does the relevant legislation specifically state or restate the fundamental principles for tender procedures: equal treatment, transparency and competition?

Both the Tenders Law and the PPP Law state that the tender procedures are subject to the fundamental principles of equal treatment, transparency and competition.

Independence and impartiality

Does the relevant legislation or the case law require the contracting authority to be independent and impartial?

The Tenders Law deals with conflict of interest by prohibiting employees working in the contracting authority from submitting - in person or by proxy - tenders or offers to those entities. It is also impermissible to purchase items from them or to assign them any tasks.

Furthermore, it is impermissible to combine the chairmanship of the different committees participating in the tender procedures and tender decision.

Conflicts of interest

How are conflicts of interest dealt with?

See question 16.

Bidder involvement in preparation

How is the involvement of a bidder in the preparation of a tender procedure dealt with?

The Tenders Law does not contemplate the involvement of bidders in the preparation of the tender documents, but that of government employees who are prohibited from participating in tenders carried out by the contracting authority for which they are employed. As for the PPP Law, the involvement of expert advisors to the PPP unit in the preparation of the tender documents is regulated by the PPP Law and its executive regulations, but it envisages that the advisor to the PPP unit will be an advisor to the PPP unit throughout the whole tendering process and not only in the preparation of the tender document. Furthermore, the conflict of interest related to some such advisors is dealt with in the legislation governing their professional field, as is the case with legal advisors.

Procedure

What is the prevailing type of procurement procedure used by contracting authorities?

According to the Tenders Law, there are different types of procurement procedures - such as public tender/practice (negotiation), local tender, limited tender/practice (negotiation) and direct contracting- each type having its own criteria and conditions. Therefore, it is not possible to mention the prevailing type of procurement as it depends on the conditions, requirements and needs of the relevant administrative authority and the value of the transaction.

Separate bids in one procedure

Can related bidders submit separate bids in one procurement procedure?

The PPP Law does not allow the submission of separate bids by the same bidder and provides that in the case of a bid by a consortium, a consortium member may not submit another bid directly or indirectly, individually or through another consortium, or through a company in which it owns the majority of its equity, or has control over its management, or if such member’s ownership or management is controlled by one of these companies, unless otherwise stipulated in the tender document.

Negotiations with bidders

Is the use of procedures involving negotiations with bidders subject to any special conditions?

According to the Tenders Law, the procurement procedures may be by virtue of a public or limited practice (negotiation). The negotiation is undertaken by a committee constituted by virtue of a decree issued from the competent authority and is composed of technical, financial and legal elements according to the importance and nature of the contact.

Under the PPP Law, qualified investors may be invited to meetings to discuss their inquiries on the project documents. In addition to answering inquiries, a bid under the PPP Law may involve a competitive dialogue. In this case, the authority may decide to tender the project in two phases, and conduct, as phase one, a competitive dialogue with the purpose of obtaining the necessary clarifications on the elements of technical and financial offers in this phase. In phase two, final bids are to be submitted.

In the cases where the decision is made to tender the project in two phases, the committee in charge of preparing the project tender document shall prepare the tender document in phase one. This has to include:

  • general information on the project and its specifications;
  • specifications of the final product, service level and performance indicators;
  • the heads of terms of the PPP contract;
  • the technical and financial evaluation system in general;
  • the requirements, forms and documents requested in each of the non-binding technical and financial offers that give a general outline of both offers;
  • the means of submission of the non-binding technical and financial offers; and
  • the tender procedures of both phases, dates of submission of inquiries and its replies thereto, final deadline for submission of the non-binding technical and financial offers, initial dates for holding the competitive dialogue with bidders and issuance of final tender document.

Having secured the unit’s approval on the tender document in phase one, the administrative authority must issue this document and make it available to bidders on the project’s website. The administrative authority shall notify bidders by acknowledged receipt-registered mail and by email with the date of uploading this document to the website, allocating to each bidder a password to allow access to the project website and so to review the tender document content.

The administrative authority shall receive and respond to the queries sent by bidders via email on the date specified for this purpose. The bidders shall then submit non-binding bids. Each party that submitted a non-binding bid shall then be notified with the date, venue and duration of the competitive dialogue session.

Competitive dialogue meetings shall be held separately with non-binding bidders and such discussions shall be deemed confidential.

If the legislation provides for more than one procedure that permits negotiations with bidders, which one is used more regularly in practice and why?

The Tenders Law stipulates the conditions for choosing one procedure over the other (public negotiation versus limited negotiation). We are not in a position to determine which procedure has been used more than the other.

Framework agreements

What are the requirements for the conclusion of a framework agreement?

In case of the conclusion of a framework agreement, said agreement shall comply with the provisions of the Tenders Law. In addition, it shall be included in the bid requirements.

May a framework agreement with several suppliers be concluded?

In general, the public procurement procedures shall comply with the fundamental principles of equal treatment, publicity and fair competition. So, a framework agreement that generally complies with such principles and is in accordance with the Tenders Law should bepossible.

Changing members of a bidding consortium

Under which conditions may the members of a bidding consortium be changed in the course of a procurement procedure?

The Tenders Law states that any bid or any amendments received after the deadline of submission shall be disregarded. So it is not possible to amend or change any conditions or any part of a bid after its submission within the deadline.

Participation of small and medium-sized enterprises

Are there specific mechanisms to further the participation of small and medium-sized enterprises in the procurement procedure? Are there any rules on the division of a contract into lots? Are there rules or is there case law limiting the number of lots single bidders can be awarded?

Generally, the relevant administrative authority is entitled to set the criteria and conditions of any tender according to its needs and requirements. Generally, bids submitted by micro and small enterprises are preferred, as long as they conform to the terms and conditions of the tender and are equal to the price or value of the lowest bids.

Pursuant to Law No. 141of 2004on Developing Small Enterprises, a ‘small’ enterprise is defined as a company or a sole proprietorship that carries out a production, service or commercial economic activity with a paid-in capital of between 50,000and 1million Egyptian pounds, and with no more than 50employees.

A ‘micro’ enterprise is a company or sole proprietorship that carries out production, service or commercial economic activities and that has a paid-in capital of less than 50,000Egyptian pounds.

Variant bids

What are the requirements for the admissibility of variant bids?

The Tenders Law is silent about the possibility of submitting variant bids.

Must a contracting authority take variant bids into account?

See question 27.

Changes to tender specifications

What are the consequences if bidders change the tender specifications or submit their own standard terms of business?

The relevant administrative authority may exclude bids that do not comply with the tender’s terms and conditions.

Award criteria

What are the award criteria provided for in the relevant legislation?

The award of tender shall be made for the bid of the best conditions and specifications and with the lowest price after unifying the basis of comparison from technical and financial aspects.

The deciding committee shall make a comparison between the different offers after unifying the basis of comparison from technical and financial aspects. Said committee shall also take into consideration the conditions of providing the necessary guarantees, maintenance, spare parts, operations necessities, payment and delivery conditions, in addition to any other matters that may affect the determination of the comparison value of the offers, according to the conditions and the nature of the contract.

Abnormally low bids

What constitutes an ‘abnormally low’ bid?

There are no rules regulating an ‘abnormally low’ bid. However, it could be considered as a bid with a price that is abnormally lower than the market price.

What is the required process for dealing with abnormally low bids?

In case of an abnormally low bid, the contracting authority may disregard the bid as it may suggest that the contract might be ill-performed and breach of the tender terms and conditions.

Review proceedings

Relevant authorities

Which authorities may rule on review applications? Is it possible to appeal against review decisions and, if so, how?

According to Egyptian laws, there are several authorities that may rule on review applications.

The administrative authority that issued the tender decision is competent to review applications or complaint submitted by any complaining bidder.

Further, any complaint may be filed at the relevant department at the Ministry of Finance, claiming it is in violation of the provisions of the Tenders Law.

According to the State Council Law No. 47of 1972(the State Council Law), the Administrative Judiciary Courts are competent to rule on any dispute related to any type of administrative contract (ie, obligation, general works and supply, etc) and administrative disputes. Such judgments are appealable before the Supreme Administrative Court under certain conditions.

It is worth noting that the first two procedures are subject to an appeal before the state courts.

The administrative authority may also agree to arbitration as an alternative dispute resolution mechanism. In this case, the competent minister must approve the arbitration or clause to become valid and enforceable.

If more than one authority may rule on a review application, do these authorities have the power to grant different remedies?

This case does not seem to be applicable as usually one administrative entity is entitled to take the lead on the tender from all its respects.

Timeframe and admissibility requirements

How long do administrative or judicial proceedings for the review of procurement decisions generally take?

The time frames vary on a case-by-case basis.

What are the admissibility requirements?

With respect to the admissibility requirements before the State Council courts, there are some requirements related to the form of the case and others related to the substance of the case.

Regarding the form-related requirements, the claimant shall:

  • have the right or capacity to bring an action or to appear in a court and have a personal interest in filing the lawsuit;
  • file the case during the time limits allowed under the law; and
  • issue any summons required by the law before filing the case.

Regarding the requirements related to the substance, the lawsuit must be of an administrative nature where the administrative entity seeks to fulfil a public utility through public law means.

What are the time limits in which applications for review of a procurement decision must be made?

Generally, a lawsuit for review before the State Council courts shall be filed within 60days starting from the date of publishing the administrative decree or decision subject of the review in official journals or the notification of the claimant of such an administrative decree or decision.

Regarding the challenges filed before the Supreme Administrative Court against the judgment issued by the State Council court, the time limit shall be 60days starting from the day of issuance of the appealable judgment.

Suspensive effect

Does an application for review have an automatic suspensive effect blocking the continuation of the procurement procedure or the conclusion of the contract?

An application for review does not have an automatic suspensive effect blocking the continuation of the procurement procedure or the conclusion of the contract.

The State Council court may order the suspension of the execution of the decree or decision subject of the review, if the claimant has requested in the lawsuit and if the result of the execution could be impossible to rectify.

Generally there are two conditions that must be fulfilled for the suspension of the administrative decree or decision subject of the review as follows:

  • urgency of the matter, as for example if the result of the continuation of the procurement procedure or the conclusion of the contract could be impossible to rectify; and
  • in case it appears from the initial review of the submitted documents that the administrative decree or decision will probably be annulled.

Approximately what percentage of applications for the lifting of an automatic suspension are successful in a typical year?

This information may not be verified as such applications are not publicly accessible.

Notification of unsuccessful bidders

Must unsuccessful bidders be notified before the contract with the successful bidder is concluded and, if so, when?

As soon as the tender decisions are issued, a notification with acknowledgment of receipt shall be sent to the unsuccessful bidders and to the successful bidder.

In addition, the reasons of the success or exclusion of each bid shall be published on a board reserved for such purpose in a visible place, for a period of one week.

Access to procurement file

Is access to the procurement file granted to an applicant?

Yes, an applicant may have access to its procurement file.

Disadvantaged bidders

Is it customary for disadvantaged bidders to file review applications?

Generally, it is not customary for disadvantaged bidders to file review applications.

Violations of procurement law

If a violation of procurement law is established in review proceedings, can disadvantaged bidders claim damages?

Disadvantaged bidders may claim damages against the tendering authority if the violation of the Tenders Law is established. However, in order for the damages claim to be successful the claimant must establish to the satisfaction of the court:

  • a violation committed by the tendering authority;
  • a harm inflicted as a result of such violation; and
  • a causal relationship between the violation and harm inflicted.

May a concluded contract be cancelled or terminated following a review application of an unsuccessful bidder if the procurement procedure that led to its conclusion violated procurement law?

Generally, the State Council court or the reviewing authority would not cancel or terminate a concluded contract. But the court may order compensation be paid to the unsuccessful bidder, if the procurement procedures that led to the administrative authority’s decision or the conclusion of a contract with the successful bidder has violated the Tenders Law.

The court may cancel or terminate a concluded contract based on the said violation. However, the cancellation or termination of the concluded contract is circumstantial and varies on a case-by-case basis.

Legal protection

Is legal protection available to parties interested in the contract in case of an award without any procurement procedure?

The legal protection available for an aggrieved party in respect of a decision issued by an administrative authority against the rules of the applicable laws is a judicial review of such decision. Such a judicial review, as explained earlier, shall be triggered at the State Council court and is challengeable as a final resort at the Highest Administrative Court. However, Law No. 32of 2014regarding the Organization of the Appeal Procedures on the State Contracts was passed in order to regulate the appeals procedure and prohibits third-party interference in contracts between Egypt and its investors (subject to certainexceptions).

Typical costs

What are the typical costs of making an application for the review of a procurement decision?

The cost is determined on a case-by-case basis.