Law No. 182 of 2018 and its executive regulations issued by the Minister of Finance Decision No. 692 of 2019 are a pivotal step toward regulating contracts concluded by public authorities in Egypt. This legal framework aims to enhance efficiency and transparency in the management of public resources, by establishing clear and comprehensive controls governing government procurement and contracts.

The law defines the bases that public entities adhere to when contracting, including tenders and auctions, and strengthens the control standards to ensure the optimal use of public funds. The Executive Regulation also clarifies the detailed rules for applying the provisions of the law, taking into account the uniformity of procedures and the achievement of justice in contractual transactions.

This legislative framework contributes to supporting the Sustainable Development Goals by improving public money management, enhancing competitiveness, and reducing regulatory gaps, which supports the national economy and raises the efficiency of government spending.

Executive regulations of Law No. 182 of 2018 (Minister of Finance Resolution No. 692 of 2019):

The Minister of Finance’s Decree No. 692 of 2019 clarifies the rules and executive procedures of the law regulating contracts concluded by public entities No. 182 of 2018. This decision aims to achieve consistency between legal texts and practical procedures, enhancing transparency and efficiency in the management of state financial resources.

The resolution includes details on how the provisions of the law will be applied to the entities subject to it, focusing on the unification of mechanisms for contracts. The resolution also defines the roles and responsibilities of the various committees tasked with reviewing and evaluating contracts to ensure their compliance with the controls stipulated by the law.

The decision is part of the Ministry of Finance’s plan to improve the management of public funds by organizing government procurement and developing mechanisms for monitoring tenders and auctions in line with international best practices.

Summary of the highlights of the executive regulations

• Evaluation and contracting procedures: the regulation established clear criteria for evaluating offers and selecting the best according to accurate technical and financial criteria.
• Process control: the concerned authorities are obliged to conduct periodic reviews of contracts to ensure compliance with the specified conditions.
• Dispute resolution mechanisms: the regulation regulates how to deal with disputes that may arise between the contracting parties, ensuring a quick and fair resolution.

Summary of Law 182 of 2018

Law 182 of 2018 to regulate contracts concluded by public authorities in Egypt. It addresses the procedures used in procurement and contracting processes and promotes the principles of transparency, competition, and equality. It includes the identification of contracting methods (public tender, public bidding, direct agreement) and provides a mechanism for combating corruption and collusion.

The law promotes the use of Information Technology in procedures and seeks to develop sustainable contracting methods that take into account quality and cost. It also imposes the formation of special departments to follow up on contracts and related complaints. Contact us at El Laithy & Associates Lawyers for legal support and specialized consultations to ensure compliance with all laws and regulations.

Objectives of Law 182 of 2018

• Promote transparency and accountability in government contracts.
• Improve the management of public funds.
• Combating corruption and ensuring integrity in contractual processes.
• Achieving economic efficiency through the development of sustainable contracting methods.

Entities covered by Law 182 of 2018

• All government agencies shall comply with the provisions of the law.
• State-affiliated bodies, including the Arab Organization for Industrialization, the National Commission for War Production, and the General Intelligence.

The main articles of the law and its executive regulations

Law 182 of 2018 and its executive bylaws detail how the provisions of the law will be applied. The most prominent articles of the law are:

Rule 78

Article 78 allows the contracting parties to contract by direct agreement after the approval of the competent authority, without complying with the procedures and financial limits stipulated by law. It also allows these entities to represent each other in the implementation of contracting procedures for specific tasks while prohibiting the assignment of contracts concluded between them to any third parties. This article includes the above-mentioned bodies and allows them to assign contracts directly to subordinate units.

Rule 80

Article 80 allows dealing by direct agreement on real estate by sale, leasing, licensing for use or exploitation to achieve social or economic considerations required by the public interest. This is done in coordination between the minister of Finance and the competent minister or governor, and based on clear justifications and fair consideration to be evaluated by the Supreme evaluation committee.

Features of the executive regulations of Law 182 of 2018

• Clear contracting procedures: the steps are precisely defined from the announcement of tenders to the signing of contracts.
• Commitment to transparency standards: imposes a commitment to public announcement to ensure equal opportunities.
• Types of tenders: include public tender, limited tender, public tender by technical qualification method, and two-stage tender.
• Monitoring and follow-up: the authorities are obliged to periodically review and ensure the execution of contracts in accordance with the conditions.

What is the difference between tendering and practice?

Tender: a public offering process that is announced to all companies. Envelopes are opened on a specific date, prices are publicly announced, and the bidder with the lowest final price wins.

Practice: invite a specified number of companies to submit their offers. After opening the envelopes, prices are negotiated between the companies and the government entity to reach the lowest negotiated price.

Basic nuances:

• At the tender, prices are fixed and final when opening envelopes.
• In practice, prices are negotiated after opening envelopes.

You can  Contact us today for legal advice and specialized consultations to ensure compliance with all laws and regulations.