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Industry and investors welcomed the approval of the House of Representatives on the final law on the organization of government contracts concluded by the public bodies, which will be repealed Law No. 89 of 1998 on the organization of tenders and auctions operated by the government 19 years ago, the new law requires the authorities to implement Law No. (5) On the preference of the local product in government contracts and its amendments, in light of the states keenness to support and encourage the national industry as the most important economic development axes, in addition to granting the law a preference for small entrepreneurs in local tenders. While giving them the advantage of not providing an initial letter of guarantee once the process is launched between small companies and others, as well as facilitating the disbursement of advance payments to them, which will work on the development of small, medium and micro enterprises. Tariq Tawfiq, undersecretary of the Federation of Industries, said that the industry sector is one of the biggest beneficiaries of the new contracting law, which will contribute to increasing the volume of factory sales. It will also revive the market and support the national industry. Tariq Jad, vice president of Borg Al Arab Investors Association, said that the new law supports the state budget and contributes to reducing the import bill, because it will force government agencies to buy national products and not to buy any local substitute, thus boosting the market and supporting factories that have difficulty marketing their products. Mohamed al-Morshedi, member of the Investors Union, said the law reduces smuggling and supports national industry, and is one of the most important laws that will work to complete the government reform program initiated by the state for some time. Al-Marshadi added that the new legislation will revive the investment climate and push factories to raise their production capacity. It will also revive the small industries sector and will push many young people to expand the establishment of many medium-sized enterprises. Al-Morshedi pointed out that the obligation of government agencies to prefer the local product is the beginning to fill the deficit in the balance of trade and stop the import of any commodity with a local alternative, which will be reflected positively on the state budget. It is worth mentioning that the new law also includes important provisions, including the promotion of the principles of governance and transparency. The law affirmed the declaration of the parties about their expected annual needs as well as their proposed operations, as well as applying the electronic procurement system to achieve the principles of transparency and broadening the competition base in government contracts. As well as the rationalization of government spending. The law introduced procedures for estimating annual needs and linking them to budget preparation. |
