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Dr. Adel Amer writes about: the philosophy of public contracts law from the Arab News Agency Masress, dated on Thursday, October 18th, 2018.
Dr. Adel Amer writes about: Philosophy of General Contracting Law
The Egyptian time was published in the Egyptian time on 18 - 10 - 2018
Law No. 182 of 2018, regulating the contracts concluded by the public bodies, regulates the contracts concluded by the public bodies, and aims at addressing the challenges resulting from the practical application of the Law of Tenders and Auctions issued by Law No. 89 of 1998, Economic and social developments, and keeping pace with the global development in the field of government contracts.
To establish a new philosophy and concepts that the purchase, sale and contracting of government is not only related to the method of placement and contracting, but involves pre-placement procedures and after the stage of submission from the management of contracts and receipt and completion of implementation.
Aims to achieve the best value for public money in contracts concluded by the parties subject to its provisions and the establishment of new rules in contracts based primarily on good government and sustainable development goals and the establishment of greater transparency and competition and equal opportunities and improve the environment and business climate and adopt the new trends and good practices common in the areas of government contracts .
There are four main axes to be used to strengthen and improve public contracting systems: the legal framework, good governance standards, market competitiveness measurement standards and prevailing practices, control and anticorruption standards.
The purpose of the law is to tighten the supervision and achieve economic efficiency of the states access to real value in exchange for what is spent from public money and avoid unjustified disbursement and to achieve a positive return on the performance of the parties subject to the provisions of the law and control and rationalization of public spending and fight corruption,
Which will reduce the burden on the state budget, simplify procedures, facilitate executive work and achieve the objectives of decentralization, as well as establish the principles of transparency and equal opportunities and expand and strengthen the base of competition.
The first article of the articles of issuing that law stipulates that its provisions shall apply to the entities included in the general budget of the State, the units of the administrative apparatus of the State, including the units that have a special budget, the units of the local administration and the service and economic bodies. , With the exception of the social welfare funds established therein, which are financed mainly by the financial contributions of its members and the projects financed by the special accounts, without prejudice to the provisions of the international conventions, Rh created or organized or issued regulations based on those laws and decisions. The Act also repeals Act No. 89 of 1998 on the organization of tenders and auctions, which the Government has been operating for 19 years.
That this new law was prepared to keep pace with economic and social changes to meet the needs of the current and future government. The law introduced mechanisms to enable the entities subject to its provisions to lease movables instead of buying them according to economic feasibility and to rationalize government expenditure and reduce pressure on the state budget.
It also introduced new procurement methods that offer non-traditional solutions to the needs of the parties and generalize the idea of ??central procurement as well as setting up controls for the direct agreement to tighten the control and establish the principles of transparency while expanding the decision-making and government standards by replacing the authority of the Prime Minister with the Council of Ministers.
In order to promote the principles of governance and transparency, controls were put in place for contracting in a manner that would directly agree to the provisions of supervision, establish the principles of transparency and governance and expand decision-making. Develop the system of government procurement and establish the system of framework agreements and develop the management of government stock, especially that the door to purchase goods and services for the operation of the administrative system of the state and improve public services, which accounts for a large proportion of the allocations of the state budget.
Including for the first time allow the implementation of the electronic procurement system in stages and decide on tenders that do not exceed the value of 300 thousand pounds through only one committee, in addition to the development of a new organization to deal with cases of subcontracting in government contracts in order to raise the quality of contracted work and limit From the phenomenon of the informal economy,
As well as the lack of progress in local tenders of less than two million pounds on small projects, giving them a real opportunity to win government contracts, giving them incentives in terms of payment of insurance and pursuant to the provisions of Law No. 5 of 2015 in favor of Egyptian products in government contracts. Not less than 20% of its needs for owners of small or micro enterprises.
The law also regulates contracting procedures and derivative contracts. The law regulates contracting procedures for transactions that require the contracting authority to speed up the decision by nature or fluctuations in their prices and economic quantities or covering a future time horizon.
The law also regulates transactions in international financial markets, derivative contracts, futures and futures purchases and related ones, which the previous law did not deal with, in order to keep pace with the relevant economic trends and global standards. The law stipulates that the transition to the electronic system is carried out in accordance with its procedures, with the aim of building a real database that will automatically occur for contracts, thus reducing the time spent on completing the procedures, providing more transparency in dealing and preventing corrupt practices. And that the features of the law include the encouragement of national industry. He stressed the commitment of the authorities to implement Law No. 5 of 2015 regarding the preference of the local product in government contracts and its amendments, in light of the states keenness to support and encourage national industry as the most important economic development axis.
Among the features of the law are the simplification of the procedures. The tender procedures, which do not exceed 300 thousand pounds, have been simplified to be decided through a single committee. The financial limits stipulated by the law have been reviewed in line with the current values ??of money. Make decision,.
The primary insurance rate in the law has been reduced to 1.5% of the estimated value of the operation in order to encourage the business community to deal with the parties in the operations.
The law raises the period of payment of the final insurance and the organization of the mechanisms of the refund of insurance immediately after the end of the guarantee period in order to facilitate procedures and reduce the administrative cost to the business community in order to achieve the objectives of competition and the interests of public bodies at the same time.
That the law is also aimed at rationalizing government spending, where procedures have been developed to assess the annual needs and link them to the preparation of the budget, and procedures for market research and the development of the estimated value on a sound basis.
The standards for adjusting the prices of contracts for business contracting were also standardized through the Ministry of Housing setting up a list of changing items for the different types of projects, as well as organizing procedures for adjusting the volume and quantity of contracts.
The law also aims at raising the efficiency of contract workers in the administrative bodies. The contract workers are required to pass the regular training programs as a condition for their continued practice in this field. This is aimed at improving their performance, improving their skills and developing their skills.
And the activation of the Code of Functional Conduct, where the law required the preparation of a code of conduct for employees of government contracts issued by the Minister of Finance and to be committed, in order to raise the level of performance of workers in this area through the development of performance standards and professional and ethical determinants are maintained and maintained.
And that there are many initiatives, procedures and training courses will be prepared by the Ministry and the Authority and will be in line with the issuance of the executive regulation aims to facilitate the application of this law by employees in the administrative bodies, as well as dealers from the business community of suppliers and contractors, service providers and consultants. These initiatives and courses aim to explain the objectives and content of the law, as well as to enlighten the business community of the new procedures that will enable the establishment of greater transparency, competition and governance.
In addition to finalizing the executive regulations before the end of March, the government also pledged to the International Monetary Fund (IMF) to establish a clear and robust framework for resolving complaints and to apply procurement regulations in a coherent and uniform manner to all government agencies, including central, local and economic authorities.
Government procurement measures pledged by the Government to the Fund also included the prime ministers approval of a reform plan to ensure that state procurement rules are consistent with the new government procurement law by June 15, 2019. These include the establishment of a government procurement portal before the end May 2019 to promote competition, improve public spending and reduce corruption. |
