Contractors in Egypt have asked the government to extend the execution deadline for projects under construction to avert losses caused by a surge in the prices of building materials and services due to the war in Ukraine.
The Egyptian Federation For Construction & Building Contractors, which groups most of the Arab country’s construction firms, said the extension is needed to ensure contractors would be able to complete projects awarded to them before the war.
“We appeal for the government to act now to ensure balance in the domestic construction market and deal with the growing challenges as a result of the war in Ukraine,” said Wisam Tayel, a board member in the Federation.
“We suggest that the government shall agree to extend deadlines for the execution of projects in such exceptional circumstances…such a decision will create a sort of relative calm in the investment and construction market…contractors and developers need to catch their breath and to absorb the big increases in the prices of services and building materials as well as shipping rates,” Tayel said, quoted by Addustoor and other Egyptian newspapers.
Tayel noted that strategic stocks of building materials do not match the sharp rise in demand, adding that this has contributed to the price surge. “We want the government to act now to support contractors and developers to enable them to avert losses.”
(Writing by Nadim Kawach; Editing by Anoop Menon)