A panel commissioned to oversee the re-sale of the Madinaty property to Talaat Moustafa Group (TMG) will not alter the value of the contract but instead intends to adjust the payment installment plan, according to government sources.
The panel is comprised of housing and finance ministers and legal and parliamentary affairs officials. It is expected to issue its final decree Sunday.
The Madinaty contract is a joint venture between TMG and the Ministry of Housing’s Urban Communities Authority.
The installment adjustments are based on payment duration, which is predicted to range between five and 15 years, according to the government sources. The sources said the government's share in the project is 3500 housing units–worth an estimated LE12 billion according to present rates.
Meanwhile, TMG’s legal advisor Shawqy al-Sayyid said the company’s final position is contingent on the government, saying, however, that the installment adjustments are “possible”. But he added the group will pursue more legal action should the government name a price that does not appeal to the company and its investors.
On 14 September, an Egyptian court annulled the contract signed between TMG and the governmental authority, following a lawsuit by businessman Hamdy al-Fakharany. In the suit, al-Fakharany claimed TMG won a no bid deal with the ministry for the Madinaty property–a direct violation of Egyptian law.
Translated from the Arabic Edition.
