The Talaat Mostafa Group has said that it is ready to negotiate with the Egyptian government to correct procedural flaws in its Madinaty project contract if a court ruling voids the document, but also added that it stands on firm legal ground.
In a statement sent to the board of the Egyptian Stock Exchange, the company said a verdict annulling the contract would be impossible to enforce, due to the high utility costs associated with urban project’s desert location. The company said that the government would be responsible for compensating the project’s residents, as well as its providers and brokers.
The company stated that while the old project contract was annulled by a Supreme Administrative Court ruling in September 2010, the new contract signed two months later was validated by an administrative court in November 2011. A challenge to that new contract is slated for 20 November.
Edited translation from MENA
