Construction companies working on social housing projects threatened to stop working on projects following the liberalisation of the exchange rate due to price increases in building materials and transportation costs.
Construction companies submitted requests to the Ministry of Housing calling for the need to increase the value of the contracts signed with the ministry on the implementation of social housing projects to cope with price increases resulting from the flotation.
The companies notified the ministry that they would freeze their work in various sites in social housing projects until the ministry amends those contracts.
The prices that were set when the contracts were signed increased after the flotation of the Egyptian pound. Therefore, construction companies demanded the ministry pay and make up for the additional increase in prices since signing the contract in order to keep up with price increases during construction.
A source told Daily News Egypt that the Ministry of Housing has studied the demands of those construction companies.
The source said that the ministry is considering an increase in the value of a social housing unit by EGP 20,000, to reach EGP 155,000 instead of EGP 135,000.
The source pointed out that the anticipated increase will be limited to new tenders, which will be offered in the coming phases of the social housing project.