IDA Officially accepts Arabian Cement’s payment proposal

IDA Officially accepts Arabian Cement’s payment proposal
Published: 17 November 2011

Egypt’s Arabian Cement Company (ACC), which had recently held a press conference to discuss its issues regarding their local and international legal cases related to the Government of Egypt, has just announced that they have reached an agreement with the Egyptian Industrial Development Authority.

ACC had requested to pay EGP 8m per month until a verdict is issued in their local case at the State Council Administrative Court. The request was presented to the IDA Board of Directors and the decision was issued approving the company’s request.

"This is a great step forward in the mitigation of our dispute with the GoE. For years, we have been attempting to solve our issues with the GoE without any success. At long last now and thanks to IDA’s new management team, and specifically Gen. Ismail Nagdy, Chairman of IDA, we have reached a solution." stated Jose Magrina, ACC CEO.

ACC ’s legal issues began in 2006 when the company first filed for the operations license, which was not awarded to them because at the time industry law dictated that the license was not needed. In 2007, after the construction of the factory was finished, a tender for operation licenses was held and ACC was not allowed to participate and was forced to abide by the results of the tender retroactively. Such a decision goes against fair competition, as new comers have to pay huge licenses fees that already established companies are not obliged to pay.

ACC has provided the IDA with a payable cheque for the value of the two installments for October and November 2011. The company is currently waiting for the IDA to inform the competent entities to enforce the commitment reached with the IDA.

Source: Islamic Finance News