Q4-2023 Ciarb Egypt Branch News
Fourth Branch Committee Meeting 2023
The fourth Committee Meeting of the Ciarb Egypt Branch was held virtually on 19 December 2023. Members approved the agenda of the meeting and the minutes of the latest Committee meeting as recorded on 17 September 2023. The Branch Chair, Dr. Ismail Selim, presented a brief on the virtual Fellowship peer interviews conducted by the Branch Patron and Branch Chair in November and December 2023, brief on Ciarb Branch Chair meetings held on 27-28 September 2023 and 20-22 November 2023, and brief on CIArb Branch Treasurers' Meetings held on 22-23 September 2023 and 29 November 2023. Members discussed the latest updates regarding Membership and Branch future events. The Branch next Committee meeting and AGM were scheduled for 23 April 2024.
Ciarb Branch Chair Induction Meeting
On 6 September 2023, Dr. Ismail Selim, Branch Chair, represented the Branch at the virtual Ciarb Branch Chair Induction Meeting. The meeting aimed at providing information and guidance on the new role of Branch chair and other governance related issues. Discussions focused on Ciarb strategy and annual plan, Ciarb Governance review and data protection, Branch Model Rules, IT road map, finance and reporting, and education and Training.
CIArb Branch Chairs Meeting
Dr. Ismail Selim represented the Branch at the virtual CIArb Branch Chairs meeting with the CIArb Senior Management Team held on 21 November 2023. Discussions at the Chairs meeting held on 27-28 September and on 21 November 2023 focused on Ciarb Governance review, updated standard to obtain Chartered Arbitrator status (C.Arb), subscription fees for 2024 and revocations and renewals, Branch Planning 2024 including education and training and IT Digital implementation, sharing a Whistleblowing Awareness Survey and the perspective Congress scheduled in 2025.
CIArb Branch Treasurers' Meeting
Dr. Mohamed Hafez, Branch Treasurer, represented the Branch at the CIArb Branch Treasurers' Meeting held on 22-23 September and 29 November 2023. Discussions focused on Branch Financial Reporting, Branch Funding Model, IT update, and membership update. Dr. Hafez reported that Egypt Branch has duly submitted the Branch Plan and Budget 2024 and received approval.
Branch Events
Branch Seminar on Egypt Sovereign Rating – Caa1 with a Stable Outlook by Moody’s
On 10 October 2023 , the Egypt Branch organized jointly with CRCICA a seminar on “Egypt Sovereign Rating – Caa1 with a Stable Outlook by Moody’s”, held at CRCICA (the seat of the Branch). The speaker was Prof. Dr. Mohamed Amr Hassanein, Professor of Construction Management at the American University in Cairo at the Department of Construction Engineering, the moderator was Ambassador Mostafa Kamal, former Assistant Minister of Foreign Affairs and Member of the Egypt Branch Committee.
Prof. Dr. Amr Hassanein explained Moody’s rating for Egypt and its development over the years since the initial rating assigned by Moody’s in 1997 up to date. He demonstrated the four-corner stones of Moody’s sovereign rating methodology, with emphasis on the institutions and governance strength of the Egyptian government, mainly capturing the government effectiveness, control of corruption and rule of law, quality of legislative and executive institutions, as well as voice and accountability indicators. The discussion was heated with the active participation of the high-profile audience and how such factors, as well as other rating factors affected Egypt’s sovereign rating.
To watch the video of the seminar, please click here:
Seminar on: Compensation: Redress or Satisfaction? Between Aristotelian Philosophy and Contemporary Legal Thought
On 1 November 2023 , the Egypt Branch organized jointly with CRCICA a seminar on "Compensation: Redress or Satisfaction? Between Aristotelian Philosophy and Contemporary Legal Thought” held at CRCICA (the seat of the Branch). The speaker was Prof. Dr Mohamed Hossam Lotfy, Professor and former Head of the Civil Law Department at Beni Suef University's Faculty of Law, Lawyer at the Court of Cassation, and "UNESCO" Chair Professor for Copyright and Related Rights. Ambassador Mohamed Mostafa Kamal, former Assistant Minister of Foreign Affairs and Member of the Egypt Branch Committee moderated the event.
The seminar addressed the growing trend advocating the use of Aristotle's philosophy to adopt "satisfaction" instead of "compensation," both of which govern the concept of "damages." The latter concept is prevalent in countries with a Latin legal culture. The event presented the principles, explore contrasting concepts, and anticipate the future through legal applications.
To watch the video of the seminar, please click here:
Seminar on: FIDIC 2017 Contracts as now amended – What it all means in practice
On 21 November 2023 , the Egypt Branch organized jointly with CRCICA a seminar on " FIDIC 2017 Contracts as now amended – What it all means in practice” held at CRCICA (the seat of the Branch). The speaker was Dr. Hamish Lal, Ranked Band 1 in both Construction and Band 1 in International Construction Arbitration in Chambers & Partners UK, Solicitor-Advocate in London (All Higher Courts). The moderator was Prof. Dr. Mohamed Abdel Wahab, Professor of International Arbitration, Private International Law and English Contract Law, Cairo University, Founding Partner& Head of International Arbitration, Construction and Energy Groups at Zulficar & Partners Law Firm. The Co-moderator was Dr. Ismail Selim, Chairman of Ciarb Egypt Branch and Director of the CRCICA.
The Seminar unpacked and explored the key changes made by FIDIC in November 2022 when it launched "The Conditions of Contract for Construction Second Edition 2017, reprinted 2022 with amendments". Dr Lal looked at the amended definition of a Claim (to expressly exclude certain matters to be either agreed by the Parties or to be determined by the Engineer); the amended definition of Dispute; and how the DAAB would be appointed in the absence of Party Agreement.
Dr Lal approached the practical impact of the amendments. For example, we now have a clearer “two-track” process where the various matters to be agreed or determined which are listed in Sub-Clause 3.7 (a), do NOT need to follow Clause 20. Only Claims need to follow Clause 20. This Clause 20 as Readers will know includes the often contested ‘strict time bar provision’ centred around late notification – an issue addressed in the recent DIFC Court of Appeal Case of Panther Real Estate Development LLC v Modern Executive Systems Contracting LLC CA 016/2022. Dr Lal also explained FIDIC’s desire to have a bright clear red line setting the path between specific Claim – Engineer Determination – DAAB Decision – Arbitration. He explained that there was a correlation to the Hong Kong Court of Appeal in Maeda Corporation and China State Construction Engineering (Hong Kong) Limited v Bauer Hong Kong Limited [2020] HKCA 830; CACV 301/2019 (16 October 2020) which held that: the sub-contractor could not pursue a claim in the arbitration where it had not raised the same specific contractual basis of the claim in its initial ‘time-bar’ notice as required by the terms of the subcontract.
A demonstration of typical claims that arise on Projects was designed to show the audience that in practice there is a blurred line between what is a Claim and what it is a matter to be referred to the Engineer for a Determination. Dr Lal queried whether the new amendments over-load the Engineer and perhaps it may be better in practice if Claims went directly to the DAAB. In other words, why have a DAAB if you are not going to make use of it as soon as Claims are ripe. This latter point was also buttressed by the notion that not all Engineers are able to act impartially or fairly.
The audience were very much engaged and very well aware of FIDIC’s Amendments but were very keen on the practical implications. In particular, there was queries around whether one Party can simply refer ‘an issue’ that is not specified to be a “matter to be agreed or determined under Sub-Clause 3.7 (a)”, and which it considers is not a Claim, directly to the DAAB or a Local Court? There was 40 minutes of Q/A which evidences the interest in this topic and the level of mutual interaction between the audience and Dr Hamish Lal. There were many additional comments and observations during the post Seminar refreshments.
The audience were aligned that the practical implications for the Employer, Contractor and Engineer will be significant. Also, that Arbitrators need to be mindful that Arbitrators would see: new legal arguments based on the 2022 Amendments and Guidance – but – relating to disputes under the 1987 and 1999 Forms of Contract. For example, some of the 13 sub-clauses and risks in Red Book were never meant to be subject to the time-bar; the risk of DAAB failure increases the risk of challenges to Arbitrators’ jurisdiction. The current view is that Arbitrators have jurisdiction and the power to assess whether the claim is fully ripe or not. That may change and parties seeking to show a clean line between Claims – Determinations – NODs – Claims in Arbitration, with the opposite side seeking to show the opposite. Attended by participants representing a diversity of business sectors, the audience learned and benefitted from the discussion.
The audience were very much engaged and very well aware of FIDIC’s Amendments but were very keen on the practical implications. In particular, there was queries around whether one Party can simply refer ‘an issue’ that is not specified to be a “matter to be agreed or determined under Sub-Clause 3.7 (a)”, and which it considers is not a Claim, directly to the DAAB or a Local Court? There was 40 minutes of Q/A which evidences the interest in this topic and the level of mutual interaction between the audience and Dr Hamish Lal. There were many additional comments and observations during the post Seminar refreshments.
