The Egyptian Cabinet issued a decision to develop the registration system and incentive mechanisms for owners of buildings and structures with distinguished architectural styles – which are registered on heritage lists – in accordance with the Law on the Preservation of Heritage Buildings.
The Cabinet approved a draft resolution regulating the work of the committee for assessing compensation resulting from the prohibition of demolition or additions to buildings and structures with distinguished architectural styles.
The resolution also defines the assessment criteria and the entity responsible for disbursement, in accordance with the provisions of Law #144 of 2006 concerning the Preservation of Architectural Heritage.
Compensation Applications:
According to the resolution, the owner of a distinguished property, as designated by a decision of the Prime Minister, must submit a compensation application to the relevant committee.
This application must then be accompanied by an approved technical report detailing the planning and construction requirements of the site and the designated land use, as well as a site inspection report describing the building (number of floors, setbacks, area, and its current condition).
A certified copy of the decision listing the building as a distinguished architectural style, along with its documentation form, must also be included.
Committee’s Working Mechanism:
The Compensation Assessment Committee meets at least once a month and may consult with experts, who do not have voting rights.
It refers completed applications to two experts registered with the Financial Regulatory Authority, selected by the Authority’s Chairman.
In the case of expropriation, the two experts assess the property’s market value at prevailing prices, assuming it is not registered as a distinguished heritage building.
The compensation is the average of the two assessments.
In the case of property restrictions (prohibitions on demolition or additions), the property’s market value is assessed under two conditions: first, assuming it is subject to the restriction, and second, assuming it is not.
The compensation is calculated based on the average difference between the two values at the time of the assessment.
Compensation Disbursement:
The committee then submits its report to the relevant governorate, which then initiates disbursement to the owner in coordination with Finance Ministry.
The owner is notified of the compensation amount by registered mail within two weeks of the decision.
In the case of expropriation, compensation is disbursed in full according to Law #10 of 1990. In the case of restricted ownership (prohibition of demolition or additions), compensation is disbursed in a single payment within six months.
It may be agreed upon to schedule payments in semi-annual installments for a period not exceeding five years, with interests at the Central Bank of Egypt rate.
Compensation may also be provided in kind upon the owner’s request.
The owner has the right to appeal the committee’s decision to the relevant committee within 60 days of being notified of the decision.
Objectives of the Decision:
The decision aims to develop the system for registering heritage buildings and activate the incentives granted to owners.
It also opens the door to a genuine partnership between government entities and owners to prepare studies aimed at revitalizing and developing these buildings, ensuring that registered heritage properties do not become a financial or functional burden on their owners.
Edited translation from Al-Masry Al-Youm
