Egypt sets framework for committee on heritage buildings

The Egyptian Cabinet has issued a decision to develop the registration system and incentive mechanisms for owners of buildings and structures with distinguished architectural styles 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 such buildings.

The resolution defines the assessment criteria and the entity responsible for disbursement, under the provisions of Law 144 of 2006 concerning the Preservation of Architectural Heritage. Owners of distinguished properties, as designated by a decision of the Prime Minister, must submit a compensation application accompanied by an approved technical report detailing planning and construction requirements, land use, and a site inspection report describing the building's floors, setbacks, area and current condition.

The Compensation Assessment Committee meets at least once a month and may consult non-voting experts. 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 experts assess the property's market value at prevailing prices assuming it is not registered as a distinguished heritage building, with compensation set as the average of the two assessments. For restricted properties, compensation is calculated on the average difference between the property's value with and without the restriction.

The committee submits its report to the relevant governorate, which initiates disbursement to the owner in coordination with the Finance Ministry. Owners are 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.