Highlight

Law no.: 167 for 2022 (the “RTA Law”)

Purpose: restructuring the River Transport Authority (the “RTA”)

Issuance date: 19 November 2022

Entry into force: 20 November 2022

Transitional period:

1. Licenses granted for the automated or manual River Units (the “RU”) per the previous law stipulations shall remain valid until expiration.
2. The applicable regulations and ministerial decrees shall remain enforceable until the issuance of the executive regulations.

The RTA Law replaces the former entity Inland Water Transport Authority (the “IWTA”) and all internal navigation administrative units competent in all governorates by the newly established RTA, which shall be qualified to apply the laws regulating the internal navigation, marinas and mooring in inland waters; issuing licenses for manual RU and fixed floating boats; and issuing all sorts of licenses for Nile River ports, mooring, quays and docks.

The RTA Law defines RU as “any floating facility, whether automated or not, floating or stable, in the inland water”. In addition, the RTA Law stipulates an exhaustive list of RU types as follows:

1. The automated RU with an engine;
2. The non-automated RU without engine;
3. The RU is fixed in a marina with an anchor or rope;
4. RU for passengers’ transport as public or private service;
5. Tourism RU is licensed to engage in tourism activity such as floating hotels and fixed floating restaurants;
6. Public and private ferries; and
7. RU for goods transportation.

Main Provisions

1. RTA Competencies:
   1. The RTA Law stipulates that the RTA is a public entity with a legal personality and is subject to the Minster of Transportation. The RTA’s mandate includes developing the national economy by improving the IWTA as a public utility, ensuring the best exploitation based on correct technical and economic criteria.
   2. The RTA Law provided the RTA’s competencies which include, inter alia, the following:
      1. Applying internal navigation laws and regulations;
      2. Setting public policies for river transport utility and all the relevant industrial businesses to adapt to development requirements in all sectors, accrediting all necessary projects and programs;
      3. Providing the technical criteria and requirements for the regulation of internal navigation and fixing the related fees;
      4. Managing, operating and maintaining navigational roads and locks in cooperation with the Ministry of Water Resources and Irrigation;
      5. Supervising and monitoring all River Transport Projects to ensure compliance with technical criteria, requirements, and specifications;
      6. Issuing all licenses and authorizations for moorings, regulating its establishment, operation and management. Also, issuing licenses for engaging passengers or goods transportation activities with all its types and containers; and
      7. Establishing joint-stock companies solely or with other partners after the approval of the Ministry of Defense and Cabinet of Ministers (the “CoM”) for the purpose of establishing, managing, operating, maintaining, exploiting the moorings, locks of the RTA and all matters related to river transportation.
2. Competencies and Prerogatives of the RTA Board of Directors:Firstly, the RTA Law stipulates the composition of the Board of Directors (the “BoD”) of the RTA, whereby it includes representatives of the Ministry of Defense, Ministry of Interior, Ministry of Water Resources and Irrigation, Ministry of Urban Development, Ministry of Environment, Ministry of Health and Population, Ministry of Tourism and Antiquities, and Ministry of Finance as well as representatives of other national authorities, centres, and other experts.Secondly, the RTA Law provides the BoD competencies and prerogatives in pursuing its objectives and mission, including:
   1. Enter into agreements and undertake all acts in this regard in accordance with law no. 182 of 2018 regulating Public Entity Contracts.
   2. Licensing the establishment, management, operation, and maintenance of ports, moorings, and docks on the Nile River and determining utilizing the same to trade goods and facilities. The RTA also determines any exemptions in this regard.

   Thirdly, the RTA law stipulates the competencies of the Chairman of the RTA.

3. Fees and Licenses Exempted EntitiesMoorings, ports, or docks owned by the Ministry of Defense or any service or security public entity shall be exempted from all licensing procedures or fees.

Important Stipulations

1. It is worth mentioning that the RTA Law stipulates that - to facilitate the licenses obtaining process- that the Administrative Unit shall be competent to proceed with obtaining and accomplishing all needed approvals from competent authorities necessary to acquire the licenses and navigational authorizations issued by the RTA.
2. Further, the Ministry of Tourism shall issue licenses for Hotels and Tourism. However, licensing its navigation or mooring as a river floating unit shall be subject to the RTA’s competence.
3. Also, a list of fees was provided for the following services:
   1. Inspection fees for RU bodies;
   2. Destruction fees;
   3. Construction fees of ports and mooring, as well as the mooring fees due on tourism RU; and
   4. Technical consultation fees.

The competent minister will decide the criteria and requirements of fee categories. Noting that the fees shall be paid by one of the methods provided by the law regulating the use of Cashless Payment Methods no. 18 of 2019.

Public Utilities Concession

The BoD of the RTA may grant public utility concession to Egyptian or foreign investors, whether natural or legal persons, with the aim of building, managing, operating or maintaining ports, docks, and moorings on the Nile after obtaining CoM’s approval following the procedures provided in the public entities’ contracting law, and ensuring the following:

1. The determination of technical and financial supervising and monitoring means to ensure the sustainability of the utility and the preservation of the port, dock, and mooring during the concession period,
2. The abiding to laws and regulations regulating ports, moorings and quays; and
3. The transferring of all facilities to the state by the end of the concession is in good condition and without any remuneration.

The concession duration cannot be less than 5 (five) years and cannot exceed 15 (fifteen) years.

Finally, the CoM can grant and fix all the concession’s terms and conditions. However, the approval of the Ministry of Defense is required for the ports’ location.