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B-188514 1 (1977-04-05)

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                           4THE  COMPTROLLLr  Pt' taRL.
DECISION .ma uTHUITL. sTArms
                a                HNWAUHINGT... D.C. 054P3


FILE:


DATE:  April 5, 1977


3-188514


   MATTER OF   :  Allis-Chalmers Corporation


   DIGEBT:

     Procurement by Government of Egypt, using funds borrowad
     from Agency for International Development, is neither
     Federal procurement nor procurement involving Federal grant
     funds and is not, therefore, subject to review by GAO.

     Allis-Chalmers Corporation protests any award under an invitation
for bids issued pursuant to an Agency for International Development
(AID) loan agreement for the Greater Cairo Water Supply Boosting
Station No. 2. AID has informally advised our office that the funds
involved are exclusively those of the Egyptian Government, obtained
through a loan from AID, repayable with intereot.

     Since the protested procurement involves neithar a procurement
by or fur an agency of the Federal Government, nor s procurement
by a Federal grantee, our Office will not consider the protest.
Central Construction, Inc., B-187699, February 23, 1977, 77-1 CPD
130; B-169755, October 6, 1970; B-169468, May 27, 1970; B-168809,
March 17, 1970.






                                    Paul G. Dembling
                                    General Counsel


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