Egypt- PPP law secures private sector's dues: Fayyad| MENAFN.COM

Sunday, 29 January 2023 04:50 GMT

Egypt- PPP law secures private sector's dues: Fayyad

(MENAFN- Daily News Egypt) Despite the private sector's loss of confidence in the government, it will not affect implementing private-public partnership (PPP) projects with the government, Managing Director and CEO of Integrated Systems Mokbel Fayyad said.

The private sector has been avoiding working with the government in joint ventures due to late payments the Ministry of Communications owes the private sector of about EGP 100m since 2011.

These dues accumulate due to technical problems in implementing projects, as well as the fear of officials taking responsibility for the projects. However, most of the problems of this period have been resolved, added Fayyad, who is also and Chairman of the Integrated Solutions Group in Eitesal Association.

The amended law governing partnership between the government and the private sector secures the private sector's dues and the administration for projects it is given to implement for specified periods. International companies applied to implement the projects for the mechanisation of the commercial registry and real estate offices.

Fayyad revealed the local Integrated Systems coalition will take part in the tender for the implementation of the projects. The result of the tender will be announced on 6 and 7 December. "Raya's exit of the coalition did not affect it," he said.

Raya Holding Company decided to exit the Integrated Systems coalition, which has taken part in the government tender with investments worth EGP 2bn through the PPP scheme. Raya said it exited the coalition because the Ministry of Communications was late in repaying EGP 5bn of the company's dues for constructing the Zewail University building € even though the company had obtained a court order.

A number of Egyptian IT companies formed the Integrated Systems alliance to participate in large projects proposed by the Egyptian government. The alliance aims to create power with financial solvency, enabling it to compete with giant foreign companies. The alliance included the companies Giza Systems, Summit Holding, Prosylab Holding, ACT, TeleTech, and DMC, as well as Raya Holding before it withdrew.

The Ministry of Communications has put forward two projects for partnership with the private sector for mechanising the commercial registry and real estate register offices with EGP 2bn.

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