By Mohammed Alaa Eldin
The Ministry of Communications and Information Technology is proposing an initial tender of a mechanisation project for notarisation offices using the public–private partnership (PPP) system, at an estimated cost of EGP 650m.
Several workers in the communications and information technology (ICT) sector consider the proposal of these mega projects through the PPP system a revival for the market. In the meantime, nine major local companies are taking the legal procedures to establish a new company with which they will work in order to take the challenge in these projects.
Magda El-Sabee, CEO of Summit Group, believes that the Ministry’s proposal of these projects recently led to a revival in the ICT, despite their small size. The timing of projects proposals is behind this revival.
Applying the PPP system for the implementation of these mega projects will positively contribute in providing a suitable investment climate in the sector, according to El-Sabee. It is said that the cabinet agreed to propose the project with the Ministry of Communications and Information Technology through the PPP system.
The ministry is expected to propose the project of mechanisation over 700 notarisation offices through the PPP system using Law 67/2010.
El-Sabee added that such mega projects will benefit both small and big companies for their participation in the project. She pointed to the importance of establishing such projects for the coming periods through several phases. This would allow major Egyptian companies to challenge international companies like Microsoft and Oracle to implement the project, not just be partners with foreign companies.
Engineer Mokbel Fayyad, chairman of the Integrated Solutions Group in Eitesal Association, said that the Ministry of Communications and Information Technology has prepared six mega projects to be raised in collaboration with the association through PPP. One of those projects’ initial tenders will be raised in early January with a total cost of EGP 650m.
Fayyad added that the implementation of mega projects using the PPP system reduces the government’s financial burdens, where financing is handled by private sector companies. He said the local alliance of IT companies has started the procedures to establish a company holding the alliance’s name. That company will participate in mega projects raised by the Ministry of Communications and Information Technology and its establishment is expected to be finished within a month.
The nine major local companies in the ICT field have announced the formation of an all-Egyptian alliance to compete within the field of mega projects implementation by the Ministry through PPP. Some of the most prominent companies in the alliance are Prosylab Holding, Raya, Giza System and Act.
Engineer Yahya Tharwat, chairman of Link Egypt, considers the PPP system a solution for the financing of national projects, especially with current economic conditions. He demanded that mechanisms would be developed to oblige companies implementing projects to stick to a maximum tariff through which the service will be delivered, sparing citizens them from more burdens.