Minister of Public Sector Affairs Ashraf El-Sharkawy demanded that Holding Company for Construction and Development (HCCD) officials complete their construction and housing projects and increase their rates of achievement.
HCCD has 12 subsidies affiliated to the Ministry of Public Sector Affairs, along with seven other holding companies operating in different fields. These companies stand as the investment arm of the state in meeting citizens’ needs, such as markets for subsidised goods.
An official told Daily News Egypt that a meeting between the minister and the governor of the Central Bank of Egypt (CBE) about scheduling debts, worth approximately EGP 40bn, on the holding companies affiliated to the ministry has not yet been scheduled.
The official asserted, however, that the minister sees the scheduling of debts as a good sign that would alleviate burdens on the companies.
On Friday El-Sharkawy met with the board of HCCD, among a series of meetings with the boards of the eight companies, in order to discuss their investments and agree on how to develop the public sector and increase its contribution to the national economy.
The meeting addressed the future vision of the company, which aims to increase return on its investments and the role of subsidies in implementing major national projects, which increases the contribution of these companies to GDP, said a ministry press release on Saturday.
“The performance of the subsidies saw an improvement owing to the restructuring of some of the companies through merging operations in order to make use of their resources, while keeping on their workers,” said HCCD Chairman and Managing Director Mohamed Hegazi.
During a meeting with the leaders of HCCD, the minister demanded that Misr El-Gedida Housing and Development, Maadi Company for Development and Reconstruction, and El Nasr Housing and Construction, affiliated with HCCD, complete their projects to push the economy forward.
El-Sharkawy stressed the necessity of developing the marketing policy of the projects that are currently being implemented or are expected to be carried out by HCCD subsidiaries. In addition, he said the elements of cost and return must be considered when making investment decisions. Moreover, he addressed achieving economic and social return through company investment.
Seeking to achieve the optimal use of the assets of these companies, the minister demanded the leaders of HCCD develop a plan to make use of the unused assets, along with diversifying investments to reduce risks, in light of Public Business Sector Law No. 203/1991 that regulates the work of the ministry.
El-Sharkawy entrusted Hegazi with following governance rules and activating the committees responsible for investment and risks, in line with international principles.