In a strategic move, the HCCD, under the Ministry of Public Enterprises Sector, has crafted a comprehensive blueprint for the overhaul of its subsidiaries. The initiative targets transitioning from the Public Business Sector Law No. 203 of 1991 to the more contemporary Law No. 159 of 1981.
Insiders revealed to Daily News Egypt that this transformation will encompass 10 companies over three years. This includes a quintet in the contracting realm, a trio in housing and electricity, alongside a design enterprise. Notable mentions are Nasr General Contracting, Egyptian Contracting, and El Nasr Building and Construction.
The completion of this ambitious plan is slated for the month’s end, with subsequent evaluations in June and September to monitor progress.
The restructuring aims to pivot the contracting firms from deficits to profits, primarily by transitioning to Law 159. This shift also entails a revamp of companies with indirect contributions.
In a bid to infuse a private sector ethos, the HCCD will encourage its subsidiaries to either recruit top talent or secure private sector partnerships for enhanced governance.
Officials assert the Holding Company’s dedication to the state’s offerings program, as outlined in the partnership document with the sector.
Post-development and profitability milestones, the HHD’s offering is anticipated next year, involving the divestment of majority shares in select companies, including HHD itself.
In a strategic pivot, the HCCD has decided to retain its 15% interest in Madinat Masr. However, it plans to scale back its stakes in joint ventures like Shams for Housing and Development, and Zahraa Al-Maadi for Development and Investment, by offering majority shares.
