Several Egyptian contractor companies will form alliances with local and foreign companies to implement major national projects such as the development of the Suez Canal area and the new Administrative Capital.
This came during the 2016 Egypt Builders Conference Tuesday and Wednesday, where attendees discussed the ability of Egyptian contractors to implement the proposed national projects in accordance with the set time schedule and required standards. They also tackled the possibility of using foreign companies to implement part of these projects.
The conference sessions discussed forming a unified database of all proposed projects in the Arab and African markets, as well as setting up an Arab company for contractors to exchange and rent equipment used in construction in the next period.
Chairman of Arab Contractors Company Mohsen Salah said the alliance of Egyptian contractor companies for the implementation of national projects is the best way to compete with major international companies.
The Egyptian market will see a number of mega projects during the current period in line the international standards, which impose a challenge on all operating companies to implement them in accordance with the required specifications.
Salah pointed out that an alliance was launched between the Arab Contractors Company and Orascom Construction Industries (OCI) for the implementation of the Suez Canal area development projects. Another alliance was formed between the companies of Arab Contractors, EGYCO, and El Mqawlat El Masrya-Mokhtar Ibrahim to implement the new Toshka project, also known as the New Valley project.
According to Salah, these alliances will accelerate the completion of these national projects allowing them to be finished in one third of the initially expected time. He said the digging of six tunnels in the Suez Canal required forming several alliances in Port Said and Ismailia governorates.
He revealed the possibility of forming other subcontracting alliances with British and Italian companies to benefit from their experience.
Other means adopted by contractors to speed up progress included dividing the work between them, as in the East Port Said Port project, which included 10 contractor companies.
Salah called on Egyptian construction companies to enter the African market to compete with Chinese and Turkish companies, which provide a low-cost workforce.
Vice-President of Talaat Moustafa Group Holdings (TMG) Ahmed Afify said the company plans to launch an initiative in cooperation with the Egyptian Federation for Construction and Building Contractors, to train and rehabilitate small contractors, by using the company’s training centres.
The Central Bank of Egypt (CBE) provided financing to small projects with 5% interest rate to solve their financial obstacles, so training and rehabilitation are necessary for the advancement of the sector, Afify said.
TMG intends to cooperate with local banks to train contractors on getting funds and opening letters of guarantee. The company is seeking to participate in a number of existing projects such as the new Administrative Capital and the new El Alamein village, according to Afify.
The alliances between local and foreign companies will speed up the implementation of the national projects, said deputy chairman of Arab Contractors Union and CEO of Saudi Egyptian Construction Company (SECON) Darwish Hassanein.
Chairman of Redcon Construction Tarek El Gamal urged Egyptian companies to develop their equipment and human resources to expand in different markets.