By Mohamed Alaa El Din
Raya Holding decided to withdraw from the alliance of Egyptian companies, Integrated Systems, which had decided to participate in the two projects proposed by the Ministry of Communications to mechanise the Commercial Register and Notary Offices with investments of EGP 2bn through the public–private partnership system (PPP).
Chairman and CEO of Raya Holding Medhat Khalil said he does not intend to participate in executing any projects in cooperation with the government in this period since it did not commit to the dates of executing the project or paying the financial dues to the private sector.
Khalil said they withdrew from the Integrated Systems alliance, which was set to participate in the two tenders proposed by the Ministry of Communications to digitise the Commercial Register and Notary Offices. The company was not able to obtain financial dues worth EGP 5m from the Ministry of Communications for a project implemented in 2010 related to establishing the smart building of Nile University.
Khalil acquired a court ruling to obtain the value of implementing the project. However, they have not been able to implement it until now: “I was not able to obtain dues worth EGP 5m from five years ago; how can I invest EGP 100m with the government after that?”
A number of Egyptian IT companies started to form an 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, including Raya Holding before it withdrew.