ON MONDAY, the overwhelming majority of the ruling National Democratic Party (NDP) in the People's Assembly -- Egypt's lower house of parliament -- approved a law on "private sector participation in implementing infrastructure projects". The law, generally known as the public-private partnership (PPP) law, aims at bringing the private sector onboard in large infrastructure projects.

As many as 94 opposition and independent deputies strongly objected to the law, charging that, "It opens the door wide for corruption and shady practices and helps foreigners infiltrate strategic national security projects."

Opposition and independent MPs tried their best to amend some articles of the law, "so as not to allow foreigners tap strategic national projects." Taher Hozayen, a member of the Liberal-oriented Wafd Party, proposed that the first article of the law be amended to state that joint-stock companies established under the PPP law should be exclusively owned by Egyptians and that their boards be controlled by Egyptians.

"We ask that at least 75 per cent of the shares of these companies be owned by Egyptians so as not to allow foreigners to control such companies," Hozayen said.

The minister of state for legal and parliamentary affairs rejected Hozayen's request, insisting that it is important that the law offers as many facilities as possible to foreign investors in the field of infrastructure projects, including setting up joint-stock companies.

Ruling party MPs, led by Ahmed Ezz, chairman of the parliament's Budget Committee, underlined that the PPP law aims at modernising Egypt's infrastructure and improving public services, making use of foreign experience and world class technology and know-how. Ezz argued that the 39-article PPP law would relieve the government of the financial burden of giant infrastructure projects.

Al Ahram Weekly