Members of the Basra Provincial Council announced on Saturday that the council is in the process of establishing a joint stock company to carry out the various projects by contracting with the local government in the province and stressed the existence of challenges and legal obstacles facing the project.
“The council is still studying the possibility of establishing a joint stock company, which the local government owns a share of its shares to carry out the work of contracting, as well as investment in certain sectors such as industry and agriculture,” said the head of the Planning and Follow-up Committee in the Council Nashaat al-Mansouri. Similar to Egypt, the UAE, China and Malaysia, the provincial council completed the first reading of the company’s founding law. ”
Al-Mansouri pointed out that “the project to establish the company aims to enhance the resources of Basra and invest capital Mukazza in the people,” adding that “the project faces obstacles and challenges of legislative, legal and administrative, as decentralization is just a dream has not been achieved, and regulators do not recognize domestic legislation, Federal laws “.
Mansouri pointed out that “the government instructions for the transfer of projects close the doors to new companies, where the instructions require that the company has made profits during the past three years.”
For her part, the head of the reconstruction and development committee in the provincial council Zahra al-Bajari said in an interview with Alsumaria News, “The draft law establishing the company is not unlikely to vote and pass it during the current year,” explaining that “the provincial law No. 21 of 2008 amends the right to local governments In the provinces by establishing companies of this kind. ”
Al-Bijari confirmed that “the company expected to be relied on in the implementation of large projects, and as the government owns a share of its shares, it is supposed to pay more attention and attention to infrastructure projects to which it is referred.”
It is noteworthy that Basra includes thousands of local companies, and not a few of those companies are specialized in construction contracting, and most of them acquired over the past years a reputation is not good because of the lack of mastery of the majority of projects implemented by contracting with the Office of the province.