2023-06-24 10:10:03
In Algeria, the Caisse Nationale d’Equipement pour le Développement is an institution of the Algerian Ministry of Finance, responsible for the development and management of PPPs. “Our experience is quite rich, but it is a bit old because it dates from the early 2000s. Between 2010-2015, we tried to move things forward to move to a new stage with an institutional and regulatory framework in the field”, announces Salim Telidji, general manager of the National fund of equipment for the development-Algeria.
How would you describe the Algerian experience with PPPs?
Before answering your question, it is important to specify that the Caisse Nationale d’Equipement pour le Développement is an institution of the Algerian Ministry of Finance, responsible for the development and management of PPPs in Algeria.
So for PPPs in Algeria, we have a fairly rich experience, but which is a bit old because it dates from the early 2000s. Our experience was initiated with seawater desalination stations. This choice is justified by the problems of drinking water supply and at the time, there was an urgency to launch this type of PPP project. It was practically a success and there are several reports from the World Bank that have attested to the success of these types of projects.
Then, between 2010-2015, we tried to move things forward to move to a new stage with an institutional and regulatory framework specific to PPPs. This objective is still valid, given that we are still working on the establishment of a suitable regulatory framework to boost and develop PPPs in Algeria.
Where are you today compared to the rest of the Maghreb countries?
Compared to our friends in the region, North Africans and even Africans, we are a little behind. But the opportunities are not lacking in this sense, because the African and North African experience in this area has enabled us to take advantage of the advances and experiences on the ground in recent years. Hence the importance of our participation in this type of event.
For Algeria, PPPs are today a strategic objective for infrastructure development. In this context, a draft law, which is in the process of being validated, will try to establish the regulatory and institutional framework a little to give a new start to PPPs in Algeria while drawing inspiration from the experiences of the countries of the region.
What are the other reasons for this delay?
This situation can be explained by the lack of knowledge of the private part, but also the public one with regard to the advantages and the obligations in order to opt for PPPs.
In general, in our country, it is necessity that pushes us to put in place regulatory frameworks. That is to say, when there is no need, it is easy to opt for public contracts and we prefer to do it even more. On another level, there is this financial comfort with the income from hydrocarbons.
So we haven’t yet felt the need to go into a somewhat complex mode, which requires a lot of intervention, of experts… For centuries, we have opted for the choice of public markets, rather than in the framework of Public-Private Project.
So you’re saying the perception is there. What will be your next PPP projects?
We opt for projects at the level of local communities, that is to say small projects.
In Algeria, there are many that can be done at the level of local authorities, in partnership with the private sector. There are also structuring projects with regard to the railway or public transport which could also be done in PPP mode. We just have to wait for the approval of the regulatory framework which is in the process of validation to be able to move on to the action and give a real start to PPPs in our country because there is no shortage of ideas and projects, you just have to dare to change.
Today, we have listed all the projects that can be carried out within the framework of PPPs and we have prepared the feasibility studies with the assistance of the African Development Bank. Currently, we are preparing and preparing the ground even before the establishment of the regulatory framework. We also did a lot of training for capacity building in the different sectors, with the ministries, but also with all the PPP players.
Is there still reluctance on the part of the Algerian population for this type of project?
Yes, there was this perception, but it cannot last, because experience has, indeed, shown the opposite. To give you an example, we have experiences of management contracts at water level which have been very successful. So, in the end, it was the quality of service that demonstrated the effectiveness of these types of projects. This means that citizens are convinced of the usefulness and effectiveness of PPPs because they have understood the difference and seen a concrete result on the ground. Through this type of project, we have been able to offer them successful projects where the quality of public service has been significantly improved.
It is true that there is less reluctance on the part of citizens, but it should not be forgotten that even if it is a PPP, these are projects that always pass through the State. Thus, the government is always present and does not let the private sector interact directly with the population.
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