A question of faith
Fighting for unity


 
The master plan
By any means possible



 

Crisis and opportunity


 
Communications investors

Selling the Sahara?



 

Progressive bankers



 

Holding pattern



 

An ocean of prospects
Searching for Algeria



   
 

Dr. Amar Ghoul, the Minister of Public Works, is adamant that Algeria’s investment objectives for infrastructure be realized, and is pushing for increased joint-financing and public-private partnerships. He talks to Arab Communication Consult about Algeria’s ambitious plans for infrastructure development. .

 

The public works sector receives the largest slice of the government’s 2001-2004 $7 billion expenditure program. Why the priority on public works?
The public works sector is the base infrastructure of the economy; it is a highly strategic sector and a socio-economic development factor, and it currently constitutes one of the drivers of economic growth in Algeria. Activity increases and diversifies, and a sustainable policy encouraging large-scale projects emerges.
A key example is the realization and operation of the East-West highway, which remains one of the Government’s main objectives and represents a genuine opportunity for investors. In addition, there is still enormous potential for investors in upcoming projects. There is road, airport, and port infrastructure, both upstream and downstream (aggregate, asphalt, and derivatives industries; maritime operation; equipment). There are partnership opportunities for integrated projects and human resources requirements and their management structures, including training and modernization.
It is clear that the world economy is changing in ways that requires the greater involvement of the private sector. Partnering with the private sector is an essential driver in the introduction of performance and technical innovations. It has a major role to play. The private sector encourages, without a doubt, the creation of the appropriate climate and conditions in terms of quality and reduced costs.
Our sector is a large market in an open and free economy. Starting from here, operators and partners, whether private, national, or foreign, should invest and get involved in the various infrastructure-related activities.

What are the obstacles to financing large-scale operations in Algeria?
The problem of financing large-scale infrastructure projects is not specific to Algeria; it has always been at the heart of worldwide debate. The attention paid to the vital public works sector, coupled with the financing means mobilized to boost the economy will certainly give a new emphasis to our sector.
However, and despite the expected return of economic growth, the recurrent question of financing remains the same and justifies the necessity of diversifying financing sources, in particular, for the East-West highway.
In this respect, several financing alternatives are being considered, in particular:
• Ensuring the consistent supply of money through the creation of special funds for highways. Such a provision should be included in a new finance law.
• Co-financing between the State and traditional financial backers. Due to the high profitability of the highway project, financial backers have always been available.
• Granting concessions for highway sections. In this case, the sector is actively working to offer the most attractive conditions in order to optimize the concession system as soon as possible.
Within the scope of this new approach, the sector will also work on the implementation of new financing mechanisms intended to maintain and preserve existing structures (roads, ports, airports), which are at the heart of our concerns.

What is your opinion about Algeria’s role in regional integration, especially with regard to the symbolic function of the Trans-Maghreb highway?
Algeria has always been a pioneer of regional integration strategies in its relationships with sub-Saharan countries. It focused all of its efforts on the completion of the Trans-Saharan road, which remains extremely important for closer contacts between the people of the region.
At the level of the Maghreb, Algeria has always championed the idea of the Maghreb Arab Union (UMA). As such, many of our infrastructure strategies are aimed at strengthening this union. At the heart of these efforts is the Trans-Maghreb Highway, baptized the Highway of the Union of Maghreb Countries.
This project will constitute, in the long run, the cornerstone of the Maghreb region and will play a fundamental role in the promotion of economic links between Maghreb countries and with the rest of the African continent, thanks to its connections to other trans-African roads.
Despite the investment size and the financial difficulties it involves, the progress we have made on this project reflects the interests of the different UMA countries. For Algeria, such a project is a necessity if we are to answer the aspirations of the inhabitants of the region. With the advent of the Internet – this fabulous development of information transport – one might have feared a possible lessening of needs in terms of transport of goods and persons, but the contrary tends to occur – the democratization of communications via the World Wide Web contributes to the increased movement of goods and people.

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