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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. |