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CSPs in Algeria
By Yasmina Benmayouf
Why are CSPs necessary?
Favourable political conditions, a competent
public administration, clearly defined
responsibilities and a well-functioning judiciary
system guarantee the good management of
economic and social resources. This can only
be achieved when the principles of governance
are: respect for human rights, transparency
and the effective management of the
Economy.
How have CSPs emerged?
Since gaining independence Algeria has
launched major economic projects. PublicPrivate partnerships were first established in
2004. Since then, this instrument has
expanded and developed in many key sectors.
The National Economic and Social Pact, is a
remarkable progress in terms of partnerships.
The social pact, which came into affect in 2006
facilitates dialogue and consultation between
government and the various economic and
social partners for example unions and
employer organizations.
partnership is a financing contract in which the
public authority uses private providers to
finance equipment providing a public service.
In Algeria the main concern, beyond the
financial benefits of the PPP is to introduce
gradually the notion of efficient public
expenditure. While fiscal reforms are to be
realised gradually short terms aims of PPP’s
are to introduce a higher level of quality in the
service delivery. PPP should also promote
better risk management and increase
productivity.
The Algerian authorities have taken further
steps to encourage the domestic private
capital in their participation in the
construction of a productive and competitive
national economy. As such public private
partnerships are considered mechanisms and
tools to promote investment.
ALGERIA
GDP in mill USD
2009-2013:
210,183
Population
2009-2013:
39,208,194
Doing Business
Index 2013:
154
Corruption
Perception Index
2013:
94
Dialogue frameworks, including the
government-trade union interactions, and the
tripartite dialogues involving businesses,
allowed to establish a sound tradition of
cooperation on economic and social
management of the country.
What do CSPs look like?
Since reforms began in 1999 partnerships have
become integral elements in the overall
structure of the economy. There are three
main forms of public-private partnership
(PPP): the public market, the public service
delegation and the public-private partnership
contract. The contract of public-private
Cross Sector Partnership Case
Sonatrach, a government owned Oil Company,
has partnered with Orascom construction
industries, an Omani multinational, in order to
produce urea fertilizer by refining crude oil.