In the absence of a ‘PPP unit’, several key actors participate in potential PPP projects in Algeria. The Ministry of Finance grants the budgets and therefore has a crucial role in the PPP decision-making process. In addition, the Commission Nationale des Marchés (National Committee of Transactions, CNM) plays an important role in the management of PPPs. The Caisse Nationale d’Equipement et de Développement (National Fund for Capital and Development) (CNED) is responsible for: increasing the efficiency of public spending; for improving the evaluation, implementation and follow up of large projects; and for diversifying the sources of financing of large projects.
Algeria’s infrastructure sector is heavily reliant on public sector investment, which has discouraged the development of PPP initiatives. Government agencies and state-owned corporations have sufficient funding to procure projects directly, without the need for private sector financing. Regulatory restrictions imposed on private sector investments have also discouraged the development of PPP in the country. The country’s general public procurement law and the Civil Code currently take the place of a PPP law in Algeria. In the absence of a general legal framework, concessions in Algeria are regulated on a sector by sector basis or through project-specific laws. A general PPP law could bring a more uniformed implementation of procurement policies, benefiting both the government and the investors.
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