Thursday, 31 May 2012
Water Sector in Algeria
Algeria’s $US 285 billion 2010 – 2014 infrastructure investment programme creates a range of opportunities for UK businesses, including in water. The country’s 5 000km distribution network needs upgrades and increasing irrigation is an Algerian government priority.
Algeria is the largest and one of the wealthiest countries in Africa. However, outdated perceptions mean that it is sometimes overlooked by UK companies.
Politically, Algeria remains stable. Historical and cultural factors meant that it did not experience large scale social unrest as many of its neighbours did. Algeria’s violent civil war of the 1990s still marks the population and means that Arab-spring style unrest is very unlikely. However the people do put pressure on the government to provide jobs, housing, healthcare and services.
The Algerian government launched a series of 5 year investment programmes. The most recent, covering 2010 – 2014 is worth US $285 billion, with US $130 billion allocated to finish projects which were launched under the preceding investment plan (2005 – 2009) and the remainder for new projects.
Algeria receives 600 m3 of precipitation per inhabitant per year, and is therefore ‘water poor’ according to the World Bank’s 1000 m3 threshold. Population is 36 million.
Scarcity is mitigated using dams and desalination. Dam capacity is currently 4.1 billion m3, with the ambition to increase this to 7.2 billion m3 by 2014. This will involved the construction of around 65 new dams.The government plans to deliver 5 new desalination plants by the end of 2012.
Currently around 80% of used water is treated and reused for irrigation. That amounts to 600 million m3 per year. The government aims to increase that to 1 billion m3 by 2014.
The water distribution network is around 5 000 km, but most of it is old and in need of modernisation.
National Agency for Dams and Transfers (ANBT) signed preliminary design agreements for two dams due to be delivered in 2016. The first, in Tarzout, will be a 60m tall earth fill with a clay core. The second, in Bouzina, will be 63m tall and BCR type. In both cases Serbian consulting engineers Energoprojekt Hidroinženjering will deliver preliminary designs in 2013, with construction scheduled for completion in 2016.
Getting into the market
Public works contracts are allocated under a tendering system. Tenders are published in Algeria’s official journal (Bulletin Officiel des Marchés de l'Opérateur Public, www.anep.com.dz/bomop/) and are also aggregated by commercial sites, some of which offer services in relation to the tender (such as technical translation).
UKTI also publishes selected tenders on the Business Opportunity website (www.invest.uktradeinvest.gov.uk/export/countries/africa/northafrica/algeria.html) and offers a range of services under the chargeable OMIS system.
Tenders fall into two categories, national and international, with the latter being open to foreign bidders. For large, complex projects there may also be a pre-qualification stage – with potential bidder supplying details of their technical competence before being invited to submit a financial bid. Where a tender is limited to pre-qualified bidders, it will be marked ‘restricted’.
Market intelligence is critical when doing business overseas, and UKTI can provide bespoke market research and support during overseas visits though our chargeable Overseas Market Introduction Service (OMIS).
To commission research or for general advice about the market, get in touch with our specialists in country - or contact your local international trade team.
Marcus Grazette, British Embassy Algiers. Tel: +213 (0) 770 85009 or email: firstname.lastname@example.org.
Kate Roye, UKTI HQ London. Tel: +44 (0) 207 215 4892 or email: email@example.com.
7th Algeria Electricity and Water Expo
Date: 19 – 21 November, 2012
Website address: www.new-fields.com/aew7/
Date: 16 – 19 April, 2013
UKTI runs a range of events for exporters, including seminars in the UK, trade missions to overseas markets and support for attendance at overseas trade shows.