311017_CESMED Funding_Mechanisms_Final

4. Municipality Funding Guidelines for Algeria
This chapter summarises the national mechanism for funding energy projects in Algeria, and
elaborates the necessary steps for Algerian municipalities to secure funding for preparation of
their SEAPs, as well as for the subsequent implementation of actions from these SEAPs.
Furthermore, it elaborates the necessary steps for Algerian national authorities to secure
funding for municipal energy projects. The chapter builds upon the 2 initially prepared reports
by CES-MED in its first phase for the preparation 10 and funding 11 of SEAPs and municipal energy
projects in Algeria.
4.1. Context
Algeria is still not a fully free market economy. It is currently forbidden for any public
organisation (including municipalities) to engage in international loan agreements. IFIs are
present or active in Algeria only to a very limited extent. Furthermore, being an upper middle
income country, Algeria generally attracts less priority from IFIs. It is noted that the present
CES-MED project is the only energy-focused activity currently taking place in Algerian
municipalities.
A National Coordination Group (NCG) has been formed by the Ministry of Foreign Affairs,
which coordinates all public-sector interactions with international bodies, in order to monitor
and support the present CES-MED project. This Coordination Group comprises the following
parties:
• National Agency for the Promotion and Rationalisation of Energy Use (APRUE),
operating under the Ministry of Energy and Mining, which acts as the Focal Point of
the CES-MED project;
• Ministry of Foreign Affairs;
• Ministry of the Interior and Local Communities;
• Department of Energy, operating under the Ministry of Energy and Mining;
• Department of the Environment, operating under the Ministry of Land-use Planning
and Environment.
Furthermore, a primary category of actors has been identified to be eligible for CoM supporters
and coordinators in Algeria, comprising institutions strongly and directly concerned, already
informed and sensitised on energy issues at the local level and on the CoM approach. These
can potentially support the CoM, as its principles converge with their strategy for the reduction
of energy consumption, penetration of renewable energies and overall sustainable
development. They comprise:
10
Actions Nationales Recommandées pour l’Energie Durable et la Viabilité Urbaine en Algérie, current
EU-financed CES-MED project, June 2015
11
Analyse des sources de financements de l’efficacité énergétique et des énergies renouvelables dans
les collectivités locales en Algérie, current EU-financed CES-MED project, December 2014
This project is funded by the European Union and is implemented by a Human Dynamics Consortium
18