311017_CESMED Funding_Mechanisms_Final

For the implementation of an energy project in an Algerian municipality the funding process
passes through the following steps, as detailed in the CES-MED supplementary financing
report for Algeria:
1. Project idea;
2. Study of investment opportunity;
3. Decision making;
4. Adoption of the project and its funding mechanism;
5. Development and approval of the project’s budget;
6. Project implementation, monitoring and evaluation.
All the actors involved (municipality departments, APRUE, banks, FNMEERC, international
donors, APC and EPIC) have a central role to play for the emergence and funding of
municipality projects. They are required to support and facilitate local development through
their contribution to the implementation of energy projects.
4.3. Municipality Funding Guidelines for Preparation of SEAP
The economic market for sustainable energy actions (energy efficiency, penetration of
renewable energy, etc.) has not yet emerged in Algeria, due to the traditionally low and
significantly subsidized price for electricity and fossil fuels. As however electricity prices are
increasing in recent years this may soon change, along with the restriction to engage in
international loan agreements.
Before embarking on the preparation of a SEAP, Algerian municipalities must first be made
aware of the benefits, receive appropriate training, enhance communication and coordination
with their stakeholders, and identify and widely publicise good sustainable energy practices
from their own municipality or other neighboring ones. The Algerian NCG has an important
role to play in promoting this transformation in the municipalities. The NCG is considered most
apt to gather future CoM supporters and to lead the way for the creation of a special unit to
support SEAPs (SSM) and their implementation at all levels. A first agreement was reached to
create an SSM unit in Algeria. It is very important that this is formally established, in order to:
• promote the benefits of sustainable energy actions in municipalities throughout
Algeria;
• design and coordinate the necessary training of municipalities;
• promote the practices of stakeholder communication and coordination in
municipalities;
• identify and widely publicise good sustainable energy practices in municipalities
throughout Algeria;
• support municipalities in formulating and implementing their SEAP, through amassing
a library of relevant publications, data and other useful information customised for
Algeria;
• promote the provision of financial assistance from the Algerian State to municipalities
that have undergone the necessary preparatory actions for developing a SEAP.
This project is funded by the European Union and is implemented by a Human Dynamics Consortium
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