2005 - 2006 - Pinsent Masons Water Yearbook 2012

ALGERIA PART 2: COUNTRY ANALYSIS
Algeria
Service expansion plans
All water and sewerage services, where provided on an organised basis, are provided by the state.
Finance is currently provided by the state, along with World Bank, African Development Bank and the
EIB providing project funding. 92% of the urban population receives piped water but supply is
intermittent, partly due to the poor condition of the networks, with distribution losses estimated at 40%
in 2003. There are 54 wastewater treatment works, with a total PE of 3.7 million, but many of these
are understood to be out of service. Extending sewage treatment to the rest of the population living in
the 13 major cities will cost an estimated US$450 million by 2020 and extending water and sewerage
services to the 1.1 million people living in the 75 secondary towns and cities by 2025 will cost a further
US$2 billion for water and US$4 billion for sewerage and sewage treatment.
Algerienne des Eaux (ADE) is owed DZD25 billion (€293 million) because of irregular payments by
customers and illegal connections. ADE announced in July 2003 that it would install 190,000 water
meters and that it’s long-term plans included handing over management to private companies. The
National Sanitation Office in 2005 observed that current tariffs only cover 10% of operating costs.
The government is to pay for the outstanding costs and to repair eight WWTW's and build 12 new
facilities.
Privatisation prospects
The Algerian government’s Agence Nationale de l’Eau Potable et Industrielle et de l’Assainissement
is seeking to open the water industry to private sector finance and management. By reforming the
sector it hopes to attract both domestic and foreign capital to finance improved water supply,
wastewater collection. PSP will be introduced in stages, from management contracts towards full
concessions as the regulatory climate evolves to be able to manage these contracts. Suez is
currently developing a 5 + 5 year management contract for water and wastewater services for Algiers,
worth US$5-6 million per annum. Approval for the contract is expected by the end of 2005.
Algeria's parliament, the National Peoples Assembly (APN), is examining a new set of water laws to
replace Code 83-17 from 1983. Among the provisions are a new tariff system to cover the actual
costs of renovating and expanding potable water, sewer, and irrigation infrastructure. The code would
also allow public water and sewer services to take on private partners, encourage water-saving
irrigation methods, and give the government more power to regulate water quality and protect areas
with vulnerable ecosystems. It specifies penalties for breaking environmental regulations and creates
"water police" to enforce them. From 2006, Agence National des Barrages (dams), Algerienne des
Eaux (water provision), Agence Nationale de Realisation et de Gestation des Infrastructures
Hydrauliques pour l’Irrigation et le Drainage (drainage) and Office National d’Assainissement
(wastewater treatment) will be combined under a single agency.
Desalination projects and prospects
Facility Capacity (m 3 /day) Cost (US$) Comments
Hamma 200,000 250 million 25 year BOO awarded to GE (USA) &
AEC (Algeria)
Cap Dijnet 100,000 100-140 million DFBO under consideration
El Tarf 50,000 55-60 million DFBO under consideration
Mostagenem 100,000 100-140 million DFBO under consideration
Jijel 50,000 55-60 million DFBO under consideration
GE Infrastructure Water & Process Technologies holds 70% of the operating company for the Hamma
contract, with the Government’s AEC holding the remaining 30%. A similar pattern is expected for
forthcoming awards.
52 Pinsent Masons Water Yearbook 2005 – 2006