The 2010-2014 Public Investment Programme
The 2010-2014 Public Investment Programme is planned within the framework of a development strategy that launched in 2001 with the Economic Recovery Programme (PSRE) 2001-2003, followed in the period 2004-2009 by a new development programme called the Economic Growth Support Programme (PSCE).
The objective from a strategic point of view is to provide the country with basic modern infrastructure and make these facilities a prime asset for attracting Foreign Direct Investment (FDI) and encouraging national investments. It is also important to develop human resources in order to strengthen the foundations of sustainable development and economic growth, which remains dependent on public spending. The third objective is to develop production capacities through public investments, particularly those related to industry and agriculture.
The 2010-2014 public investment programme was adopted by the Council of Ministers on 24 May 2010. It provides for a total investment of 21,214 billion dinars, that is 286 billion dollars.
The money is allocated as follows:
- 9,700 billion dinars (130 billion dollars) for the completion of major projects;
- 11,534 billion dinars (156 billion dollars) for the launch of new projects.
The programme is based on six main areas: human development, the construction of basic infrastructure, the improvement of public services, economic development, the fight against unemployment, scientific research and new communication technologies. In fact, all of the country’s sectors of socio-economic activity are included in the programme.
I. Human development
Forty percent of the programme’s funds will go to human development and be divided between education, health and housing, and the fight against unemployment, as well as the drinking-water supply and connections to electricity and natural gas supply systems.
Thus, the National Education sector will receive 852 billion dinars to build 3,000 primary schools, 1,000 colleges, 850 secondary schools, and 2,000 residential schools and cafeterias.
The Higher Education sector will be allocated 868 billion dollars in order to provide:
- 322,000 university teaching posts;
- 161,000 student accommodation places;
- 22 campus restaurants.
These resources are in addition to those currently being made available, which brings the total to 600,000 teaching posts, 360, 000 student beds and 44 campus restaurants.
The education and professional training sector will receive its share of the package 178 billion dinars in order to set up:
- 27 institutes for vocational education (IEP);
- 104 vocational training and apprenticeship centres (CFPA);
- 58 residential schools;
- 134 extensions;
- 21 semi-residential schools;
- 39 libraries;
- 1,900 training centres;
- 160,000 training positions for 221 National Institutes for Specialised Vocational Training (INSFP).
The health sector will receive 619 billion dollars in order to build:
- 172 hospitals;
- 45 specialised health centres;
- 377 clinics;
- 70 specialised facilities for persons with disabilities;
- 17 paramedical training schools;
- 1,000 treatment rooms.
The housing sector will benefit from 3,700 billion dinars for the construction of 2,000,000 new homes, to be apportioned as follows:
- 800,000 rental properties, of which 300,000 should help to reduce temporary housing;
- 500,000 promotion-priced houses;
- 700,000 residential properties in rural areas.
1.2 million new homes will be built within the five-year programme, and the rest between 2015 and 2017.
360 billion dinars will go to the fight against unemployment, which will be apportioned as follows:
- 150 billion dinars to support the professional integration of graduates from higher education and vocational training institutions;
- 80 billion dinars to support the setting up of micro-enterprises and micro-businesses;
- 130 billion dinars for temporary employment measures.
Overall, the programme aims to create 3,000,000 jobs, including 1,500,000 temporary positions.
Infrastructure is the second key focus of the 2010-2014 Investment Programme, benefiting from 6,447 billion dinars, including 5,948 billion dinars for public works and transport.
Thus, the public works sector will receive 3,132 billion dinars to complete the extension and modernisation of the road network and the development of port and airport facilities. The main activities planned within this framework are:
- the completion of the East-West motorway;
- the continued implementation of the motorway programme, including an additional 1,486 km of road;
- the construction of the 4th motorway ring road, 350 km long, which will go through five departments (Aïn-Defla, Médéa, Bouira, M’Sila and Bordj-Bou-Arreridj) and will connect Khemis-Miliana to BBA;
- the construction of a 100 km long motorway link to connect the town of Béjaia to the East-West motorway (Béjaia, Bouira);
- the construction of a 100 km long urban motorway to connect the port of Djen Djen and the East-West motorway (Jijel, Mila, Sétif);
- the construction of 7 motorway links spanning 515 km to connect the ports of Oran, Mostaganem, Ténès, Skikda and a number of administrative centres (Laghouat–Djelfa, Tizi-Ouzou and Tipasa) along the East-West motorway;
- the construction of the Bou Smaïl/Cherchel express road over an area of 65 km;
- the creation of 2,000 km of road links in the Highlands and the south;
- converting the Alger-El Menea national road into 870 km of dual carriageway;
- maintenance, reinforcement and construction of almost 1,200 engineering structures;
- modernisation and reconstruction of 8,000 km of roads;
- reinforcement and underpinning of infrastructures at 8 ports;
- extension of the container terminal at Oran port;
- the construction of 4 ports and sheltered fishing areas;
- 6 projects to extend and build fishing ports;
- 10 dredging projects at 3 commercial ports, 5 fishing ports and sheltered areas, 1 marina and the protection of 2 fishing ports to prevent them from silting up.
The transport sector will receive, as part of the 2010-2014 Public Investment Programme, 2,816 billion dinars to be spent mainly on modernising and extending the rain network, improving urban transport and upgrading airport infrastructure.
The main activities planned within the framework of the programme are:
- the construction of 17 railway lines (6,000 km) to increase the national railway network from 3,500 km of track in 2010 to 10,500 km of track in 2014, which will substantially increase the rail network in the north, south, and in the Highlands;
- the completion of the electrification of the northern ring-railway line;
- the conversion of 800 km of roads along the south-west loop into dual carriageways;
- the creation of underground railways in Algiers and Oran;
- the construction of tramways in 14 towns;
- the building of 7 airport terminals;
- the extension of 4 ports;
- the building of 9 cable railways and the modernisation of 2 others;
- the creation of 27 new urban transport companies;
- the building of 35 bus stations;
- the building of a new maritime school in Mostaganem.
The remainder of the infrastructure package (499 billion dinars) is allocated to town and country planning, notably the construction of 4 new towns and waste management facilities.
III. Industry and Energy
The industry and energy sector will receive 2,250 billion dinars, which will be allocated as follows:
- 800 billion dinars for the development of the chemical industry;
- 300 billion dinars for the building of new power plants, in order to reach a total capacity of over 4,000 megawatts;
- 1,000 billion dinars to re-launch and modernise public industrial enterprises;
- 150 billion dinars to support small and medium-sized companies, i.e. 200,000 SMEs providing productive employment opportunities;
The establishment of partnerships, with a view to strengthening technological capacities and diversifying the industrial fabric, is also a primary objective. To this effect, the National Agency for Investment Development (ANDI) is developing a partnership database.
Under the programme, the energy sector will also receive 350 billion dinars to ensure the connection of 1 million households to the natural gas network and 220,000 rural households to electricity.
IV. Agriculture and Rural Development
The agriculture and rural development sector will receive 1,000 billion dinars. The objectives are as follows:
- to improve the average agricultural production rate and its integration;
- the establishment of 360,000 hectares of tree plantations, 70,000 hectares of grazing areas and one million hectares of olive trees;
- the wide-spread use of water-saving irrigation equipment;
- an increase in the production of seeds and plants;
- the development of regulation systems and new storage silos;
- the strengthening of sustainable- and balanced- development of rural areas, in particular through the launch of 10,200 projects in 2,174 towns, which aim to facilitate the preservation and development of over 8 million hectares in mountain regions, steppe zones and Saharan areas;
- the establishment of support measures for the increasing number of programmes for the development of the agricultural industry and the introduction of a network of SMEs responsible for the provision of inputs and agricultural services.
V. Central and local administration
Central and local administration will receive 1,790 billion dinars to improve the resources and funding of local authorities, the legal sector, and the authorities responsible for tax, business and labour regulation.
The money is apportioned as follows:
- 895 billion dinars for local authorities, civil protection and national security;
- 379 billion dinars for the legal sector, which in the course of the programme should provide for 24 courts, 65 tribunals, 10 administrative tribunals, 5 regional archive centres and new headquarters for the Ministry of Justice, the Higher School of Judges, Centre for Legal and Judicial Research and the School for Judicial Officers, as well as other facilities;
- 295 billion dinars for the finance sector, to be divided between tax administration, public lands administration and customs administration;
- 39 billion dinars for the commerce sector, for the construction of 13 quality and fraud control services, 16 projects relating to product control analysis and the formation of new territorial subdivisions;
- 58 billion dinars for labour administration.
VI. Water resources
The water resources sector will receive 2,000 billion dinars for:
- the construction of 35 dams and 25 water transfer systems;
- the construction of 44 water treatment plants and the completion of two large projects to protect Bab El Oued and Ghardaïa against flooding;
- a national programme to study, identify the problems and upgrade the drinking-water supply to 37 Algerian towns;
- hydro-agricultural development works covering a total area of 40,281 hectares and the renovation of existing irrigation systems over 19,800 hectares;
- the ongoing creation of regional strategic reserves of water though the combination of surface, underground and non-conventional water resources;
- ongoing works to connect the country’s main dams, which have been identified as strategic regional sites(Gargar in the west, Koudiat in the centre, and Béni-Haroun in the east);
- the implementation, through decentralised management, of a number of projects related to the supply of drinking water, protection against floods, the construction of water treatment plants, bore holes and dams.
VII. Scientific research and communication technologies
The 2010-2014 Programme also includes 250 billion dinars of public expenditure for the scientific research and information technologies sector. This is aimed at the development of a knowledge-based economy through support for scientific research and the widespread provision of education and use of IT tools throughout the national education system and the public sector.