Farmers in Algeria need better industrial equipment that requires substantial investments. Since enacting the Ordinance No. 09-01 of 22 July 2009 on the Supplementary Finance Act for 2009 the country has been implementing the Public Private Partnership to stimulate investments in the agriculture.
Under the guidance of the Ministry of Agriculture 174 pilot farms in the area of 155,368 hectares were selected with the aim to rehabilitate and increase the production capacity, including basic seeds, plant and brood stock for strategic sectors; improve managerial conditions; Introduce innovative techniques. Pilots farms were reorganized into the joint stock companies and proposed the following guiding principles for partnership:
- Production of quality genetic material and inputs needed for agricultural development;
- Development of agricultural investment with partners in accordance with national economic legislation;
- Prioritization of activities to preserve the national genetic heritage;
- Participation in priority to cover the needs of the national market.
The two modes of partnership were adopted:
- Call for competition, carried out in two phases:
- Call for expressions of interest for the elaboration of a short-list of candidates with technical references and proven financial capacities
- Invitation to tender, sanctioned by an evaluation of offers and business-plans (amount of the investment - its nature – duration of the investment- method of financing-destination of the production and the foreseeable benefits).
- Little by Little, on the initiative of the Minister of Agriculture and after informing the Prime Minister (President of the State Participation Council), in the following cases:
- The project is of priority and national importance;
- The partnership project is of proven technological interest;
- The partnership project contributes to a significant satisfaction of domestic demand for inputs or agricultural products dependent on imports;
- The call for expressions of interest is declared unsuccessful.
17 pilot farms have been the subject of a partnership agreement in dairy cattle breeding, aviculture, arboriculture, market gardening. The amount of investments committed is estimated at 8 266 999 000 Algerian Dinars. The pilot farms have shown the following rates of investment return:
- <200%: 2 farms
- From 50 to 100%: 3 farms
- From 20 to 49%: 3 farms
- From 1 to 19%: 5 farms
- 0%: 4 farms.
Based on the successful implementation of PPP in the pilot farms the National Agriculture Policy confirms the PPP as a new driver of agricultural growth and encourages cooperation and partnership as a privileged tool for the transfer of know-how and technical assistance.
Ministry of Agriculture, Rural Development and Fisheries of Algeria
Ms. Saida Dramchini, Chief of Staff
Phone: +213 23 50 31 56