Algiers – Algeria is going to invest US$ 286 billion in modernization and wants Brazilian companies as partners. The Five-Year Plan 2010-2014 was presented this Thursday (16th) by the country’s minister of Industry, Small and Medium Businesses and Investment Promotion, Mohamed Benmeradi, to Brazilian businessmen who are now in Algiers on a mission headed by the minister of Development, Industry and Foreign Trade, Miguel Jorge.
The Algerian plan provides, for instance, for US$ 8 billion to be invested in healthcare, including the building of university hospitals, hospital complexes and maternity hospitals. Housing spending should reach US$ 50 billion, and 1,200 housing units should be built.
With regard to infrastructure, the forecast is that nearly US$ 80 billion should be spent on public works, including road maintenance and modernization, and the aerial and maritime sectors. Environment and agricultural development should receive investment as well.
"A host of opportunities are being created, and we would like to count on the cooperation and partnership of our Brazilian friends," said Benmeradi. "This will be the country’s largest modernization program, focusing on the social field and on reducing unemployment," he added.
Jorge claimed that the mission he is heading, specifically geared towards building, defence, infrastructure and foodstuff companies, was a special request of president Luiz Inácio Lula da Silva’s, who, according to him, is particularly interested in Algeria and believes in the opportunities that are arising. "There is much similarity between the Algerian and Brazilian investment plans. There is the same concern over job generation and support to small and medium businesses," he stated.
"We have invited large enterprises to the mission, such as Andrade Gutierrez, Camargo Correa, Queiroz Galvão, Vale and Odebrecht, because not only are they interested in participating, but they believe that they can work with Algeria," said the Brazilian minister. "I believe now is the time to have a working group of Algerian government officials visit Brazil and get to know projects by Brazilian companies, especially small ones," he claimed.
Contacts
After the presentation, Brazilian infrastructure industry businessmen met with representatives of Algerian state-owned companies and officials from the ministries of Health, Housing and Public Works, who provided clarification on tenders, partnerships and investment.
"[The Algerians] introduced us to state-owned companies and holding companies. The market is surely interesting. Now we must check the prices, the details. The important thing is that they have a plan and the means for carrying out road, housing, healthcare and water resource works," said Edison da Silva, international advisor of Queiroz Galvão construction, which has been working on infrastructure projects in Libya and the United Arab Emirates for three years. "North Africa and the Middle East are strategic targets to us, "he added.
To the executive director of engineering firm Fidens, Paulo Mario Garcia, Algeria has a bold investment plan that is quite similar to Brazil’s in terms of investment target fields. "Besides, they also showed great openness by receiving foreign companies to participate in this stage of the country’s development, and they have a very interesting program for training local businesses," he stated.
In Algeria, local companies have preference in tenders, because they may be selected while offering prices up to 25% higher. In this respect, Garcia claimed that becoming associated with Algerian companies may be interesting for foreigners.
Fidens started its internationalization process in 2007, in Angola, where it built the runway of the airport of Sociedade Mineira de Catoca (Catoca Mining Society), which is a diamond mine, and the streets of the Catoca Village. Now, it is participating in tenders in Mozambique, Libya and Oman.
Also this Thursday, Jorge was welcomed by the Algerian president, Abdelaziz Bouteflika. The two discussed cooperation and partnership opportunities between the two countries. Jorge also met with the minister of Agriculture, Rachid Benaissa.
Jorge exchanged gifts with all of the Algerian ministers that he met with, who were also given gifts by the secretary general of the Arab Brazilian Chamber of Commerce, Michel Alaby. He presented the ministers on behalf of the delegation.
*Translated by Gabriel Pomerancblum
