Archive for August 2011

Algerian propane market opening   Leave a comment

Circular, domestic filling and distribution of LPG bottles

The opening to competition of petroleum products distribution activities is not only meant to make up for lack of infrastructure, but also and chiefly to make consumers profit from competitiveness.

  1. Offered advantages

  • Existence of a market of 8.5 million tons/year of petroleum products.
  • The distributor may import his products, get his supplies from local sources or produce his own needs from high grade oil and LPG available in large quantities.
  • Foreign investments are given a guarantee of transfer of invested capital and derived income (contact the ANDI Agency for more details).
  • Tax aids are allowed by the State to local and foreign investors (see ANDI).
  • Cheap managerial staff and labour.
  • Public companies transportation and storage capacities may be used by the distributors.

  2. Investment niches market in the marketing of petroleum products

petrol1.jpg (19679 octets)The opening to competition of the national market offers large parts to the local and foreign investment in the field of marketing of petroleum products.

These investments concern the following activities :

  1. distribution of fuels including the LPG fuel,
  2. distribution of LPG for domestic use,
  3. distribution of lubricants,
  4. distribution of bitumen,
  5. pipe transportation of LPG and fuels,
  6. storage of LPG and fuels,
  7. LPG bottling,
  8. Bitumen formulation,
  9. CNG distribution.

puce.gif (1027
octets)  3. Undeveloped infrastructures

a) Deficiencies in the field of fuel distribution

  • massive pipe transportation connecting the big consuming centres to the production sources.
  • The fuel storage to increase autonomy and supply the wilayates (regions) in need.
  • Development of rail transportation,
  • Increase in the transportation rolling stack for the delivery of fuels.
  • Densification of the distribution network.petrol4-1.jpg (21562 octets)

b) Distribution deficiencies of LPG as a fuel

  • shortage of storage capacities in consuming areas to secure demand.
  • reinforcement of the transportation network to satisfy the growing demand.
  • further upgrading of the distribution network.

c) Distribution deficiencies of LPG as a domestic fuel

–  butane

  • development of massive pipe transportation linking the production sources to the regional distribution areas.
  • increase in storage capacities mainly in the regional station of the Centre and the filler centres.
  • conditioning : butane gas filling capacities to be achieved in deficient or deprived Wilayates (regions). The setting up of mobile monopost fillers with one post is to be developed in Algeria.
  • bulk transportation of butane : the supply of the barreling stations with bulk butane requires the use of additional tankers and in the future of railways.
  • transportation development of conditioned butane deliveries involving increasingly private carriers.

–  propane

  • development of small zones endowed with propane to supply towns and urban areas deprived of natural gas.
  • the minor bulk business is not very developed in Algeria.

  4. Interchangeability of the gas LPG bottles

The investors in LPGs filling activity may use LPG bottles available on the market of a third promoter and in particular the ones from the public enterprise Naftal, against the conclusion of a convention between the concerned operators initialed by the Ministry in charge of hydrocarbons, according to the Decree fixing the terms and conditions for interchangeability of butane bottles between operators carrying on the activity of filling liquefied petroleum gases.

 5. The required conditions

The exercise of one or more activities, regulated hereabove, is subject to the authorisation of the Minister in charge of Hydrocarbons in accordance with the provisions of the decree 97-435.

This authorisation is issued to any operator having the necessary funds to achieve the infrastructures, facilities and other means required to carry out his activity.

 6. Administrative procedures

The application for an authorisation to exercise one or more activities is addressed by registered letter with acknowledgement of receipt to the Minister in charge of Hydrocarbons who deals with it within a maximum of three months from the date of reception of the application (decree 97-435).

This application should be accompanied by the following documents:

  • the agreements and permits granted by the local authorities for the achievement of the infrastructures required for the operations,
  • an outline map to scale 1/1000 of infrastructures to be achieved, representing on a minimal ray of 100 m, neighboring infrastructures, works and dwellings,
  • of a plan of mass of the project with 1/250th representing the various equipment and facilities, particularly the refilling and storage surfaces, traffic areas, access roads and safety systems,
  • the total amount of investment and its destination according to each item,
  • estimated lead time,
  • a statement of estimated achievements for the first five years (optional).
  • Chart of the principal equipment by specifying their storage and outputs per product,
  • Description of the safety device of the project (preventive, average means of fight against the fire, lighting, lightning protector, put at the ground of equipment etc).

Posted August 24, 2011 by newworldconsulting in Uncategorized

UAE ready to invest more in Tunisia, says Bukhatir Group President   Leave a comment

Bukhatir Group will pursue its mega project of the Sports City in the “Berges du Lac.” The announcement was made by the Group President, Mohamed Abdel Rahman Bukhatir, in an interview with African Manager, reiterating the UAE’s willingness to contribute to the realization of investment projects in Tunisia and to strengthen bilateral cooperation, especially in light of the climate of trust in relations between the two countries.

The Group President, speaking on the sidelines of the Tunisian-UAE Partnership and Investment meeting held on Wednesday in the House of the exporter said that “we are willing to invest more in Tunisia where the environment is good and supportive, and we have no obstacle to ensure the success of our projects and expand our partnership with the Tunisian businessmen. This is a good opportunity to strengthen the socio-economic relations. “

He added that the Group will continue its investment and its presence in Tunisia after a cessation which he attributed to global economic conditions and especially after the meeting held in recent weeks between the prime ministers of both countries and following the studies conducted on the Group’s projects in Tunisia.

Works of the Sports City mega project started in recent months, with land development. The Group expressed, during the meeting, its confidence about the progress of these works, as well as the deadlines for their completion and marketing.

The Tunis Sports City project is one of the mega-projects to be carried out over the next years in Tunis, which should accelerate the momentum of the Tunisian economy through the creation of new jobs.

Total investment for this project is estimated at nearly $ 5 billion, which will be disbursed by the UAE Group to build one of the greatest sports cities in the region, in an area of nearly 257 hectares in the “Berges du Lac.”

The company said it had launched a few months ago a large campaign for recruitment of Tunisian executives and labor for the realization of its project whose plan provides, inter alia, for the creation of nine sports academies, three golf clubs, a shopping complex and nearly 10,000 residential units. The project should create about 40,000 new jobs.

This new dynamic of partnership between Tunisia and UAE was highlighted by Sheikha Lubna Al Qasimi, Minister of Foreign Trade of the UAE who said that her country’s investments in Tunisia have indeed recorded a real progress during this year, recalling that UAE companies had won in 2006 the trophy of the first foreign investor in Tunisia.

“We are the largest investor in Tunisia, where our investments are approaching the 30% mark in terms of growth to reach a total volume of 3,020.9 million Tunisian dinars.”

As for investment in the tourism sector, she cited, for example, the company “Emirates Emaar Properties,” which was entrusted with the mega tourist resort of Hergla and which is one of the largest property developers in Gulf countries. It is initiated by the first property developer of the world and is estimated at 2.54 billion dinars.

In fact, “Marina Al Qoussour of Hergla” is a project stretching over 442 hectares with over 4,000 residential sites with villas, houses and apartments on the banks of the lake, beach, marina and dockside.

Regarding real estate, she indicated that the real estate company “Dubai Holding” will invest 18 billion dinars in the construction of a new city in the southern lake of Tunis. It stretches over an area of 830 hectares and is designed to reconcile the capital with its coastline, particularly through the creation of a marina, and make it an international platform for business, services and leisure.

Thanks to its importance and its economic and social impacts, this mega-size is a lever for the Tunisian economy.

The UAE minister said Investment of Sama Dubai will generate an average flow of 1.2 billion dinars per year over 15 years, i.e. more than the average of 940 million dinars per year between 2002 and 2005 in foreign investment.

According to her, “Sama Dubai” will complete the project according to the master plan and the schedules set by the State. The project is also funded with 90% in loans denominated in foreign currencies.

As to Mr. Mehdi Houas, Minister of Trade and Tourism, he praised the brotherly relations between the two countries and reviewed the efforts of Tunisia to meet the challenges, internally and externally, to ensure the success of the democratic process and achieve the goals of the Revolution.

On his part, Jalloul Ayed, the Finance Minister called on Emirati businessmen to seize the opportunities offered by Tunisia in various economic sectors, as a platform for regional business, providing access to European markets.

He announced at the partnership meeting, in the presence of more than 40 UAE businessmen, the launch of new investment mechanisms.

He also outlined the various benefits available to Tunisia and which are “likely to enable it to ensure its successful transition to democracy.”

For her part, Wided Bouchamoui, President of UTICA, said that the Revolution of January 14, by cleaning up the business environment, will, with no doubt, provide more flexibility to businesses in this process.

Finally, she noted that world economies cannot take off in the absence of an appropriate healthy and stable environment, indicating that companies are called today to face real challenges and play an important role but within a framework of shared responsibilities.


Posted August 15, 2011 by newworldconsulting in Uncategorized

Morocco sees 2012 GDP growth at around 5 pct   Leave a comment

RABAT (Reuters) – Morocco said it expects its energy-importing economy to grow by between 4.7 and 5.2 percent in 2012, near forecasts for 2011, on the assumption of an oil price 33 percent above the basis for this year’s budget.

In remarks carried by the official MAP news agency, Finance and Economy Minister Salaheddine Mezouar put at 2 percent the inflation forecast for next year, up from 1.4 percent forecast for 2011.

The 2012 outlook is based on an average oil price of $100 per barrel versus $75 for the 2011 budget. A country of 33 million people with no oil of its own, Morocco imported 5.24 million tonnes of crude in 2010, official data shows, and demand is growing by 6 percent annually.

The non-agricultural economy is expected to grow by between 5 and 5.5 percent in 2012, said Mezouar, noting that it clocked a 5.1 percent increase in the first half of 2011.

The minister did not disclose forecasts for agriculture’s growth or grains harvest, key in determining wheat import needs for a country that heavily subsidises food products and where 40 percent of the workforce works in farming.

The state expects the burden of food and energy subsidies to fall by almost 8 percent to 40 billion dirhams in 2012, compared to this year, Mezouar said.

The government raised subsidies to 43 billion dirhams from an initially budgeted 17 billion dirhams for 2011 as it sought to avert any spillover from revolts rocking the Arab region.

The push to calm street protests eroded Morocco’s public finances and raised concern over its ability to fund key projects at a time when it was struggling to cope with high oil and grain prices.

The minister did not disclose forecasts for next year’s budget deficit nor did he update the GDP growth forecast for 2011, initially set at 5 percent.

The central bank expects the budget deficit to rise to as high as 5 percent of gross domestic product in 2011 from the government’s initial 3.5 percent forecast.

In 2010, the budget deficit stood at 4.5 percent of GDP, or 35.1 billion dirhams.

The spending spree in 2011, coupled with the surge in energy and wheat prices, forced the government to sell assets that have so far netted 6 billion dirhams this year. For details see


The government can also net $1 billion this year from the revived plans to sell part of its 30 percent stake in Maroc Telecom

Protests in Morocco have not sparked revolts as in Yemen or Tunisia, partly because the government kept trade unions on side by agreeing to a multi-billion dollar wage hike in late-April.

Mezouar said the public wage bill is expected to increase to 95 billion dirhams in 2012 as a result of the agreement with the unions. He did not give a comparative figure but the 2011 budget put public wages forecast at 86 billion dirhams prior to the agreement.

Moroccan authorities however plan to cut other running costs of public administration by 10 percent and are stepping up efforts for better collection of tax and custom duties.


Posted August 15, 2011 by newworldconsulting in Uncategorized

Algeria invested US$28.8 bn in H1 2011   Leave a comment

Economic and Social Achievements Report

ALGIERS- Algeria invested DZD2,104.6 billion (US$28.8 bn) during the first half of 2011, according to a report on economic and social achievements released Monday by Prime Minister’s Office.

The bulk of these investments were made by the national public and private sectors, and in this category, investments financed by the state capital budget reached DZD1,190 billion (US$16.3 bn), whereas projects financed by the National Investment Fund amounted to DZD176 bn (US$2.4 bn), the while the private sector invested DZD229.1 bn (US$3.1 bn), of which DZD46.1 bn representing investments made as part of micro-credit programmes, DZD21.08 bn in the sector of agriculture, and DZD161.9 bn projects financed by banks, minus ANSEJ programme and agriculture, the source said.


Posted August 15, 2011 by newworldconsulting in Uncategorized

Algeria : 4 Green Cities Along the Trans Saharan Highway to Curb Exodus to the North   Leave a comment

Ministry of Environment is due to start building up 4 big green cities along the trans-Saharan highway, as by 2014.

The project is to be announced on 20 August, while the works kick-off is scheduled for 2014, sources close to the Ministry of Environment said.

The 4 big green towns are to be constructed in the localities of Azirir, Moulay Ahcen tombe, Ain M’guel, and les Gorges d’Araq, southern Ain Salah; with a capacity of 250 thousand residents each.

Authorities aim at creating economic and demographic poles all along the trans-Saharan highway, in order to encourage the nomads stabilizing along the road, and ultimately curb the excessive mass exodus towards northern cities.

The green towns in question have been designed by the famous Italian architect Vittorio Gregotti. He is head of the Gregotti Associati studio, which designed several important buildings, such as the Barcelona Olympic Stadium, the Belém Cultural Center in Lisbon, the Arcimboldi Opera Theater in Milan and several university campuses, including that of the University of Calabria.

The aforementioned green cities will hold desert climate resistant houses, with Moresque style architecture. The cities are to be equipped with education facilities, shops, stadiums, playing yards, crafts and trade spaces, natural air-conditioning, and wastes recycling system to preserve the biodiversity of the cities. The dwellers of these new cities will be able to practice agriculture and ranching.


Posted August 15, 2011 by newworldconsulting in Uncategorized

Algeria: Qatar Investor’s Invest in Steel Industry Project   Leave a comment

A group of Qatari investors have paid a visit to the industrial zone of Bellara where they are looking into the possibility of building a steelworks plant.

So reported today APS, which said that the delegation – led by Mohammed Al Shahwani, the highest ranking official of Qatar Mining – had expressed strong interest in a partnership in the steel and iron industry in Bellara, where 532 hectares are available not far from the Djendjen port, which was also visited by the Qatari guests.

The entrepreneurs discussed technical issues – such as water, gas and electricity grids as well as port capacities, railways and roads – with local administrators. If the project goes forward, according to the current laws 51% of the company would be Algerian capital, while the remaining 49% would be Qatari.


Posted August 15, 2011 by newworldconsulting in Uncategorized

Morocco, Algeria sign commercial contract on natural gas delivery   1 comment

1/08/2011: Algiers – Morocco and Algeria signed, on Sunday, a commercial contract on the delivery of Algerian natural gas to the power plants of Ain Béni Mathar and Tahaddart.

Under this contract, 640 millions of cubic meters of gas will be delivered on an annual basis over 10 years.

The gas will flow through the gazoduc Pedro Duran Farell (GPDF) pipeline linking Algeria’s gas fields to the Iberian peninsula through Morocco.

The delivery will supply the Ain Beni Mathar power plants with 470 mw and Tahaddart with 385mw.

The contract was signed in Algiers by Director General of the National electricity utility (ONE) Ali Fassi Fihri and the CEO of Algerian state-owned hydrocarbon group Sonatrach, Nourredinne Cherouati.


Posted August 1, 2011 by newworldconsulting in Uncategorized

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