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World Bank Document Report No. 36270-DZ People’s Democratic Republic of Algeria Republicof Democratic Report No.36270-DZPeople’s Review A PublicExpenditure Vo Report No. 36270-DZ People’s Democratic Republic of Algeria A Public Expenditure Review Public Disclosure AuthorizedPublic Disclosure Authorized Assuring High Quality Public Investment (In Two Volumes) Volume II: Annexes and Statistical Annex August 15, 2007 Social and Economic Development Group Middle East and North Africa Region Public Disclosure AuthorizedPublic Disclosure Authorized Public Disclosure AuthorizedPublic Disclosure Authorized lume II Document of the World Bank Public Disclosure AuthorizedPublic Disclosure Authorized FCCL Local Government Common Fund ONA Office National de 1’ Assainissement FRR Fonds de Rtgulation des Recettes (National Agency for Sanitation) FNGIR (Hydrocarbon Stabilization Fund) ONID Office National de I’Irrigation et du Fonds National de Gestion Inttgrt de la Drainage Ressource (Small and medium imgation schemes) ONM Office National de la MCtbrologie ONOU Office Nationale des (Euvres Universitaires GDP Gross domestic product ONS Office Nationale des Statistiques de GER Gross enrollment rates I’Al gC rie GNFS Goods and non-factor services OPEC Organization of the Petroleum Exporting GOA Government of Algeria countries GPI Grands PCrimetres imguCs (Large OP1 Office des Pbrim&res Irriguts GTZ imgation schemes) PCD Programme Communal de Dtveloppement German Agency for Technical Cooperation (local development program) HPC Heavily Indebted Poor Country PCSC Programme ComplCmentaire de Soutien IBL Initial Budget Law A la Croissance (2005-2009) ICAO International Civil Aviation Organization PDSRJ? Perspective DQennale pour les Ressources ICOR Incremental CapitaYOutput ratio en Eau ICT Information CommunicationTechnologies PER Public Expenditure Review IMF InternationalMonetary Fund PEA Programme for International Student IMR Infant mortality rate Achievement INSP Institut National de Sant6 Publique PMH Petite et Moyenne Hydraulique (National Public Health Institute) PNE Plan National de 1’hu (water master plan) IWRM Integrated Water Resources Management PPP Public-Private Partnership LFC Loi de Finance Complhentaire PSP Private Sector Participation LMD License-Maitrise-Doctorat PSRE Programme de Soutien a la Relance (Undergraduate-Masters-Doctorate) Economique (2001-2004) LPA Lease Project Approval RH Rtgion Hydraulique LSI Large-Scale Irrigation ROSC Report on the Observance of Standards and MA0 Mostaganem-hew-Oran Codes MATE Ministry of Environment and Urban SANRAL South African National Road Agency Managementhlinistkre de I’amenagement SEF Sector Expenditure Framework du temtoire et de I’Environment SITC Standard InternationalTrade Classification MCM Millions of cubic meters SNMG Salaire national minimum garanti MDG Millennium Development Goal (National guaranteed minimum wage) MDT Ministere des Transports SNTF Societt Nationale des Transports MEFP Ministere de la Formation et de Fernviaires I’Enseignement Professionnelle SOE State-owned enterprise (Ministry of Vocational and Technical SONATRACH Entreprise Nationale de Recherche Training) d‘Exploration et de Commercialisation des MEN Ministere. de 1’Education Nationale Hydrocarbures MESRS Ministhe de YEnseignement Sup6rieure et SSA Sub-Saharan Africa de la Recherche Scientifique TEU Twenty-foot equivalent unit et de la Recherche Scientifique TIMSS Third InternationalMathematics and MLA Monitoring of learning achievement Science Survey MMR Maternal mortality ratio UNESCO United Nations Educational, Scientific and MoF Ministry of Finance Cultural Organization MOHPHR Ministry of Health, Population, and UNFPA The United Nations Food program Agency Hospital Reform UNICEF The United Nations Children’s Fund MOL Ministry of Labor USTHB UniversitC des Sciences et de la MOT Ministry of Transport Technologie Houari Boumediene MPW Ministry of Public Works VET Vocational education and training MFiE Ministere des Ressources en Eau WDI World Development Indicators (Ministry of Water Resources) WE0 World Economic Outlook MSB Projet de Modernisationdes Systkmes WHO World Health Organization Budg6taire WITS World Integrated Trade Solution MTEF Medium-Term Expenditure Framework WRM Water resources management MTP Ministere des Travaux Publics WRR Water requirement ratio N.E.C National Executive Committee wss Water supply and sanitation NHGDP Nonhydrocarbon GDP WTO World Trade Organization NHA National health accounts WUA Water user association OECD Organization for Economic Co-operation WWTP Waste water treatment plant and Development O&M Operation and maintenance Vice President: Daniela Gressani Country Director: Theodore 0.Ahlers Sector Director: Mustapha K. Nabli Sector Manager: Miria Pigato Lead Economist and Task Team Leader: JosC R. L6pez-Calix ANNEXES ANNEX A . PCSC: SIMULATION SCENARIOS OF INVESTMENT EXECUTION ASSUMPTIONS FOR 2005.07 ............................................................................ 6 ANNEX B: KEY SECTOR INVESTMENT ISSUES ............................................................ 17 ANNEX C: MAIN FEATURES OF THE ALGERIAN BUDGET PROCESS ...................... 22 ANNEX D: RAILWAYS ........................................................................................................ 26 ANNEX E: ROAD INFRASTRUCTURE .............................................................................. 37 ANNEX F: PORTS .................................................................................................................. 46 ANNEX G: CIVIL AVIATION .............................................................................................. 52 ANNEX H: INFORMATION ON WATER SUPPLY AND DEMAND ............................... 60 ANNEX I:OUTLINE OF WATER LAW NO. 05-12 (28 JOUMADA I1 1426. 4 AUGUST 2005) AND REGULATORY FRAMEWORK OF THE WATER LAW ................................................................................................................... 61 ANNEX J: GENERAL PRINCIPLES OF ALGERIA’S WATER LAW ............................... 66 ANNEX K: ORGANIZATION OF THE MINISTRY OF WATER RESOURCES ..............67 ANNEX L: REFERENTIELS DE NORME D’ENTRETIEN RENOUVELLEMENT (%) ...69 ANNEX M : ALGERIA WATER FACT SHEET .................................................................. 70 ANNEX N: RECOMMENDATIONS OF THE WORLD BANK WATER SECTOR STRATEGY FOR ALGERIA (2003) ................................................................. 71 ANNEX 0:FROM VISION TO ACTION IN ALGERIA’S WATER SECTOR ...................72 ANNEX P: EDUCATION .SIMULATION SCENARIOS ................................................... 74 ANNEX Q: SUMMARY OF MEASURES PROPOSED UNDER THE EDUCATION REFORM PROGRAM ....................................................................................... 76 ANNEX R: FUNCTIONS BY LEVEL OF ADMINISTRATION IN SCHOOL EDUCATION ..................................................................................................... 77 ANNEX S: ALTERNATIVE SCENARIOS ON THE IMPACT OF THE PCSC ON HIGHER EDUCATION ..................................................................................... 78 4 ANNEX T: FUNCTIONS BY INSTITUTION IN THE HEALTH SYSTEM ....................... 80 ANNEX U: CONCESSIONS AND OTHER FORMS OF PUBLIC-PRIVATE PARTNERSHIP.., , . , . , , , , , , , , . , , , , . , . , , , , . , , . , . , . .83 ANNEX V: WHAT HAPPENED TO DA15 BILLION IN FUNDING FOR THE SOUTH? .. , . , . , , . -8 5 ANNEX W: LEARNING FROM THE PAST AND THE PRESENT: THE ASSETS OF THE STATE AND THE CURRENT INVESTMENT PORTFOLIO ................ 87 ANNEX X. MANAGING THE FISCAL SPACE WITH IMPROVED EXPENDITURE EFFICIENCY ... .90 STATISTICAL ANNEX .. .99 REFERENCES ...................................................................................................................... 150 5 Annex A ANNEX A. PCSC: SIMULATION SCENARIOS OF INVESTMENT EXECUTION ASSUMPTIONS FOR 2005-07 A.l Each sector envelope was analyzed by the respective sector specialists since no information on the execution assumptions was provided by the authorities. ' Historical trends were considered, as well as current implementation capacity and the specific factors affecting project types. A.2 Water Sector disbursement rates during the three-year period are expected to be 12, 25, and 32 percent, respectively. This yields a cumulative execution rate of 21 percent, lower than the sector's historical average2 of 52 percent. Since most activities are expected to start in 2006, almost no disbursements were expected in 2005, when the bids for major projects would be launched or evaluated. A disconnect is evident between the historically low implementation capacity and the high pressure that the government is exerting for quick performance. A.3 Transport and Public Works projects were broken down by subsector and have the following execution assumptions covering the three-year period: Transporf (14, 0, and 25 percent). The large cable project would only start in 2007 and span four years. Other smaller physical works projects would reach a cumulative 70-80 percent completion rate by 2009. Roads (5, 9, and 14 percent). Segments of the East-West Expressway project already under construction would be completed by 2008, and new segments would be half-way completed a year later, leading to a cumulative execution rate of 50 percent by 2009. Road maintenance would be 100 percent completed during the program (that is, 20 percent per year). Other works would be approximately 80 percent completed, in line with historical execution rates. The execution assumption
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