ANNOUNCEMENT 16 Sep 2015

 

On 16 September 2015, the government of Algeria issued Presidential Decree no.15-247. This Decree entered into force on 20 December 2015, and introduced new regulations concerning the Algerian public procurement system.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Official Journal of the Algerian Republic N°50. DÈcret prÈsidentiel n° 15-247. French.http://www.mf.gov.dz/article_pdf/upl-df258dfa5c45db3d016213e40c3c48c7.pdf

Inception date: 20 Dec 2015 | Removal date: open ended

Public procurement localisation

Effective from 20 December 2015, the government of Algeria via Presidential Decree no.15-247, introduced the following changes into the Algerian public procurement regulations:

  • In addition to the already existing 25% preference margin (established in the year 2010), the new regulations do pose a higher emphasis on national production as well as the use of local Algerian entities. The reason for the prior being that, for the first time the governmental purchaser, in the process of drafting the eligibility criteria and the offer evaluation procedure, is obliged to consider whether national production and/or national entities, can meet the needs of the contract – and therefore by that extent also favour batches or products that can be subcontracted or acquired on the local Algerian market. 
  • In circumstances when relying on national production and/or entities is not possible, foreign companies bidding alone for a public tender, for the first time are obliged to subcontract at least 30% of the contract price to Algerian companies. In the prior public procurement law, there were no specifications in terms of the percentage that foreign bidders should subcontract to local companies (therefore, theoretically enabling them to provide their local Algerian partners with a lower than 30% of the total contract in order to comply with the Algerian public procurement rule that obliges foreign bidders collaborate with local entities).

  • Imported products may for the first time only be used only in circumstances when the equivalent of the products is either not available at a national level or the national products do not possess the acceptable quality standards.

 

 

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A