AFRICAN DEVELOPMENT BANK

PEOPLE’S DEMOCRATIC REPUBLIC OF ALGERIA

COMBINED 2011-2012 DIALOGUE NOTE COMPLETION REPORT AND COUNTRY PORTFOLIO PERFORMANCE REVIEW

REGIONAL DEPARTMENT NORTH II – ORNB

November 2012

ALGERIA

Appraisal Team

Peer Reviewers

:

COMBINED 2011-2012 DIALOGUE NOTE COMPLETION REPORT AND COUNTRY PORTFOLIO PERFORMANCE REVIEW

Nono Matondo-Fundani

Regional Director

ORNB

2054

Assitan Diarra-Thioune Catherine Baumont-Keita Robert Kossi Eguida Malek Bouzgarrou Tarik Benbahmed Saida Benchouk-Issaad Aissatou Ba

Resident Representative Lead Economist Principal Economist Operations Officer Macroeconomist Procurement Officer Principal Technical Assistant (FAPA)

DZFO ORNB DZFO ORNB DZFO DZFO OPSM

7100 2341 7118 2570 7122 7104 2930

Ferdinand Bakoup Abdourahmane Diaw Marcellin Ndong Ntah Pascal Yembiline

Lead Economist, Chief Country Programme Officer Chief Operations Officer, Principal Economist

ORWA ORCE OPSC GAFO

2449 2580 2724 6601

i

TABLE OF CONTENTS

ACRONYMS AND ABBREVIATIONS EXECUTIVE SUMMARY

iii iv

I.

INTRODUCTION

1

II.

RECENT DEVELOPMENTS 2.1 Political Developments 2.2 Recent Economic Developments 2.3 Social Trends

1 1 2 4

III.

IMPLEMENTATION AND OUTCOMES OF THE DIALOGUE NOTE 3.1 Bank Group Resource Allocation for Algeria 3.2 Status of Dialogue Note Deliverables 3.3 Other Outcomes of the Note: Enhancement of Country Dialogue. 3.4 Coordination of Development Technical Assistance in Algeria

4 4 5 7 8

IV.

COUNTRY PORTFOLIO PERFORMANCE REVIEW 4.1 Ongoing Bank Group Portfolio 4.2 Portfolio Monitoring and Evaluation 4.3 Implementation Status of the Country Portfolio Improvement Plan 4.4 Bank Group Performance 4.5 Country Performance Results based on the Portfolio Quality Questionnaire 4.6 Meetings with Stakeholders 4.7 Revised Country Portfolio Improvement Plan (CPIP)

9 9 11 13 14 14 14 15

V.

EXPERIENCE AND LESSONS

15

VI.

CONCLUSION AND RECOMMENDATIONS 6.1 Conclusion 6.2 Recommendations

16 16 16

ANNEXES Annex 1: Macroeconomic Indicators Annex 2: Developments Indicators Annex 3: Review of Progress towards achieving the Millennium Development Goals. Annex 4: List of on-going projects in Algeria Annex 5: Country Portfolio Improvement Plan (CPIP) This report was prepared following the Dialogue Note Completion and the Country Portfolio Performance Review (CPPR) Mission to Algeria from 24 to 30 September 2012. The mission was led by Ms. Assitan Diarra-Thioune, Bank Resident Representative in Algeria (DZFO), and Messrs. Kossi Robert Egida, Principal Economist, Algeria Field Office (DZFO), Malek Bouzgarrou, Operations Officer, Department of Operations North Africa II Region (ORNB), Tarik Benbahmed, Macroeconomist (DZFO); and Mrs Aissatou Ba, Principal Technical Assistant responsible for Coordinating FAPA Trust Fund, Private Sector Department (OPSM1), and Mrs. Saida Benchouk-Issaad, Procurement Officer (ORPF/DZFO)

ii

ABBREVIATIONS AND ACRONYMS ADB AFD AMA CBD CNED CODE CPIP CPO CPPR CS CSP DGREFE DO DZD ENP EPIC MIC MoF MPEF ODA PP PP PPP RISP RMCR SME TA TFP ToR : UA UNDP : USD

: : : : : : : : : : : : : : : : : : : : : : : : : : : : : :

African Development Bank French Development Agency Annual Meetings Competitive Bidding Documents National Development Equipment Fund Committee on Operations and Development Effectiveness Country Portfolio Improvement Plan Country Programme Officer Country Portfolio Performance Review Current status Country Strategy Paper General Directorate of External Economic and Financial Relatio