Algeria changes tendering rules

By Chris Sleight01 November 2010

The Algerian government has introduced new requirements for companies bidding for construction and engineering contracts in the country. The nationalistic moves are designed to make it easier for domestic companies to win contracts in the face of international competition.

Among the changes, which were passed into law by publication in the country's official gazette, is the move that contracts can only be bid by non-Algerian companies if domestic contractors are not able to undertake the work.

Even if contracts are let to foreign companies, there is a new rule that says local bids must still be considered if they are up to +25% more expensive than one submitted by an international player.

A further change to the law is that foreign contractors can no longer bid for public contracts on their own. In order to pre-qualify they must first form a joint venture with an Algerian company.

Algeria is currently undertaking a huge infrastructure investment programme, including large-scale road building as well as the construction of public amenities such as schools, hospitals and affordable housing.

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