Institutional and Policy Framework Analysis ALGERIA
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1 INCO-CT ADU-RES Co-ordination Action for Autonomous Desalination Units based on Renewable Energy Systems Institutional and Policy Framework Analysis ALGERIA WP-7: Institutional & Policy Framework Deliverable 7.2 Prepared by: CDER September 2006
2 Contents of Report 1 Introduction General Country Profile Algeria Geography Climate Water Resources Water Resources Balance Groundwater and Surface Water Resources Sea Water Resources Seawater Desalination Environmental perspective Energy Resources Conventional Energy Resources Renewable Energy Resources The Institutional Framework for Water Management The Water Law Legislative texts The Water Policy Water Administrative Structure Conclusions References...17 ADU RES WP7 Deliverable Algeria Page 2 of 17
3 Introduction Algeria is a large country blessed with vast natural resources and it holds a very high potential for sustainable development. Being located in arid and semiarid zones, water scarcity represents a major obstacle to the country s socio-economical development. The previous managing strategies have shown that the economic development can not rely on governmental capacities alone. Being aware of that, the government is currently implementing legislative basis and laws to give public and private actors equal opportunities to participate in different economical issues. Investment options are granted for national and international actors. These reforms are going through the implementation of new structures and regulations texts to put into action the necessary mechanisms for the operation of the newly set-up economy. Concerning the water issue, this strategy will not only contain conventional water resources aspects as it was the case in the past. Non-conventional water resources like sea water desalination and wastewater re-use appear strongly in the new strategy. Although Algeria has its own fossil energy sources, special attention is as well granted to explore the country s vast renewable energy resources. Their development is particularly important for remote areas in the large southern territories. Since independence, the Algerian government has held a monopoly on all economical activities. After decades of operation, this system has come to its limits, which incited the national public authorities to undertake broad socio-economical reforms. New visions and strategies are being gradually adopted in order to implement a more efficient economic system based on free market economy. Particular attention is given to energy and water issues as they are important for the development of a country s economy. ADU RES WP7 Deliverable Algeria Page 3 of 17
4 1 General Country Profile Algeria 1.1 Geography The Democratic Republic Algeria is located in Northern Africa bordering the Mediterranean Sea, between Morocco and Tunisia. The country s surfaces lay between 18 and 38 degrees north latitude and 9 degrees south latitude and 12 degrees east. The international meridian (0 Greenwich) passes close to the city of Mostaganem. With an area of km 2, Algeria is the second largest African country. It constitutes a large pentagon, of a meridian direction, bordered in the north by the Mediterranean Sea, to the west by Morocco, to the south west by Occidental Sahara and Mauritania, to the South Mali and Niger and to the east by Tunisia and Libya. The country is divided into two different regions: The northern region which is located between the Mediterranean Sea and the Saharan Atlas The Saharan regions south of the Saharan Atlas, they are part of the ancient Africa and form a rigid and monotonous great set. The North Algerian terrain is occupied by a great mountainous stripe oriented from south west to northeast, extending from one frontier to another. It is a set of mostly high plateaus and deserts, some mountains and narrow, discontinuous coastal plains. The highest elevations are the Djurdjura and the Aures that have summit heights of around meters. 1.2 Climate Comprising an area between the Mediterranean Sea and the Saharan desert, Algeria has a vast range of natural environment. The country s climate is influenced by three different climate zones from north to south: Temperate Mediterranean climate on the sea boarder: wet in winter and hot and dry in summer. Semi-arid climate on the high plains: very cold and somewhat wet in winter and dry and hot in summer. Arid climate in the Sahara: very dry all year long with rare seasonal storms. Seasonally high temperature gradient between night and midday. ADU RES WP7 Deliverable Algeria Page 4 of 17
5 2 Water Resources 2.1 Water Resources Balance Algeria suffers significant lack of fresh water since most of its territory is classified as arid and semiarid zones. In 2005, the total fresh water demand of Algeria amounted to 2.8 billion m 3. The balance of water resources showed an estimated water deficit of 400 million m 3 for the country as a whole, which are 29% of the installed fresh water production capacity. The country s total fresh water resources amount to 19 billion m 3 per year, corresponding to 600 m 3 /inhab./year. According to the ministry of Water Resources, this rate will reach a value of 500 m 3 /inhab./year by 2020, a fact that arouses more concerns about how to cover future fresh water needs. Up to date, the water strategy was depending mainly on rainfall, the use of seawater desalination was confined to industrial needs only (mostly hydrocarbon oils). Long lasting drought periods within the past decades have dramatically diminished the available fresh water quantities. Up to 2002 Algeria lived one of its worst ever fresh water crises. The Algerian water crisis is caused by following factors: drought phenomenon increasing demand pollution and salinity worn distribution grid used water treatment facilities out of order silt and mud cloggy dams Inadequate water management and services organization 2.2 Groundwater and Surface Water Resources The evaluation of fresh water resources in Algeria basically relies on rainfall. In Table 2-1, on next page, the annual rainfall quantities of different regions are presented. The total estimated annual average precipitation quantities of the country are around 100 billion m 3. Out of this, 85% are conceded to evaporation, while 12.5 % of the remaining streams on the surface and 50 % run directly into the sea or into chotts 1 (saline lakes). 1 Chott ou Sebkha: local expression for saline lakes ADU RES WP7 Deliverable Algeria Page 5 of 17
6 Table 2-1: annual average rainfall (mm) Region West [mm/y] Coast 400 Tellan 2 Atlas (plains) 500 Tellan Atlas (heights) 600 Tellan high plains - High plains 50 Steppic Saharan Atlas 200 Septentrional Sahara 50 Centre [mm/y] East [mm/y] Only a very small quantity of this water filtrates into the soil reaching the underground water resources. The total estimated fresh water resources are 19 billion m³, thereof 12 billion m³ surface water and 7 billion m³ underground water resources. Part of these resources contains saline water, but its rate is difficult to estimate. The different means of the country s current fresh water supply are the following: Surface water: There are 56 dams with a capacity of exploiting 5.7 billion m 3. An average water availability of about 50 % gives an effective water exploitation capacity of about 2.8 billion m 3. Ground water: Ground water resources are estimated to 7 billion m 3. Nearly 1 billion m³ are mobilized through 2000 wells throughout the country. Re-used wastewater: Actually nearly 2 billions m 3 of wastewater can be treated to produce potable water. 2.3 Sea Water Resources Algeria has great saline water resources comprising seawater and brackish water resources: Seawater: The seawater resource is situated in the northern part of the country along the km coast of the southern part of the Mediterranean Sea. Situated close to the junction with the Atlantic Ocean (Gibraltar Strait), the water salinity varies from 30 to 35 grams/ liter. Brackish water: it is composed of underground resources and surface saline lakes, known as Sebkha or Chotts located on the high plains mainly. Underground brackish water is as well situated in the septentrional Sahara. The renewable brackish resources are found located in the Hoggar-Tassili and Bechar-Tindouf valleys. 2 Tell: is the local name given to the northern regions of the country ADU RES WP7 Deliverable Algeria Page 6 of 17
7 The non-renewable resources are contained in two huge reservoirs of sedimentary basins: The Continental Intercalary aquifer The Complex Terminal aquifer The water of the Continental Intercalary aquifer is characterized by high temperatures; it can reach 60 C, corrosive aspect due to presence of H 2 S and CO 2 and a salinity of 1-2 grams/liter, reaching 5 grams/l in certain places. The Complex Terminal aquifers are characterized here by a low salinity on the edges and a relatively high salinity in the center, over 6 g/l. Studies concerning its exploitation estimates that a flow rate of 156 m 3 per second can be used (nearly 5 billion of m 3 /year) up to horizon billion from the Continental Intercalary and 2.2 billion from the Complex Terminal. 2.4 Seawater Desalination To coop with the water crisis of year 2002, an emergency action plan was carried out to supply the most stressed cities. 21 reverse osmosis units were installed between the years 2002 and 2004 producing a total capacity of m 3 per day. The RO units were distributed as follows: Central coast: m 3 /day Eastern coast: m 3 /day Western coast: m 3 /day Seawater desalination is regarded as a strategic option to secure the population with fresh water supply. An ambitious program is actually undertaken to equip major coastal cities with large seawater desalination plants ranging from to m 3 /day. A number of 12 larges projects are scheduled to produce m 3 /day by 2009 to supply over 7 million inhabitants. Some of these plants are actually under construction and should be put into service shortly, while others are at different stages of the tenders and bids. The produced water will be distributed as follows: ~ 54 % central regions: m3/day ~ 26 % western regions: m3/day ~ 20 % eastern regions: m3/day Nearly all projects will rely on RO process and will be performed on the BOT (Built Operate Transfer) procedure. The promotion of water reuse is as well envisaged by the restoration of existing facilities and the construction of new ones. ADU RES WP7 Deliverable Algeria Page 7 of 17
8 2.5 Environmental perspective Great attention has been given by the governmental authorities to environmental aspects. This attention is reinforced by the creation recently of a ministry of environment and country planning. Particular efforts are deployed to fight against water pollution, these efforts are focused on: liquids effluents rejected by industries constant monitoring of the level of pollution on surface water In examination of the available material, it appears that issues regarding the Law for Protection of the Littoral Zone would be of the greatest interest in the case of Algeria, by the level of interest that is seen on this topic. However, this statement represents a supposition, and therefore all possible impacts should be examined carefully. ADU RES WP7 Deliverable Algeria Page 8 of 17
9 3 Energy Resources Conventional Energy Resources Algeria disposes of significant fossil and renewable energies resources. Hydrocarbons and natural gas represent about 95 % of the countries exportations. Electrical energy is actually the principal energy source since it is the most widely spread and covering over 95 % of households. The national electrical energy production is about MW: 6200 MW as interconnected network 300 MW for autonomous network in the desert Natural gas and Liquefies Petroleum Gas represent the second principal energy source in the country. The natural gas network covers about 35 % of households. In 2002, the national energy company supplied 123 x 10 9 thermal units of natural gas distributed as follows: 65,2 % for power plants 21,9 % for domestic use 12,8 % for industries The Liquefied Petroleum Gas (LPG), usually sold in steel bottles, is used to supply the consumers that are not connected to the public gas network. In 1998, the national consumption of LPG reached million tons, distributed in the different sectors as follows: 86,2 % for domestic use with million tons 3 % for industry/commercial sector with millions tons 1,7 % for communities with million tons 8,9 % for transportation with million tons Renewable Energy Resources Due to its geographical location, Algeria has one of the highest solar energy potential in the world. The yearly solar radiation period is above 2000 hours over the whole country and can reach up to hours on the high plains and Sahara. The daily solar irradiation at 1 m 2 surface is about 5 kw/h in most of the country. This corresponds to nearly 1700 kw/hour/year in the north and 2260 kw/hour/year south. In Table Table 3-1 below, some data about solar radiation in different Algerian regions is presented. ADU RES WP7 Deliverable Algeria Page 9 of 17
10 Table 3-1: Solar radiation data of different Algerian regions Region Area [%] Average period of radiation [Hours/year] Coastal Regions High plains Sahara Average energy received [kwh/m 2 /year] Despite this high solar potential, the exploitation of solar energy in Algeria is still on a very early stage. The estimated total installed capacity of solar energy applications is about kw; 90 % thereof comprising autonomous rural electrification systems for about remote households and telecommunication systems. It is worth mentioning the unique autonomous solar desalination system that was installed in the Sahara. It consists of a small reverse osmosis system supply with solar energy and treats brackish water to supply a small remote village with fresh water. The wind energy potential is not evenly distributed among the country. Wind speed of different regions varies between 1 and 6 m/s. The windy regions are located at the west south of Algeria, in the Sahara. Some parts of southern Algeria and several microclimates in the north do have average wind speeds ranging from 4 to 6.5 meters per second at 10 meters height. ADU RES WP7 Deliverable Algeria Page 10 of 17
11 4 The Institutional Framework for Water Management 4.1 The Water Law The water legal system and hydraulic infrastructures is deeply marked by the public state character. Algeria is actually undertaking deep social and economical reforms. New laws are being implemented to put into action new mechanisms for intended economical management. The principal elements that come out these laws, compared to the previous ones, are the investment opportunities given to the private sector to participate in the socioeconomical activities and programs. These opportunities apply as well for water and energy sectors. 4.2 Legislative texts New water law has been signed very recently in 4 th of august The previous law, bearing the code of water, was promulgated in the 16 th of July 1983 and was modified and completed in the 16 th of June The objective of these new legislative texts is to fix the principles and applicable rules for the use, management and sustainable development of water resources as a collective national wealth. It contains the following titles: Preliminary dispositions Legal regime of water resources and hydraulic infrastructures Water resources protection and preservation Institutional tools for integrated water resources management Legal regime of water resources use Water and sanitation public services Agricultural water Water services rates Water police Transitional and final dispositions Water desalination is mentioned in article 81 under title Legal regime of water resources use. The article state: in accordance with the present law, the concession for the realization and exploitation of seawater desalination and brackish water demineralization for public use can be granted in conformity with dispositions of regulation n of the 20 th of August 2001 relative to investment development. ADU RES WP7 Deliverable Algeria Page 11 of 17
12 It is worth mentioning the promulgation (March 25 th, 2004) of the executive decree relative to the cost diversification for electrical energy production. This decree defines the diversification cost of electricity produced from renewable energies and/or cogeneration, in the frame of special regime, as well as the conditions of production, transport and grid connection of the produced electricity. In order to cover the over-costs resulting from renewable energies power production and in account of diversification costs, it is attributed to electricity producers from renewable energies a bonus for each kwh produced, commercialized or consumed. 4.3 The Water Policy The national water steering scheme is adapted to fit into the national scheme for the country s development for horizon Strong intersectoral consultations are actually taking place between the concerned ministries to put into action this project that started in early year It has been pointed out that that water question endows a strategic interest for a sustainable development and lay-out. The main objective of the country s water policy consists on providing sufficient potable water for the population supply. This objective is undertaken by increasing the water resources and availability. The government has put into action a wide programme taking into consideration several tasks, as: Increase rainfall collect capacity (dams construction) Promote waste water re-use Promote seawater desalination Restore cities water distribution facilities Implement new way of management Promote personnel training Modernize management facilities The promulgation of the different laws and restructure of the water sector in the last few years shows to what extent the present water policy reflects the water law, even though this long process is still at its beginning. Agricultural and economic/investment policies would have substantial impact on water policy; to a lesser extend environmental and financial policies. Intersectoral water use is prioritized in municipal and agriculture in first place, and environmental, industrial and tourism in second place. The mains driving factors behind the prioritization are equity considerations and economic factors beside to state of water resources. The main determining factor in the selection of water project would be equity motives. ADU RES WP7 Deliverable Algeria Page 12 of 17
13 The driving and determining factors would not be influenced if the project is funded locally or from international aid agency for any of the following municipal, irrigation, industrial or tourism purposes. In general, economic factors have some influence on the selection of water project. Up to recently, water prices were subsidized by the government, but they are currently subject to revision in the consuming sectors on a regular gradual basis until they reach the real value of production. Water rates are defined by decree n of 16th of May The calculated water consumption rates depend on: The type of use The rate zone The supplied water volume The water nature and quality Water consumption rates are considered for two distinguished categories; domestic/industrial and agricultural. Industrial and domestic: Water pricing is established on the basis of rates depending on each zone rate, its use and the consumed amount. The users in this category are classified into four categories Category 1: Household Category 2: Institutions, administrations, public establishments and collectivities Category 3: Handcrafts and public services Category 4: Industrial and tourist units Agricultural: Water rates for agricultural use are established according to binomial formula based on the subscribed maximum water flow rate and the effective amount of water consumed. Actual policies do encourage privatization in the different water sectors (urban, rural, agriculture and industrial); the process is at early stage. The consumers attitude towards water privatization is generally acceptable. The present water policy is somewhat conducive to public participation and decentralization, this would concerns management mainly. Professional government employees are generally inclined towards public participation and decentralization. It is at this point too early to estimate the success or effectiveness of nongovernmental organizations in various aspects of the water sector. The rare foreign companies involved in some cities network management are however showing optimism in their first actions. ADU RES WP7 Deliverable Algeria Page 13 of 17
14 4.4 Water Administrative Structure The first higher national authority is actually the ministry of water resources which is responsible for the country s water policy. The ministry consists of several directorates dealing each one with particular issues as: Directorate for Studies and hydraulic planning Directorate for Fresh water supply Directorate for Water resources mobilization Directorate for Sanitation and environment protection Directorate for Planning and economical affairs Directorate for Human resources, training and cooperation Directorate for Budget, means and regulation The second state authority responsible for the undertaking of this water policy is the Algérienne Des Eaux - ADE a structure created in April 2001 and it is charged to: Undergo the national policy on potable water which comprises several tasks; the production, the transfer, the treatment, the storage and distribution/supply of industrial and potable water. Initiate, organize and promote on behalf of the state and/or local authorities, the management of water public service concession awarded to either public or private enterprises. The ADE is thus a regulation tool for national or foreign operators. One of the most important structures newly created and responsible for the undergoing of the ADE work program are the five (05) regional agencies corresponding to the five hydrological basins which form the new natural hydrographical distribution. Each agency operates on a complete autonomous management in the frame of its annual budget and general management procedures. The main program actions are: modernize and improve the overall water management restore the water distribution systems of several main cities construct new dams realize transfer pipelines for newly constructed dams construct large desalination plants construct new reuse water treatment facilities ADU RES WP7 Deliverable Algeria Page 14 of 17
15 Strong coordination is actually needed in order to get this program going efficiently. The mechanisms of this coordination are in the stage of getting running. The administrative setup should be favorable for an efficient water sector management. The private sector involvement is considered to have positive impact on water sector performance even though much work needs to be done. The allocated budget is considered sufficient to realize water sector objectives. It is important to note that exhaustive data is not quite available, but general information is easily obtained through water sector authorities (ministry of water resources, Algerienne des eaux ) information networks. There is only little co-operation between the research community and decision makers in water sector. As mentioned above, new technologies addressing emerging challenges are easily embraced by water sector in order to increase water availability. These technologies concerns mainly seawater desalination and water re-use processes. The effectiveness of the present administration system in stimulating the implementation of water laws, regulation and policies cannot be estimated for the moment. The water sector reforms are still taking place and the effectiveness will not be appreciated before many years ahead. In general, the water supply situation has improved within last few years. This improvement was mainly caused by the good rainy winter recorded in last few years, and partly to recent implementation of new infrastructure and improved management strategies. The demand supply deficit has been significantly reduced with good quality water. However, the protection of water resources from pollution is undertaken with some difficulties. The maintenance of water infrastructure and the management of social implication of water shortages still remain weak elements in water policies. The level of investments is as important as the actual requirement but the cost recovery is still poor in comparison with actual expenditure. ADU RES WP7 Deliverable Algeria Page 15 of 17
16 5 Conclusions The Algerian government currently shows significant efforts to undertake the economical reforms mentioned in the introduction of this paper. Billions of dollars are being invested to construct basic infrastructures and news regulation texts are developed and implemented in order to promote national and international investment in several economical sectors. Investment in a strategic issue as water, which resources are considered as state property, is encouraged through concessions. The process to change from an economy that has for decades operated on a state owned system to a market based system required years of constant efforts. Inherited heavy bureaucracy and old habits seem to be the mains obstacles to put into action the new mechanisms. It seems obvious that for social reasons, the changing process need to be performed gradually to adjust the consuming costs to their real level. Newly implemented laws and regulation texts will probably need to be adjusted as time goes on with the arising of obstacles in practice. ADU RES WP7 Deliverable Algeria Page 16 of 17
17 6 References [1] Statistical yearbook of statistics National Board of Statistics, volume 19, Edition 2000 [2] [3] Official Journal n 37 of Sunday Moharram 29 th 1417 corresponding to June 16 th 1996 [4] Seawater and Brackish Water Desalination in the Middle East, North Africa and Central Asia, Final Report, Annex 1, Algeria The World Bank, December 2004 [5] Documents from Algérienne des Eaux-ADE, ADU RES WP7 Deliverable Algeria Page 17 of 17
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