Construction Project Information (Algeria)

Transcription

CONSTRUCTION PROJECT INFORMATION (ALGERIA)
PART 1: CONSTRUCTION INFORMATION
1. Source for seeking construction project/project owner
1.1 Reference Source: Ministry of Urbanism and Housing
1.2 Contact person: Mr. Nait Saada Makhlouf
1.3 Telephone: (213) 21 747638
1.4 Fax: (213) 21 745383
1.5 Email: [email protected]
2.
- Draft contract for construction or related work
- List of materials & prices for construct work everdone before.
- Any traditional practice in construction contract (commission, etc)
Materials: With such a flurry of projects, there is growing pressure on construction
materials, starting with cement. As such, Algeria's cement industry is gearing up to
satisfy the ever-growing demand. Total cement demand reached 12,7m tones in 2005,
with some 200,000 tones imported. Demand is expected to keep growing rapidly and
reach 18m tones in 2010.
This will require additional capacity. As a result, the Algerian Cement Company, a
subsidiary of OCI, is currently building a second cement plant in the western part of the
country. This is scheduled to come on line in December 2007 with a production capacity
of 2,5m tones per year. In addition, the UAE-based Union cement, concluded a deal with
the authorities to build a 2,5-to 3m-tonne plant in the high plateaus for a total investment
of approximately $600m.
Yet with demand expected to grow faster than current sources can provide for, existing
plantas will need to operate at full capacity until these projects come on-stream. In the
Construction Project Information, Algeria
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meantime, the country will probably have to import cement to bridge the gap, with
average market prices expected to rise.
With demand for white cement also picking up, and with no plant in Algeria this variety
is currently imported. Mostly from Tunisia in 2005 OCI set up White Cement of Algeria,
a new subsidiary in charge of creating a Greenfield white cement plant. It will have a
capacity of 550,000 tonnes, and an estimated cost of $182m. OCI has forecast that
roughly 200,000 tonnes will be available for export, making it the first significant cement
exporter in Algeria.
Other major players in the sector are also showing interest in the local market, such as
world leader Lafarge, which is currently in negotiations for a bid to acquire a 35% share
in state owned cement producer SCMI.
The Algerian construction industry uses grade 42.5 cement, which costs around AD4500
($62) per tonne. Meanwhile, sulphate-resistant cement is priced at around AD6300 ($86)
per tonne. Cement usage is currently around 400 kg per capita, but this is expected to top
550 kg by 2008.
The industry also needs to import rebar, as Algeria only has two producers. The Mittal
plant in Annaba only produces two different diameters. With the rest typically imported
from Egypt, Turkey and Europe. Average prices are $500-600 per tonne.
Regarding the supply of sand. Although legal sources do exist, they are scare in the
Algiers region, so construction firms tend to resort to illegal channels for supply. As
such, sand id extracted from nearby rivers and beaches, which poses a serious quality
issue.
Costs:
According to Khalid el-Degwy, the head of OCI, Algeria's limited pool of resources is
driving up costs. Prices of raw materials are on the increase, and competition for qualified
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work force means wages are rising, although they remain competitive in the region. Yet
with demand for construction topping supply, it is a sellers market and will remain so for
some time, which will allow contractors to demand high premiums, except for social
housing. This offers very thin margins. As such, prices can be considered a fairly good
approximation of costs.
Average prices for construction range between AD19,000 ($259.56) and AD23,000
($314.21) per sq metre for social housing, and between AD25,000 ($341.53) and
AD28,000 ($382.51) for apartments on hire purchase, hence those flats are of better
quality. Private market prices are estimated to range from around AD35,000 ($478.14)
per sq meter for an apartment to AD45,000 ($614.75) per sq meter and more for a villa.
Outside the housing sector, construction costs are around AD45,000 ($614.75) per sq
meter for industrial plants, while a turnkey five star hotel with state of the art equipment
can reach $12000 to$1500 per sq meter. Overall, costs tend to be 10-15% higher in the
Algiers region, mostly because a qualified work force is more expensive there.
Apart from raw materials and labour, other factors driving costs up include the lack of
efficiency in logistics, with some foreign contractors complaining about long delays at
ports and Customs. Yet well structured companies usually manage to avoid delays by
undertaking precise planning for these.
- Any traditional practice in construction contract (commission, etc)
EXAMPLES OF LATEST TENDERS:
Number of Tender:
opMascara AAONO N ° 47 09
Publication date:
25/11/2009
Abstract:
Invitation to Tender open for national implementation in
TEC without HHT 70/224 of rental housing in GIS
(Group C) (Project 1200 housing through the wilaya
of Mascara RHP supplementary program for 2007)
divided as follows:
Location withdrawal:
OPGI
3
Expiration Date:
14/12/2009
Wilaya:
Mascara
Theme:
Promotion Immobilière
Opinion / Call:
Notices
Agency:
OPGI
Number of Tender:
Publication date:
25/11/2009
Abstract:
Invitation to Tender open for national mplementation in
TEC without VRD 30 public rental housing to
ZELAMTA (Operation 1000 housing through the wilaya
of Mascara RHP additional program for the year 2009) as
follows:
OPGI
Expiration Date:
14/12/2009
Wilaya:
Mascara
Theme:
Opinion / Call:
Notices
Agency:
OPGI
Number of Tender:
Publication date:
25/11/2009
Abstract:
TEC without VRD 55 public rental housing to Hacine
(OP: 2000 / Program RHP 2008) as follows:
OPGI
Expiration Date:
14/12/2009
Wilaya:
Mascara
Theme:
Opinion / Call:
Notices
Agency:
OPGI
4
Number of Tender:
Publication date:
25/11/2009
Abstract:
TEC without HHT of 09 public rental housing to
SEHAILIA (OP: 1000 / Program RHP 2009) as follows:
OPGI
Expiration Date:
14/12/2009
Wilaya:
Mascara
Theme:
Opinion / Call:
Notices
Agency:
OPGI
Number of Tender:
dlChlef AAONR N ° 86 09
Publication date:
25/11/2009
Abstract:
Invitation to tender for the small national achievement in
single lot and the TEC:
Dlep
Expiration Date:
23/12/2009
Wilaya:
CHLEF
Theme:
Facilities
Opinion / Call:
Notices
Agency:
DLEP
Number of Tender:
Publication date:
25/11/2009
Abstract:
TEC without VRD 100 public rental housing to
MACTAA TWELVE (OP: 1000 / Program RHP 2009) as
follows:
OPGI
5
Expiration Date:
16/12/2009
Wilaya:
Mascara
Theme:
Opinion / Call:
Notices
Agency:
OPGI
Number of Tender:
Publication date:
25/11/2009
Abstract:
TEC without HHT 70/224 of rental housing in GIS
(Tranche B) (Project 1200 housing through the wilaya of
Mascara RHP supplementary program for 2007) divided
as follows:
OPGI
Expiration Date:
14/12/2009
Wilaya:
Mascara
Theme:
Opinion / Call:
Notices
Agency:
OPGI
Number of Tender:
Publication date:
25/11/2009
Abstract:
TEC without HHT of 05 public rental housing to Bénian
(Operation 1000 housing through the wilaya of Mascara
RHP additional program for the year 2009) as follows:
OPGI
Expiration Date:
14/12/2009
Wilaya:
Mascara
Theme:
6
Opinion / Call:
Notices
Agency:
OPGI
Number of Tender:
Publication date:
25/11/2009
Abstract:
Invitation to Tender open for national
implementation in TEC without VRD 100
public rental housing to SIDI
ABDELMOUMEN (OP: 1000 / Program RHP
2009) as follows:
OPGI
Expiration Date:
20/12/2009
Wilaya:
Mascara
Theme:
Opinion / Call:
Notices
Agency:
OPGI
3. List of contraction material seller/importers (concrete, iron, sanitaryware,
aluminium, glass, etc)
Construction Materials
EDIMCO Sétif Entr.Distrib.Métér. de Construction,Spa
Zone d'Entrepôts & d'Activités BP 2, 19000 Sétif
1. Tel.
213 36 93 76 51, 93 76 52, 93 76 53, 93 75 31,91 93 19
Fax.
213 36 919319, 937531
Email:
[email protected]
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AGMC L'Algérienne des Grillages & Matériaux de Construction,Sarl
2.
Lot Cadat""A"" n°19 BP 09(10270 Aomar), 10000 Bouira
Tel.
213 26 90 83 46, 90 82 60, 213 774 98 57 79
Fax.
213 26 908346, 908260
CiBA (Ciment Blanc d'Algérie),Spa
33 rue des Pins, 16405 Hydra
3.
Tel.
213 21 48 16 70, 48 16 66, 48 16 65, 48 16 64, 48 16 61, 48 16 57, 48
16 56,48 16 55
Fax.
213 21 481671
SCAEK Société des Ciments de Aïn El Kebira,Spa
4.
Cité Bounechada rue Abacha Amar BP 112, 19000 Sétif
Tel.
213 36 93 79 05, 93 79 28
Fax.
213 36 937951, 845697
SOTRARBO Société de Travaux Routiers de Bouira,Spa
5.
Zone des Parcs BP 64, 10000 Bouira
Tel.
213 26 93 49 93
Fax.
213 26 930380
Ets CHABAHE Chouki
6.
Route de Ghardaia, 30000 Ouargla
Tel.
213 29 71 93 37, 213 661 38 31 91, (0662)09 54 70
Fax.
213 29 719337
ENAB Entreprise Nationale Approvisionnement Bois Dérivés,Spa
7.
Zone Industrielle Sidi Akacha Bp74 02200 Ténès
Tel.
213 27 76 01 57
Fax.
213 27 760149
8
ERCA-DNC Distribution Nouvelle pour Construction,Spa
8.
ZI de Oued Smar BP 40M 16310 Oued Smar
Tel.
213 21 51 68 67
Fax.
213 21 516867
EDIMCO Entreprise de Distribution des Matériaux de Construction,EURL
9.
Avenue du 1er Novembre BP 426 47000 Ghardaia
Tel.
213 29 88 43 02
Fax.
213 29 881929
EDIMCO Entreprise de Distribution des Matériaux de Construction,Spa
10.
Plateau Hydraulique BP 193 08000 Béchar
Tel.
213 49 81 64 10
Fax.
213 49 818817
SANITARYWARE
PROVEMAT,Sarl
1.
Zone des Dépôts lot n°12bis, 15000 Tizi Ouzou
Tel.
213 26 43 13 92, 43 11 11, 770 50 72 42, 30 93 40
Fax.
213 26 216029, 431393
CAME,EURL
2.
Lot n°9 Hamiz 4 16012 Dar El Beida
Tel.
213 21 86 05 34
Fax.
213 21 877160
9
EDIMCO Entreprise de Distribution des Matériaux de Construction,Spa
3.
Plateau Hydraulique BP 193 08000 Béchar
Tel.
213 49 81 64 10
Fax.
213 49 818817
BOULEGANE Frères,SNC
4.
Cité des Jardins 19300 Bougaâ
Tel.
213 36 80 20 86
Fax.
213 36 804036
BFIX GROUP,Sarl
5.
Résidence Chabani, Val d'Hydra 16405 Hydra
Tel.
213 21 60 13 60
Fax.
213 21 605503
HARIK,Sarl
6.
14/18 rue Kerrouche Slimane 16105 Birkhadem
Tel.
213 21 55 36 74
Fax.
213 21 554022
DERWENT SAND,Sarl
7.
Cité Citmil villa n°29 16302 Dely Ibrahim
Tel.
213 21 369 313
Fax.
213 21 369556
SOPROMAT Société de Promotion des Matériaux de Construction
8.
Parc Sopres, zone des Parcs 10000 Bouira
Tel.
213 20 71 80 80
Fax.
213 26 936641
10
SALIMAC Société Algérienne Import. de Matériaux de Construction,Sarl
9.
ZI Desserte n°5 13000 Chetouane
Tel.
213 43 27 69 72
Fax.
213 43 272946
roupe ARTILUX,Sarl
10.
ZA Atlas Blidéen BP 539 09000 Blida
Tel.
213 25 41 97 38
Fax.
213 25 419739
4. List of contractor (for joint venture) in any construction works (with Thai
construction company)
ARAB CONTRACTGORS
Parc Mirmont, Vill No. 01, Air France Bouzareah, Alger
1.
Tel.
213 21 916238, 916240
Fax.
213 21 936656
Email:
[email protected]
SNC-Lavalin Maghreb
18, Rue Mustapha Khalef, Ben Aknoun, Alger`
2.
Tel.
213 21 911750
Fax.
213 21 911758
Email:
[email protected]
INFRARAIL, SPA
3.
15, Rue Colonel Amirouche 16013 Rouiba, Algeria
Tel.
213 21 854610
Fax.
213 21 855906
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PREMOS
4.
Zone Ogholi Salamantre, 27000 Mostaganem, Algeria
Tel.
213 45 308443
Fax.
213 45 308443
ABC MINET ALGERIE, SARL
5.
Cite des Travailleurs, Group 5, 16012 Dar El Beida, Algeria
Tel.
213 21 505333
Fax.
213 21 505333
SARENS ALGERIE FILIALE DE SARENS GROUP, SARL
6.
5, Rue Hadj Bacha, 16208 Kouba, Algeria
Tel.
213 21497717, 497718
Fax.
213 21 498526
ENTREPOSE MILLS ALGERIE
7.
9, Chemin du Capitaine Slimane Hocine, 16100 Alger Centre
Tel.
213 770 618057
Fax.
213 21 239404
COPRAC, SPA
8.
Zone Industrielle 23100 Berrahal, Algeria
Tel.
213 38 807126
Fax.
213 38 807127
AND CONSTRUCTION, SARL
9.
Cooperative Errahma lot No. 12, Rue Marcello Fabri, Algeria
Tel.
213 21 447668
Fax.
213 21 447641
12
BENMOHAMED TARKE (BMT)
10.
Hadi Baba Ali Les Zuinnes, 16004 Birtouta, Algeria
Tel.
213 21 309590
Fax.
213 17 646303
5. Any information for social background, custom practice & local important
tradition.
The quality of local construction is still below international standards. With contractors
under pressure to carry out the governments housing programme as quickly and cheaply
as possible, quality tends to be the industry's weak point, especially as the authorities lack
supervisory capacities to ensure everything is done by
the book. In addition, the
governments focus on completing the programme by 2009_ the date of the next
presidential election _ basically means that architecture and design tend to be over
looked, productivity being the top priority. Yet according to industry insiders, the recent
strengthening of quality norms by the Algerian standardization Institute, seems to be
having a significant impact. The sectors leading companies are starting to devise health,
security and environment policies, following trends taking place elsewhere, and
international Organization for Standardization certification is also gaining momentum.
A sign that the industry is placing more emphasis on quality, the National Organization
of Structural Engineering Control announced in December 2006 that it had concluded a
partnership with Cogel, an Italian public works company, to jointly carry out
infrastructure works a focus on quality. It is hoped such alliances, combined with the
ongoing entry of more foreign companies, will allow the sector to benefit from transfers
of technology and expertise.
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PART 2: REGISTRATION FOR ESTABLISHING LEGAL SYSTEM
1. Procedure for establishing company and company account report yearly
submit to government.
-
Expenditure related to (establishing, account report and other completing
the project, expenses for clearing account)
Any resident or non resident investor (national or foreign, natural person or legal entity),
interested by the opportunities of investment in Algeria, is allowed to establish in Algeria
with an aim to:
1. Create, in his proper name, a juridical entity governed by Algerian laws,
constituted by 100% of resident or non resident capitals.
2. Enter in partnership with one or more natural persons or legal entities governed
by Algerian laws.
3. Share, in kind or in cash, an existing company’s capital.
4. Take over an activity within the framework of a total or partial privatization.
Procedures:
1. The first step is to fill in and file an investment declaration (déclaration
d’investissement).
2. The investor then fills in the “great projects scheme” (canevas grands scheme),
which is the specific Regime of the Convention form. Based on this, ANDI (the
National Agency for investment Development) will inform the National council
of Investment (CNI) of the project and its nature and wait for the CNI’s advise.
3. Prior to starting negotiations phase between the investor and ANDI, the granting
of the Regime of the Convention must be approved by the CNI.
4. The investor and the ANDI, acting on behalf of the state of Algeria, then start
negotiating the terms and conditions of the agreement. These negotiations are
supervised by the Ministry of Participations and the Promotion of Investment
(MPPI).
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5. The above mentioned agreement must be approved by the CNI and published in
the Official Paper (JORA).
6. The benefits granted by the Regime of the Convention take a long time to obtain,
usually no less than six months, depending on the importance of the contemplated
investment. This delay is down to the fact that the CNI solely convenes when the
agenda of its chairman, the prime minister, gives permission.
Both Algerian and foreign investors generally opt for corporations, namely, limited
liability companies (SARL), or joint stock companies (SPA), where the liability of the
shareholders is limited to their share capital contributions.
Other companies are less used, as by law, their members are often exposed to greater
financial risks. One of them, the partnership limited by shares (SCA), may also be
analysed as a corporation while all the other forms are closer to the concept of
partnership. Theses are:
-
The co-partnership (SNC)
-
The sleeping partnership (SCS)
-
The secret partnership (SEP)
It is important to note, that most corporate documents relating to the establishment and
amendment of the by laws, shall be drawn as notarised deeds in Arabic Language.
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Legal forms of companies
Form
Private
Number of
Minimum
Partners/Sharehol
and/or maximum
ders
capital
1 or several partners
DZD 100,000
Liability
Liability is
Registratio
n fee
DZD
Limited
divided into shares limited to
10,000 for
Company
(DZD 1,000 by
the amount
registration
shares) minimum
contributed
fees
Liability is
DZD
limited to
10,000 for
the amount
registration
contributed
fees
Liability is
DZD
joint and
10,000 for
several and
registration
indefinite
fees
Release of
financial
documents
Yes
totally subscribed
and released
Joint Stock
Minimum 7
Company
shareholders
General
DA 1 million
Minimum 2 partners No minimum
Partnership
capital
The
Two types of
No minimum
Active
DZD
Partnership
partners: active
capital
partners’
10,000 for
limited by
partners and
liability is
registration
shares
sleeping partners
joint and
fees
several.
Liability of
sleeping is
limited to
the amount
contributed
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Yes
No
No.
Registration and licensing procedures
First, registration with the Trade Register is compulsory prior to any commercial activity
in Algeria. The operator has to contact the National Centre of the Trade Register
(CNRC). The registration fees amount to DZD 4,000 (stamps) and DZD 3.950 (common
law).
Source: National Investment Development Agency (ANDI)
Contact Person: (further details on: www.andi.dz)
Tel: (213) 21 773330
Fax: (213) 21 773332
Email: [email protected]
2. Can we establish company for project by project?
Yes, it is possible to have a company for specific purpose according to the Algerian
regulations but there should be a local partner and it should be registered accordingly.
3. Does it need to have local partner or not?
All foreign investment can only be realized in a 49/51 partnership with Algerian
investors. The 51% majority Algerian share can be represented by several Algerian
partners or entities.
4. In case of the project owner is foreigner, the regulations are applied the same as
locals?
No differences in Algerian between the foreigner or local owner
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5. Tax related to the project including corporation tax, and the refund from tax (in
case it is exempted by investment law?
Corporate tax
Tax rate for resident
The corporate income tax rate is 30% + 3% applicable on the
companies
wage bill of the company. The Tax rate on Professional
Activity (TAP) is 2.55% applicable on the turnover, except
VAT.
Tax rate on long-term
Capital gains are taxed in Algeria at the rate of 30%.
capital gains
Tax rate on branches
Foreign branches are taxed on profits made in Algeria.
Income tax
Fiscal year
The fiscal year begins on January 1st and ends on December
31st of the same year.
Income tax rate
The rate of the income tax is constituted with a progressive
table of 7 brackets. Tax Schedule 2003:
From 0 to 60,000 DA: 0%
From 60,000 to 180,000 DA: 10%
From 180,001 to 360,000 DA: 20%
From 360,000 to 1,080,000 DA: 30%
From 1,080,000 to 3,240,000 DA: 35%
From 3,240,000 to 9,999,999 DA: 40%
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VAT rates
Standard rates
17%
Reduced rates
7% (special reduced rate), 14% (reduced rate).
Other important taxes
Name of tax
Rate
Tax Specific Additional
Between 10% and 50% on the CIF value of
(TSA)
import of some luxuries.
Wealth tax
Variable rate
Donations
14%
Successions
8%
Melt company benefit schemes
3%
Specific rights on Pharmaceutical products
15%
(DSPP)
Source: Ministry of Finance (Tax Department)
Contact Person: for further dertails: http://www.finances-algeria.org/
Tel: (213) 21 711366
Fax: (213) 21 711366
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6. Tax exemption rights applied to foreigner and locals are the same or different?
How is it different?
Two different stages have to be distinguished from one another: the investment
realisation stage and the operational stage of the business set up pursuant to investment.
During the investment realisation stage, the investor may take advantage of, in whole or
in part, the following benefits for a period limited to five years:
- Exemption of franchise of all taxes regarding all goods and services necessary for the
investment, whether purchased on the Algerian market or imported, i.e.(i) exemption
from VAT, rate of which are either of 17% or 7% of the value of the purchased goods
and (ii) exemption from custom duties for the importation of the goods, are the rates of
which are either 30%, 15% or 5% (the Customs duties).
- Exemption from taxes due upon transfer of real estate properties (currently 2.5% + 1%
of the value of the real estate for purchaser) involved in the production as well as public
notice procedure to which such transactions may be subjected.
- Exemption from the registration of deeds relating to the constitution of a company or to
the increase of its share capital.
- Exemption from the property tax for the real estate that is related to the production.
After the realisation of the investment and for a maximum period of 10 years, during the
exploitation period, the investor may take advantage of, in whole or in part, the following
benefits:
- Exemption from corporate income tax (IBS), the rate of which is 25% with a reduced of
12.5% in case of investment of such income.
- Exemption from business tax (TAP), the rate of which is 2%.
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7. How is the process for closing company, how long does it take for clearing
account and bring back money & assets to Thailand?
Foreign shareholders of a company may be affected by restrictions on the repatriation of
dividends and capital gains (funds corresponding to capital contributions upon dissolution
and liquidation of the company or share assignment).
The repatriation of dividends and in general, of capital gains, was restricted under former
Algerian regulations and submitted to the prior consent of the Bank of Algeria.
Since 2001, the repatriation of dividends and in general, of capital gains, is guaranteed
under Article 31 of the Ordinance.
This Article reads: “Investments carried out by way of contributions in capital, with
freely convertible foreign currencies – duly quoted by the Bank of Algeria and the import
of which has been regularly ascertained by the latter – benefit from the guarantee of
transfer for both the investment capital and the incomes thereby generated. This
guarantee also applied to net real proceeds resulting from the transfer of the liquidation,
even if this amount exceeds the amount of capital initially invested.”
It is important to underling that only cash capital benefits from the guarantee of transfer
provided the paying up of capital. Contribution in kind does not benefit from this
guarantee.
As regards to Algerian branches of companies, it is not clear whether they could benefit
from the guarantee of transfer or not. Such offices do not have share capital. However,
capital injection of these branches cold be assimilated to a contribution in capital and thus
allows a guarantee of transfer, as it is already permitted for Algerian branches of foreign
banks and other financial institutions.
Regulation No. 05-03 dated June 6, 2005, and the related Regulation No. 10-05 have
been issued in with Article 31. Pursuant to these texts, repatriation of dividends and
21
investment proceeds is now only submitted to a prior remittal of documents and directly
executed by the intermediate bank without prior consent of the bank of Algeria.
It shall be noted that the Algerian Investment Ordinance limits the scope of the definition
of investment to activities related to the production of goods and services, as well as
attribution of concessions and licenses. However the situation of companies importing
products and directly reselling them on the Algerian market was not clear.
The Bank of Algeria issued a note to the intermediate banks.
According to this note, “activities relating to the importation of products and direct
reselling on the Algerian market are not eligible to the provisions of Regulation No. 0503”. However, according to this, its seems that these companies can benefit from the
repatriation guarantee if important investment efforts have been conducted in Algeria.
Accordingly, such companies would be subject to the former regime. The prior consent
of the Bank of Algeria would be required to repatriate dividends and funds corresponding
to company-share assignment and proceeds of the liquidation of the company.
It is important to note that, even if it is not stated by the regulation, acquisition of an
existing Algerian company through an importation of foreign currencies in Algeria is
eligible for the guarantee of transfer.
8. Value added tax: detail, how to calculate, the way for collecting.
VAT rates
Standard rates
17%
Reduced rates
7% (special reduced rate), 14% (reduced rate).
22
9. Tax deducted from the payable side:
Have
No √
How to calculate? Can the contract be separated into labor cost contract and
material cost contract?
No.
10. Double Taxation: Do we have any agreement with Libya or Algeria?
No double taxation treaties have been concluded between Thailand and Algeria
Source: Ministry of Finance (Tax Department)
Contact Person: for further dertails: http://www.finances-algeria.org/
Tel: (213) 21 711366
Fax: (213) 21 711366
PART 3: FINANCING, BANKING, ACCOUNTING
1. Is there a bank in local country (Libya, Algeria) has policy to support
construction projects.
No banks in Algeria support construction projects
Is there a Thai bank open a branch in this country?
No Thai banks open a branch in Algeria
Source: Central Bank of Algeria
Contact Person:
Tel. (213) 21 23.00.23
Fax: (213) 21 23.00.23
23
2. Pros & Cons for using between local currency vs US dollars in the contract.
No differences in using local currency or US dollars in Algeria
3. Bank Fees
3.1 Guarantee letter: Bid bond, performance bond, maintenance bond
It is completely different according to the contract value and kind of project, however it
ranges from 0.5%-5%.
3.2 Fee for issuing cheques
Fees for issuing cheques are around 0.01% of the cheque value.
Contact Person:
Tel. (213) 21 23.00.23
Fax: (213) 21 23.00.23
3.3 Law & punishment related to wrongdoing in money transaction.
Confiscation of capital and detention of project equipment.
Contact Person:
Tel. (213) 21 23.00.23
Fax: (213) 21 23.00.23
3.4 Is there a problem in using currency or exchange rate
No problem, however it is most recommended to use the official channels for exchange
process.
24
3.5 Is there restriction in transferring US dollar into – out of the country.
No restrictions according to the investment law.
3.6 Interest rate for loans (borrowing):
The Bank of Algeria's primary method of financial control was to limit lending, and
interest rate cuts were aimed at encouraging growth.
The money market rate, the rate at which financial institutions lend to one another in the
short term, was 3.35%. The discount rate, the interest rate at which the central bank lends
to financial institutions in the short term, was 6%.
Interest rate for deposit (1 yr.): 10-12.5%
Interest can be paid on both Algerian Dinar and foreign currency current accounts to both
residents and non-residents. Every bank has to declare to Banque d'Algerie the
maximum rate that it applies on current account balances. Such a declaration is required
for reporting purposes and may be amended by a bank at any time.
Part 4: Hiring, Visa (Work Permit)
1. Hiring rate (US dollars) for locals in the construction field.
Hiring rate is: 350-5000 USD
Source: Ministry of Labour and Social Security
Contact Person: for further details: www.mtss.gov.dz
Tel: (213) 21 683366
Fax: (213) 21 683366
25
2. Salary for local (in general field – Bachelor degree) USD/month
Salary for special field: engineer, accountant, lawyer – local people (bachelor
degree/USD/month)
Newly graduated:
350 USD/Month
Experience 5 yr:
700 USD/Month
Experience 10 yr:
1200 USD/Month
Experience 20 yr:
2500 USD/Month
3. Hiring rate for consultant (local)
Lawyer (hour basis)
USD/HR. (not applicable)
Accountant/Tax
USD/HR. (not applicable)
Lawyer (monthly basis)
Accountant/Tax
900 USD/Month
1200 USD/Month
Normally the most applicable mechanism for hiring consultants is based on an overall
fees according to the contract value.
4. Bonus/Yearly reward
Ranges from 7-10%
5. Payment in Social welfare / Compensation fund or any related law.
How types of payment, how much in percentage comparing to the wage.
Social security contributions
Categories
Rate
Observations
Employer's charges
26 % Applicable to gross salaries
Employees charges
9%
Social security benefits,
retirement and unemployment
6. Process in acquiring work permit.
The work visa is issued to foreign nationals holders of a provisional work authorization
(APT) delivered by the services in charge of employment in Algeria and a certificate
26
issued by the relevant services in which the employer certifies to undertake full financial
responsibilities for repatriation of their foreign workers upon completion of their work
contract.
Cost: US$ 150.00
Temporary Work Visa
The temporary work visa is issued to foreign nationals holders of work contract which
does not exceed 90 days or provisional work authorization delivered by the services in
charge of employment in Algeria and a certificate issued by the relevant services in
which the employer certifies to undertake full financial responsibilities for repatriation of
their foreign workers upon completion of their work contract.
Source: Ministry of Labour and Social Security
Contact Person: for further details: www.mtss.gov.dz
Tel: (213) 21 683366
Fax: (213) 21 683366
7. Tax calculation by counting working day in the country regarded as working day
for paying tax.
Is there taxation regulation like this or any related?
No taxation regulation like this is applicable in Algeria
8. Labour laws & punishment, how is it, and the related laws.
Algeria's labor force consists of roughly 10 million people out of a total population of
some 35 million. According to the National Office of Statistics, over 70percent of the
population is under age 30. The monthly minimum wage is DA 12,000 (USD 200). The
official unemployment rate is near 11 percent, but international organizations speculate it
is much higher, perhaps as high as27 percent. Algeria’s labor code sets minimum work
standards, including a minimum work age (16 years), a 40-hour workweek and rates for
27
overtime pay. Employers pay 26 percent of gross salaries in social security taxes,
including provisions for both retirement and health/accident insurance. U.S. companies
are able to hire trained technical staff. However, recruiting and retention have become
more difficult, as well-educated and trained Algerians are increasingly being lured to
higher salaries offered in the Gulf region. English speakers remain difficult to find.
Arabic is the official language, and French is the most common language of business.
There are no restrictions on the number of expatriate supervisory personnel a company
may establish. Entry visas for foreign workers must be requested through the Ministry of
Employment and Social Solidarity (http://www.massn.gov.dz). Foreign workers must
then obtain work permits from the Ministry of Labor (http://www.mtss.gov.dz) and a
residency card from the local police office in the district where they will be working.
The employer is responsible for submitting all tax payments for individual workers to the
proper local tax collection authorities. Algerian regulations allow foreigners to repatriate
50percent of their salaries.
9. Labor – profession, what types of them that are needed to import from Thailand.
Thai Technicians, architects and designers are on high demand in Algeria.
Part 5: Others
1. Price of renting office in business area and that outside within 10 Km from
center/downtown (In USD / 100 sqm)
Renting office in the downtown in Algeria for 100 sqm costs around $2000-2500
Source: Caroline Sarl
Contact person: Mr. Yasine Benlagha
Tel: (213) 21 360817
Fax: (213) 21 360819
28
2. Price of renting house (2 bed room, 2 toilet) within 10 Km from downtown.
Renting house with the mentioned specifications would cost around $500-750
Source: Caroline Sarl
Contact person: Mr. Yasine Benlagha
Tel: (213) 21 360817
Fax: (213) 21 360819
3. Process in importing machines (and exporting)
Importing machines and equipment is allowed in Algeria without any restrictions and the
normal procedures are applicable as for the other products.
Equipment and machinery brought into Algeria temporarily for the purpose of a specific
project or exhibition are exempt from payment of customs duties and taxes. To obtain
waivers, importers must fill out a customs form and present it to the authorities when the
goods are re-exported. In January 1998, Algeria ratified the Istanbul Convention related
to Temporary Entry through presidential decree No 98-03.
Source: Algerian General Department of Customs (Direction Générale des Douanes
Algériennes)
Contact person: for further details: www.douane.gov.dz
Tel: (213) 21 725959
Fax: (213) 21 725975
4. Others:
Construction and Real Estate has been witnessing an annual real growth rate of around
7% since 2002. The sector confronts many challenges in Algeria. These are represented
by lands’ paucity, which consequently drives prices higher, lack of experienced labor, in
addition to growing construction costs.
29
In 2005, the Algerian government announced a plan, with a 5-year period, which will
include US$60bn as government expenditure, with the aim of ameliorating the sector’s
performance. The plan included the development of 1mn housing units. This plan spurred
foreign corporations to establish projects in Algeria.
Emaar, the Emirati Developer, announced in 2007 that it will establish 4 real estate
projects, with an estimated cost of US$20bn. These projects cover a new town called Sidi
Abdellah, a tourist resort at Colonel Abbas, a healthcare resort at Staouali County and a
redevelopment of the waterfront at Algiers. The projects will include hotels, villas,
shopping centers, marinas, apartments, hospitals, sport centers, students’ campuses, a
para-medical school, a medical school and a golf course. The new city of Sidi Abdellah
will have an area of 400hectares (ha), while the tourist and waterfront projects areas are
expected to be 109ha and 260ha. It is worth mentioning that Emaar announced in
February 2008 that it will raise its investments in the Algerian projects to reach US$30bn.
In addition, the Saudi-originated real estate developer “SNASCO” announced in 2008
that it will establish a mega waterfront project in the city of Oran, with an estimated area
of 150 thousand square meters and an estimated cost of Euro400mn. The project will
include residential and commercial units.
Moreover, the Emirates International Investment Company (EIIC) announced in the same
year the establishment of the “Parc Dounya” project, which is expected to be completed
in 5 years and has an estimated area of 6.6mn square meters. The project’s total
investment is estimated to be US$5bn. The Company will provide 75% of the project’s
area as a public park. The remaining area will be used for residential and commercial
activity and will include hospitals, a convention center, lakes, hotels, a golf course and a
playground for children.
30

Construction Project Information (Algeria)

Transcription

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