Algiers, November 4, 2005
—
The International Finance Corporation, the private sector arm of the World Bank Group, has been appointed by the Algerian government as the lead advisor to assist in mobilizing private sector participation in operations of the Houari Boumediene Airport in Algiers.
The government intends to involve the private sector in order to improve the airport’s facilities and services, as part of an effort to develop the country’s tourism sector. IFC has been appointed to help the government implement the private sector participation transaction. This includes creating a supporting regulatory framework and helping develop a model to introduce private sector participation to the rest of Algeria’s aviation sector.
The project is expected to be completed in a year and will be divided into two distinct phases. The first will involve technical and legal due diligence, on the basis of which IFC will structure a transaction. The second phase will entail management of the tender process, during which IFC will promote the project to potential investors, supervise the selection process, and assist the government in choosing the bidder.
Mr. Mohamed Maghlaoui, Minister of Transport, commented that “IFC’s experience in providing advisory services and technical assistance in emerging markets is invaluable. Their ability to bring together investors with specific expertise in the aviation industry and in the emerging economies demonstrates their depth and reach in the market.”
Mr. Jesper Kjaer, General Manager of IFC’s regional technical assistance facility, PEP-MENA, said, “IFC is well placed to help in this transaction based on our extensive experience in assisting with privatization processes in the aviation sector. The Algerian government is moving in the right direction by opening the country’s infrastructure to the private sector, which will help provide efficient and less expensive services as well as improve the experience of travelers. These improvements will contribute to growing the tourism sector.”
The Private Enterprise Partnership for the Middle East and North Africa is IFC’s technical assistance facility that supports private sector development in the region. PEP-MENA focuses on improving the business-enabling and regulatory environment in the region; strengthening the financial sector; promoting the growth of small and medium enterprises and their support services, such as business organizations and consulting firms; helping restructure and privatize state-owned enterprises; and developing viable private sector and public-private partnership projects, especially in infrastructure.
The International Finance Corporation is the private sector arm of the World Bank Group and is headquartered in Washington, D.C. IFC coordinates its activities with the other institutions of the World Bank Group but is legally and financially independent. Its 178 member countries provide its share capital and collectively determine its policies.
The mission of IFC is to promote sustainable private sector investment in developing and transition countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY05, IFC has committed more than $49 billion of its own funds and arranged $24 billion in syndications for 3,319 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY05 was $19.3 billion for its own account and $5.3 billion held for participants in loan syndications. For more information, visit
www.ifc.org
.
