FOR IMMEDIATE RELEASE
World Bank
1818 H Screec.N.W.. Washin5ton. D.C. 20433, U.S.A.* Telephone: (202) 477-1234
Bank News Release No. 93/54 MENA            Contact: Jeannie Yamine
(202)473-2318
ALGERIA HOUSING COMPLETION AND SECTOR DEVELOPMENT PROJECT
IS TARGET OF $200 MILLION LOAN,
Washington, D.C., March 4, 1993 -- An unprecedented loan of $200 million will
go toward supporting the Government of Algeria (GOA) housing completion and
sector development project. Among the proposed project components is the
completion of about 51,000 social housing units which are expected to benefit
low and medium-income families..
Demand for housing has soared in Algeria in the last three decades as the
population more than doubled to reach 25 million. The GOA's attempts to remedy
the worsening housing shortage has been hampered by severe financial,
technical, and institutional bottlenecks. Those range from the unavailability
of critical building materials, to housing completion delays of up to 10
years, and a housing subsidy scheme that is, in effect, unsustainable.
The main objective of the project is to trigger a quick housing supply
response, and to support and enhance the GOA's medium-term goal of realizing
market-oriented reforms in the housing sector. In addition to the completion
of social units, the proposed project also includes: an import program of
critical building materials for the private sector, a technical assistance
program focusing on housing finance and housing subsidies reforms, and the
provision of specific support to mitigate negative environmental impact of the
housing construction sector.
This project will go a long way in supporting the GOA's objectives of
accelerating the supply of housing units and undertaking an in-depth reform of
the housing sector. The GOA's short-term aim is to enhance the private sector
to complete 450,000 unfinished housing units and to support public sector
entities as they complete 265,000 units. As for sector reform, the GOA aims at
creating a sustainable environment for a housing mairket by setting up a new
institutional framework with a more balanced public versus private sectors
role and by gradually removing critical constraints on property rights,
housing finance, and housing subsidies.
The first World Bank loan ever in support of an Algerian housing project is
for 17 years, including a 5-year grace period, at the Bank's standard variable
interest rate. Loan beneficiaries will be the Ministry of Housing and several
public housing agencies, such as the Entreprises de Promotion et de Logement
Familial and the Offices de Promotion et de Gestion Immobiliere. The private
construction sector is also a loan beneficiary.
NOTE: Money figures are expressed in U.S. dollar equivalents.