Algeria - Industrial and Energy Competitiveness Support Programme (PACIE)

Project Summary

Approval Date 02 Nov 2016
Signature Date 23 Nov 2016
Planned Completion Date 31 Dec 2018
Last Disbursement Planned Date 31 Dec 2017
Sovereign / Non-Sovereign Sovereign
Sector Multi-Sector
DAC Sector Code 11330
Commitment U.A 718,327,733.04
Status Completion

Project General Description

The Industrial and Energy Competitiveness Support Programme (PACIE) is in line with the New Economic Growth Model (NMCE) 2016-2030 adopted on 26 July 2016, and addresses Algeria’s need to enhance the resilience and competitiveness of its economy and, hence, lay a solid foundation for sustainable growth that creates jobs and wealth. PACIE will provide the Government with the resources needed in 2016 to offset the drop in its revenue due to the sharp fall in oil prices and to support its efforts to streamline and control public expenditure. This is a general budget support operation that will help to create appropriate conditions for inclusive growth by implementing economic reforms to ensure fiscal consolidation, improve the investment climate and energy sector governance, and promote renewable energy. PACIE comprises three complementary components, namely: (i) Improvement and Modernization of Public Resource Management; (ii) Improvement of the Investment Climate; and (iii) Improvement of Energy Sector Governance and Promotion of Renewable Energy. The three components are closely related, and will contribute to achieving sustainable inclusive growth and improving the quality of life.

Project Objectives

The programme objective is help create conditions conducive to inclusive growth in Algeria by implementing economic reforms to ensure fiscal consolidation, improve the investment climate and energy sector efficiency, as well as promote renewable energy. Specifically, it seeks to promote inclusive, resilient and sustainable growth by: (i) strengthening fiscal consolidation through increased revenue collection, the redefinition of expenditure priorities and the streamlining of expenditure, thereby helping to create conditions for sustainable and inclusive growth; (ii) improving the business environment through the enactment of laws governing investment and access to financing, the promotion of industrial parks, as well as the boosting of external trade; and (iii) generating renewable energy through improved energy sector governance and efficiency.


PACIE will benefit the Ministry of Finance and other Ministries, particularly the Ministry of Industry, Mines and Energy and relevant public entities, as well as the Algerian population as a whole, by improving competitiveness in order to support growth and job creation. Specifically, it will benefit: (i) Algerian small and medium-sized enterprises (SMEs) by removing many constraints on the development of their activities, particularly public procurement security and additional incentives for the hiring of manpower; (ii) investors who are major project initiators through a more transparent and attractive framework for investment and negotiation; (iii) other economic actors, a large proportion of them women, who will take advantage of the elimination of tax penalties and the new incentive system established to improve the sole proprietor status.

Participating Organization

African Development Bank
Ministère des finances


IATI identifier 46002-P-DZ-K00-007
Last Update 27 Mar 2023


Contact Details

Name Achille Charles Samuel TOTO SAME

Geographic Location

Country Algeria
Coordinates Location Name
28.0 3.0 Algeria