Algeria - Industrial and Energy Competitiveness Support Programme (PACIE)

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.