Algeria joins OLADE, steps up South-South cooperation

Algeria, in July, officially assumed special membership in the Latin American Energy Organization, OLADE, becoming one of the first few non-American nations in the ranks of the institution. Indeed, it was the first agreement of its kind between OLADE, as an organization, and a third country. The membership accord was signed by the Algerian Energy and Mines minister, HE Dr. Chakib Khelil, and OLADE's Executive Secretary, Dr. Julio Herrera.

Algeria expects to benefit from the long and rich experience of OLADE in energy matters, grouping, as it docs, some 20 countries, which collectively possess a great deal of know-how especially in the matter of renewable energy. Algeria would benefit from all the advantages OLADE offers its Latin American members, including training and the possibility of participation in energy projects in Latin America.

OLADE counts Algerian membership as an honor, stressing that its operations would be reinforced by Algerian expertise. It sees Algeria as an important link to energy markets in Africa and much of the Mediterranean. OLADE looks toward more formalized contacts, through Algeria, with the African Energy Commission (AEC), planned to bc based in Algiers. Algeria plans to hold a first Africa-Latin America Conference on Energy next year in Algiers, focusing on ways to encourage the exchange of experience in the energy sector as well as on the establishment of operational mechanisms to help facilitate development on the two continents.

OLADE membership is only one of Algeria's recent moves at concretizing South-South Cooperation and strengthening its economic relations with fellow developing countries, among them Saudi Arabia, Venezuela, the Libyan Arab Jamahiriya, IR Iran and Iraq.

With Saudi Arabia in August, an agreement was signed to set up a joint investment company, capitalized at US$100 million, shared equally between the two countries. Algerian Finance Minister HE Mr. Mourad Medelci, who initialed the agreement with Saudi Commerce minister HE Dr. Osama J. Faquih, disclosed that the company would be operational by the end of this year. The accord will help boost trade exchanges to include direct Saudi capital investment in Algeria. Dr. Faquih spoke of the need to expand mutually beneficial ties and enhance the role of the private sector in both countries. Several other agreements, relating to youth, transportation, culture and scientific research, were also signed by the two sides.

Venezuela held high-level talks in Algiers, also in August, on boosting economic relations. Venezuelan foreign minister HE Luis Alfonso Davila Garcia described economic relations with Algeria as "important and strategic" for his country, adding that both sides were looking toward the establishment of a joint commission to give continuity to relations between them. The commission is, indeed, expected to hold its inaugural meeting in November.

Libya, in an announcement, said its official deposits in Algerian banks, amounting to some US$450 million, are to be converted into investments in Algeria. At a meeting of the Algeria Libyan Joint Commission, it was disclosed that Lafico, the government-owned Libyan Overseas Investment Company, would invest some US$150 million in three tourist hotels in Algiers, Oran and Hassi-Messaoud. Algeria and Libya have signed an agreement related to the protection and guarantee of reciprocal investments.

Also with Iraq, Algeria operates a Joint Commission, which met in July to work on the creation of a free trade area between the two countries. A number of recommendations were made, and deposited with relevant authorities, on economic cooperation and means toward extension of bilateral exchanges. There were discussions regarding joint enterprises in the industrial sector and a joint lorry assembly plant to be based in Baghdad. There will be trade fairs on both countries products in each other's capital. In August, Iraq and Algeria signed trade contracts worth about US$100 million and involving the sale, by Algerian companies, of various products such as detergents, vegetable grease, milk powder, textiles and wood.

Iran proposes greater cooperation [with Algeria] in gas activities, encompassing prospecting, recovery and sales. The two countries signed an energy cooperation agreement in June, following discussions, at ministerial level, of the futur contours of Iran-Algerian cooperation in various fields, including the entire hydrocarbon chain. Both countries would work together to prepare the Second International Gas Forum already scheduled for January 2002 in Algiers.

OPEC Fund Newsletter, Vol. X, No. 2 May - August, 2001