Announcement of Algeria Upgrades Agricultural Research and Extension Services on June 7, 1990

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.* Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 90/ 90 Contact: Fawzi Rihane (202) 473-2675 ALGERIA RESTRUCTURES KEY INDUSTRIAL ENTERPRISES WASHINGTON, June 4, 1990 -- Viable public enterprises in Algeria will gain greater access to necessary technical and financial resources through an industrial restructuring project that is being supported by the World Bank with five loans totalling $99.5 million. The loan beneficiaries are the Algerian government, three industrial companies -- Enterprise Nationale de Boulonnerie-Coutellerie-Robinetterie (BCR), a manufacturer of nuts, bolts, taps and valves; Enterprise Nationale d'Emballage Metalliques (EMB), a metal container manufacturer; and Entreprise Nationale de Produits Metalliques Utilitaires (PROMETAL), which specializes in metal appliances and a data processing and management consulting company, Enterprise Nationale d'Organisation et d'Information (ENORI). The project will help the three industrial enterprises define their medium- and long-term corporate strategies; identify inefficiencies in management, marketing, financial management, pricing, production and technology; and define and carry out actions and investments to implement their strategies within the framework of a detailed restructuring plan. Records of the experience of the three enterprises will be made available to other industrial enterprises that need to undergo restructuring and systematically reviewed by the government. Strengthening of ENORI and purchase of data processing equipment will help develop local management consulting skills. The project also includes studies in priority areas such as engineering industries and private-sector development. Like many Algerian industrial enterprises, EME and BCR (and to a lesser degree PROMETAL) have suffered losses over the last few years as a result of government-controlled pricing, an almost exclusive reliance on borrowing to finance investments, and inefficiency. The companies will be reinforced to enable them to become financially sustainable and competitive through improved management systems, increased responsiveness to market factors and more prudent investment planning. The training of local consultants is expected to lead to the creation of more flexible and responsive consulting firms and the development of a dynamic and competitive private service sector. Of the five loans, $5 million will be for the government, $47.6 million for BCR, $29.2 million for EMB, $12.7 million for PROMETAL and $5 million for ENORI. The World Bank loans are for 15 years, including five years' grace, with a variable interest rate, currently 7.75 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.25 percent on the undisbursed balance. Note: Money figures are expressed in U.S. dollar equivalents.