Algerian Sonelgaz Plans Investment in 2010

Algeria gas and electricity power Group Sonelgaz plans to invest US$3.3 billion in of 2010 to develop electricity and gas distribution projects, CEO of Sonelgaz Noureddine Boutarfa told a press conference. This level of investment “reflects the continuing efforts to improve the company’s capacity in terms of production and distribution of electricity and gas in the absence of the company’s own resources, caused by the government’s decision related to maintaining the same price of gas and electricity, he added. The financial coverage of the investment program will be provided at 70% by bank credits, at 20.7% by the state, and 9% by customers. As for recent measures taken by the government aiming at reorganizing Sonelgaz, Bouterfa said: “the measures concern the financing of some projects of the holding company for the year 2010, but do not resolve its funding problems, at medium and long terms.” - El Khabar