The new public procurement code

Adopted by the Council of Ministers on July 11, 2010 and published in the form of a presidential decree on October 7, 2010, the new public procurement code mainly focuses on increasing the use of national production by giving greater priority to Algerian companies and upping requirements for foreign firms.

For example, new rules stipulate that local companies are to be given preferential consideration in state tenders so long as their bids are under 25% more than those lodged by overseas firms whereas the the ceiling was set at 15% under the previous regulations.

New rules also encourage national production by stipulating that in some cases, state contracts must be opened to a nationwide tender in which only Algerian companies can bid. Foreign firms will only be invited to bid on the tender if the work is not awarded to a local company.