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Interview realized by ANDI with the Wali of Skikda January 2014 Page 1 National Agency of Investment Development Interview with Mr. Faouzi BenHassine, Wali of Skikda 1. Could you briefly introduce the Wilaya? First, it should be noted that the wilaya of Skikda, contains precious vestiges and monuments that testify to its economic, social and cultural past and are now part of its rich heritage. The wilaya is derived from an administrative division in 1974 and has, since June 1991, thirteen 13 daïras comprising thirty eight 38 municipalities. It is located in north- eastern of Algeria on the Mediterranean Sea and occupies a strategic position on the northern coast of the Mediterranean. Its territory covers an area of 4118 km2 and is limited to: The East, by the wilaya of Annaba The West, by the wilaya of Jijel. the South-East, by the wilaya of Guelma. The South West, by the wilayas of Constantine and Mila. Its climate is Mediterranean, represented by a bioclimatic stage at the north, mild and humid with an average rainfall exceeding 1000 mm of rainfall per year, up to 2000 mm / year in El Goufi, and continental Subhumid stage at the south, with annual rainfall exceeding 600 mm.

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Interview realized by ANDI with the Wali of Skikda January 2014 Page 1

National Agency of Investment Development

Interview with Mr. Faouzi BenHassine, Wali of Skikda

1. Could you briefly introduce the Wilaya?

First, it should be noted that the wilaya of Skikda, contains precious vestiges and

monuments that testify to its economic, social and cultural past and are now part of its rich

heritage. The wilaya is derived from an administrative division in 1974 and has, since June

1991, thirteen 13 daïras comprising thirty eight 38 municipalities. It is located in north-

eastern of Algeria on the Mediterranean Sea and occupies a strategic position on the

northern coast of the Mediterranean. Its territory covers an area of 4118 km2 and is limited

to:

� The East, by the wilaya of Annaba

� The West, by the wilaya of Jijel.

� the South-East, by the wilaya of Guelma.

� The South West, by the wilayas of

Constantine and Mila.

Its climate is Mediterranean, represented by a

bioclimatic stage at the north, mild and humid with an average rainfall exceeding 1000 mm

of rainfall per year, up to 2000 mm / year in El Goufi, and continental Subhumid stage at the

south, with annual rainfall exceeding 600 mm.

Interview realized by ANDI with the Wali of Skikda January 2014 Page 2

Its relief is characterized by two mountain chains:

a) In the North, a Coast chain is interrupted by three main valleys

drained by three main wadis of the same name:

- Guebli, at the west, shall arise at the

foot of djebels Sid Driss and Ayata, flows

into basins of Sidi Mezghiche, Oum

Toub, Tamalous and the plain of Collo

where the Guebli river falls into the

Mediterranean Sea.

- Saf Saf, at the center, rises at the south of the Numidian chain (Jebel Ouahch) falls into the

basin of El Harrouche, of Emjez Edchiche Salah Bouchaour, Ramdane Djamel and the plain of

Skikda.

- El Kebir, at the east, created by El Wadi El Hajar and El Fendek and flows into the basin of

Ain Cherchar where takes place the confluence with its main tributary, the Hamimine river. It

then leads to the plain of Guerbes and flows into the Mediterranean Sea.

b) In the South, the Numidian chain or backbone of the oriental Tell is constituted of

aligned summits from west to east whose crests decline eastwards (Jebel Sid Driss,

Skikda, 1364 m altitude and Jebel Souani, El Kalaa 808 m). The massif of Collo reveals

itself as an extension of the links of the Kabylia. It

enters the Mediterranean Sea by Cape Bougarouni

and culminates at 1183 meters at El Goufi Jebel the

center of the Collo peninsula. Other points or

vertices form the south barrier of Sid Driss at 1364

meters of alttitude.

The plains areas (Oued Z’hor, Grande plage, Vallées alluviales, El

Kebir, Guebli, Saf Saf et Boussiaba, plaines sublittorales de

Tamalous, El Harrouche, Azzaba and Ain Charchar) and low

foothills or space located between the plains and the

mountains contain the best land potentialities.

The Mountain area is mainly constituted of forests (Bougarouni,

Hamedas, Arb-El-Goufi, Senhadja of Collo, Beni Toufout, coastal

range of Ain Zouit , Guerbes, Es Sebt, Ain Charchar , Ouled El-

Hadj, Ouled Attia, Melila, Medjajda, Béni Medjahed...

The profile of this area is agro-forestry-pastoral that is to say

that its economy is based on the cultivation of the soil, the development and maintenance

of the forest and livestock.

Interview realized by ANDI with the Wali of Skikda January 2014 Page 3

2. What is the economic vocation of the Wilaya in terms of its potential,

its characteristics and advantages ?

The wilaya has 14 coastal municipalities extending over a total area of 145,000 ha. Its

coastline extends over 140 km of coastline. Its core network infrastructure is based mainly

on:

� a road infrastructure composed of 327 km of national roads, 603 km of roads of

wilaya, 1657 kms of municipal roads and 137 of works of art.

� a railway network with a total length of 180 km, including 140 single track.

� 05 seaports including 03 fishing and boating ones (Stora, Collo and Marsa) of berthing

capacity for 427 units. The two other ports have commercial functions related to

hydrocarbons and travel.

It has a petrochemical pole with an area of 1,200 hectares

consisting of seventeen (17) high-tech petrochemical industrial

units, two (02) power plants, the cement plant of Essoud to

Hajar, a unit of marble , numerous little industries

predominantly food industry and 17 activity areas with an area

of 360 hectares.

Regarding water resources, Skikda belongs to the

watershed “coastal Constantine center”. This basin

extends over five wilaya (Skikda, Annaba, Guelma Jijel

and Constantine) to which are attached fifty eight (58)

municipalities, thirty seven (37) only for Skikda. The

hydrographic network covers more than 4500 km. The

annual average contribution is estimated at 1,694

hm3/year, 1620 of which for surface water. It has 291

million m3 of surface water and 31 million m3 of

unconventional water. The potential of large areas in the wilaya are estimated at 23,000

hectares (the basin of Wadi Kabir, at the east, for 13,000 hectares, the watershed of Wadi

Saf Saf, at the center, for 6000 hectares and the watershed bassin of the Guebli river, at the

west for 4000 hectares).

UAA irrigated, irrigation all confused, amounted to

15,300 ha. By 2025, the irrigable area will know an

extension of 12,800 hectares (the perimeter of Beni Zid

on 1,200 hectares, the second tranche of perimeter of Zit

Emba on 2,000 hectares, the perimeters of El Harrouche

on 400 hectares, wadi zhor on 400 hectares, Ben Azzouz

on 6600 hectares and Sidi Mezghiche Tamalous on total

area of 2200 hectares).

Interview realized by ANDI with the Wali of Skikda January 2014 Page 4

Four (04) dams in operation (Zardezas, Guenitra, Beni

Zid and Emba Zit) and the unit of desalination of sea with an

average capacity of 100,000 m3/day safe Skikda, for long

term, from a rupture between resources and water needs.

In addition to its production and its distribution, it is

necessary to also make the water drainage and treatment.

Water and sanitation problems are directly involved on the

welfare and health of citizens. For all these reasons, the wilaya

registred the completion of a sewage treatment plant in

Skikda, with a processing capacity of 42,000 m3/jour. The

treated water will be used again for irrigation sector.1 of

Ramdane Djamel, under way of study, of an area of 1500

hectares under the irrigated perimeter of Saf Saf.

Regarding soil resources, the total agricultural area amounts to 193,197 hectares,

131,879 of utilized agricultural area. The forest area covers 198,420 hectares. The feuillis

(oaks 44.5%) and softwood (pine 17.5%) are the main forest resources. Forestry sector has a

nursery, at Guerbes, municipality of Djendel, with an area of 12 ha and a production capacity

of two (02) million seedlings of cork and pine trees per year.

There is also a complex of wetlands at Guerbes - Senhadja of

international importance, with an area of 42,100 ha. This complex

is a nesting habitat for rare species, migrating and wintering area

for water birds and is a source of supply of marine species. The

complex of wetlands has been the subject of a general study,

whose main objectives are the development of an integrated

consensual management plan and its classification as a protected area.

Today, the new approach to resource management in soil, water and vegetation,

supported by legislative and regulatory measures, is based on the principles of freedom of

initiative, the right to use and concession as a mode of operation of public and private areas

of the state. The idea is to create a market for rights of use.

As for human resources, the province has an estimated population of 982,915

inhabitants. In absolute value, the average annual increase is of 21,575 people. The

population would be one million inhabitants in 2016. The province is characterized by a high

percentage of childish age (9% under 4 years, 26% under 14 years) and a small percentage

(8%) of the elderly (60 and over). Overall, the population is young.

As for fisheries, the coastal zone is provided with an

extended continental shelf although little but rich in pelagic

species (sardines and tuna) and demersal (white fish and

crustaceans).

The fishery resources, on the basis of assessments of

1988, amounted to 19,000 tons of biomass of which 8000

were exploitable reserves annually. In continental waters

the province has significant potential favourable to the development of aquaculture.

Interview realized by ANDI with the Wali of Skikda January 2014 Page 5

� Dam Zerdazas (200 ha): barbel, sardine,

� Dam Guenitra (350 ha): barbel, carp and eel

� Dam Zit Emba (810 ha): barbel and carp,

� Barrage Beni Zid (286 ha): barbel and carp,

� Oued Zhor: farm of trout production,

� Oued Kebir: fry, mullet and eel elvers collection,

� Marsa: breeding of mussels, oysters and shrimp. Currently the pilot farm for shrimp

farming produces 5 tons / year in the medium term, production would be 30

tons / year.

The existing tourist infrastructure includes forty six (46) structures of a total capacity of

8,800 beds, including 29 hotels, totaling 1,955 beds and 17 structures for Holiday of 6845

beds capacity. Coastal municipalities contain nine (09) tourism expansion zones (ZET)

totaling an area of 2,082 ha of which 570 are adapted to receive tourism investments.

ZET these are currently being under development studies including three (Marsa,

Guerbes, Larbi Ben-M'hidi les Platanes) that have already been subject to delimitation

satellite imagery with the Algerian Space Agency Plans (bands of 100 m, 300 m, 800m and

3km).

The geographical location of Wilaya, the current and future petrochemical industrial

centers, the existing areas of industrial activities and those underway of realization,

agricultural, forestry and tourism potential and current and future basic infrastructure will

undoubtedly allow this Wilaya to consolidate its role in trade and economic flows with

neighboring wilayas and the rest of the world.

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Interview realized by ANDI with the Wali of Skikda January 2014 Page 6

3. What are the major investment projects that are realized or under way of realization

or in prospect of achieving in the wilaya, including those registered in the 2010-2014

five-year plan initiated by His Excellency the President of the Republic, and what are

their impacts on the attractiveness of the wilaya?

The Wilaya of Skikda received a budget of about 118 billion DA, all programs included

in the framework of the 2010-2014 five-year plan. Investments granted in different sectors

will significantly improve significantly the socioeconomic indicators including those related

to the living conditions of citizens and the revival of investment.

As examples we may mention:

Major investment projects or underway of realization or being launched:

� Zit Emba dam of a capacity of 120 million m3 in Bekkouche Lakhdar

� Two (02) mobilization dams, one on Charchar wadi, at Bouchtata to a capacity

of 8 Hm3, and the other in upstream of Zerdezas dam at Ramdane Djamel, of a

capacity of 72 hm3, under the protection of cities against floods,

� Station seawater capacity of 10,000 m3/day desalination, at Marsa and its

surrounding,

� Station wastewater treatment capacity of 42,000 m3/day,

� Extension of fishing ports of Stora and Collo for an additional capacity of 360

units, 90 of which are Marina

� Doubling of 35 km of roads, rehabilitation and Modernization of 31 km of roads of

Wilaya and implementation of 70 km part of the highway east - west

� A hopper at the crossroads of RN 03-06 CW, El Harrouche,

� Coastal roads Stora-Grand plage -07 Km and Skikda-La Marsa 40 Km

� Industrial Park composed of two (02) industrial zones Hajar El Soud and Hadaiek

respectively an area of 150 ha and 80 ha, underwayof realization,

� Institute of Vocational Education (IEP) 1000 teaching places,

� Three (03) specialized national institutes at Skikda, Emdjez Edchiche and Azzaba,

� Four (04) vocational training centers and learning at Skikda, El Hadaiek, Ain

Cherchar and Zerdazas,

� Auditorium of 600-seat at the University of 20 Août 1955 at Skikda,

� Four university residences of 1,000 beds each,

� Faculties for a total of 8,000 educational places,

� 08 hotel projects of a capacity 1140 beds,

� Creation of sources posts of 60/30 Kv, at Azzaba El Harrouch Sidi Mezghiche and 02

posts 60/10 kV, at Skikda,

� Phone and the connection to the internet densification.

Main impacts are, on one hand, to improve the application of social security coverage,

and on the other one, to provide the most urgent solutions to the problems of traffic and

communication related to the role of the chief place as a command center of the wilaya and

the high number of cars and trucks. Quality of service related to the attractiveness of the

investment will be improved gradually because it is linked to the cost of implementation, to

the commercial speed, to frequency and regularity.

Interview realized by ANDI with the Wali of Skikda January 2014 Page 7

4. What is your assessment of the activities of the CALPIREF, could you give us an overview

on land opportunities for economic investment in the Wilaya?

To date, the Committee to Support Location and Investment Promotion and

Regulation of the Land (CALPIREF) treated 540 cases and agreed to ninety-two (92) projects

for a total investment estimated at 74.5 billion dinars over an area of 165 ha for 6,225 jobs

to be created.

Similarly, it was established sixty (61) decisions of concession, forty six (46) acts of

concession and twelve (12) building permit that allowed the launching of projects.

Land identified for investment are currently important. There are those falling into (or

from):

� surplus assets of public economic enterprises

� industrial zone of Krouma Hammadi,

� Areas of existing activities which (01), with an area of 90 hectares, subject to a

servicing operation (El Atassa, Ain-Charchar)

� Industrial Park, constituted of two (02) industrial areas, one in Hajar Essoud,

with an area from 150 to 280 ha, close to the railway and the east-west

highway, and the other, at El Hadaiek, with an area of 80 ha, is currently being

subject of fragmented investigations by land chartered surveyors.

As a result, the supply of land exists for future investors wishing to submit

their applications to be approved by the Committee of Assistance to the Location and

Investment Promotion and Regulation of the Land (CALPIREF).

5. What is your perception of the activities, missions and role of the One Stop Shop of

ANDI located in your wilaya?

Since its opening, the Decentralized One Stop Shop, that is composed of competent

managers of the agency itself and representatives of structures, completed tasks that were

assigned to it, including listening, counseling, guidance and support to gain access to the

benefits granted by the government. The One Stop Shop as being an area close to the

investors should contribute more with local communities to identify problems that impede

the rapid realization of investments.

Interview realized by ANDI with the Wali of Skikda January 2014 Page 8

6. One last word on investment, Mr. Wali for the promoters?

The Wilaya of Skikda offers significant investment opportunities in the framework of

concessions in agricultural areas (eg scope of development) forest (eg creation of

recreational forests), marine ( fish farming in floating cages, center of continental fishing and

freshwater fish farming in floating cages in dams or small dams) in the areas of tourism

expansion, business parks and industrial park. Services involved in the investment process

are available to future investors to assist them in the realization of their projects.