PPP vs EPC in Algeria’s Water Sector
Lessons from PPP concessions (up to 2016) and the new EPC approach (2021–today). “We no longer need a foreign operator to hold our hand.”
Each country approaches water in different ways. Moreover, each country can approach the same challenge very differently over time.
Algeria is a curious case because, during the last 25 years, they have approached the construction of desalination plants using two completely different models: PPP (Concessional) from 2006 to 2016, and EPC from 2021 to the present.
What happens when a long-term concession is set to expire in 10 years?
Should the Project Company invest in renewing assets, innovation and improving O&M if the remaining contract period is short?
Are plants dismantled or repurposed once the concession ends, and what factors influence that decision?
What benefits or efficiencies does the new EPC/turnkey approach offer compared with the old PPP model?
How have the key players changed in the EPC era, and why is understanding this shift crucial for future opportunities?
