Peugeot Algeria Project: “Four French conditions that scuppered the signing of the accord”

Prime Minister Abdelmalek Sellal has rightfully used his “veto” to stop dead the proposed installation of a Peugeot car assembling plant in Algeria and thereby postponed the signing of the relevant agreement, until further notice.

This postponement is due to four reasons invoked by the French side, which the Prime Minister deemed inconceivable and unfair, considering, moreover, that it is an attempt to humiliate and despise the Algerian side.

Indeed, “Echorouk” has learnt from governmental sources, about the postponement of the signing of this project which was to take place at the meeting of high-level Algerian-French Intergovernmental Committee, chaired by the Prime Ministers of the two countries in Algiers but it turned out that Mr Abdelmalek Sellal was unhappy about the version of the project submitted by the parent company, “Peugeot France”, arguing that certain provisions of the specifications were humiliating for Algeria, including a critical clause of the contract which deprives the Algerian side of the right of scrutiny, decision-making and participation in the management of the vehicle production unit and lowers us to the level of funder only.

Other articles relate to the 51-49 investment rule that the French side would like to see it frozen coupled with its intention to take greater participation in the project if the Algerian side were to withdraw to become 100% French, in addition to not being compelled to disclose the financial statements of the planned production plant.

Moreover, unlike other partnerships in investment projects with foreign countries which include a transfer of technology and know-how, in this very project, the French side viewed its participation only on the commercial side as an authorized vehicle agent and this untoward French requirement sparked off the ire of the Algerian authorities who finally decided to put this project on the back-burner until further notice.