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Gelsenwasser complains after Algeria contract ended.

Summary: The Algerian authorities have terminated Gelsenwasser's management contract in Annaba three years early, blaming a lack of progress in the firm's investment programme.

The Algerian authorities have terminated Gelsenwasser's management contract in Annaba three years early, blaming a lack of progress in the firm's investment programme.

Gelsenwasser had been awarded a 5.5-year management contract in 2008 to improve the water and wastewater infrastructure in the towns of Annaba and train the workforce of local utility SEATA. But the company said that difficulties with Algerian procurement considerably delayed the company's plans.

"We had no means, no tools, no cars, nothing to do the work," Alexander Beck, general manager at Gelsenwasser's international division, told GWI. "We had about e1/4100 million worth of tender documents ready, blocked by the various tender commissions, and only e1/42 million actually implemented."

Algerian authorities dispute Gelsenwasser's version of the story, saying the firm simply lacked the expertise. SEATA has now gone back to Algerian management although it is understood a tender for a new management contract will be out soon.

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Publication:UMCI News (Potomac Falls, VA)
Geographic Code:6ALGE
Date:May 21, 2011
Words:188
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