French president Francois Hollande signs deal with his Algerian counterpart Abdelaziz Bouteflika (r)
Algiers - Hocine Bousalah
French politician Jean-Pierre Raffarin has described the signing of an agreement between carmaker Renault and Algeria as "positive."
Under the proposals, Renault will build a manufacturing plant in Algeria
, with the country's National Company of Industrial Vehicles (SNVI) holding 16% of the shares and National Investment Fund (FNI) taking a 35% stake. The Renault group will control 49% of the venture.
Raffarin told reporters, "It is positive in a balanced way, and supports investment opportunities in Algeria."
Sources told Arabstoday that Renault has obtained exceptional advantages and concessions from Algeria, including a guarantee of buying all its products, along with being exclusive in the Algerian market for a period of three years during which no other company is allowed to establish a similar project.
The partnership agreement was signed by the Algerian and French presidents, on the first day of Francois Hollande's visit to Algeria.
Sources added that Renault has classified itself as a national institution, to obtain several fiscal and tax advantages on the location it chose to build the factory, Tlelat Boran valley. The privileges also included a full site building proposal.
The Algerian government is committed to ensuring public involvement in the car plant, with opportunities for jobs and local community investment.