October 13, 2000 - 93rd. Issue -

ALGERIAN ENERGY
U.S. & JAPANESE FIRMS TO GRAB MOST OF ALGERIA'S PETROLEUM ENGINEERING PROJECTS

Sonatrach's ongoing investment program to be completed by 2003 will cost the company and Algeria in general some $19 billion according to the company's estimates. Over the next few weeks, the company will grant contracts worth a combined $2.5 billion.

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Morocco - Economy
UNEMPLOYMENT IN MOROCCO

The Moroccan statistics office, Direction de la Statistique, recently released its annual report on labor and unemployment for 1999.

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Algerian Politics
REVIVAL OF THE ISLAMIST MOVEMENT WORRIES SECULARISTS

Secularists in Algeria say they are worried about the recent increase of terrorism and the gains made by Islamist movement in the current political system. They argue that there is a relationship between the recent waves of terror attacks and the revival of Islamism activism, notably within the capital city's mosques.

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Moroccan Politics
MODERATE ISLAMIST PARTY ENDS ITS SUPPORT TO THE YOUSSOUFI GOVERNMENT

The Islamist PJD party is now officially in the opposition. A recent meeting of its national council concluded with the decision to abandon its support to the government led by the USFP's Abderhman Youssoufi. The PJD characterizes its decision as a move to "constructive opposition."

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Tunisian Labor Affairs
Sahbani Forced Out of Labor Union

Ismail Sahbani is no longer leading the UGTT trade union. A power struggle led to what some say was his resignation and others say it was an ousting. The union is now led by Sahbani's deputy and political opponent Abdesslam Jerad, undoubtedly with the blessing of the government.

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Algerian Economy
WARNINGS FROM ECONOMISTS FORCE GOVERNMENT TO ABANDON WAGE INCREASE

The new prime minister was expected to announce massive wage increases but as economists raised concerns over the impact of such decision on the nation's macroeconomic performance, the government abandoned its plan. The initial goal of a wage increase was to respond to labor union demands and limit the risk of a nationwide strike.

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Fisheries
EU Fisheries Commissioner Disappointed Of Lack Of Progress in Talks With Morocco

European fisheries commissioner Franz Fischler said that Morocco ought to be realistic and understand that for the European Union, fishing possibilities must be an integral part of a new arrangement.

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Algerian Airlines
Air Algerie to Change Pricing Model - To Lower Air Fares

The state airline carrier Air Algerie is planning to reduce its fares. The company is said to be seeking ways to move away from fixed fare pricing to a model used by most companies in the world with fluctuating prices based on the period, destination and time.

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Moroccan Markets
Coca-Cola Enters the Bottled Water Business

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Privatization
TENDER FOR THE SALE OF 35% OF MAROC TELECOM LAUNCHED ON OCTOBER 3

On Tuesday, October 3, 2000, Morocco issued a tender for the sale of 35% of MAROC TELECOM in what is expected to be the country's largest single privatization to date.

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Algeria - Energy Engineering
Sonatrach Awards JGC the Hassi R'Mel Boosting Project

The Japanese engineering firm JGC-Itochu won a $352 million contract for the Hassi R'Mel boosting project. JGC competed with the American Bechtel, Canada's SNC Lavalin and others and presented more favorable terms to Sonatrach.

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Morocco - Energy
PRESS CONFERENCE BRINGS ADDITIONAL DETAILS ON LONE STAR OIL DISCOVERY

Officials of the independent oil company Lone Star, headed by their CEO Michael Gustin, met recently with the press to provide additional information about the Talsinnt discovery, following conflicting information about the actual finding made public in the various national and international media.

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Algeria - Debt Relief
Algeria-Italy May Soon Sign a Debt Conversion Agreement

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JUNE 2000