Argentina advises algeria on postal privatization

The Algerian government has invited Argentine companies to take part in the North African country’s privatization of public services, the Economy Ministry said late Friday. In a communique, the Ministry said Algerian government officials “were especially interested in the Argentine experience of the transfer and concession of public assets and the renegotiation of contracts with public service companies.” An Algerian delegation met with Economy Minister Roberto Lavagna under the auspices of the Commission for Economic, Commercial, Scientific, Technical and Cultural Cooperation, a joint organization between the two countries. At the meetings, Lavagna offered consultative help for the Algerian government in the area of privatizations, according to the communique. Argentina’s public services, from energy firms to the postal service, underwent a wave of privatizations in the 1990s. The current administration under President Nestor Kirchner has criticized the sector for noncompliance with their concessions and has begun a process of reviewing and renegotiating the country’s public service contracts. For their part, utilities said the 21-month rate freeze has generated enormous strains on their balance sheets and capacity. New legislation has given the government the authority to raise rates as it renegotiates the public service contracts, but officials have not yet taken advantage of that power. Meanwhile, Argentina and Algeria also signed a memorandum of understanding to design, develop and build an observation satellite together, the communique said.