This staff sector assessment noteaccompanies the recently completed national environmentalaction plan for sustainable development (NEAP-SD), which, asan output of the Industrial Pollution Control Project inAlgeria, focused on charting a new course for environmentalmanagement in the country, based on an objective assessmentof past policy, and institutional failures, on a newconsensus on the need for mainstreaming the environment intoeconomic management, and sectoral policies, and, on theimplementation of a priority action plan, fully integratedwith the government three-year economic revival program. Thesocial cost of environmental degradation is already quitesignificant, and will continue to increase if policies,institutional, and investment measures are not provided. TheNEAP-SD serves as a vehicle for building bridges withnon-governmental organizations, and donors, and enhance theprospects for improved coordination, as well as helpinginform the ongoing process of Country Assistance Strategy(CAS). Recommendations suggest the use of high impactstrategic lending, with contributions supporting water andwastewater, urban, and rural development, including naturalresource management, incorporating environmental objectives,but focused on fundamental challenges that address publicsector efficiency and governance, private sectordevelopment, and water management, through partnershipsfocused on flexible responsiveness, in an approach tointegrate the environment into the Bank's instruments,building capacity, and strengthening environmental, andinstitutional assistance.
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