The fiscal space generated by aprolonged oil windfall has enabled Algeria to embark on amassive public investment program for 2005- 09, ProgrammeComplementaire de Soutien a la Croissance (PCSC). Takingadvantage of the current macroeconomic and fiscalopportunity, the country could institutionalize high-qualitypublic expenditure that would contribute social benefit farinto the future. This Public Expenditure Review (PER) is anexercise to help the Government toward that end. Theobjectives of this PER are to assist the government in thefollowing: evaluate fiscal sustainability in light of thecountry's fiscal push that PCSC represents;set hightechnical standards for public investment management; drawlessons from the on-going budget modernization reform inorder to support the overall implementation, monitoring, andevaluation of projects; support the preparation of amedium-term expenditure framework and improve the efficiencyand cost-benefit of investments in four key sectors,transport and public works, water, education, and health.