Is Algeria known in China

Algeria puts out numerous rail projects

With a budget of US $ 2 billion (US $), the modernization and expansion of the East Mining Line is the largest item to be awarded by the Agence nationale d'etudes et de suivi de la realization des investissements ferroviaires (ANESRIF) in 2019 Has. In November 2018, five tenders were launched for the section between Annaba on the Mediterranean and Djebel Onk. Three tenders include electrification, signaling and track work, two more project management and technical advice. The award of the contract is scheduled for June 2019.

In July 2018, a preliminary study for the new construction of the 200-kilometer section from Djebel Onk to El Oued was tendered. In the east of Algeria, a mega-project in the phosphate sector is to be developed in cooperation with China. At the beginning of 2019, Sonatrach announced that 80 percent of the financing of the project, which is estimated at US $ 6 billion, had been committed by the Chinese side. The East Mining Line is to transport the mined products to the Mediterranean port in Annaba.

For US $ 1 billion, ANESRIF would like to connect the city of El Affroun, about 60 kilometers southwest of Algiers, to the port of El Hamdania, which is currently under construction. After its completion, the port is to become the second largest trading port in Africa with a capacity of 6.5 million standard containers and around 26 million tons of goods handling. In addition to the Algerian government, two Chinese companies are involved in the project, which is one of the series of Chinese infrastructure projects for the development of Africa (see the special on the New Silk Road http://www.gtai.de/seidenstrasse).

According to MEED Projects, the construction of the approximately 650-kilometer stretch between Ain Salah and Tamanrasset should be awarded by December 2019, provided that the tendering starts in June 2019 as planned. The project is planned with a volume of US $ 800 million. US $ 290 million are budgeted for the connection between Khemis-MIliana and Tiaret; the award is expected in July 2019.

Selected ANESRIF projects (planned award 2019)

route Investment amount (million US $) Intended award Project status
East Mining Line 2.000 June 2019 Main Contract Bid
Ain Salah to Tamanrasset 800 December 2019 study
El Affroun - Hamdania 1.000 June 2019 study
Khemis-Miliana and Tiaret 290 July 2019 study

Source: MEED Projects; As of February 2019

At the end of 2019, the Algerian railway network should be a little over 6,000 kilometers long. The aim is to expand to 12,500 kilometers by 2035. The government's financial leeway is now significantly less than it was five years ago. Algeria still has currency reserves of around US $ 80 billion, but in 2014 these were still around US $ 180 billion.

Is the Transmaghreb Railway coming back?

According to media reports, the rail link from Morocco to Tunisia could move again. Accordingly, the General Secretariat of the Union of the Arab Maghreb (Union du Maghreb Arabe, UMA) would like to hire a PR and sales consultant for the rehabilitation of the route. At the beginning of 2018, the Société Nationale des Transports Ferroviaires algérien (SNTF) declared that the project was no longer a priority for them. However, technical problems were also reported, as the Tunisian network was not suitable for the modern trains of the SNTF. A financing round is to take place at the end of March 2019 with the support of the African Development Bank.

The connection could promote the movement of people and goods between Morocco, Algeria and Tunisia. So far, trade between the three neighbors has been limited. Intramaghreb trade is most significant for Tunisia, but here, too, it only accounts for around 4 percent of imports and exports. The economic integration of the Maghreb is also suffering from the strained relations between Morocco and Algeria. In the past few months there have been statements from government officials who are in favor of a dialogue.

Contact address

description Internet address annotation
ANESRIF http://anesrif.dz Agence nationale d'études et de suivi de la réalisation des investissements ferroviaires

Further information on Algeria at http://www.gtai.de/algerien