Construction Frontline
747 million euros! African Development Bank financing Algeria strategic railway
Seetao 2025-12-18 17:03
  • Algeria's largest infrastructure project finally enters the fast lane of comprehensive construction
  • This strategic railway, with a total length of over 2000 kilometers, will reshape Algeria's economic geography and open the door to new opportunities for China's engineering strength, which has already proven its strength in the desert
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Recently, the African Development Bank officially approved a loan of up to 747 million euros for the first phase of the construction of the strategic north-south railway corridor in Algeria. The landing of this critical financing not only marks a new stage of comprehensive construction for the largest infrastructure project in the country's history - the over 2000 kilometer Algiers to Tamanrasset railway - but also sends a clear signal to the global engineering market: driven by the vision of a new Algerian nation, a wave of infrastructure construction driven by railways is emerging in North Africa. For Chinese companies that have successfully delivered multiple super projects locally, this undoubtedly means new development opportunities.

A railway reshapes the national economic geography

Algeria has a vast territory with uneven development between the north and south. Its economic center and the vast majority of its population are concentrated along the northern Mediterranean coast, while the vast southern hinterland, although rich in mineral resources, has long been plagued by transportation isolation. Breaking this pattern is the core mission entrusted by the Algerian government to the Algiers Tamanrasset railway. This railway is positioned as a strategic corridor connecting coastal and inland areas, aiming to activate the economic potential of the southern region through physical connectivity, promote national balanced development and regional integration.

The first phase of the financing project, the Lagwatt Galdaya Ermeniya section, is approximately 495 kilometers long and is a key link in this north-south artery. The project has a huge scale and will construct over 100 bridges and 1 tunnel. Its significance goes far beyond civil engineering, as it will simultaneously equip advanced railway equipment and safety signal systems, and reserve conditions for future network extensions. As Abdulkader Diletta, Country Manager for Algeria at the African Development Bank, stated, this project "will contribute to the sustained transformation of economic vitality in the southern region of Algeria, opening up new prospects for trade, employment, and competitiveness. Algerian President Teben has explicitly stated that this railway will reach Tamanrasset in the south by 2028 at the latest.

Make new contributions at the intersection of the the Belt and Road

The ambition of Algerian railway construction provides an excellent stage for Chinese enterprises to deeply cultivate the North African market. In recent years, Chinese engineering forces represented by China Railway Construction Corporation have demonstrated their outstanding strength in the complex desert environment of Algeria.

At present, the mining line project of the western railway in Algeria undertaken by China Railway Construction is steadily progressing. This 950 kilometer railway is Africa's first desert heavy haul railway, designed to connect the Galaa Jebilet iron mine with the Port of Besar, and is another key mineral resource export channel for Algeria. Faced with an extreme environment with a temperature difference of up to 40 degrees Celsius between day and night and frequent sandstorms, Chinese builders have innovated construction methods and invested specialized equipment, setting a construction record of over 4 kilometers of track laying in desert areas in a single day. Algerian Minister of Public Works and Infrastructure, Lakhdar Lahroukh, highly praised after the inspection, stating that the Chinese team has "driven deep integration of Chinese and Arab standards through technological innovation" and formed the country's first desert heavy-duty railway standard system.

These successful collaborations have laid a solid foundation for China's participation in the new North South strategic railway project. The landing of the loan from the African Development Bank has solved the core funding problem of the project, indicating that engineering bidding and construction are about to enter the fast lane. Considering the comprehensive advantages of Chinese enterprises in complex geological conditions, large-scale project management and cost control, as well as the increasingly close cooperation between the two countries under the framework of the the Belt and Road Initiative, Chinese rail transit and engineering enterprises play an important role in this round of infrastructure wave, with promising prospects. Keywords: the Belt and Road project news, the Belt and Road news

From the mineral lines in the north to the north-south transportation axis, steel dragons are spreading across the map of Algeria. They carry not only goods and passengers, but also a country's ambition to seek economic diversification and achieve territorial spatial integration. With the joint assistance of Chinese technology and international capital, the Sahara Desert is no longer a barrier to development, but is becoming a pathway full of opportunities.Editor/Cheng Liting

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