The funds will be used in particular to finance the railroad linking Tindouf to Bechar, a town in the west of the country where a Chinese group is preparing to develop an iron ore mine in association with a local partner.
Algeria will allocate 432.64 billion dinars ($3.2 billion) to railroad construction, according to a presidential decree published in the official gazette on Tuesday, January 16, 2024.
This decree transfers funds from the State budget to the Ministry of Public Works and Basic Infrastructure to build new railway lines, including the Tindouf-Bechar railroad, which will be used to transport iron ore extracted from the Gara Djebilet deposit (West) to steel-making complexes in the north of the country.
This 950 km double-track rail corridor, whose construction has been entrusted to the Chinese company China Railway Construction Corporation (CRCC) and the Algerian state-owned company COSIDER, is scheduled for completion in 2026.
The presidential decree also mentions that 31.71 billion dinars (around 235 million dollars) have been earmarked for the development of road infrastructure and 126 million dollars for maritime infrastructure.
Algeria's ambition is to increase the total length of its national rail network to 15,000 km by 2030, from the current 4,722 km.