Total Project Cost
Investment Required
Stakeholders
Countries
Project Overview
Description
Construction of a modern highway linking Bousalem in northwest Tunisia to the Algerian border, forming a critical segment of the Trans-Maghreb Highway corridor. The project involves construction of approximately 45 km of dual carriageway highway with international design standards, including border crossing facilities, service areas, and intelligent transportation systems. This strategic link will complete Tunisia's portion of the Trans-Maghreb corridor, enhancing regional integration, trade facilitation, and economic development in the border region.
Objectives
Develop a high-standard highway connection between Bousalem and the Algerian border to complete Tunisia's segment of the Trans-Maghreb Highway; enhance cross-border connectivity and trade facilitation between Tunisia and Algeria; improve road safety and reduce accidents on the currently substandard route; reduce travel time and vehicle operating costs for passengers and freight; stimulate economic development in the northwestern region of Tunisia; support regional integration within the Arab Maghreb Union framework; strengthen the competitiveness of the Trans-Maghreb corridor for international freight; and create employment opportunities during construction and maintenance phases.
Strategic Importance
The Bousalemn Highway represents a crucial missing link in the Trans-Maghreb Highway, a flagship regional integration initiative connecting Morocco, Algeria, Tunisia, Libya, and Mauritania along the Mediterranean and Atlantic coasts. By completing this strategic connection, the project will unlock significant economic potential through enhanced trade flows, reduced transportation costs, and improved access to markets. Northwestern Tunisia has historically lagged in development compared to coastal regions, and this improved connectivity will help address regional disparities while strengthening border region development. The project further contributes to the broader Mediterranean integration agenda, facilitating closer economic ties between North Africa and Europe through improved logistics corridors. From a geopolitical perspective, the highway reinforces cooperation between Tunisia and Algeria, promoting stability and integration in the Maghreb region.
Technical Specifications
Technology & Design
The highway will be designed to international standards with modern features including: dual carriageway with two lanes in each direction; grade-separated intersections at major crossings; advanced safety features including crash barriers and clear zones; intelligent transportation systems for traffic management and safety; modern border crossing facilities with expedited processing capabilities; service areas with fueling, rest, and commercial facilities; and climate-resilient drainage systems.
Capacity & Size
Approximately 45 km of dual carriageway highway connecting Bousalem to the Algerian border; design capacity for up to 15,000 vehicles daily; 2 major interchanges; 2 service areas/rest stops; modern border crossing facility with commercial traffic lanes; integrated intelligent transportation systems and safety features
Technical Details
Highway design specifications: Dual carriageway with 3.5m lanes; 2.5m shoulders; 3m central reservation; Design speed: 100 km/h (rural), 80 km/h (approach to border); Pavement: high-quality asphalt with 20-year design life; Structures: designed for 100-year life with seismic considerations; Grade-separated intersections at major crossings; Drainage systems designed for 1-in-50 year rainfall events with climate change considerations; Advanced safety features including crash barriers, clear zones, and roadside safety systems; Border facilities with separate lanes for commercial, passenger, and expedited traffic; Intelligent transportation systems including variable message signs, traffic monitoring, and emergency response capabilities
Development, Implementation & Financial Details
Development Timeline
Transaction structuring and financing arrangements: 2023-2024; Final design and bidding: 2024-2025; Construction: 2025-2027; Operational readiness and commissioning: 2027-2028
Latest Implementation Updates
UPDATEDFinancing Structure
The project will be financed through a structured PPP model with: multilateral development bank financing (AfDB, Islamic Development Bank) for baseline infrastructure; commercial financing for revenue-generating components; government contributions from Tunisia; and private sector investment through a design-build-operate-transfer (DBOT) arrangement for service facilities and potentially toll operations. Technical assistance grants will support transaction structuring and capacity building.
Capital Structure
Baseline infrastructure (70-75%): Public financing through sovereign loans and grants; Service facilities and toll operations (25-30%): Private sector investment through PPP arrangements
Project Timeline
Start Date
February 2023
Expected Completion
December 2028
Development Timeline
Transaction structuring and financing arrangements: 2023-2024; Final design and bidding: 2024-2025; Construction: 2025-2027; Operational readiness and commissioning: 2027-2028
Project Status History
Status 2022
Structuring
Status 2024
Structuring
Additional Project Details
Preparation Funding Gap
USD 1.20M
Construction Timeline
Main highway construction: 2025-2027; Border facilities development: 2026-2027; Service areas and ITS implementation: 2026-2028
Legal & Financial Advisors
Castalia Strategic Advisors providing transaction advisory services; legal advisory services by Gide Loyrette Nouel
Market Analysis
Market Analysis
The corridor currently handles approximately 6,000 vehicles daily with growth projections of 7-8% annually based on expected trade expansion between Tunisia and Algeria. Freight traffic represents approximately 40% of total volume, primarily agricultural products, manufactured goods, and construction materials. The existing road is congested, unsafe, and represents a significant bottleneck in the Trans-Maghreb corridor. With the implementation of the Continental Free Trade Area, cross-border trade is expected to grow substantially, further driving demand.
Market Demand
The highway will be designed to handle up to 15,000 vehicles daily, with specific provisions for commercial traffic. The project will benefit approximately 500,000 people living in the influence area of northwestern Tunisia and northeastern Algeria, with wider economic benefits throughout the Trans-Maghreb corridor from Morocco to Libya.
Key Stakeholders
Project Sponsor
Ministry of Transport (Tunisia), Arab Maghreb Union
Key Parties
Ministry of Transport (Tunisia), National Road Agency (Tunisia), Arab Maghreb Union Secretariat, African Union PIDA Coordination
Investors
African Development Bank, Islamic Development Bank, Arab Fund for Economic and Social Development, Tunisia Investment Authority
Contractors & Operators
To be determined through international competitive bidding following transaction structuring
Risk Assessment
General Risk Assessment
Key risks include: land acquisition challenges in certain segments; coordination with Algerian authorities on border facility integration; potential cost escalations; traffic volume uncertainties affecting financial viability of commercial components; security considerations in border regions; and capacity constraints within implementing agencies. Risk mitigation strategies include robust project preparation, phased implementation, appropriate risk allocation in PPP contracts, and comprehensive stakeholder engagement.
Regulatory Risks
Requires harmonization of border crossing procedures, vehicle standards, and axle load regulations between Tunisia and Algeria. The project includes technical assistance components to support regulatory harmonization. Key regulatory risks include potential delays in implementing streamlined border procedures, challenges in enforcing vehicle standards and axle load limits, and governance issues in border zone administration.
Impact Assessment
Environmental Impact
The project will require a comprehensive Environmental and Social Impact Assessment. Key environmental considerations include: watershed management in the mountainous terrain; preservation of agricultural land in fertile valleys; management of construction materials and waste; and habitat protection in sensitive areas. The design incorporates environmental sustainability features including wildlife crossings, erosion control systems, native vegetation restoration, and water quality protection measures.
Social Impact
The highway is expected to generate approximately 1,200 direct jobs during construction and 200 permanent jobs during operation. Socioeconomic benefits include improved access to markets and services for northwestern Tunisia, reduced transportation costs for agricultural producers and manufacturers, new economic opportunities in the border region through enhanced trade, and improved connectivity to social services including healthcare and education. Specific programs will ensure benefits reach local communities through local content requirements, skills development initiatives, and inclusive employment practices.
Investment Opportunities
Private Sector Opportunities
Significant private sector opportunities include: participation in the design-build-operate-transfer (DBOT) contract for the main highway infrastructure; development and operation of service areas and rest facilities; toll operations management (if implemented); intelligent transportation systems implementation and management; maintenance contracts for completed segments; and logistics/commercial development near border facilities. The PPP framework provides specific structures for private participation with appropriate risk allocation and performance metrics.
Next Steps & Agreements
Next Steps
Finalize transaction structuring and PPP framework; complete detailed design; secure financing commitments; establish project implementation unit; coordinate with Algerian authorities on border facility integration; initiate procurement process
Offtake Agreements
The PPP framework will include detailed performance agreements for private operators covering service quality, maintenance standards, and operational key performance indicators. For toll operations (if implemented), regulation of tariff structures and service standards will be established through the concession agreement.
Contact Information
Eng. Mohammed Salim Amairi, Director of Highways, Ministry of Transport (Tunisia), Email: highways@transport.gov.tn, Tel: +216-71-772-976; Ms. Lamia Zribi, General Director, PPP Unit, Ministry of Finance, Email: ppp.unit@finances.gov.tn; Arab Maghreb Union Secretariat, Transport Division, Email: transport@amu.org
