PIDA Investment Prospectus
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Transport Algeria AMU

Doubling of the RN06 between Mascara and Bechar and the RN50 between Bechar and the Algerian-Mauritanian Border

Current Stage: Financial Close 87.5%
USD 1,850.00M

Total Project Cost

USD 0.00M

Investment Required

17

Stakeholders

1

Countries

Project Overview

Description

Expansion and modernization of National Roads RN06 and RN50 in western Algeria, connecting the northern regions to the Algerian-Mauritanian border through the expansion of RN06 between Mascara and Bechar (approximately 500 km) and the RN50 between Bechar and the border (approximately 1,700 km), forming a critical north-south corridor linking the Mediterranean coast with the Sahel region.

Objectives

Expand and modernize the road corridor connecting northern Algeria with the Mauritanian border; enhance connectivity between the Mediterranean region and Sahel countries; improve road safety and capacity along this strategic route; reduce travel times and vehicle operating costs for passengers and freight; support economic development in western Algeria and border regions; strengthen Algeria's role as a gateway for Sahel countries; facilitate implementation of the African Continental Free Trade Area through improved north-south connectivity; create employment opportunities during construction and maintenance phases; and enhance Algeria's strategic transport links with neighboring countries.

Strategic Importance

This road corridor represents a strategic north-south axis connecting the Mediterranean region with the Sahel, forming a critical component of the Trans-African Highway network and contributing to Africa's continental integration agenda. By enhancing connectivity between Algeria and Mauritania, the project strengthens economic ties between North Africa and West Africa, supporting implementation of the African Continental Free Trade Area. The improved corridor will provide Sahel countries with enhanced access to Mediterranean markets and ports, while offering Algeria improved access to markets in Mali and other Sahel countries. From a national perspective, the project supports balanced territorial development by enhancing connectivity to western regions of Algeria and remote border areas that have historically seen less development than coastal regions.

Technical Specifications

Technology & Design

The road expansion follows international design standards adapted for the diverse environments along the corridor, from Mediterranean mountains to Saharan desert. The northern sections feature 4-lane dual carriageway, transitioning to enhanced 2-lane highway in southern sections with additional climbing lanes, passing lanes, and safety features appropriate for desert conditions.

Capacity & Size

Total corridor length approximately 2,200 km: Northern section (Mascara-Bechar): 500 km, 4-lane dual carriageway; Southern sections (Bechar-Border): 1,700 km, enhanced 2-lane highway with passing lanes; 12 major service areas with comprehensive facilities; Modern border crossing facilities at the Mauritanian border

Technical Details

Northern sections (Mascara-Bechar): 4-lane dual carriageway with 3.5m lanes, 2.5m shoulders, central median, grade-separated intersections, design speed 100-120 km/h; Southern sections (Bechar-Border): Enhanced 2-lane highway with 3.75m lanes, 3m shoulders, frequent passing lanes, design speed 80-100 km/h; Special features for desert sections: Sand mitigation measures, enhanced drainage for flash floods, heat-resistant pavement, reflective markings for visibility, emergency communication systems; Service areas spaced 75-100 km in northern sections, 150-200 km in southern sections; Border facilities with customs, immigration, inspection areas, and support services

Development, Implementation & Financial Details

Development Timeline

Phased implementation by section (2018-2028), with northern sections (Mascara-Bechar) progressing more rapidly than southern sections (Bechar-Border)

Latest Implementation Updates

UPDATED
Mascara-Bechar section: 2018-2024 (75% complete); Bechar-Adrar section: 2022-2026 (30% complete); Adrar-Bordj Badji Mokhtar section: 2024-2028 (detailed design phase); Border section: 2026-2028 (preliminary design phase); Progressive operationalization of completed segments

Financing Structure

The project is financed primarily through national resources with: Algeria national budget allocations; sovereign financing through the National Road Fund; potential future participation of development finance institutions for specific sections; and dedicated maintenance funding through the National Road Fund's recurrent budget. Financing for the northern sections is secured, with progressive financing for southern sections.

Capital Structure

Public financing through sovereign resources (95%) with potential limited private participation in service facilities and maintenance operations (5%)

Project Timeline

Start Date

January 2018

Expected Completion

December 2028

Development Timeline

Phased implementation by section (2018-2028), with northern sections (Mascara-Bechar) progressing more rapidly than southern sections (Bechar-Border)

Project Status History

Status 2020

Structuring

Status 2022

Financial Close

Status 2024

Financial Close

Additional Project Details

Preparation Funding Gap

USD 0.00M

Construction Timeline

Mascara-Bechar section: 2018-2024; Bechar-Adrar section: 2022-2026; Adrar-Bordj Badji Mokhtar section: 2024-2028; Border section: 2026-2028

Legal & Financial Advisors

Technical studies by CTTP (Algeria) and STUDI International (Tunisia); legal and financial services through national agencies

Market Analysis

Market Analysis

Current north-south connectivity in western Algeria is constrained by limited capacity roads with safety challenges, particularly on the RN06 which handles significant traffic (10,000-15,000 vehicles daily in northern sections, reducing to 2,000-3,000 in southern sections). The corridor plays an important role in Algeria's trade with Mauritania and Mali, with significant growth potential if infrastructure constraints are addressed.

Market Demand

The expanded and modernized corridor will be designed to handle 20,000-25,000 vehicles daily in northern sections, with appropriate scaling in southern sections. The entire corridor will serve a population of approximately 5 million people in Algeria, with additional benefits for populations in Mauritania and Mali through enhanced trade access.

Key Stakeholders

Project Sponsor

Algerian Ministry of Public Works, National Road Agency (ANA)

Key Parties

Algerian Ministry of Public Works, National Road Agency (ANA), National Road Fund, Wilaya (provincial) authorities of Mascara, Saida, El Bayadh, Bechar, Adrar, and Bordj Badji Mokhtar

Investors

Government of Algeria, National Road Fund, potential participation from African Development Bank and Islamic Development Bank for southern sections

Contractors & Operators

Multiple contractors through national competitive bidding, primarily Algerian construction companies with international technical partners

Risk Assessment

General Risk Assessment

Key risks include: challenging terrain, particularly in mountainous sections and desert zones; extreme weather conditions including high temperatures and flash floods; sand encroachment in southern desert sections; procurement and contract management across multiple packages; security considerations in remote border regions; and long-term maintenance sustainability. Risk mitigation includes climate-resilient design, comprehensive supervision, phased implementation, and robust maintenance frameworks.

Regulatory Risks

The project operates within the established national regulatory framework for transportation infrastructure, with specific considerations for land acquisition in tribal areas, environmental compliance across diverse ecosystems, and international agreements for the border crossing section.

Impact Assessment

Environmental Impact

The project has completed comprehensive Environmental and Social Impact Assessments for each section with approved management plans. Key environmental considerations include watershed protection in mountainous northern sections, management of scarce water resources during construction in desert sections, protection of sensitive desert ecosystems, mitigation of sand movement impacts, and climate resilience measures including flash flood protection and heat-resistant materials.

Social Impact

The road expansion is generating approximately 25,000 direct jobs during construction and will create an estimated 3,500 permanent jobs in operations, maintenance, and services. Socioeconomic benefits include improved access to services for communities along the corridor, enhanced mobility between regions, new economic opportunities through improved market access, reduced regional disparities, and strengthened connections between Algeria and neighboring Sahel countries.

Investment Opportunities

Private Sector Opportunities

Opportunities exist in: construction contracting and subcontracting; supply of materials, equipment, and services; development and operation of service areas and rest facilities; maintenance contracts through performance-based arrangements; logistics and commercial facilities at key nodes and border crossings; consulting services for project management and supervision.

Next Steps & Agreements

Next Steps

Complete ongoing construction of northern sections; secure financing for remaining southern segments; advance detailed design and land acquisition for southern sections; strengthen corridor management capacity; develop long-term maintenance framework; enhance cross-border coordination with Mauritanian authorities

Offtake Agreements

Maintenance contracts utilize performance-based specifications to ensure long-term sustainability, with clear key performance indicators and monitoring systems. Service area concessions establish service standards, maintenance responsibilities, and commercial operations frameworks.

Contact Information

Eng. Kamel Nasri, Minister of Public Works, Algeria, Email: contact@mtpt.gov.dz; Eng. Abdelkader Hammou, Director General, National Road Agency, Email: dg@ana.dz