PIDA Investment Prospectus
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Transport Algeria AMU

Modernisation of the RN01 (Trans-Saharan) between Ghardaia and Tamenrasset

Current Stage: Implementation 100%
USD 1,250.00M

Total Project Cost

USD 0.00M

Investment Required

15

Stakeholders

1

Countries

Project Overview

Description

Comprehensive modernization and expansion of National Road RN01 between Ghardaia and Tamenrasset in Algeria, a critical segment of the Trans-Saharan Highway connecting North Africa with Sub-Saharan Africa through improved infrastructure adapted to challenging desert conditions.

Objectives

Modernize and expand the key segment of the Trans-Saharan Highway connecting northern and southern Algeria; improve safety and efficiency of desert transportation on this strategic route; reduce travel times and vehicle operating costs for passengers and freight; enhance connectivity between the Mediterranean region and Sub-Saharan Africa; support economic development in the Saharan regions of Algeria; facilitate regional integration between North Africa and the Sahel/West Africa; create employment opportunities during construction and maintenance phases; and establish sustainable infrastructure adapted to extreme desert conditions.

Strategic Importance

The Trans-Saharan Highway represents one of Africa's most ambitious transport corridors, connecting Mediterranean countries with the Sahel and West Africa. The Ghardaia-Tamenrasset segment in Algeria forms a critical central link in this continental corridor, traversing challenging Saharan terrain that has historically limited north-south connectivity. Through modernization of this segment, the project directly contributes to continental integration objectives by enhancing physical connectivity between regions that have limited transportation links. From a national perspective, the improved corridor supports balanced territorial development by enhancing connectivity to Saharan regions of Algeria. The project further contributes to regional stability and security through improved infrastructure in remote border regions, while facilitating greater economic and cultural exchange between North and Sub-Saharan Africa.

Technical Specifications

Technology & Design

The project employs specialized design for extreme desert conditions, with particular attention to sand mitigation, heat resistance, water conservation, and self-sufficiency for remote sections. Advanced features include intelligent transportation systems for safety monitoring, emergency response capabilities, and climate-resilient infrastructure elements.

Capacity & Size

Total corridor length approximately 900 km: Northern section (Ghardaia-In Salah): 400 km; Southern section (In Salah-Tamenrasset): 500 km; Upgraded 2-lane highway with enhanced safety features and frequent passing lanes; 8 major service areas with comprehensive facilities including emergency services; Advanced monitoring systems for remote sections

Technical Details

Enhanced 2-lane highway with 3.75m lanes and 3m shoulders; Frequent passing lanes (approximately 30% of the total length); Specialized sand mitigation measures including elevated sections, protective barriers, and desert-adapted landscaping; Heat-resistant pavement specifications for extreme temperatures (exceeding 50°C); Enhanced visibility features including reflective markings and solar-powered lighting at critical sections; Modern service areas every 150-180 km with fuel, rest facilities, accommodation, emergency services, and water reserves; Intelligent transportation systems for remote monitoring, emergency detection, and response coordination; Renewable energy systems (solar) for powering service areas and monitoring systems; Water management systems including water harvesting at appropriate locations; Emergency response bases at strategic locations

Development, Implementation & Financial Details

Development Timeline

Detailed design (2019-2020); Financing arrangements (2020); Construction in multiple packages (2020-2026)

Latest Implementation Updates

UPDATED
Detailed design: 2019-2020; Financing arrangements: 2020; Northern section (Ghardaia-In Salah): 2020-2023 (85% complete); Southern section (In Salah-Tamenrasset): 2021-2026 (45% complete); 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; and dedicated maintenance funding through the National Road Fund's recurrent budget. Financing is fully secured through national commitments, reflecting the strategic importance of the corridor.

Capital Structure

Public financing through sovereign resources (100%)

Project Timeline

Start Date

May 2019

Expected Completion

December 2026

Development Timeline

Detailed design (2019-2020); Financing arrangements (2020); Construction in multiple packages (2020-2026)

Project Status History

Status 2020

Structuring

Status 2022

Structuring

Status 2024

Implementation

Additional Project Details

Preparation Funding Gap

USD 0.00M

Construction Timeline

Northern section (Ghardaia-In Salah): 2020-2023; Southern section (In Salah-Tamenrasset): 2021-2026

Legal & Financial Advisors

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

Market Analysis

Market Analysis

Current north-south connectivity through the Sahara is severely constrained by challenging desert conditions and limited infrastructure. The RN01 handles moderate but growing traffic (1,500-3,000 vehicles daily), with significant strategic importance for national cohesion, security, and access to southern regions and neighboring countries. The corridor plays a critical role in Algeria's growing trade with Niger, Mali, and Nigeria, with significant long-term potential as continental integration progresses.

Market Demand

The modernized corridor is designed to handle current traffic volumes with capacity for growth to 5,000-7,000 vehicles daily. The corridor serves southern Algeria (population approximately 1 million), with wider benefits for connectivity to Niger, Mali, and Nigeria (combined population over 250 million).

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 Ghardaia, In Salah, and Tamenrasset

Investors

Government of Algeria, National Road Fund

Contractors & Operators

Multiple contractors through national competitive bidding, primarily Algerian construction companies (COSIDER, ENGOA, ENGTP) with international technical partners

Risk Assessment

General Risk Assessment

Key risks include: extreme environmental conditions including temperatures exceeding 50°C, sandstorms, and flash flooding in certain areas; sand encroachment requiring continuous mitigation; remoteness creating logistical challenges for construction and maintenance; limited water availability for construction; and security considerations in remote border-adjacent regions. Risk mitigation includes specialized desert-adapted design, robust logistics planning, water conservation systems, comprehensive security management, and advanced monitoring technologies.

Regulatory Risks

The project operates within the established national regulatory framework for transportation infrastructure, with specific considerations for operation in Saharan regions including specialized safety regulations, emergency response protocols, and coordination with security services.

Impact Assessment

Environmental Impact

The project has completed comprehensive Environmental and Social Impact Assessment with approved management plans currently under implementation. Key environmental considerations include protection of fragile desert ecosystems, sustainable water management in an extremely water-scarce region, management of construction impacts in pristine environments, mitigation of landscape impacts in areas of natural beauty, and climate resilience measures including flash flood protection and heat management.

Social Impact

The road modernization is generating approximately 12,000 direct jobs during construction and will create an estimated 1,500 permanent jobs in operations, maintenance, and services. Socioeconomic benefits include improved access to services for remote communities, enhanced mobility between northern and southern regions, reduced isolation during extreme weather events, new economic opportunities along the corridor, and strengthened national cohesion through better connectivity to Saharan regions.

Investment Opportunities

Private Sector Opportunities

While construction is primarily implemented through state enterprises and national contractors, opportunities exist in: specialized technical services for desert infrastructure; supply of specialized materials and equipment; development and operation of service areas and rest facilities; maintenance operations through performance-based contracts; emergency response services; and consulting services for specialized aspects of desert infrastructure.

Next Steps & Agreements

Next Steps

Complete ongoing construction; strengthen corridor management capacity; develop long-term maintenance framework adapted to desert conditions; enhance service facilities along the corridor; implement advanced safety and emergency response systems for remote sections

Offtake Agreements

Maintenance contracts utilize performance-based specifications adapted to desert conditions, with clear key performance indicators and monitoring systems. Service area concessions establish service standards, maintenance responsibilities, and commercial operations frameworks with specific provisions for emergency services.

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