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Algeria

Key Rail, Mining Infrastructure Funded by $28 Billion Budget

Algeria’s 2027 Finance Bill commits approximately $28.2 billion to structural projects, including a high-speed rail corridor connecting Alger to Tamanrasset and the accelerated development of the Gara Djebilet iron ore deposit. This substantial allocation is aimed at bolstering industrial diversification and…

Key Rail, Mining Infrastructure Funded by $28 Billion Budget

The 2027 Finance Bill earmarks nearly $28.2 billion, equating to 3,689.93 billion dinars, for a series of industrial and infrastructure projects considered critical. This budgetary direction upholds the state's strategy to stimulate internal growth and enhance economic sovereignty, while meticulously managing public spending trajectories. The allocated funds are designed to accelerate industrial diversification and strengthen territorial integration.

A significant portion of these credits is dedicated to the valorization of raw materials. The Gara Djebilet iron ore deposit, situated in Tindouf wilaya, receives an allocation of approximately $7.35 billion (963 billion dinars), with the majority of this sum already formally committed. Following the operational launch of the site and the commissioning of the Béchar-Tindouf railway section in early 2026, current efforts are concentrated on establishing industrial processing units vital for a fully integrated national steel industry. Additionally, the integrated phosphate complex of Bled El Hadba in Tébessa mobilizes substantial funds, with commitments made for its extraction, enrichment, and chemical transformation processes, supported by the modernization of a 422-kilometer mining line to Annaba port.

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The transport sector is set to achieve a notable milestone with the realization of the high-speed rail corridor linking Alger to the Grand South. This 2,006-kilometer line represents the nation's most ambitious connectivity investment, valued at approximately $14.6 billion (1,910 billion dinars). Funding for this project combines a direct contribution from the Public Treasury and external support from the African Development Bank. The infrastructure is designed to accommodate trains traveling up to 220 km/h, traversing multiple wilayas and progressing through successive operational phases, with preliminary studies already indicating an extension towards Moulay Lahcen and In Guezzam, aiming for overall service by late 2028.

Beyond these primary logistical corridors and extractive complexes, the 2027 Finance Bill reserves approximately $818 million (107.18 billion dinars) for improving the reception and operational conditions of these investments. These funds are specifically allocated for opening access tracks and connecting activity zones, as well as large agricultural areas in the Algerian South, to electricity and natural gas networks. Through this focused priority on railway corridors and extractive industries, the public authorities are strategically linking territorial development, heavy logistics, and the valorization of national resources to sustainably strengthen the country's productive apparatus.

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