Algeria: Bureaucracy threatens to waste investments worth 400 million Euros

Algerian government’s hesitation since 2009 to the launch a project link between the port of “Djen Djen” in Jijel, eastern Algeria, and the East-West Highway, pushed the company, “DP World” leader in conducting final containers, to postpone the launching of the investments within the port worth 400 million Euros, according to the initial agreement between the two parties.

The company obtained contracts for 30 years in Algeria to run the ports of Algiers and “Djen Djen” in 2008, and started operations by mid-year 2010 for the port of the capital, while it decided to postpone the initiation of running final containers at the port of Djen Djen because of the Algerian government hesitated in building a highway that could end the isolation of the port and link it with the east-west highway, according to the initial agreement between the Algeria and UAE, which preceded the signing of concession contracts with DP which is the third largest ports operator in the world.

The agreement issues the granting of the joint project to contribute equally between the “DP World” and authorities of the two ports of Algiers and Djendjen under a contract of 30-yeasr in both ports, which “DP World” operated.

Services of “DP World” intend to invest about 100 million Euros to develop the port of Algiers until 2014, in addition to 400 million Euros to develop the port of Djen Djen for the development of the final containers, and increase the capacity of annual processing to 2 million containers, equivalent to 20 feet.

Previously, Minister of Public Works Amar Ghoul, announced on May 22, 2009, that the completion of the project will be launched in June of the same year, but the words of the minister remained a promise despite the passage of 5 years since the launch, and despite the strategic importance of the project, which will open economic horizons and large development if the port of “Djen Djen” will be linked with east-west highway.