Spanish Group flees Algeria, ends partnership with Haddad ETRHB Group
الشروق أونلاين
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Tizi Ouzou stadium project. Photo: Echorouk
Spanish Company for Building and Construction “FCC” fled Algeria, and gave up two large-sized projects with the value of 1.6 billion euros, the equivalent to more than 1.600 billion DZD, the first in the railway transport sector and the second is a sports project, because of bureaucracy, the corrupt Algerian administration and lack of access to finance benefits.
Both projects are a partnership between the Spanish party and public works group “Haddad ETRHB”.
Media in the Spanish capital, Madrid, quoted sources from the same company, as saying that the Spanish construction company, “FCC”, finally decided to stop works in its two projects in Algeria, the first is related to the electrified railway project, which will link between Telemcen and Oran “Ouad Telilat” (western Algeria), and which estimated to one billion and 232 million euros, worth more than 1232 billion centimes with the Algeria national currency.
Second project, which was abandoned by the Spanish group, concerns the New Stadium for JS Kabylie, on the outskirts of Tizi Ouzou, and which cost is about 359 million euros (more than 3600 billion centimes with the Algerian national currency).
Same sources indicated that the main reason for the withdrawal of these two projects in Algeria, are bureaucracy and corruption in the Algerian administration, adding that the company suffered from problems in achievement, and the delay in the issuance of certificates of relevant cervices which is related to the volume of the Works Progress in the two projects.
Spanish company which withdrew from Algeria found itself forced to continue its financial resources consumption, and borrow money in order to continue the works, after the late issuance of documents that provide the progress rate in each time, and thus not getting the necessary financial receivables.
Which is interesting in this case is that both projects, which were stopped by FCC Spanish company in Tlemcen, Oran and Tizi Ouzou, are the result of a partnership with the private Algerian Group of Haddad “ETRHB” for public works, which is confirmed by the official website of the company, as it says, for example, that the railway project of Tlemcen-Oued Telilat, will be launched and accomplished in partnership with Haddad company, while the Tizi Ouzou stadium also started its achievement in partnership between the Spanish company, and Haddad compound, and as long as the Spanish party threatened with ending the contract and giving up the project, because of a disagreement between the two parties.
Algeria’s problems with the Spanish companies continued, as the company of OHL already resorted to international justice against Sonatrach regarding the Agreements Palace in Oran, where the Spanish party asked for $ 269 million in compensation for the unpaid remnants for extra work and modifications on the building.
Same Company OHL tends to a friendly solution with the National Agency for highways, regarding a financial dispute over the second highway project Algiers-Zeralda-Boudouaou, as the Spanish party demanded 166 million euros, while the Algerian party said that there are only 65 million Euros which are unpaid, and the roads and agreed recently on 85 million euros.
