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July 7, 2016

Report: Algerian construction industry driven by rail, road, and airport infrastructure investment

The construction industry in Algeria is projected to expand due to investments in road, rail, and airport infrastructure, reveals a Timetric report.

The construction industry in Algeria is projected to expand due to investments in road, rail, and airport infrastructure, reveals a Timetric report.

Titled ‘Construction in Algeria – Key Trends and Opportunities to 2020‘, the report cites the country’s construction industry will continue to expand in real terms backed by the government’s five-year investment programme spanning 2015-2019, which is focused on developing the transport infrastructure.

A contract was awarded to Colas Rail early this year to expand the Algeria’s metro network. The DZD20.7bn ($191.6m) contract will cover construction of five new stations and subway line extensions of 3.6km and 1.7km towards the south and north of the capital city, respectively. The metro expansion project will be implemented through a public-private partnership (PPP).

The construction sector is also expected to benefit from investments in infrastructure construction, healthcare, the manufacturing industry, education facilities, and housing projects. A push towards renewable energy is also expected to aid in expansion.

The report states declining oil prices and a planned reduction in expenditure is going to impact the performance of the construction industry, with a decrease of 4.68% forecasted in the output value from 2016 to 2020.

Oil and natural gas is the mainstay of the Algerian economy and generates approximately two-thirds of the revenue and 95% of total export revenue. Despite the current oil scenario, the government has continued to invest in key infrastructure and development projects.

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