Skip to main content

Contract problem for Algeria’s East-West Highway

Further problems surround the project to construct Algeria’s East-West Highway. Much of the route is complete, however a number of sections have faced delays with disputes having developed between contractors and the Algerian Government, which is overseeing the project. This latest development has seen the Algerian Ministry for Public Works announcing that the Japanese firm Cojaal has lost its contract to construct the remaining 84km of the eastern section of the East-West highway. It is not clear at presen
October 10, 2014 Read time: 2 mins
Further problems surround the project to construct Algeria’s East-West Highway. Much of the route is complete, however a number of sections have faced delays with disputes having developed between contractors and the Algerian Government, which is overseeing the project. This latest development has seen the Algerian Ministry for Public Works announcing that the Japanese firm Cojaal has lost its contract to construct the remaining 84km of the eastern section of the East-West highway. It is not clear at present when the highway will be complete. The Algerian Ministry for Public Works has also said that two contractors will take over the work from Cojaal, with this expected to cost less than before. Overall the total cost of the East-West Highway will not exceed US$11 billion, according to the Algerian Ministry for Public Works. Cojaal and the Algerian Ministry for Public Works have yet to agree on compensation levels for the contract having been terminated and the arbitration procedure will be carried out in Algeria, as the contract does not provide for international arbitration.

Related Content

  • Transforming Algeria's road network
    February 9, 2012
    Highway construction work is transforming Algeria, providing the country with a new network of highway quality road connections.
  • Transforming Algeria's road network
    April 4, 2012
    Highway construction work is transforming Algeria, providing the country with a new network of highway quality road connections. Several sections of the new trans-Algerian highway are already complete and carrying traffic, such as the stretch near the town of Setif. When complete the highway will run 1,200km across the north of the country from the border with Morocco in the west to the Tunisian border, passing through 24 provinces. This makes it the biggest highway project ever undertaken in Africa, as wel
  • Algeria is investing in more highway infrastructure
    August 21, 2013
    Algeria’s Public Works Ministry has announced it plans to build new expressway connections to the country’s East-West highway. These expressways will link the Algeria’s ports to the East-West highway, with the aim of reducing congestion and improving traffic flow. A US$373 million expressway measuring 30km long will link the port of Skikda with the East-West highway, with construction work due to start in September 2013. Larger still, a 111km highway will be built linking Djendjen port to Algeria’s East-Wes
  • Highway developments to boost east-west transport
    February 16, 2012
    Huge highway developments are being planned and carried out to further improve East-West transport, with Central Asia a key region as Patrick Smith reports