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.
Finance & Funding Road Structures

Related Content

  • Making the U-turn
    August 2, 2012
    Political hostility to a toll road project in Australia has been turned around by the quality and amenity of the project writes Adrian Greeman Cars, trucks and vans were taking to the new EastLink toll road in Melbourne with enthusiasm this July, pleased to try out its 39km route for time and cost savings. As well as the convenience of the uncongested route, drivers were also able to view an extraordinary multi-shaded perspective of transparent green and orange noise wall panels, burnt earth-coloured retai
    Read More
  • Sandvik’s Turkish delight at groundbreaking tunnel vision
    May 20, 2014
    Turkey’s longest, and what will be the world’s fourth longest, highway tunnel is being built under Mount Ovit in the northeast of the country. Sandvik Construction is playing a vital role in the construction of the giant new structure, which will enable all-year-round access to what is a relatively remote and often snow-blocked part of Anatolia Having had their freedom of movement blighted for many years by wintertime snow blocking the D925 highway, along with narrower roads and passes, at Mount Ovit, resi
    Read More
  • China's economic growth fuelling vehicle increase
    March 14, 2012
    China is at a turning point in many ways. The country's continuing economic growth is fuelling a massive increase in vehicle numbers, with no signs of slackening. This is most acute and most visible in major cities such as Beijing and Shanghai, where traffic jams are now a frequent occurrence. One recent Beijing tailback stretched nearly 100km along a major highway and was caused by roadworks at a particularly busy stretch of the road.
    Read More
  • China's economic growth fuelling vehicle increase
    February 21, 2012
    China is at a turning point in many ways. The country's continuing economic growth is fuelling a massive increase in vehicle numbers, with no signs of slackening. This is most acute and most visible in major cities such as Beijing and Shanghai, where traffic jams are now a frequent occurrence
    Read More

Highlighted Content