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

  • East Africa drives towards road tolling
    March 18, 2016
    Road tolling is increasing in East Africa as the region’s countries expand highway networks - Shem Oirere writes. The drive towards road tolling in East Africa is gaining momentum. Uganda appears to have broken ranks with its neighbours to make huge strides in achieving progress with this innovative road financing plan. Road tolling has hitherto has been held back in East Africa for lack of political goodwill and State bureaucracies. Kenyan government officials have made announcements on planned road tollin
  • New highway for Algeria to boost port connections
    September 25, 2012
    A feasibility study has been completed for a new six-lane highway linking the Algerian port of Oran with the East-West highway. The preliminary study was carried out by Canadian company SM International while the feasibility study was undertaken by French firm INGEROP International. Algeria’s Government is investing US$253.4 million in the project, which will include upgrades to surrounding roads to relieve traffic congestion in the area. The project will require extensive earthmoving, excavation and reinfo
  • Georgia's East-West Highway
    February 17, 2012
    One of the most important priorities of the Government of Georgia is the construction and rehabilitation of the East-West Highway in accordance with international standards.
  • Algeria-Mauritania road project
    January 9, 2023
    An Algeria-Mauritania road project is to commence.