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

  • Plans for Chile-Argentina tunnel progressing
    August 14, 2014
    Successful talks have been held between Chile and Argentina regarding the planned Agua Negra road tunnel that will link the two countries. Further talks will be carried out with regard to financing the project but these look set to be completed towards the end of August 2014, according to a report from Business News Americas. One option is for Argentina’s Government to pay for the construction with the costs being recovered through tolling but other financing solutions have also been discussed. The Agua Neg
    Read More
  • Building of Algeria’s elevated plains motorway could begin soon
    January 9, 2014
    Construction of the eastern and central parts of the new motorway through Algeria's elevated plains could begin soon. The work is set to follow the completion of respective studies linked to the project, according to national motorway agency ANA. Studies on the western stretch of the project are still ongoing. The motorway will cover 1,030kms, linking Tébessa and Naâma. The project involves Algerian, Chinese and Japanese firms.
    Read More
  • New dual carriageway for South East Nigeria
    March 11, 2015
    Work is nearing completion on Nigeria’s important East-West road project. The new dual carriageway link should be ready to carry traffic in a matter of months. In all the project was originally expected to cost in the order of US$1.93 billion to construct and work commenced back in 2006. However an additional stretch may now be added that will extend the route. This project is of significance as it improves transport links to the South East of Nigeria, an area of the country that has long been overlooked fo
    Read More
  • Vietnam-Laos expressway under consideration
    October 11, 2021
    A new expressway linking Vietnam and Laos is under consideration.
    Read More

Highlighted Content