Algeria Advances 495-km Laghouat-Ghardaïa-El Menia Railway Project
Image: Algerie Eco
Takeaway
The Laghouat-Ghardaïa-El Menia railway project presents opportunities for construction firms and railway equipment suppliers. Investors should monitor the progress of the AfDB and AIIB financing, as well as ANESRIF's procurement announcements, to identify potential entry points into the Algerian infrastructure market. The railway's impact on regional connectivity could also unlock new investment opportunities in agriculture, industry, and mining sectors along the corridor.
On Wednesday, March 5, 2026, a high-level interministerial meeting was held in Algiers to advance the procedures for financing and constructing the railway line connecting Laghouat, Ghardaïa, and El Menia. Abdelkader Djellaoui, the Minister of Public Works and Basic Infrastructure, presided over the meeting of the joint ministerial committee responsible for monitoring the funding and implementation of the 495-kilometer railway project. The railway is considered a strategic project for developing transportation infrastructure in the region.
The Laghouat–Ghardaïa–El Menéa Railway Line Construction Project represents a large-scale sovereign investment aimed at expanding and modernizing Algeria's national railway network. The 495 km line is a strategic segment of the future trans-Saharan rail corridor linking Algiers to Tamanrasset and, in the longer term, to the Sahel region. The project aims to improve rail transport competitiveness, reduce logistics costs, facilitate the movement of goods and people, and support balanced territorial development by opening up remote agricultural, industrial, and mining areas.
The first phase of the project has an estimated total cost of EUR 1.49 billion (approximately $1.75 billion). The African Development Bank (AfDB) is providing a loan of EUR 747.32 million, representing 50% of the cost of the first tranche. The Asian Infrastructure Investment Bank (AIIB) is also contributing with a loan, and the Government of Algeria is covering land acquisition, resettlement costs, institutional arrangements, and part of the rolling stock. The National Agency for Studies and Monitoring of Railway Investment Projects (ANESRIF) is implementing the project under the Ministry of Public Works and Basic Infrastructure. The selected firm will support project implementation over a 60-month period from June.
The project seeks to reduce travel time and transport costs along the Laghouat–Ghardaïa–El Menéa corridor, improve connectivity between southern regions and national markets, and facilitate the integration of agricultural, industrial, and mining production zones into value chains. It also aims to encourage a modal shift from road to rail transport in order to reduce congestion. The committee included representatives from various ministerial departments, including Public Works and Basic Infrastructure, Interior and Local Authorities, Transport, Industry, Agriculture and Rural Development and Fisheries, Energy, Renewable Energies, and Water Resources.
Procurement for the 495km Laghouat-Ghardaia-El-Meniaa railway has been launched by Algeria's Anesrif. The administrative, technical, and financial procedures necessary for the effective commencement of this strategic railway line are being finalized to ensure the project starts on schedule. The project's completion is projected for December 30, 2031.