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December 14, 2025 | 1 month ago
Algiers-Tamanrasset railway line: AfDB grants Algeria a loan of €747.32 million
The African Development Bank (AfDB) has approved a €747.32 million loan for Algeria. This amount is intended to launch the first phase of the 495 km railway project linking Laghouat, Ghardaïa, and El Ménéa, which is part of the Algiers-Tamanrasset railway line project. This infrastructure aims to improve service to southern Algeria, facilitate trade, and support the economic development of the Saharan regions.
"The Board of Directors of the African Development Bank Group has approved a loan of €747.32 million to finance the first phase of the Laghouat–Ghardaïa–El Ménéa railway line construction project (495 km)," announced the pan-African financial institution in a statement published on its website.
According to the AfDB: "This strategic infrastructure aims to strengthen territorial connectivity, stimulate economic development in southern Algeria and support regional integration. This new railway infrastructure is one of the country's priority investment projects. " It aims "to facilitate passenger travel and freight transport." It will also "reduce logistics costs and optimise the transport of agricultural and industrial products." Finally, it will promote "the sustainable exploitation of the economic resources of the Saharan regions."
"This major railway project will contribute to a lasting transformation of the economic dynamics of southern Algeria. It will open up new opportunities for trade, employment and competitiveness in the region," said Abdoulkader Dileita, Country Manager for the African Development Bank in Algeria. "The Bank is proud to support Algeria in the implementation of its strategic infrastructure projects."
"The first phase of the project comprises several components, including the construction of priority sections of the line and the installation of modern railway equipment. State-of-the-art safety and signalling systems will be set up. The project also provides for the development of economic and social platforms for young people, women and local stakeholders. Finally, the technical and operational conditions necessary for the future extension of the network will be prepared," explains the AfDB.
He emphasised: "This funding is part of the Algerian government's vision for national transformation, which sees the development of the rail network as a major lever for economic diversification, reducing regional disparities and transitioning to more sustainable modes of transport."
"This railway project will contribute directly to the strategic priorities of the African Development Bank and is in line with the fourth cardinal point relating to the development of resilient infrastructure and the valorisation of raw materials. It also marks a key milestone in the partnership between Algeria and the Bank and reflects the shared ambition to invest in modern, resilient infrastructure that supports inclusive growth," the financial institution concludes.
December 14, 2025 | 
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