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The Governing Committee of the Multilateral Cooperation Centre for Development Finance (MCDF) has approved a $630,000 grant to support preparation of Algeria’s Central Corridor Railway Project, the first phase of a planned Trans-Saharan Railway aimed at enhancing regional connectivity and trade.
The grant, requested by the Asian Infrastructure Investment Bank (AIIB), was approved during the committee’s meeting in Beijing on 10 June.
The project seeks to improve the country’s rail-based passenger and freight movement, reduce logistics costs, and strengthen rail-road-port integration.
The funding will finance a technical study for the proposed railway corridor, which involves construction of approximately 495 kilometres of north-south rail infrastructure linking the oasis towns of Laghouat, Ghardaïa and El Meniaa in central Algeria.
According to MCDF, the grant will support optimisation of wind and sand hazard mitigation measures for railway infrastructure crossing the Sahara Desert, helping to improve long-term operational reliability while reducing maintenance requirements and lifecycle costs.
The funding will also support technical reviews by an international panel of experts.
The railway forms part of Algeria’s broader strategy to develop a north-south transport corridor extending towards Tamanrasset in southern Algeria and ultimately connecting with Niger and the wider Sahel region through the proposed Trans-Saharan Railway network.
The corridor is expected to facilitate agricultural and mining trade, strengthen regional supply chains and improve access to international markets through Algeria’s Mediterranean ports.
MCDF said the grant-funded activities will help align the project with international financial institution standards and best practices, enhancing its bankability and readiness for financing.
The Algeria Central Corridor Railway Project is expected to require approximately $3.2 billion in financing, with potential co-financing from the African Development Bank (AfDB), AIIB and the Government of Algeria.
(Writing by Anoop Menon; Editing by Dennis Daniel)
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