Algeria awards US$4 billion of power and gas sector contracts

Sonelgaz announced on 19 February the award of contracts worth US$4 billion to South Korean and Spanish companies to build six power plants with a combined capacity of 1,200-1,600 MW. The contracts were awarded to three South Korean enterprises - a partnership of Hyundai Engineering and Daewoo International; Samsung and GS/Daelim; and Spain's Duro Felguera. 

The US$1.37 billion contract with the South Korean consortium is to build two power plants for Sonelgaz’s Société Algerienne de Production de l'Electricité (SPE) subsidiary in Biskra and Jijel wilayas. Construction is expected to be completed 39 months. 

Samsung C&T Corp said on February 20 that it had won two orders worth a combined US$1.37 billion to build two power plants for SPE in Mostaganem and Naama wilayas, worth US$763.64 million and US$608.89 million, respectively. Both contracts are expected to be completed by August 2017. 

Samsung has also been awarded a contract worth US$800 million by the Groupement Timimoun (GTIM) - a joint venture between Sonatrach (51%), Total (37.75%) and CEPSA (11.25%) – for the construction of a central processing facility and related pipelines for the Timimoun gas field in south-west Algeria. The turnkey project, to be completed by April 2017 calls for Samsung Engineering to draw up the plans, handle procurement, carry out construction, and conduct a trial run. 

Details of the Duro Felguera contact have not yet been released. It is therefore unclear whether this is the same contract awarded to the company in December for the construction of a combined cycle plant in Djelfa, or a new contract.

For more news and expert analysis about Algeria, please see Algeria Focus and Algeria Politics & Security.

© 2014 Menas Associates

Algeria's 'Grand Sud' forms new committee for the rights of the unemployed

On 29th January, workers in Algeria's 'Grand Sud' formed a new organisation: the Comité national de défense des droits des chômeurs . There has been much unrest over a long period of time in the Saharan towns, where youth unemployment is rampant. The 5 - 9th January revolt saw extensive rioting in many of the desert's northern towns such as Ouargla, Laghouat, Djelfa, Bechar and even the generally docile Ghardaia.

Ironically, perhaps, the organiser of this new movement is a worker who has spent the last 2-3 years fighting in vain to reverse an employment injustice by a British company operating in the Algerian Sahara. Rather than the Algerian authorities examining his case, he was hounded by the authorities. The result is that he has formed an organisation which ultimately could become a much bigger threat to the regime than an isolated worker's grievance.

The Committee's first action is to hold a demonstration in Algiers on 6th February. One of its key objectives is to put an end to the way in which employers, especially foreign companies, profit from Algeria's poor social conditions by exploiting workers by offering derisory wages. The Committee is also targeting a number of other unacceptable labour practices.

For more news and expert analysis about Algeria, please see Algeria Focus and Algeria Politics & Security.


© 2010 Menas Associates