Elecnor secures two contracts worth USD 154 million at the Bellara steel complex in Algeria
The contracts are for the Balance of Plant, worth USD 150 million, and the development of a water treatment plant, worth a further USD 4 million.The developer of the complex, the Algerian Qatar Steel joint venture, will invest a total of USD 2,000 million.
Madrid, 2 June 2016.- A consortium including Elecnor has won the contract to carry out the Balance of Plant works on the steel complex being developed by the Algerian Qatari Steel joint venture in the industrial zone of Bellara in north-eastern Algeria, some 314 km from the capital, Algiers. The contract is worth an initial USD 150 million dollars, equivalent to around EUR 134 million at the prevailing exchange rate.
Elecnor will be responsible for basic services (drainage, sewerage, electricity, racks, etc.), roads and railway, buildings (warehouse, laboratories, offices, cafeterias, social areas and mosque), lighting, communications and security.
Construction of the complex is expected to take 28 months.
Elecnor has also secured a second contract at the same complex via its subsidiary Hidroambiente for the development of a water treatment plant. This contract is worth an estimated USD 4 million, equivalent to around EUR 3.5 million.
Easing Algeria's dependence on steel imports
A deal was reached to build the Bellara steel complex towards the end of 2013 after almost two years of negotiations between the state-owned company Sider and the National Investment Fund, both Algerian entities, and the Qatar Mining International company. The Algerian partners own a combined 51% of Algerian Qatari Steel, while Qatar Mining International controls the remaining 49%.
Total investment in the Bellara complex amounts to USD 2,000 million, equivalent to around EUR 1,785 million.
The complex, which will serve the domestic market, is expected to significantly reduce Algeria's steel imports, which are currently worth USD 10,000 million annually. The plant will transform the zone where it is located into one of Algeria's most important industrial hubs.
The initial phase of the project, which lasts until 2018, will also create around 2,000 jobs. The complex is eventually expected to generate between 4,500 and 5.000 long-term positions.
35 years in Africa
Africa is a key strategic region for Elecnor. The company has been present on the continent since the 80s, when it carried out the Ivoinor projects in Ivory Coast, which brought electricity to around one third of the country.
Since then, Elecnor has undertaken a wide range of projects including electricity infrastructures, hydroelectric plants, renewables facilities and high-tech initiatives in countries including Burkina Faso, Cameroon, Congo and Mauritania. The company also has a stable presence in Angola (currently one of its ten most important markets worldwide), Ghana and Algeria, where it has been active since 2006.