The Board of Directors of the African Development Bank Group has approved a €747.32 million loan to finance the first phase of the 495 km Laghouat-Ghardaïa-El Menéa railway line project.

The new railway line is among the country's priority initiatives, a strategic infrastructure project that is expected to stimulate economic development in southern Algeria and support regional integration by expanding passenger and freight transport, cutting logistics costs, and easing the movement of agricultural and industrial products to markets.

The first phase of the project includes the construction of priority sections of the line and the installation of modern railway equipment.

"This transformational railway project will help reshape economic dynamics in southern Algeria over the long term. It will open up new opportunities for trade, employment, and territorial competitiveness," said Abdoulkader Dileita, African Development Bank Country Manager for Algeria. "The Bank is proud to support Algeria in the implementation of its strategic infrastructure."

The project also provides for the development of economic and social platforms targeting young people, women, and local stakeholders. In addition, the technical and operational conditions required for the future extension of the network will be put in place.

The Bank Group's financing is aligned with the national transformation vision led by the Algerian government, which views the development of the railway network as a key lever for economic diversification, reducing regional disparities, and transitioning toward more sustainable modes of transport.

The project advances the African Development Bank's strategic priorities and aligns with the four cardinal points vision of new president Sidi Ould Tah, which include a focus on the development of resilient infrastructure and the valorisation of raw materials.