Algeria - Supplementary Loan New El Achir Tunnel

The present project is a UA 21.53 million supplementary loan to complete the new El Achir Tunnel construction project. The project is helping to meet the demand for rail transport of people and goods across the country. The initial cost overrun is mainly owing to the unforeseeable geological difficulties. Notwithstanding the cost overrun and the implementation delays, the viability of the project remains assured. Its completion, which will be facilitated by the provision of the supplementary loan, will develop the modernization investments made on the North ring road, thereby contributing to enhance the competitiveness of the railway and to achieve the targeted objectives. The initial project components remain unchanged, except the inclusion of an item on security installations to protect the site and its installations, in view of the security situation.