China Eximbank pledges loan for El Hamdania Deepwater Container Port Infrastructure Project

On January 17, 2016, the Government of Algeria's Transport Ministry, China Harbor Engineering Company (CHEC) and China State Construction Engineering Corporation (CSCEC) signed an Memorandum of Understanding (MOU) regarding the El Hamdania Deepwater Container Port Infrastructure Project. As of June 2016, a project feasibility study was underway. Upon its completion, a loan application was to be prepared and submitted to China Eximbank. In 2017, CSCEC announced that the $3.225 billion project would be financed by China Eximbank. In order to manage the implementation of the project and repay the loan that would finance the construction of the port, Serport (the Algerian public group acting as a port authority) and the two Chinese construction companies (CSCEC and CHEC) created a joint venture (special purpose vehicle). Serport holds a 51% ownership stake and the two Chinese construction companies (CSCEC and CHEC) hold a 49% ownership stake in the joint venture. On January 17, 2020, China State Construction Engineering Corporation, China Harbour Engineering Company and Algeria’s state-run Port Services Group formed a joint venture to implement the project. Then, on June 29, 2020, the President of Algeria instructed the country’s Prime Minister to ‘make new contact with the Chinese partner and study the project on new transparent bases in order to submit it for the second time to the Council of Ministers, within a maximum period of three months.’ In November 2020, Algeria’s Finance Minister announced that the El Hamdania Deepwater Container Port Infrastructure Project would commence in early 2021. Then, on March 14, 2021, Mr. Amar Grine, was appointed as Director General of the National Agency for Construction of Cherchell Port (Agence Nationale de Réalisation Port Centre de CHERCHELL or ANRPCC). Seven days later, on March 22, 2021, it was reported that construction would begin in May 2021 and take four years to complete (May 2025). Then, in December 2021, Amar Grine announced that the project was being rescoped and he expected the cost to be downwardly revised. The purpose of the project is to construct a deepwater container port in the village of El Hamdania within Cherchell district (the so-called Central new Port of Algeria). Upon completion, the port is expected to have 23 docks capable of processing 6.5 million 2-foot containers and 26 million tons of goods per year. It is also expected to be managed and operated by China’s Shanghai International Port Group for 25 years under a concession agreement.

Additional details

1. This project is also known as the Cherchell Port Infrastructure Project and the Central Port Project. The French project title is Port Centre D'el Hamdania Cherchell. The Chinese project title is 阿尔及利亚及尔中心港项目. The Arabic project title is ميناء الوسط or ميناء شرشال الكبير or ميناء شرشال الجديد or ميناء الحمدانية الجديد. 2. As of April 2019, several Algerian news sites reported the mega project port in El Hamdania in Cherchell to be cancelled. According to an announcement from the Algerian Ministry of Transport and Public Works, the project was reportedly being transferred to the city of Annaba, after it was discovered the soil on which the project was to be carried out in El Hamdania is not suitable for construction. However, no official confirmation has been identified. 3. Multiple official sources identify China Eximbank as the financier of the project. Also, in March 2019, China Eximbank identified El Hamdania Deepwater Container Port Infrastructure Project as one of its projects (see http://www.eximbank.gov.cn/info/notice/jzcg/201905/t20190508_9075.html). 4. The joint venture might be called Entreprise Portuaire de Cherchell (EPC). This issue warrants further investigation.

Number of official sources

14

Number of total sources

41