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

Project narrative

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. Then, on September 4, 2023, the Government of Algeria announced that a joint venture consisting of China State Construction Engineering Group (CSCEC) [65% equity stake], Cosider [20% equity stake], Meditram [10% equity stake], and the National Society of Public Works (la Société nationale de travaux publics) [5% equity stake] would undertake the project (at a total cost of $4.7 billion) in two separate phases with financing from National Investment Fund (NIF) and the China Eximbank. Approximately one month later, on October 5, 2023, an executive decree was published, modifying decree number 20-376 of December 16, 2020 and expanding the ANRPCC's scope to include all ports nationwide. Then, in March 2025, the Government of Algeria announced that the project was being 'shelved.' 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). The project scope includes the construction of three container terminals (spread over 129 hectares with 10 berths) and a cargo terminal. 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.