Algeria is continuing a broad, state-led investment drive focused on basic infrastructure, spanning roads, railways, water systems, energy, mining, ports, and airports. The strategy relies on large, multi-year projects designed to expand capacity, improve service reliability, and support economic development across both northern population centers and the country’s vast southern regions. Several of these projects rank among the largest on the African continent in scale and technical ambition.
For 2026, the government has allocated roughly 890 billion Algerian dinars, close to seven billion US dollars, to the Ministry of Public Works and Basic Infrastructure under the national budget. The funding was formalized through the 2026 Finance Law and a presidential decree detailing sectoral budget distribution. Authorities say the objective is to accelerate project delivery while improving living conditions and essential services nationwide.
Roads and Highways Remain a Core Priority
A substantial share of the 2026 allocation is directed toward road and highway infrastructure. Around three billion dollars has been earmarked for new construction, upgrades, and maintenance. Funding is divided between expanding road networks, preserving existing roads, and reinforcing highway corridors.
In 2025, public works authorities completed maintenance work on approximately 2,300 kilometers of national roads and provincial routes. Rehabilitation efforts also targeted deteriorated highway segments in multiple provinces, alongside replacement of expansion joints and structural components to extend asset lifespan. Technical assessments were conducted on key highway sections to identify priority interventions for future phases.
These efforts will continue in 2026 with reinforcement planned for more than 50 kilometers of highways, roughly 1,000 kilometers of national roads, and additional provincial routes. The program also includes accident-risk mitigation, updated road markings across tens of thousands of kilometers, and priority maintenance of bridges and overpasses.
Railways and Urban Transit See Major Expansion
Rail infrastructure represents another major focus, with more than three billion dollars allocated to rail development and additional funding for metro and tramway systems. The centerpiece is a nearly 950-kilometer heavy-freight railway linking western Algeria’s mining regions to industrial and export corridors. The line is intended to support large-scale mineral extraction and strengthen logistics capacity in remote desert areas.
Construction milestones reached in late 2025 included completion of major track segments, viaducts, and stations. Preliminary technical testing began in early 2026. The project includes the longest railway bridge in Algeria and Africa and is designed to connect mining zones with industrial sites and ports.
Beyond this flagship project, Algeria plans to expand its national rail network to between 12,000 and 15,000 kilometers by 2035. Future lines include east-west mining corridors, a major north-south railway linking coastal regions to the deep south, and new routes aimed at reducing geographic isolation.
Airports, Ports, and Maritime Infrastructure
Funding has also been set aside for airport infrastructure, covering both development and maintenance. The program targets runway upgrades, structural reinforcement, and modernization of support facilities. Parallel efforts are underway to modernize ports, strengthen coastal protection, and upgrade maritime infrastructure for fishing, leisure, and commercial shipping, while ensuring continued maintenance of existing port facilities.
Addressing Water Stress Through Large-Scale Investment
Water security remains a central concern, particularly given recurring drought conditions. The hydraulic sector received one of the largest budget increases for 2026, with funding rising sharply compared to the previous year. Investment focuses on mobilizing water resources, expanding drinking and industrial water supply, improving irrigation systems, and strengthening wastewater treatment and environmental protection.
The program includes dozens of new projects and the reassessment of existing ones, covering conventional water sources, desalination, distribution networks, sanitation systems, and agricultural irrigation. Significant resources are also allocated to transfers between regions to balance water availability.
Several new desalination plants are scheduled to break ground in 2026, alongside additional facilities in southern regions. These projects support a national strategy aimed at substantially increasing desalinated water production by 2030 and reducing reliance on surface and groundwater sources. New dams and transfer systems are expected to add hundreds of millions of cubic meters to the national supply.
Mining Projects to Support Industrial Growth
Mining is another pillar of the infrastructure strategy, supported by targeted investment in extraction, transport, and processing. Key projects include a large phosphate development in eastern Algeria, linked to new and upgraded rail lines that will connect production sites to processing facilities and ports. Authorities expect this project to significantly increase phosphate output and fertilizer production.
Additional mining developments include a major zinc and lead project considered among the largest of its kind globally. Once operational, it is expected to supply raw materials for downstream industries, including battery manufacturing and other industrial applications./div>
