Market brief
Algeria
The authorities that procure water infrastructure in Algeria, how the deals are put together, and what is in the pipeline.
Reference profile for AlgeriaOverview
Algeria’s water market is state-led. The Ministry of Hydraulics sets policy, ADE and Sonatrach have been the off-takers for desalinated water, and the Algerian Desalination Company, a Sonatrach subsidiary, has been developer-owner of the desalination fleet, outright or through joint-venture project companies.1 The plants of 2022 to 2025 were state-built, and a partnership law was reported in draft in March 2025. Five plants were commissioned in 2025 and a further seven, with 679 million cubic metres a year of capacity, are planned for 2030. The register tracks 27 schemes with US$ 6.6 bn of disclosed value.2 Access is the constraint: the 2023 procurement law excludes partnership contracts from its scope, may require foreign bidders to commit to invest in partnership, and gives preference to Algerian products and firms.3 The water-services regulator was abolished in 2018,4 and household tariffs have not been revised since 2005.5
Market snapshot
The commercial picture in Algeria: the scale of the economy and the water sector, the investment climate, and where the near-term activity is concentrated.
Political stability
World Bank Worldwide Governance Indicators score, 0–100 (absolute scale), 2025. Political stability; higher is more stable.6
Investment climate
World Bank Worldwide Governance Indicators score, 0–100 (absolute scale), 2025. Regulatory quality for private investment; higher is better.6
Key institutions
- Ministry of HydraulicsMinistry
- AGIREResources agency
- Algérienne des Eaux (ADE)Utility
- SEAAL (Algiers and Tipaza)Utility
Financing & PPP
- PPP frameworkPPP law in draft (reported March 2025); 2022–25 desalination plants state-built
- Tracked projectsUS$ 6.6 bn disclosed value in our projects register, none of it in projects not yet operating
- Active fundersSovereign budget. AfDB has financed earlier water projects, including the Koudiat Acerdoune dam
- Climate adaptation planIn preparation (GCF support approved 2023; adoption planned for 2026)
Opportunities
- 01National seawater-desalination build-out (target: desalination to secure 60% of drinking-water supply, 2 bn m³ a year, by 2030)
- 02Network rehabilitation & NRW
- 03Wastewater reuse for agriculture
- 04Solar-linked desalination
Key challenges
- 01Rainfall concentrated in the narrow north
- 02Rapid urban demand
- 03Energy intensity of desalination
- 04Ageing distribution networks
Sources and notes
Sources: Water use by sector, total water withdrawal, supply by source, desalination and reuse shares: FAO AQUASTAT (2022; reuse 2017), FAO AQUASTAT Dissemination System, retrieved 7 October 2026. Population and GDP: World Bank WDI, latest year (shown on each tile). Other figures: FAO AQUASTAT / national reports, latest available, approximate. Governance indicators: World Bank Worldwide Governance Indicators (2025).
Contracting authorities
The bodies that commission, regulate and operate water infrastructure in Algeria. In Algeria the Ministry of Hydraulics sets policy; ADE and Sonatrach have been the off-takers for desalinated water; ADE manages potable-water systems and ONA manages sanitation; tariff rules and tariffs are set by executive decree,5 and the water-services regulator was abolished in 2018.4
- Ministry of HydraulicsMinistry
- Algérienne des Eaux (ADE)Utility
- Office National de l'Assainissement (ONA)Utility
- SEAALUtility
- AGIREBasin & resources authority
- Agence Nationale des Barrages et Transferts (ANBT)Dams & bulk transfers
How deals are structured
The framework in Algeria is PPP law in draft (reported March 2025); 2022–25 desalination plants state-built, the schemes we track carry US$ 6.6 bn of disclosed value, none of it in projects not yet operating, and the funders most active in the sector are Sovereign budget (AfDB has financed earlier water projects, including the Koudiat Acerdoune dam).
Delivery splits by asset class across the region: dams and trunk conveyance are mostly engineering contracts carried by sovereign or development-bank finance; bulk supply increasingly uses build-operate-transfer concessions against a long-term offtake; and distribution work is let as performance-based contracts paid against measured leakage reduction. The Finance & Economics hub sets out each model and where it has been used.
The projects register gives a partial view. Of the 27 tracked schemes in Algeria, 5 name a concession or independent-producer structure in the finance note; the rest record only where the money came from, which is not the same as saying they were not concessions.
How to bid
The single most important thing to know about Algerian water procurement is that the procurement law may not apply to it. Article 11 of Law 23-12 of 5 August 2023 excludes contracts concluded under delegated management of a public service and under public-private partnership from its scope; and Article 9 applies the law to state-owned economic enterprises only when they act as delegated project owner or spend state budget funds.3
| Procuring body | Procuring bodies are the Ministry of Hydraulics, Algérienne des Eaux and the national sanitation office (ONA); the Algerian Desalination Company (ADC), formerly AEC and a Sonatrach subsidiary, has been the developer-owner of the desalination fleet, either outright or through joint-venture project companies.1 |
|---|---|
| Scope carve-out | Article 11 puts delegated management and partnership contracts outside the procurement law entirely.3 |
| Routes | Article 39: national or international tender, open, open with minimum capacity, restricted, or design contest. Articles 40 and 41: negotiated procedure, directly or after consultation, with direct negotiation confined to listed cases.3 |
| Partnership requirement | Article 57: international tender documents must require foreign bidders to commit to invest in partnership for projects on a list fixed by the head of the public institution or the minister concerned. The tender documents must also provide for financial guarantees.3 |
| Local content | Article 60: imported products only where no local equivalent exists or the product fails the required standard, and foreign subcontractors only where Algerian-law firms cannot meet the need. Article 62: a preference margin for Algerian-origin products and Algerian-law companies majority-held by resident nationals. Article 64: international tenders must set a minimum threshold for national labour and qualified national staff, included in the technical evaluation.3 |
| Challenge | Article 56: besides judicial recourse, a bidder contesting a provisional award, a cancellation or a failed tender may appeal to the competent contracts commission.3 |
| Foreign ownership | The 51/49 rule applies to strategic activities. Executive Decree 21-145 of 17 April 2021 lists activities in energy and mines, pharmaceuticals and transport;7 Article 205 of the 2025 Finance Law also designates fertiliser production as strategic. Water and electricity generation are not listed in Decree 21-145.8 |
Regulatory intelligence
| Regulation | Status | Year | Note |
|---|---|---|---|
| Water Law | In force | 2005 | State ownership, licensing, utility mandates. |
| Desalination emergency programme | Delivered/expanding | 2022– | Five plants were commissioned in 2025; a new programme of seven plants, with capacity of 679 million m³ a year, is planned for 2030. |
| Loi 23-12 on public procurement | In force | 2023 | Article 11 excludes delegated public-service management and public-private partnership contracts. Article 57 requires foreign bidders in international tenders to commit to investment in partnership for projects on a list set by the relevant institution head or minister. |
| Tariff structure | Deferred | – | Deep subsidies; the household schedule has not been revised since the 2005 decree. |
Projects
Tracked schemes in Algeria, largest first. Each has its own page with the parties, the finance and a dated history.
Sources and notes
Interactive map: switch views, hover or focus a marker, and use the +/− controls (or double-click, then drag) to zoom and pan. Geometry and data from the MENA Water Review library.
28 tracked in total. The full set, filterable, is in the major projects register.
Track record
Contracts on record in Algeria, from the awards log and the major projects register, dated by commissioning where known.
Disclosed value by year
US$ bn of tracked awards in Algeria carrying a published value
12 further awards in this sector have no value recorded in our register and are not in the chart.
| Year | Project | Winning firms | US$ m |
|---|---|---|---|
| 2025 on line | Béjaïa SWRO | ENAC, Sarpi contractor | n/a |
| 2025 on line | Cap Blanc SWRO | GCB, Cosider contractor | 420 |
| 2025 on line | Cap Djinet 2 SWRO | ENGTP contractor | n/a |
| 2025 on line | El Tarf SWRO | Sarpi contractor | n/a |
| 2025 on line | Fouka 2 SWRO | Cosider contractor | n/a |
| 2015 on line | Ténès SWRO | Befesa developer | n/a |
| 2014 on line | Magtaa SWRO | Hyflux developer | 495 |
| 2012 on line | Cap Djinet 1 SWRO | GS Inima, FCC Aqualia developer | n/a |
| 2011 on line | Fouka 1 SWRO | Acciona, SNC-Lavalin developer | 185 |
| 2011 on line | In Salah–Tamanrasset Water Conveyance | CGC-SIPSC, Cosider, Zakhem, Erciyas contractor | 2,701 |
| 2011 on line | Mostaganem SWRO | GS Inima, FCC Aqualia developer | n/a |
| 2011 on line | Souk Tlata SWRO | Hyflux, Malakoff developer | 251 |
| 2010 on line | Honaine SWRO | Cobra / Tedagua, Sacyr, Befesa, Codesa developer | n/a |
| 2009 | Baraki wastewater plant extension | Degremont, China Geo Construction contractor | n/a |
| 2009 on line | Baraki Wastewater Plant (rehabilitation) | VA Tech Wabag contractor | n/a |
| 2009 on line | Beni Saf SWRO | Befesa, Codesa, Cobra / Tedagua, Sacyr developer | n/a |
| 2009 on line | Koudiat Acerdoune Dam | Razel contractor | 98 |
| 2009 on line | Skikda SWRO | Befesa, Codesa, Cobra / Tedagua, Sacyr developer | 111 |
| 2008 on line | El Hamma SWRO | Ionics developer | 250 |
| operating | Beni Haroun Dam and Transfer | Dragados, Alstom, Societa Italiana per Condotte d'Acqua contractor | n/a |
Sources and notes
Years without a label are award years from the curated log; rows marked on line are dated by commissioning, from the projects register. Register rows without a commissioning date show their stage instead: awarded, with the year recorded, or under construction or operating, with no year. 20 rows in total for Algeria.
Repeat winners
- Befesa4 tracked awards, as developer
- Cobra / Tedagua3 tracked awards, as developer
- Codesa3 tracked awards, as developer
- Cosider3 tracked awards, as contractor
- Sacyr3 tracked awards, as developer
- FCC Aqualia2 tracked awards, as developer
Sources and notes
The six firms appearing most often on tracked awards in Algeria (9 firms appear on two or more). For a PPP, BOT, BOO or independent water, power or sewage project the winner counted is the developer or sponsor consortium; for an EPC or works contract it is the contractor. Each consortium member is counted on its own. EPC contractors working for a developer, subcontractors and equipment suppliers are not counted, and a PPP whose developer is not recorded counts for no firm.
Pipeline & tenders
Structured procurements and live tenders in Algeria, drawn from the same review that maintains the pipeline tracker.
Pipeline & awards
Tenders
Prices
What households pay
| Household tariff (US$/m³) | Cost of supply (US$/m³) | Year | Source |
|---|---|---|---|
| ~$0.05 | not published | 2005 | Décret exécutif 05-13 of 9 January 2005, JO no. 055 |
DZD 6.30/m³ for the first quarterly tranche of 25 m³ in the Algiers, Oran and Constantine zones, excluding tax, rising through multipliers to DZD 40.95 above 82 m³. Among the lowest tariffs in the region and far below the cost of the desalinated supply now entering the system. The schedule has not been revised since it took effect in 2005. The decree sets dinar rates only; the dollar figure is converted at DZD 131.6 per US$ (World Bank official exchange rate, 2025 average).
Residential tariffs, and the cost of supply where a utility publishes it, are kept in one place for the whole region so the comparison holds: a tariff means little without the cost it is measured against.
Watch list
What has actually moved in Algeria, dated, from the monthly briefings. Each item names the edition it came from.
- September 2026The minister asked for faster delivery of a 23 billion dinar emergency drinking-water programme launched in mid-August.From the October 2026 briefing
The full editions are in the briefing archive.
Sources
8 references
Project, pipeline and tender records are compiled from procurer announcements, lender disclosures and trade reporting; each project page carries its own source and the date it was last checked. Institutions are from the decision-maker directory. Economic and water indicators are cited on the reference profile.
- Sonatrach, announcement of the renaming of AEC as the Algerian Desalination Company.
- MENA Water Review major projects register and PPP pipeline — compiled from procurer publications, development-bank project pages and trade reporting; each record names its source.
- Loi n° 23-12 of 5 August 2023 on public procurement (Algeria), Journal Officiel no. 51 of 6 August 2023. The gazette’s own host answers intermittently; if the link times out, try again rather than assuming it has moved.
- Executive decree 18-163 of 14 June 2018 abolishing the water-services regulatory authority, FAOLEX copy.
- Executive decree 05-13 of 9 January 2005 on water tariffs, FAOLEX copy.
- Kaufmann & Kraay, Worldwide Governance Indicators (World Bank), 2025 update: political-stability and regulatory-quality scores, 0–100, shown in the market snapshot. worldbank.org/wgi.
- Deloitte Société d’Avocats, on the activities designated strategic under the 49/51 rule, 2 July 2021. A law-firm summary.
- Ministry of Commerce (Algeria), regulation on activities subject to the 51% resident national shareholding.
Numbered references are linked from the superscript markers in the text. Figures without a marker come from the sources above as compiled in the site methodology.
Sources and notes
Primary references: the Ministry of Hydraulics and the Algerian Desalination Company (formerly the Algerian Energy Company).