Drake and Scull wins $40m Algeria contract
Dubai, April 23, 2014
Dubai construction firm Drake and Scull International has won a 147 million UAE dirham ($40 million) project to build a mixed-use development in the capital of Algeria, the company said on Wednesday.
Drake and Scull will undertake the civil construction portion of the project in Algiers, covering a total built-up area of about 66,500 sq m, it said.
Algeria limited the access of foreign companies to its construction market for decades but over the past couple of years it has been opening the market, in an effort to build housing faster and alleviate a shortage that is a major source of social discontent.
The government allocated about $50 billion to the housing sector under a five-year, $286 billion state spending plan that aims to modernise infrastructure and create jobs between 2010 and 2014. It has said it is ready to spend more money if necessary.
Authorities have said they want to build 200,000 housing units annually, but local companies' total construction capacity has been estimated at no more than 80,000 units. - Reuters