CPA bank to finance 80% of first phase of Volkswagen project in Algeria

 

ALGIERS – The Popular Credit of Algeria bank (CPA) will draw DZD5 billion for the funding of the first phase of the construction of the Volkswagen project in Algeria, which accounts for over 80% of the phase, CEO of the public bank Omar Boudieb said Wednesday in Algiers

“The rest of the total funding of this first phase which is of DZD 6.5 billion, will be covered by the company Sovac,” Boudieb told the press following the signing of the partnership convention between CPA and Group Sovac, the official importer of the Volkswagen brands, on the financing by this public bank of the assembly and manufacturing plant of Volkswagen brand cars in Algeria.

“The financing will be completed in several phases. The first one will cover the construction of infrastructures and the purchase of equipments,” said Boudieb.

Besides, the CPA bank will accompany the project’s operating cycle in order to support the programme of production across the various phases.

The CEO of the bank said that this financing is part of the incentives taken by the public authorities to develop car industry in Algeria, in partnership with world renowned car manufacturers.

As for him, the CEO of Sovac, Mourad Oulmi, said that the goal from this partnership between a public bank, private company and a foreign partner (Volkswagen) “is generating wealth and creating jobs.”

Asked by APS on the financial contribution of German partner Volkswagen, he said “the company Sovac Production has contacted the loan. We cannot speak about world largest car manufacturer which turnover €220 billion in comparison with €170 million which will be funded by CPA.”

The future plant of Volkswagen which will be located in the industrial area of Sidi Khettab (Relizane) over 150 hectare, is planned to produce 12,000 units in the first year of operation.

Source: CPA bank to finance 80% of first phase of Volkswagen project in Algeria

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