The Algerian State has just fully recovered the ETRHB group project of Ali Haddad in the wilaya of Annaba. Indeed, the site of 134.33 ha representing the area to accommodate in Berrahal (Annaba) the project of an Algerian-Italian steel complex, between the Algerian ETRHB and the Italian Danieli, whose agreement had been signed in 2017, is finally in the fold of the state. All legal, administrative and financial obstacles have been lifted giving rise to total ownership of public domains. Initially agricultural, the entire area joined the PDAU before being downgraded and the fellahs compensated.“Even the equipment, part of which had been supplied and installed by the Italian group Danieli, is included in the list of goods recovered by the public domains. They represent three-quarters of the equipment supplied by the Italian partner Danieli, the value of which is estimated at 80 million dollars,” say sources familiar with the matter.
In April 2021, the former Minister of Industry, Mohamed Bacha, declared during his visit to the industrial zone of Berrahal extension of Annaba, that “the site to house the steel complex of ETRHB Haddad in partnership with the Italian Danieli and its financing must benefit the Algerians, and it is up to the State to find the best formula for its revival” . To settle this case definitively, he had invited the parties concerned to a meeting in Algiers to ” find a legal solution, since the 367 hectares of this extension of the ZI of Berrahal, the area to accommodate the project, are mortgaged, by court order, by the bank that granted the loan to ETRHB Haddad”. Estimated at more than 27 billion dinars, the construction work already carried out is currently in decline. It should be recalled that the Italian supplier Danieli, one of the largest in the world in its field, was settled without having carried out the assembly of its equipment. Indeed, the contract stipulates the supply and installation of this steelmaking equipment with a supplier guarantee at the end. This service will be carried out for the benefit of the prospective purchaser of this complex.
RELAUNCH THE PROJECT WITH THE ITALIANS
Taking advantage of the honeymoon between Algiers and Rome, why not relaunch this partnership with the Italians who, in the near future, will produce vehicles in Algeria? plead unanimously, several economists, questioned on this subject, all the more, do they estimate that “the progress of the foundation works is estimated at 85%. In terms of employment, this project promised the creation of 600 jobs before moving on to some 2,000 other direct ones in the final phase, and as many indirectly”. Unfortunately, the industrial zone where the project is located is not even legally created, as noted by the IGF. “We will have to speed up this procedure to complete the file for the creation of the Berrahal extension industrial zone and allow its effective exploitation”, advise several investors waiting for this measure, described as urgent.
And if the fate of this complex is now sealed, the fact remains that all the rest of the industrial extension zone, some 200 ha, has been blocked as well as other no less important projects. This is, among other things, a tire production plant whose construction agreement was granted in April 2017 by the former wali, Youcef Cheurfa. Its agreement was based on the installation and assembly of cars in Algeria. Better still, after examining his file and consulting the primary parcel plan of the ZI de Berrahal extension, he was granted an allocation of a plot of land of 22 hectares. Even the decree of attribution was established after the examination and validation of the project by the National council of investment (CNI). According to the technical sheet of this project, “This is a partnership with the Chinese providing for the production of seven million tires, of which 45% are intended for the Algerian market and 55% for export through the international network of the foreign partner”. As for job creation, no less than 2,000 direct jobs are planned and another 1,000 indirect. Arguing for relocation of foreign investments, in particular with the correlations of the global crisis due to Covid-19, local economists believe that“With the establishment of the joint venture or 100% ownership projects following the abolition of the 51/49 rule, the wilaya of Annaba will have attractiveness and better visibility. It is currently better positioned than the other wilayas, knowing that investment requests exceed 400 million dollars. Also, the comparative advantages, such as gas, electricity and employment applied in Algeria, call for massive foreign direct investment (FDI). This will respond to those who summon Algeria to focus on its serious economic problems”.
