With a Value of 1.4 Billion Dollars.. New Project Between Algeria and Turkey

[CEZAYIRLI]

بقيمة 1.4مليار دولار.. تفاصيل مشروع جديد بين الجزائر وتركيا - تركيا الآن

كشفت تقارير إخبارية أن الجزائر بحضور الرئيس التركي رجب طيب أردوغان وقّعت 3 عقود لتطوير مشروع بتروكيماويات في مدينة جيهان التابعة لولاي

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With a Value of 1.4 Billion Dollars.. Details of a New Project Between Algeria and Turkey

Last update Sunday 10 October 2021

News reports revealed that Algeria, in the presence of Turkish President Recep Tayyip Erdogan, signed 3 contracts to develop a petrochemical project in Ceyhan, in the state of Adana in southern Turkey.

Reports indicated that the Algerian company, Sonatrach, completed the signing of the three contracts for the project, which is estimated to cost 1.4 billion dollars.

For its part, the company issued a statement saying that the CEO of the Sonatrach complex, Tawfiq Hakkar, participated in the signing ceremony of three contracts related to the development of the petrochemical project for the production of polypropylene (a plastic material).

Read also/ The Algerian president ratifies a maritime navigation agreement with Turkey

The company indicated that the signing ceremony was attended by Turkish President Recep Tayyip Erdogan, the Turkish Ministers of Industry and Transport, the CEOs of the Turkish company Renaissance (Sonatrach's partner in the project), as well as representatives of the contracting parties and representatives of the Algerian Embassy in Ankara.

It indicated that the first contract is the first contract related to the completion of the project in all its stages, including detailed engineering studies, procurement, completion (implementation) and start-up of the "EPCC".

While the second contract relates to the periodic maintenance works for devices and equipment, and the third contract concerns the services of selling and marketing production.

In its statement, the company noted that the signing of these contracts is the culmination of more than two years of continuous work and negotiations

It affirmed that it will contribute 34 percent to this project, and guarantee its supply with the raw material (propane gas) within the framework of a long-term contract based on international market prices.

Bilopropylene is a plastic material that is used in several industries, including automobiles, textiles and pharmacy.

The financial cost of the project will be $1.4 billion, with a 66 percent stake for Renaissance Holding and 34 percent for Sonatrach, according to a previous statement by the Algerian company.

In September 2019, Sonatrach and Renaissance Holding signed a contract to implement a petrochemical plant project in the state of Adana, according to a statement by the Algerian company at the time.

The two countries signed a memorandum of cooperation to establish this factory during a visit by President Erdogan to Algeria at the end of February 2018.

The plant will have a production capacity of 450 thousand tons per year of bilopropylene, which will be directed to meet Turkey's needs, and will be located in the "Kayhan" region located in the southern province of Adana.

And the Algerian President, Abdelmadjid Tebboune, had previously ratified an agreement on maritime navigation with Turkey, which includes the transportation of passengers and goods, as well as technical cooperation in shipbuilding and repair and the construction of ports.

This came in a presidential decree signed by President Tebboune on May 5 and published, Thursday, in the last issue of the Official Gazette (Majalla) of the Republic.

The signing of the agreement, according to the published document, dates back to “February 25, 1998 in Algeria, but it did not enter into force due to the lack of ratification by the former President of the Algerian Republic.”

It was not clear the reason for the delay in the approval of the former ruling authorities in Algeria (the period of the rule of former President Abdelaziz Bouteflika between 1999-2019). to this maritime agreement, in order to enter into force.

On April 18, the Algerian presidency announced in a statement that the Council of Ministers headed by Tebboune had approved a cooperation agreement with the Republic of Turkey. In the field of transport and maritime navigation, it was presented by the Minister of Foreign Affairs, Sabri Boukadoum.

According to the text of the published agreement, “the two parties are working to encourage the participation of Algerian and Turkish ships in transporting passengers and goods between the two countries. And not to obstruct ships carrying the flag of the other contracting party from doing so. transporting goods between the ports of the two countries of the Contracting Parties and between the ports of other countries.

The volume of trade exchanges between Algeria and Turkey currently ranges between 3.5 and 4.2 billion dollars. The two sides are seeking to raise it above the $5 billion threshold as soon as possible, according to previous official statements

On Wednesday, Algerian President Tebboune said in an interview with the French magazine "Le Point" that his country "enjoys excellent relations with the Turks, who have invested nearly $5 billion. Without any political demands in return.”

Source: Turkey Now + Agencies