EAIF has agreed a loan of US$17 million to SPA Maghreb Tubes (SMT) to finance the construction and operation of a greenfield factory producing spiral weld and high frequency welded steel pipes and fittings in Algeria, near the city of Ain Defla. The pipes will be used for transmission and distribution of water, sewage and slurry. SMT’s promoters have over 30 years of successful pipe manufacturing experience in Thailand, China, Kenya and Tanzania where altogether 700,000 tons of steel pipes have been produced and supplied serving a variety of utility industries.
Development Benefits
The project addresses the underserved demand for steel pipes mainly required for the planned water projects by the Algerian Government in the medium to long term. Algeria has a current population of 30 million people and will have an estimated population of 40 million by year 2020. Per capita water supply is estimated to be below 1000 m³ p.a. This is far below the universal benchmark of 1700 m³. In 2004, the water supply was 1.6 billion m³ water while the basic requirement of the population was 2.4 billion m³. The water distribution network consists of an estimated 60.000 km of pipes of which an estimated 30 % are leaking. Over the next 5 years, in an effort to match water supply and water needs, the Algerian Government has allocated US$12 billion for work on the water sector. Approximately US$3 billion of this will be for pipes of various sizes.
Please click on the link below to view the press release for Maghreb Tubes.
Press Release for Olkaria & Maghreb Tubes