Algeria and Chad Sign Agreements for 40 MW Power Plant and Public Works Cooperation

Algerian Minister of Energy and Renewable Energies, Mourad Adjal, and Chadian Minister of Water and Energy, Yassali Kanaby Marcelin, signed an agreement in Algiers on Thursday, May 14, 2026, to construct a 40 MW power plant in N'Djamena, Chad. The agreement aims to strengthen cooperation between the two countries, reflecting Algerian President Abdelmadjid Tebboune's commitment to supporting African nations and promoting South-South cooperation. Simultaneously in N'Djamena, Algerian Minister of Public Works and Basic Infrastructure, Abdelkader Djelloul, and Chadian Minister of Infrastructure, Road Clearance, and Maintenance, Amir Idriss Korda, oversaw the signing of a cooperation agreement in the field of public works. The signing ceremony was attended by the Director-General of the Algerian Agency for International Cooperation for Solidarity and Development, the Algerian Ambassador to Chad, and the CEOs of the Cosider Group for Public Works.

Algeria has been actively expanding its energy cooperation with neighboring African countries. In 2025, Sonelgaz initiated a similar project in Niger, demonstrating Algeria's intent to leverage its energy expertise and financial resources to bolster regional development. The Trans-Saharan Highway project has also been a long-standing priority, with renewed focus in 2024 to enhance intra-African trade and investment. These initiatives align with Algeria's broader strategy to strengthen its economic and political influence across the continent, particularly in the Sahel region, where stability and development are critical to Algeria's own security and economic interests.

The 40 MW power plant project will likely utilize gas turbines or reciprocating engines, given Algeria's expertise in natural gas power generation. A similar project in Adrar, Algeria, uses GE TM2500+ mobile gas turbines to provide 37 MW of power. The plant in N'Djamena could be constructed with similar technology, offering a relatively quick deployment time of 6-9 months. The public works agreement may involve road construction and maintenance, drawing on Cosider's experience in large-scale infrastructure projects, such as the East-West Highway in Algeria, a 1,216 km project completed in 2011.

The energy agreement benefits Sonelgaz, providing an opportunity to expand its operations and gain experience in international projects. Chadian businesses and consumers will benefit from increased access to electricity, which can support economic growth and improve living standards. Construction firms like Cosider stand to gain from infrastructure projects related to the public works agreement, potentially increasing their revenue and expanding their regional footprint. International suppliers of power generation equipment and construction materials may also see increased demand as a result of these agreements.

Looking ahead, the successful implementation of the 40 MW power plant project will depend on securing financing and overcoming logistical challenges. The African Energy Bank, with its $5 billion initial capital, could play a crucial role in financing the project. The completion of the Trans-Saharan Highway, targeted for 2027, will further facilitate trade and investment between Algeria and Chad. Any delays in these projects could hinder the deepening of economic ties between the two countries. The Algeria Bid Round 2026, opening on June 1st, may also attract further investment in Algeria's energy sector, potentially freeing up resources for international cooperation projects.