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Algeria: Desalination contract breaks down as state exercises control

One of Algeria’s few privately financed infrastructure projects has formally broken down after years of problems, with state energy giant Sonatrach and water company L’Algérienne des Eaux telling a group led by Malaysia’s Malakoff Corporation they are terminating their water purchase agreement (WPA) for the troubled Souk Tleta desalination plant. The reverse osmosis plant in Tlemcen province began commercial operations in 2011 under a 25-year contract, but has been out of operation since 2016; before that it never treated anything like its 200,000 m3/d capacity to process sea water, which was intended to produce a nominal 71,400 m3/d of drinking water.

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