Baladna signs initial contracts worth over USD 500 million

29/07/2025 04:12 AST

The Algerian capital today witnessed the signing of initial contracts valued at over USD 500 million between Baladna Algeria and a group of Algerian and international suppliers and consultants.

The contracts are part of the first phase of Baladna's integrated agri-industrial project for powdered milk production in Algeria, which represents a total investment of USD 3.5 billion.

These agreements mark the official start of this strategic investment, aimed at enhancing food security and reducing reliance on imports-contributing positively to the national economy.

Baladna Algeria is a joint-stock Algerian company established through a partnership between Baladna Q.P.S.C. and Algeria's National Investment Fund.

The signing ceremony was attended by the Director General of the National Investment Fund; the Ministers of Agriculture, Rural Development and Fisheries; Environment and Quality of Life; Industry; Water Resources; and Labor; the Secretary of State for the Algerian Diaspora Abroad representing the Ministry of Foreign Affairs; and a representative from the Ministry of Vocational Training and Education.

Also in attendance were the Delegate Governor of Adrar Province, the Director General of the National Investment Promotion Agency, the Director General of the National Dairy Office, several representatives of national banks, representatives of relevant institutions and organizations, His Excellency the Ambassador of the State of Qatar to Algeria, and His Excellency the Ambassador of Algeria to the State of Qatar.

From Baladna Q.P.S.C., the attendees included Mr. Moutaz Al-Khayyat - Chairman of the Board; Mr. Ramez Al-Khayyat - Board Member and Managing Director; Mr. Ali Al-Ali - Chairman of Baladna Algeria; Mr. Saifullah Khan - Board Member and Managing Director of Baladna Algeria; as well as representatives of the companies with whom the contracts were signed.

The signed contracts cover a wide range of critical sectors, including agricultural technologies, production lines, irrigation equipment, water well drilling, steel and metal structure supplies, in addition to consultancy services in project management, topographic surveying, soil analysis, and environmental impact studies.

Among the key international suppliers and consultants are GEA (Germany), a leader in dairy processing and automated milking systems; Valmont (USA), specialized in water-efficient irrigation systems; Urbacon UCC, a globally recognized contracting firm; and EHAF, a prominent engineering consultancy. Leading Algerian companies involved include Condor-Travocovia, RedMed Contracting, and EFORHYD, specialized in water well drilling.

Mr. Moutaz Al-Khayyat, Chairman of Baladna, stated that the signing of these initial contracts, which form a key part of the project's first phase, marks a major milestone in what is considered one of the largest agri-industrial projects of its kind in the world. He said:

"Today, we are taking a critical step in the execution of this integrated agri-industrial project for dairy and powdered milk production in Algeria, which aims to achieve self-sufficiency in one of the country's most essential and widely consumed food products. We are proud to bring together top-tier global and national expertise through collaboration with leading companies from the United States, Germany, Qatar, and Algeria. These combined efforts will ensure the project is delivered on schedule and according to the highest international standards-starting with field studies, soil and water analysis, construction, and the design and implementation of world-class irrigation networks and production lines."

The Baladna Algeria project is among the largest in the world and the first of its kind in Algeria. Spanning 117,000 hectares, the project is being developed through a strategic partnership between Baladna Q.P.S.C. and the Algerian government, represented by the National Investment Fund.

The initiative focuses on dairy cow farming and powdered milk production, and is expected to supply 50% of Algeria's national demand for powdered milk locally-supporting the country's goal of self-sufficiency. It will also contribute to the supply of red meat and create more than 5,000 job opportunities for the local workforce.

Mr. Ramez Al-Khayyat, Board Member and Managing Director of Baladna, affirmed the rapid progress of the project and praised the collaboration with a distinguished group of companies. He commented:

"We have signed a package of contracts covering critical sectors for this phase of the project-namely the first phase-which includes land preparation and construction work for two out of four farms, one out of two processing plants, and 700 pivot irrigation units out of a total of 1,400. Before the construction phase is completed, production will commence following the establishment of the dairy herd in 2026."

The Peninsula