The concession covers 36,000 hectares: Italian group BF secures a 40-year concession deed in Timimoun

New Developments for the Italian Company Bonifiche Ferraresi (BF)’s Megaproject in Algeria

The Italian company BF obtained on Thursday the concession contract for 36,000 hectares (Ha). The Ministry of Agriculture, Rural Development, and Fisheries officially granted the contract to the Chairman of the Board of BF Al Djazair, Mr. Mustafa Al Hawari.

Thus, progress is accelerating for the integrated project for the production of cereals, legumes, and pasta in Timimoun, with the acquisition of this 40-year renewable concession. According to the sector’s top official, this step reflects “the State’s commitment to supporting agricultural investment.” The project’s implementation is progressing under “very favorable conditions,” added Youcef Cherfa on the occasion.

It should be noted that the project has already entered its effective implementation phase, following BF’s launch of construction works, the drilling of wells, and the installation of equipment for land development and central pivot irrigation. Sowing will begin during the upcoming plowing and planting season. “The project has had a strong start and is expected to gain greater momentum next April with the sowing of pulses,” the minister also noted.

For his part, Mr. Houari described the granting of the concession contract to BF as a “historic and strategic moment,” reflecting the strength of Algerian-Italian relations. He further announced that the company’s board of directors will meet on March 11 to examine ways to accelerate the project’s implementation pace.

Spanning 36,000 hectares in the wilaya of Timimoun, the project is dedicated to the production of wheat, lentils, dry beans, and chickpeas, as well as oilseeds such as soybeans. It also includes the construction of processing units for pasta production, storage silos, and other essential infrastructure.

Advanced Agronomic Techniques
Valued at USD 420 million, the project is expected to strengthen national production of cereals and pulses, boost non-hydrocarbon exports through pasta exports, and create more than 6,700 jobs, including 1,600 direct positions.

It is the result of a partnership between the Italian group BF and the Algerian State, represented by the National Investment Fund (FNI), within the framework of a master agreement signed in early July 2024.

The project was initially announced by the Algerian Investment Promotion Agency (AAPI) and later confirmed in mid-June during President Abdelmadjid Tebboune’s visit to Italy for the G7 summit. Out of the 36,000 hectares, 35,450 hectares are dedicated to wheat and legume production, while the remaining land will host a pasta factory and related facilities.

For reference, the Italian partner BF had already been granted a concession of 900 hectares in Ouargla. Within this new concession, BF plans to apply advanced agronomic techniques, including crop rotation, to optimize yields, particularly in the cereal sector.

In addition, the project includes a training and technical cooperation component, covering the Green Dam reforestation project, as well as efforts to combat desertification, stabilize sand dunes, and adapt to climate change.

Launched under the Mattei Plan for Africa (2024–2028), the project aims to provide Algeria with a fully integrated agri-food chain—from seed supply to industrial processing of crops (particularly cereals and pulses), including pasta manufacturing.

It also seeks to “consolidate and strengthen the excellent historical bilateral relations between Algeria and Italy in all areas, while accelerating the national economic process toward achieving self-sufficiency,” as underlined in the presidency’s statement on June 15.

According to the Minister of Agriculture, this is the second largest agricultural project after the agreement with Qatari company Baladna for powdered milk production in Adrar, through a joint venture in which the National Investment Fund (FNI) holds 49% and the Qatari side 51%. “These agreements reflect the public authorities’ willingness to open the agricultural sector to foreign investment, particularly in the South where conditions are favorable,” the minister emphasized last July.

As an indicator, the overall objective is to expand the southern agricultural area to 500,000 hectares (through land development) with a yield of 55 quintals per hectare of wheat.