Colas Rail, in a consortium with KOU GC, has won an €85m contract for the extension of Line 1 on the Algiers Metro.
Work under the deal includes the extension of the metro line between Haï El Badr and El Harrach-Centre stations.
Just over half of the contract value is being earmarked for Colas Rail, a unit of French construction and telecommunications group Bouygues.
The project, which covers a stretch of 4km, involves the construction of all aspects of the line and four new stations.
Colas Rail will be responsible for laying the track and the third rail, as well as installation of electrical supply, low-voltage equipment, tunnel ventilation and the ticketing system.
Work is expected to be carried out over a period of 23 months with the new line scheduled to be operational in November 2014.
Algeria opened a 9km section of its metro rail project in Algiers in November 2011, running through ten stations from Tafourah Grande Poste in the city centre to Haï el Badr.
The metro rail project was built at a cost of AZD90bn ($1.2bn) and implemented by a consortium comprising Siemens, Vinci Construction and Construcciones y Auxiliar de Ferrocarriles (CAF).