Algeria’s government has awarded a contract worth €180m ($265m) to rebuild Algiers’ military hospital to Busi Impianti, an Italian engineering company.

Work on the hospital is due to begin by the end of October, according to a Busi spokesman. The state has set a spring 2012 deadline for the contractor to complete building work.

The contract involves demolition and renovation of civil buildings, installing air conditioning and ventilation, hydraulic-sanitary plants, a kitchen capable of serving 3,500 meals, power supply and a morgue.

In 2008, Busi formed a Middle East and North Africa division.

However, some experts claim that conditions for Algerian oil and gas contracts are too onerous and deterring international oil companies.

In January, the Algerian government blamed the downturn for a sharp fall in the number of firms expressing an interest in its oil and gas contracts.