Dakar, Senegal, July 14, 2016 — IFC,
a member of the World Bank Group, has agreed to provide 52.5 million euros
($58 million) of debt financing to boost the capacity and improve the efficiency
of Gabon’s rail network and improve the Central African country’s trade
and transport links.
The financing was awarded to Société d’Exploitation
du Transgabonais (SETRAG), which has been the concessionaire of the 650-kilometer
Transgabonais rail line between Franceville and Libreville since 2005.
The Transgabonais serves Gabon’s main central economic corridor and helps
connect the country’s landlocked iron ore and manganese mines to international
markets. SETRAG will use the funds to increase the railway’s transport
capacity while also improving its reliability.
“We are pleased to have provided both advisory
services and financing for the rehabilitation of the Transgabonais. This
project will support efficient transport solutions by private sector operators
for mining companies and general freight shippers, thus facilitating industrial
investment and economic growth in Gabon,” said Vera Songwe, IFC’s Regional
Director for West and Central Africa.
“SETRAG is very appreciative of the support
provided by IFC during the advisory and financing phases of this transaction.
IFC’s unparalleled expertise in transport in sub-Saharan Africa and IFC’s
ability to play an honest broker role during negotiations of the amended
concession contract with the Government of Gabon have been of great added
value for SETRAG,” said Patrick Claes, Managing Director of SETRAG.
The IFC-arranged financing includes a 35
million euro loan for IFC’s account, 17.5 million from IFC’s Managed
Co-Lending Portfolio Program, and a 32.5 million euro parallel loan from
Proparco, the private sector financing arm of the French Development Agency.
IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in emerging markets. Working
with more than 2,000 businesses worldwide, we use our capital, expertise,
and influence, to create opportunity where it’s needed most. In FY15,
our long-term investments in developing countries rose to nearly $18 billion,
helping the private sector play an essential role in the global effort
to end extreme poverty and boost shared prosperity. For more information,