Background

The Project consists of the financing and realisation of a major upgrade programme and the operation and maintenance of the Transgabonais railway, under a 40-year concession. Initiated in 1978, the Transgabonais is a c. 650km strategic railway connecting the country’s capital and largest city Libreville, the port of Owendo, and Franceville, Gabon 3rd city and major inland hub.
As the only railway available to the mining sector, the Transgabonais Railway is a key infrastructure for the economic growth and diversification. Since 2015, the railway has been subject to a major renovation and upgrade programme (the “PRN”) to restore the railway’s initial capacity (which had dwindled by half over the years). In 2021, Setrag and the Government agreed to go beyond the PRN1 with an additional Capex plan (“PRN2”), to further increase the capacity of the line to reach a total of 19 Mt.
Alongside Meridiam, the project is backed by Comilog, a subsidiary of French mining company Eramet, the world’s largest high-quality manganese exporter and major client of the line. Comilog hold a stake of 51% in Setrag. IFC and Proparco are the senior lenders.

Stage:

Under Construction / Operation

ESG/SDG Key Facts

The refurbishment of the railways will result in improved safety for passengers and additional traffic in line with the development and diversification of the Gabonese mining sector.
Key E&S issues include occupational health and safety during refurbishment works, pollution control, provision of drinking water to workers, hazardous and non-hazardous waste management, resettlement of informal settlers (approximately 300 individuals physically or economically displaced), community and pedestrian safety, emergency preparedness and response, stakeholder engagement, and impacts on biodiversity.
A resettlement action plan was developed by SETRAG (in accordance with the IFC Performance Standards) and approved by IFC and Proparco. Moreover, SETRAG has already developed an Environmental and Social Audit, an Environmental and Social Management Plan and a Biodiversity Action Plan.

SDG Achievements and Roadmap

SDG 12 (Responsible Consumption and Production)

A waste management plan which extends from the head office in Libreville to Franceville is under implementation. It includes recycling of packaging, plastic cans and bottles.

SDG 15 (Life on Land)

The Project company is working hand in hand with the competent local authorities (Ministry of Water and Forests, National Agency for National Parks) to achieve the objective of protecting terrestrial fauna. The objective is ultimately to raise awareness and inform employees and populations on the preservation and conservation of land biodiversity. A biodiversity action plan in accordance with IFC performance standards, particularly Performance Standard 6 is under preparation.

Learn more about the project:

Meridiam enters shareholding of Setrag, operator of the Transgabonais railway line in Gabon