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 1974, 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 of Gabon. Since 2015, the infrastructure has been subject to a major renovation and upgrade programme (the “PRN”) to restore the initial capacity of railway (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, world’s 2nd largest 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 project possesses the advantage to build a competitive infrastructure to mitigate demand risk. 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.
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, a Resettlement Framework and a Biodiversity Action Plan.

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