The International Finance Corporation (IFC) is providing EUR 52.5 million to boost the capacity and improve the efficiency of Gabon’s rail network.
The financing was awarded to Société d¹Exploitation du Transgabonais (Setrag), which had been the concessionaire of the 650 km Transgabonais rail line between Franceville and Libreville, since 2005.
Setrag would use the funds to increase the railway’s transport capacity while also improving its reliability.
The IFC-arranged financing includes a EUR 35 million loan for IFC’s account, EUR 17.5-million from IFC’s managed co-lending portfolio programme, and a EUR 32.5-million parallel loan from Proparco, the private sector financing arm of the French Development Agency.
“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,” IFC West and Central regional director Vera Songwe said.
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