Abidjan-Ouagadougou railway

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In 1994, the governments of Burkina Faso and Cote d'Ivoire jointly awarded a 15-year concession contract for the operation of the Abidjan-Ouagadougou railway to Sitarail. After 5 years of operations the goverments and Sitarail agreed to extend the concession by an additional 15 years. Sitarail (International Company for African Rail Transport) was owned by Societe Ferroviaire Ivoiro-Burkinabe or SOFIB (67%), government of Ivory Coast (15%), government of Burkina Faso (15%), and employees (3%). The private partner is consortium of companies: (32.65% - owned by Saga S.A. of France and SDV - freight forwarders operating in the region), Sofrerail (engineering consultants - 5.1%), Transurb (engineering consultants - 3.06%), SICC (6.11%), and Maersk (international shipping line - 4.08%). Sitarail was established with a capital of 25 million SFA Francs (US$ 51,000). Sitarail provided freight and transport services, with Sofrerail the operating partner of the consortium. Sitarail took over operations on 20th August 1995. The Burkina Faso and Cote d'Ivoire governments retained ownership of the railway track and most rolling stock and equipment, through national patrimony corporations. Sitarail leased the rolling stock, but might purchase its own if preferred. The state owned corporations were responsible for investments. Sitarail provided investment advice and took responsibility for maintenance. Sitarail agreed to pay its concession fee through: 1) a usage fee related to revenues and renegotiated every three years; 2) debt service payments for investment debts incurred by the governments; and 3) a lease fee for equipment. The concession contract granted exclusive rights to Sitarail for the first seven years only. After that, Sitarail must grant access to any third parties requested by the governments, at an agreed fee. The estimated investment for the first five years of the concession contract were US$63.3 million. None None