KenyaUganda Rail

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The project is an IFC corporate loan to RVRC to support its first five year investment program for the rehabilitation, operation and maintenance of the railways currently run by KRC and URC. RVRC is led by Sheltam Rail Company (Pty) Limited, a South African rail and marine services firm. The investment program will include rehabilitation of track to allow safe passage of trains at an average of 30 km/hour; upgrading and modernization of the locomotive fleet; wheel and brake replacement and other rehabilitation of the wagon fleet; rehabilitation of passenger coaches; purchase of new locomotives and wagons; renovations of buildings, workshops, depots and machinery; and installation of new information technology (IT) systems. In addition to IFC, RVRC is also seeking a parallel loan from KfW, the German bilateral development finance institution.RVRC’s system will comprise a total track length of 2350 km (1920 km in Kenya and 431 km in Uganda), with 219 locomotives (175 in Kenya and 44 in Uganda) and approximately 7500 wagons and three water ferries (approx. 6000 wagons and one ferry in Kenya and 1433 wagons and two ferries in Uganda). All water ferries are freight-only. The concessioned system will include about 87% and 35% of KRC’s and URC’s railway networks respectively.The total Project cost for the first five years is estimated at $111 million, of which $47 million would be contributed by the sponsors in the form of direct equity and internal cash generations. The balance of $64 million would be funded in equal amounts in the form of an A loan of $32 million from IFC and a $32 million loan from KfW.