N4 Toll Road - Mozambique-South Africa

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On 5 May 1997, the South African Minister of Transport appointed Trans African Concessions (TRAC - a joint venture between Bouygues' South African subsidiary Basil Read and the South African civil works company, Stocks & Stocks) preferred tenderer for a 30-year concession contract for the design, construction and operation of the N4 toll road. This 440km road would link Witbank to the port of Maputo in Mozambique. Construction began in January 1998 with the rehabilitation and upgrading of existing road sections, and the construcution of a new 36km section in Mozambique. The entire road was expected to be completed in 2001/2002. Trac obtained US$284 million in commercial debt financing for the eastbound section of the road in Dec 1997, arranged by Investec Bank and Nedcor. Trac had a US$90 million RPI-linked bond due for issue in Jan. 1998. The Development Bank of South Africa has provided part of the financing. Total expected financing is US$426 million: 80% from bonds and 20% from equity. None None