SETRAG II

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This Environmental and Social Review Summary (ESRS) is disclosed in anticipation of a proposed second loan to the Société d’Exploitation du Transgabonais (Setrag or the “Company”) for its 2015-2024 capital expenditure program for the Transgabonais railroad. A first loan was signed in June 2016 (# 34400), and funds were intended to support rehabilitation of the existing infrastructure (replacement of approximately 165 km of sleepers – 102 km achieved by end of October 2019); acquisition of new rolling stock for replacement and expansion of transport capacity; refurbishment of railway stations, track bed repairs in selected unstable zones, refurbishment of workers accommodations ; drainage improvement along the rail corridor; installation of new rail awareness signage and improvement of level crossings. The proposed second facility will allow Setrag to complete the balance of works (the “Project”) estimated at a cost of €256.2 million. IFC proposed investment is an A loan of up to €59.5 million and a mobilization of €44.7 million. The incremental funding will be used to continue the work described above, plus i) replacement of 515 km of sleepers, ii) replacement of 184 km of rails, iii) building of additional safety barriers and pedestrian overpasses, and iv) upgrades to the traffic management system. Best estimates of workforce size covering all tasks is about 500 workers. Phase II is to be started in March 2020.  This project is confined to the existing 648 km railway corridor, i.e.  a safety corridor stretching 15 m on either side of the existing railway tracks plus land already acquired for other existing infrastructure. Itwill not result in any new footprint or habitat fragmentation. The legal right of way for the railway extends 40 m on either side of the centerline of the tracks, but to minimize potential social impacts on informal settlers, it has been decided to restrict the works area to the narrower safety/operational corridor.