Sizarail

cancelled

In 1995 Sizarail took over the management of the DRC’s national rail network under a 5 year management contract granted by the government of then President Mobuto. The rail network was important to Congo strategically, in particular because copper and cobalt mineral enterprises in the country rely heavily on it for transportation of their production. Sizarail was woned by South Africa Comazar (51%) with private Congolese companies retaining the remaining shares. Office des Chemins de fer du Sud (13%), Generale des Carrières et des Mines (12%), Banque Commerciale Zairoise (10%), Societe Miniere de Bakwanga (10%), Societe des Chemins de Fer de l'Es (5%), Societe Nationale des Chemins de Fer du Zaire (2%) After taking over operations, Comazar was reported to have purchased telecommunication systems and spare parts to the value of US$10 million for the operation of the rail network. Under a related arrangement, Spoornet leased locomotives and railcars worth US$50 million to the Congolese rail authorities. In May 1997, President Mobuto was toppled in a rebellion led by Laurent Kabila. Kabila’s Liberation of Congo-Zaire Movement stormed the headquarters of Sizarail during the rebellion and reportedly seized approximately US$65 million in assets, including the US$50 million in locomotives and railcars owned by Spoornet. The new government of DRC cancelled the mandate and confiscated all assets in 1997 None None