Trans-Gabonese Railroad concession II

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In September 2005, the government of Gabon awarded a 30 year concession to Societe d'exploitation du Transgabonais (Setrag) to rehabilitate, operate, and manage the Transgabonais railway (the Trans-Gabonese railroad). The contract included the management of railway network, rolling stocks, infrastructure and building. However, all of these assets remained property of the Gabonese government. Transgabonais was a 650km stretch of railway connecting the coastal port of Owendo (just outside the capital, Libreville) and the timber- and manganese-rich areas of the south-east (around the city of Franceville). Setrag was a subsidiary of the French-controlled group Eramet, which operated a mining business in Southeastern Gabon. Under the concession contract, Setrag took the obligation to finance railway maintenance for 50 bln Central African francs (US$91.77 million) over the first 5 year of the concession to maintain in good condition the network and to preserve the current staff of nearly 1,000 employees. The Gabon government held a golden share in the Setrag capital, which it allowed it to block certain decisions within the Setrag executive board. The contract was granted through a public tender in which Setrag was the only interested bidder. The concession contract was the second contract for Setrag in the railway. Previously Setrag was contracted to manage the railway under a short term management contract, which ended up lasting for 2 years. The management contract was granted after the Transgabonais consortium, which was granted a 20-year concession to operate the railway company in 1999, withdraw from the company operation in May 2003. Transgabonais consortium was led by Belgian Transurb Technirail. www.eramet.fr None