Project description
The Multilateral Investment Guarantee Agency (MIGA) is planning to issue guarantees that will support equity and quasi-equity investments by Meridiam Infrastructure Africa Fund II & Meridiam Infrastructure Africa Parallel Fund II (Meridiam) into Société d’Exploitation du Transgabonais (SETRAG) (the Project Enterprise or the PE). SETRAG is a company established in the Gabonese Republic to manage Gabon’s multi-user national railway backbone spanning 650km between the Port of Owendo (located right outside the capital city of Libreville), and Franceville, Gabon’s 3rd largest city and the center of the country’s mining region, under a 40-year concession agreement. The guarantees will be issued for a period of 15 years and cover the risks of transfer restriction & inconvertibility, expropriation, war and civil disturbance and breach of contract.
Environmental Categorization
This project has been categorized as B according to the MIGA Policy on Environmental and Social Sustainability (2013). Click HERE to view to view the Environmental & Social Review Summary (ESRS) prepared by MIGA for this investment in the Project.
Development impact
The Project will help accelerate the roll-out and delivery of Phase II of the Plan de Remise à Niveau (PRN), a major rehabilitation & upgrade programme of the Transgabonais railway corridor aiming at improving the reliability and availability of the railway line so that the railway’s level of service is restored to 16 trains per day (tpd) (from between 7 and 8 tpd currently).
MIGA’s proposed coverage to Meridiam is aligned with the World Bank Group’s strategy for Gabon. It also meets MIGA’s FY2021-23 Strategy’s emphasis on catalyzing and mobilizing private investment as part of the Financing for Development (FfD) agenda to help achieve the WBG twin goals and Sustainable Development Goals.
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MIGA supports its clients (as defined in MIGA Policy on Environmental and Social Sustainability) in addressing environmental and social issues arising from their business activities by requiring direct investment clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities. MIGA support to Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations as per the requirements of Performance Standards 1.
In addition, Affected Communities have unrestricted access to the Compliance Advisor/Ombudsman (CAO), the independent accountability mechanism for MIGA. The CAO is mandated to address complaints from people affected by MIGA-guaranteed business activities in a manner that is fair, objective, and constructive, with the goal of improving environmental and social project outcomes and fostering greater public accountability of MIGA.
Independent of MIGA management and reporting directly to the World Bank Group President, the CAO works to resolve complaints using a flexible, problem-solving approach through its dispute resolution arm and oversees project-level audits of MIGA’s environmental and social performance through its compliance arm.
Complaints may relate to any aspect of MIGA-guaranteed business activities that is within the mandate of the CAO. They can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of a MIGA-guaranteed business activity. Complaints can be submitted to the CAO in writing to the address below:
Compliance Advisor/Ombudsman
International Finance Corporation
2121 Pennsylvania Avenue NW
Room F11K-232
Washington, DC 20433 USA
Tel: 1 202 458 1973
Fax: 1 202 522 7400
E-mail: cao-compliance [at] ifc.org
