On June 30, 2023, Multilateral Investment Guarantee Agency (MIGA) issued guarantees in amount of EUR 61 million, covering equity and quasi-equity investments by Meridiam Infrastructure Africa Fund II SLP & Meridiam Infrastructure Africa Parallel Fund II SLP (Meridiam) into Société d’Exploitation du Transgabonais (SETRAG) (the Project Enterprise or the PE). The guarantees were issued for a period of 15 years and cover the risks of transfer restriction & inconvertibility, expropriation, war and civil disturbance and breach of contract. SETRAG is a company established in the Gabonese Republic to manage Gabon’s multi-user national railway backbone spanning 650 km 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.

MIGA’s guarantees originally covered Phase II of the Project (2020 – 2024) which included (i) upgrading of the railway superstructure, (ii) manufacturing and installation of concrete sleepers, (iii) installation of new traffic operational and safety systems, and (iv) implementation of Environmental & Social (E&S) measures. More recently, Phase III of the Project (2025 – 2029) has been introduced, which includes, the continuation of the (i) the upgrade of railway superstructure, (ii) the upgrade of traffic operational and safety systems and (iii) the implementation of E&S measures. The goal of the rehabilitation plan is to restore the railway’s design transport capacity to 16 train pairs per day.

The contracts of guarantees were amended on December 11, 2024, and June 30, 2026, to increase the exposure by EUR30.7 million and EUR18.5 million respectively.

Environmental Categorization

This project has been categorized as A according to the MIGA Policy on Environmental and Social Sustainability (2013). Click HERE 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 program 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.