SETRAG II (IFC-42222)

Countries
  • Gabon
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Mar 31, 2020
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
SOCIETE D'EXPLOITATION DU TRANSGABONAIS
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Infrastructure
The service or industry focus of the investment. A project can have several sectors.
Investment Amount (USD)
$ 37.40 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported EUR 34.0 million
Converted using 2020-02-06 exchange rate.
Project Cost (USD)
$ 209.34 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported EUR 190.3 million
Converted using 2020-02-06 exchange rate.
Bank Documents
Primary Source

Original disclosure @ IFC website

Updated in EWS Feb 6, 2020

Disclosed by Bank Feb 4, 2020

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

The Project comprises an additional financing to support the ongoing rehabilitation of the 648-kilometer single-track Transgabonais railway in Gabon. The railway is operated under a 30-year concession by “Société d’Exploitation du Transgabonais” (“SETRAG”). The rehabilitation works consist of (i) the rehabilitation of the existing infrastructure between Owendo and Franceville (including “below rail” and “above rail” components), and (ii) the acquisition of new rolling stock for the replacement and expansion of transport capacity. The ultimate goal of the rehabilitation is to restore the railway’s design transport capacity to 16 train pairs per day.

People Affected By This Project
People Affected By This Project refers to the communities of people likely to be affected positively or negatively by a project.

(i) Stakeholder impact: increase capacity, quality and safety of rail services, through improvements to the country's sole rail network. These improvements will support strong projected growth in mining and general freight demand. The Program is expected to add up to 12 million tons per year of long-haul capacity, as well as improve wagon turnaround times by up to 30%.
(ii) Economy-wide impact: The Project is expected to generate domestic value added and employment effects;
(iii) Impact on suppliers: The Project is expected to increase local procurement of goods and services. These potential outcomes will be quantified during the appraisal.

Contribution to market creation:
(i) Integration: The Project improves enabling infrastructure that
contributes to deepening connectivity between Gabon's mining sector and global commodity markets. It also ensures continued access for multiple users, including general freight and passenger traffic, on a non-discriminatory basis.
(ii) Resilience: The Project supports growth in mining and general freight segments, contributing to diversifying the country's revenue sources.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

SETRAG SA
Mr. Renato Torres
CEO
+241 01 70 80 04
rtorres@setrag.com
Owendo P.O. Box 578 Libreville, Gabon
www.setrag.ga

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/

How it works

How it works