MOZAMBIQUE - "Portos E Caminhos de Ferro de Moçambique EP (CFM)" - Prêt institutionnel (AFDB-P-MZ-DC0-004)

Regions
  • Africa
Geographic location where the impacts of the investment may be experienced.
Countries
  • Mozambique
Geographic location where the impacts of the investment may be experienced.
Specific Location
Ressano Garcia Line, Maputo Corridor, Maputo, Beira
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • African Development Bank (AFDB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
U
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
Jan 31, 2024
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
Portos e Caminhos de Ferro de Moçambique EP
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Agriculture and Forestry
  • Energy
  • Industry and Trade
  • Infrastructure
  • Mining
  • Transport
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 40.00 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.
Loan Amount (USD)
$ 40.00 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.
Project Cost (USD)
$ 70.00 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.
Bank Documents
Primary Source

Original disclosure @ AFDB website

Updated in EWS Apr 1, 2024

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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.

As stated by the AfDB, Portos e Caminhos de Ferro de Moçambique EP (CFM) the rail and port authority of Mozambique, is a Public Enterprise that oversees the railway system of Mozambique and its connected ports.
CFM has approached the African Development Bank to contribute to the financing of its Strategic Plan for the period 2021 to 2024. The Plan entails a total investment of USD 978.7 million comprising of the capacity development of the ports (USD 469.4 million) and railways (USD 509.3 million). Of the USD 509.3 million investment for the railways, USD 136.9 million is earmarked for the acquisition of rolling-stock. The Bank has been requested to finance a portion of the rolling stock component with a senior corporate loan of up to USD 70 million to support CFM’s acquisition of rolling-stock for its major corridor, the Ressano Garcia Railway Line.

The main commodities transported along the corridors comprise of raw and processed minerals, agriculture products, containerized freight, and bulk liquids. The Ressano Garcia Line services the Maputo corridor, which the targeted rolling stock will be deployed, is used mostly for the export of mineral products (bulk magnetite, ferro-chrome, chrome ore and coal) from South Africa’s north easterly mining belt through the port of Maputo, which provides the shortest access to a seaport.
With upgraded development and the efficient operation of the corridor, the potential to expand the corridor to transport mining products destined for exports from countries in the North-South Corridor, including the DRC, is extremely high.

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

As stated by the AfDB, although the tenor of the proposed financing is 12 years (including a 3-year grace period), available evidence suggests that hard currency financing for up to 10 years with a 2-year grace period is available to CFM from a local commercial bank, Standard Bank.

 
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

As stated by the AfDB, Mozambique Ports and Railways (CFM) is a legally constituted State-owned Company responsible for the operation of Ports and Railways and ensuring mobility and circulation needs are assured. A major restructuring process was successfully concluded by the Mozambique Railways Company resulting from reforms implemented in recent decades. This resulted in the transformation of a State-Owned Company into a Public Company through Decree 40/94 of September 13th.

As stated on the company's website, RITES Limited, a Navratna and Schedule 'A' Central Public Sector Enterprise under the Ministry of Railways, incorporated on April 26, 1974, is a multidisciplinary engineering and consultancy organization, providing a comprehensive range of services from concept to commissioning in all facets of transport infrastructure and related technologies. 

The bid process has been finalized in November 2023 with Rites Ltd., India and Kintech International, China selected as preferred bidders. The expected delivery period from contract award for the locomotives and for wagons and tank containers is 15 to 18 months and 6 to 12 months, respectively.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Portos e Caminhos de Ferro de Moçambique EP (CFM) Client Transport
- - - - RITES Ltd., India Contractor Infrastructure
- - - - Standard Bank Group Ltd Investor Finance
- - - - Total Energies SE Undisclosed Energy

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.

AfDB Team Leader:

Luis Pedro Galvao Duarte
Email: l.duarte@afdb.org

Client - Portos e Caminhos de Ferro de Moçambique EP:

Address: Estação Central dos CFM, Praça dos Trabalhadores, Maputo - Moçambique
Phone: (+258) 21429357
Fax: (+258) 21325614
Website: https://www.cfm.co.mz/index.php/en/

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.afdb.org/en/disclosure-and-access-to-information/request-for-documents. Under the AfDBÕs Disclosure and Access to Information policy, if you feel the Bank has omitted to publish information or your request for information is unreasonably denied, you can file an appeal at https://www.afdb.org/en/disclosure-and-access-to-information/appeals-process 

ACCOUNTABILITY MECHANISM OF AfDB

The Independent Review Mechanism (IRM), which is administered by the Compliance Review and Mediation Unit (CRMU), is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an African Development Bank (AfDB)-financed project. If you submit a complaint to the IRM, it may assist you by either seeking to address your problems by facilitating a dispute resolution dialogue between you and those implementing the project and/or investigating whether the AfDB complied with its policies to prevent environmental and social harms. You can submit a complaint electronically by emailing crmuinfo@afdb.org, b.kargougou@afdb.org, b.fall@afdb.org, and/or s.toure@afdb.org. You can learn more about the IRM and how to file a complaint at: https://www.afdb.org/en/independent-review-mechanism/ 

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