Transgabonaise Road
Project Description
This summary covers an application made by Meridiam (France) for their equity, quasi-equity and shareholder loans investments into Société Autoroutière du Gabon (Gabon) for the rehabilitation, operation, and maintenance of the Transgabonaise road, a key piece of infrastructure in Gabon. The investor has applied for MIGA’s guarantee of up to EUR 67.5 million against the risks of Transfer Restriction, Expropriation, Breach of Contract, and War and Civil Disturbance, for a period of up to 20 years.
The Project consists of the design, development, financing, operation, and maintenance of an existing 93-kilometer section between 12th kilometer –near Libreville– and 105th kilometer –10 kilometers past Kango– (also referenced as KP 12 amd KP 105, respectively) of the Transgabonaise economic route, an important link between the East of the country and its capital Libreville in the West, critical for development of several industries as well as internal and external trade. Despite its strategic importance, years of neglect caused significant deterioration of many sections of the road, which has become a significant issue due to the absence of alternative transport links. Renovation and expansion will significantly improve the quality of the road and ensure a smooth and safe flow of traffic on this important pathway. Originally a public road, Transgabonaise will become a toll road after rehabilitation. SAG will operate the toll gates in the 93-kilometer section renovated.
The Transgabonaise road owned by the Government of Gabon is an 828 km road that connects the capital Libreville and Franceville (3rd largest Gabonese city). Rehabilitation of the Transgabonaise road is planned in three stages: stage 1 from Libreville (KP 12) to Alembé (KP 248), stage 2 from Alembe (KP 248) to Mikouyi (KP 626) and stage 3 from Mikouyi (KP 626) to Franceville (KP 814). The MIGA guarantee is directed to the rehabilitation of stage 1A of the Transgabonaise road from KP 12 to KP 105. Road rehabilitation of the subsequent stages (stage 1B, 2 and 3) are not included in the MIGA guarantee and MIGA due diligence.
Environmental Categorization
The Project is classified as Category A under MIGA’s Policy on Environmental and Social Sustainability (2013). Click here for the project’s Environmental and Social Review Summary.
Development Impact
The Project offers potential benefits in respect of consumer quality through increased average road speeds. Indeed, the rehabilitation is expected to increase achievable travel speed beyond what is possible on the existing poor-quality road, generating efficiencies for users. Furthermore, safety for users and communites living along the road will be greatly improved thanks to lane refurbishment, lane widening, repairs of four existing bridges and construction of a new one, installation of public lightning and safety and signage installation.The Project also has potential to support market development through enhanced domestic supply chain integration as it is intended to improve travel conditions between economic hubs in the country and facilitate greater mobility and trade.