Citic Holding IF Group LLC, an independent investment company based in Delaware, whose shareholders include a subsidiary of the Chinese CITIC Group, a leading global infrastructure player, is structuring a $1.8 billion co-financing agreement to support the construction in Africa, in Gabon, of a 972-km railway line connecting the Bélinga mining area to a future deep-water port in Mayumba, with a total investment estimated at over $10 billion.
International law firm Avocom Law Firm LLP advised Citic Holding IF Group LLC on the financial structuring and contractual negotiations with the Gabonese authorities. The legal team was led by the London office (see here the press release).
The railway will be built by a consortium of construction of Investors including Thelo Group, an investment company, which focuses on transportation and financial services within sub-Saharan Africa, founder by chairman and ceo Ronnie Ntuli; and EGAAD (Egyptian African Arab Co. for Development), a consortium that brings together prominent business groups, primarily from Egypt, to invest in and develop projects across various sectors in African countries, led by Egyptian billionaire Naguib Sawiris and includes major construction firms like Orascom Construction, while (see here Africa Intelligence)
The profitability of the route will depend primarily on mineral transport and the construction of the deep-water port at Mayumba. Analysts estimate a total financial requirement of between $5 and $10 billion. The Bélinga–Mayumba route was chosen for the geological stability of the terrain, unlike the alternative route to Port Gentil, which is characterized by marshy areas, or the route through the Ouanga-Wonge reserve, which was ruled out for environmental reasons.
In parallel, the Mangali port in Mayumba is part of the Grande Mayumba Programme, which promotes the sustainable management of 631,100 hectares of forest and 260,900 hectares of marine areas in Nyanga province, southern Gabon. The program, led by the Grande Mayumba Development Company (GMDC), a public-private joint venture between the Gabonese government and the London-based African Conservation Development Group (Afcondev), envisions over $200 million in investments in infrastructure, industrial activities, agribusiness, wood processing, fisheries, and sustainable tourism over the coming years.
