DRC: Mota-Engil Africa DRC Railway Concession Signed, 30-Year Term

• The DRC and Mota-Engil Africa signed a railway concession agreement for the 1,004.5 km Dilolo-Sakania line, part of the Lobito Corridor.
• The project involves an indicative investment of nearly US$1.258 billion for rehabilitation, modernization, and operation over 30 years.
• President Tshisekedi stated the agreement does not privatize SNCC nor create a railway monopoly, ensuring open access for qualified operators.
• SNCC retains exclusive rights for passenger transport and continues to exercise its right to transport freight.
• The concession is viewed as a tool for economic sovereignty, African integration, and improving living conditions in the DRC's key economic regions.

The agreement explicitly safeguards against the privatization of the National Railways Company of the Congo (SNCC) and prevents the creation of a railway monopoly, ensuring the line remains accessible to qualified operators under transparent and equitable conditions.

A significant railway concession agreement has been formalized in the Democratic Republic of Congo (DRC), marking a pivotal step in the development of the Lobito Corridor. President Félix Tshisekedi of the DRC, alongside his Angolan counterpart João Lourenço, recently witnessed the signing of this crucial accord in Kinshasa. The agreement specifically pertains to the Dilolo-Sakania railway line, a vital segment of the Congolese portion of this strategic corridor, and involves the DRC government and Portuguese construction firm Mota-Engil Africa.

This extensive railway, spanning approximately 1,004.5 kilometres, is designed to connect key economic centers including Kolwezi, Tenke, and Lubumbashi. These cities are situated within the nation's rich mining, industrial, and agricultural heartland. The project anticipates an indicative investment nearing US$1.258 billion, earmarked for a comprehensive range of activities from feasibility studies and rehabilitation to modernization, extension, operation, and maintenance of the railway infrastructure.

The Mota-Engil Africa DRC railway concession establishes an operating period of 30 years. Upon the conclusion of this term, the entire infrastructure is slated for transfer back to the Congolese State, in accordance with the specific conditions outlined within the contract. President Tshisekedi emphasized that this signing represents not an end, but the commencement of a shared responsibility, urging a transition from mere intentions to concrete achievements and from commitments to tangible infrastructure.

Crucially, the Congolese head of state clarified that the new railway agreement does not entail the privatization of the National Railways Company of the Congo (SNCC). Furthermore, the accord is structured to explicitly prevent the establishment of a railway monopoly along the Lobito Corridor. This ensures that the Dilolo-Sakania railway concession will remain open and accessible to other qualified operators, provided they adhere to transparent, fair, and non-discriminatory conditions.

The agreement also meticulously defines the roles and rights of the existing national railway entity. The SNCC will retain its exclusive rights for passenger transport services across the network. Additionally, the company will continue to exercise its established right to transport freight, ensuring its ongoing involvement in the economic activities facilitated by the revitalized corridor. This framework aims to foster competition and broad participation in the Congolese railway development Mota-Engil project.

Lawyers advising clients in DRC's transport, mining, or infrastructure sectors should analyze this concession agreement for its implications on railway access, operational frameworks, and potential investment opportunities, especially given the clarified roles of SNCC and the non-monopolistic structure.

President Tshisekedi articulated a grand vision for the Lobito Corridor railway agreement DRC, positioning it as a fundamental instrument for achieving economic sovereignty and fostering African integration. He underscored the potential of this infrastructure to significantly improve the living conditions of the Congolese population, transforming the nation's economic landscape.

The strategic importance of the Dilolo-Sakania railway concession extends beyond national borders, contributing to the broader regional connectivity offered by the Lobito Corridor. By enhancing transport links to the country's vital mining, industrial, and agricultural regions, this DRC infrastructure public-private partnership is poised to unlock substantial economic potential. The emphasis on moving from agreements to tangible infrastructure highlights the government's commitment to realizing the corridor's full benefits, including the SNCC freight rights Lobito Corridor.

Source: Original reporting via ANGOP.