Shortlist announced for African rail PPP project

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Shortlist announced for African rail PPP project

This article is part of a daily series of MegaProjects articles. If you want to know more about PPP projects with a considerable size visit our MegaProjects section. You can receive them by email on a daily basis.

The Rwanda Transport Development Agency (RTDA) has announced the shortlist for the DIKKM Railway PPP project in Africa. The request for expression of interest (RFEOI) was launched in July 2015 by the Governments of the Republic of Burundi, Republic of Rwanda, and United Republic of Tanzania.

A total of 12 teams have been shortlisted to develop the 1,661 km railway PPP project. The shortlisted companies are the following:

  • China Railway Group
  • Sinohydro Corporation Ltd in partnership with China Railway Materials Co. Ltd (CRM) and Beijing National Railway Research & Design Institute of Signal & Communication Group Co. Ltd (CRSCD)
  • China Communications Construction Company
  • Yapi Merkezi Insaat
  • Il & FS Transportation and Frontline Development
  • Grindrod Rail
  • Kolin Insaat Turizm Sanayi Ve Ticaret A.S.
  • China Civil Engineering Construction Corporation
  • AVENG Group in association with Arcus Gibb, Siemens, CTLE, DBSA, KfW, Deutsche Bank and Euler Hermes
  •  Transet
  • Mota-Engil Engnharia E Construcao Africa, S.A.
  • NGE Contracting in Partnership with TSO, Alstom and System

The new railway will link Dar es Salaam with Isaka and Kigali with a link to Burundi that will run from Keza to Musongati via Gitega. The preferred bidder will be responsible to design, build, finance, operate and maintain (DBFOM) the railway under a PPP arrangement as follows:

  • Finance, design & build: a new line from Dar es Salaam to Isaka (approximately 970 km); a new line from Isaka to Kigali (494 km) adn  a new line from Keza-Musongati (197 km)
  • Procure and install operating equipment & systems (including signalling) and rolling stock
  • Operate & maintain (O&M) the complete railway

The new railway line aims to reduce transport costs in, and improve the competitiveness of the three partner states; contribute to reduction of poverty, offer easy and affordable access to the Dar es Salaam Port, accelerate the economic development and exploitation of un-tapped natural resources and provide a sustainable competitive advantage for the movement of goods in the region.

We have recently reported on several rail projects globally:

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