PFI magazine’s Global Yearbook 2020 names EAIF-backed project in Guinea, Multilateral Deal of the Year
The prestigious Thomson Reuters publication, Project Finance International (PFI) has published its Yearbook for 2020. It names Guinea Alumina Corporation’s (GAC) US$750 million development of port, rail and mining infrastructure as Multilateral Deal of the Year.
The IFC, PIDG Company The Emerging Africa Infrastructure Fund (EAIF), AfDB, Export Development Canada (EDC), and DEG (Germany) combined to lead the financing, with the IFC syndicating a B-loan tranche to a commercial bank club. EAIF’s loan to GAC is US$40 million over 14 years.
In addition to laying 27km of new railway tracks, a 2.7km ‘marine trestle’ is under construction at Kamsar port. The trestle will transport raw material from the port railhead to barges. A multi-use container quay, currently being utilised by GAC, was completed in 2016. As the local economy strengthens, the new infrastructure has the potential to stimulate the creation of a trade corridor in the region and open up the container facility to more local and international traffic. Guinea’s main port of Conakry is 250km away, so the Kamsar port offers strong future potential for growth.
This project is in line with PIDG’s focus on infrastructure development in the world’s poorest countries. Once completed, it is expected to add at least 3% to GDP. Construction work is already well advanced, and at peak employed over 4,600 people. 1000 permanent jobs will be created.