Finance

Bolloré, Geftarail and Petrolin competing over Niaymey-Cotonou railway project

Wednesday, 01 June 2016 17:10

In a statement released on May 31, 2016 and signed by Mohamed Moussa, adviser to the prime minister in charge of public-private partnerships, Niger’s authorities reaffirmed their strategic commitment with the French group Bolloré, for the Niamey-Cotonou railway project.

According to Bloomberg citing Mr. Moussa, awarding this concession to Bolloré, which is currently managing various sea and dry ports as well as railway projects (Cameroon, Cote d’Ivoire) in Africa, prevents in no way Geftarail, another French firm, to develop the railway project it has been awarded since the two projects do not cover the same perimeter. “If Geftarail wants to build its railway, it should do so. Its presence does not clash with Bolloré’s,” he said.

In November 2015, Geftarail reached out to the international arbitration court of Paris, demanding for works undertaken by Bolloré to be stopped, as they violated the license it got in 1999. However, the group suspended the prosecution in exchange for Niger agreeing to get from Benin to also endorse the 1999 agreement which allows it to build a railway that connects Burkina-Faso, Benin and Niger.

There is also the Benin-based group Petrolin that got from the Court of Appeal of Cotonou to agree that works undertaken by Bollore Africa Logistics and actions of the Beninese State violate its rights. The court then ordered for these works which were carried out at the OCBN site in Cotonou to be halted, or both entities would pay a fine of FCFA100 million each day they would not comply.

On the field, Bolloré seem to have progressed most. It has already completed close to 140 km of railroad. In contrast, Geftarail since it has obtained its license in 1999 has been struggling to mobilize the $11 billion it needs to finance the project. However, some Chinese investors have been announced on this project. Petrolin for its part remains serene as the court has already given its decision.

Idriss Linge

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