Financial and legal advice to the government of Malawi to renegotiate the Malawi Rail Concession

Project details
Country: 
Malawi
Beneficiary: 
Ministry of Transport and Public Works and Housing
Donor organisation: 
European Commission (EC)
Department: 
Transport & Mobility
Project volume: 
198,300 €
Currency: 
€
Value of services: 
198,300 €
Start of project: 
November, 2011
End of project: 
June, 2013
Project description: 

The Global objective is to create a positive environment and dynamic concession that would enable Malawi railways to perform up to its potential.

The experts supported the Government of Malawi in the finalisation of negotiations with a Brazilian mining concessionaire on the construction of a new rail link from the Moatize coal fields to the existing Nacala rail corridor. In addition negotiations with a regional rail company were prepared for the operation of the Malawi rail network in parallel to the mining traffic. Considerations also covered Zambia and Mozambique

Service description: 

  • Review of legal documents, draft concession agreement, previous studies related to the Malawi transport sector;

  • Support of concession agreement negotiations;

  • Elaboration of draft, revised and final concession agreements;

  • Development of a financial model to assess the concessions’ viability; and

  • Advisory to GoM officials on all aspects related to the concessions.

Result: 

The outputs are a refined concession agreement with the Brazilian mining company, a financial model and a negotiation strategy for the negotiations with the regional railway company and full supporting documentation. Support to the Malawi Government team during negotiations was provided.

Support during negotiations for the non-mining concession, including the draft and final concession agreements and potentially needed regulatory changes, is foreseen.

Currency: 
€