Chinese Government pledges MGA 223 billion loan for train wagons, locomotives, and engines equipment for Fianarantsoa-East Coast railway line

On October 24, 2018, a budget document released by the Government of the Republic of Madagascar noted that an unspecified Chinese Government institution had pledged a 223 billion MGA concessional loan for the Train Wagons, Locomotives, and Engines Equipment Project (French: "Projet d’équipement en wagons, locomotives, moteurs et services"). Of the total amount, 11.15 billion MGA was planned for use in 2019. On September 4, 2018, the Government of Madagascar, China Railway Construction Corporation (CRCC) and China Railway International Group (CRIG), signed an MoU. The MoU stipulated that CRCC and CRIG would renovate the Fianarantsoa-East Coast railway line (FCE) and acquire new rolling stock for said line. This agreement was signed and negotiated at the 2018 Forum on China-Africa Cooperation Summit in Beijing. The French project name is Fianarantsoa Côte-Est. According to a media report, the rolling stock acquisition would be funded by China's EXIM bank, and "other financial partners." The Train Wagons, Locomotives, and Engines Equipment Project noted on numerous Government of Madagascar documents is the likely follow-up, as 223 billion MGA is roughly $60 million USD, the predicted cost of the FCE rolling stock.

Additional details

1. Marked as concessional due to being under "Dette concessionnelle" section in Revue de milieu d’année 2. Implementation status of project, exact loan agreement date, and whether or not China Eximbank is the funder are all unclear

Number of official sources

6

Number of total sources

10