Funding for Rift Valley Railways

[John Ashworth]

FUNDING FOR RIFT VALLEY RAILWAYS

Posted on 02 August 2010 by Railways Africa Editor

Rift Valley Railways (RVR), holders of a 25-year concession to operate some 2,200km of track linking the port of Mombasa in
Kenya with the interior of both Kenya and Uganda, is to receive about $US250 million to fund its capital expenditure programme. The financing structure for the funding is still under negotiation with various institutions, but is likely to comprise a 2:1 debt to equity ratio, according to the Financial Times. In February 2010, Citadel Capital of Egypt acquired a 51% holding in RVR through its subsidiary Ambience Ventures Ltd. The Trans-Century group has a 34% stake and a Ugandan investor owns the remaining 15%.