RVR Update
Posted: 25 Oct 2008, 07:27
RVR UPDATE
Railways Africa
Friday, 24 October 2008
The Rift Valley Railways (RVR) consortium structure has been changed. According to a report in the 20 October East African (published in Nairobi), RVR chairman Brown Ondego has not as yet divulged details regarding the identity - or other business interests – of three new Uganda entrants to the picture, “though these latter are completely inexperienced in railway matters. “
“A meeting in Kampala last week approved amendments to the concession agreement that open the way for other investors to inject capital into the troubled consortium,†the paper’s Charles Kazooba writes. Current membership of the consortium includes Sheltam of South Africa (35%), Kenya's Prime Fuels (15%), Mirambo Holdings of Tanzania (10%), South Africa's Comazar(10%) and the CDIO Institute for Africa Development Trust (4%).
According to the original concession agreement, 10% of the shares were to be reserved for the private sector in each of the two countries involved – Kenya and Uganda. "We have agreed with the two governments that the remaining shareholders will raise the required finance under a new arrangement," Ondego is quoted saying.
The management of RVR has been replaced in terms of an agreement with Toll Holdings of Australia.
Ondego told the East African that RVR, presently operating with between 20 and 25 locomotives, hopes to increase this number to 35 in the near future.
The two governments have begun a regular two-week assessment of performance by the concessionaire. "They are improving tremendously," Uganda's minister of state for works John Byabagambi told the East African.
Railways Africa
Friday, 24 October 2008
The Rift Valley Railways (RVR) consortium structure has been changed. According to a report in the 20 October East African (published in Nairobi), RVR chairman Brown Ondego has not as yet divulged details regarding the identity - or other business interests – of three new Uganda entrants to the picture, “though these latter are completely inexperienced in railway matters. “
“A meeting in Kampala last week approved amendments to the concession agreement that open the way for other investors to inject capital into the troubled consortium,†the paper’s Charles Kazooba writes. Current membership of the consortium includes Sheltam of South Africa (35%), Kenya's Prime Fuels (15%), Mirambo Holdings of Tanzania (10%), South Africa's Comazar(10%) and the CDIO Institute for Africa Development Trust (4%).
According to the original concession agreement, 10% of the shares were to be reserved for the private sector in each of the two countries involved – Kenya and Uganda. "We have agreed with the two governments that the remaining shareholders will raise the required finance under a new arrangement," Ondego is quoted saying.
The management of RVR has been replaced in terms of an agreement with Toll Holdings of Australia.
Ondego told the East African that RVR, presently operating with between 20 and 25 locomotives, hopes to increase this number to 35 in the near future.
The two governments have begun a regular two-week assessment of performance by the concessionaire. "They are improving tremendously," Uganda's minister of state for works John Byabagambi told the East African.