Rift Valley Railways Pays Concession Fees

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Rift Valley Railways, the consortium that won the bid to run the Uganda and Kenya Railways has paid the governments of Uganda and Kenya concession fees amounting to five million dollars. The payment of the concession fees was announced during a news conference at the Rift Valley Railways' headquarters in Nairobi. The lead transaction advisor, Vishal Agarwal of PriceWaterhouseCoopers, said two million dollars was paid to the Government of Uganda and three million dollars was paid to the Government of Kenya as per the concession agreement. He explained that the concession fee was previously unpaid because the transaction between Rift Valley Railways and the two governments had not achieved financial closing, which it did on December 13th, 2006. During the news conference, Rift Valley Railways Managing Director Roy Puffett introduced his partners in the concession. They are Sheltham Corporation with a 60 percent stake, Trans-Century with a 20 percent Stake and Babcock and Brown and ICDC Investments with a 10 percent stake each. Puffett said the new equity partnership had received the full approval of the governments of Uganda and Kenya, together with that of the company's main financiers the International Finance Corporation and KfW of Germany.

 

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