Mota-Engil set to sign Congo rail concession, potentially unlocking up to $1 billion in US backing

Portugal’s Mota-Engil is due to sign a 30-year concession with the Democratic Republic of Congo on Wednesday to rehabilitate and operate part of the Lobito Corridor railway, in a project that could receive up to $1 billion in US financing. The deal matters because it expands the Portuguese group’s role in a strategic export route for critical minerals from Central Africa to Western markets.

According to the information reported Bloomberg, the agreement is expected to be signed in Kinshasa and covers the Congolese section of the corridor under a public-private partnership model. The railway line, about 1,000 kilometres long, runs through key mining areas including Kolwezi, Tenke and Lubumbashi.

The project may benefit from support from the US International Development Finance Corporation. In December, the DFC said it had signed a letter of interest with Mota-Engil for financing of up to $1 billion to support the repair and operation of the Congolese railway line.

The Democratic Republic of Congo is the world’s second-largest copper producer and the largest producer of cobalt, two minerals used in industries including battery manufacturing. According to Bloomberg, Washington’s interest in the project is tied to efforts to secure access to critical minerals and reduce US dependence on China.

Mota-Engil is already part of a consortium operating a connecting railway in neighbouring Angola that reaches the Atlantic coast through the Lobito Corridor. The Portuguese group said on Tuesday that its order book had increased by about €685 million after a contract extension in Nigeria and a new award in Peru.

Originally published at Eco.pt