Angola: Concession for Moçâmedes Railway Line

Ahead of the upcoming launch of the international public tender for the concession of the Moçâmedes Railway Line, the Angolan executive has approved the legal framework (“Concession Bases”) for the concession by way of Presidential Decree 244/25, of 21 November 2025. The concession will be governed by PD 244/25, the respective Concession Contract and applicable law. Below is a summary of the main provisions of PD 244/25:

Concession Scope – The Concessionaire will be responsible for carrying out the following activities under the concession:

1. Operation and maintenance of the Moçâmedes/Menongue railway, including the new sections that the Concessionaire will commit to construct;
2. Operation of the respective railway transportation service;
3. Operation of the Innovation and Technology Transport Center (CITTRANS);
4. Operation and maintenance of the Operational Control Center (CCO);
5. Operation and maintenance of the Lubango and Sacomar workshops;
6. The option to build and operate freight transport terminals and the Arimba logistics platform;
7. The construction and operation of railway lines connecting to Namibia and/or Zambia.

Operational Company – The Concessionaire must incorporate in Angola an operational company in the form of a joint stock company. The OpCo will be an SPV entity exclusively engaged in the operation of the Moçâmedes railway.

Shareholders – The OpCo shareholders will remain the same for the concession term, unless a change is authorized by the state.

Risk – The Concessionaire will bear the full economic risk of its investment under the concession. This principle may allow for exceptions in case of force majeure or abnormal change of circumstances that may trigger the restoring of the economic balance under the Concession Contract.

Term – The term of the concession will be 30 years, unless the Concession Contract establishes a different term. In the event the concession includes the construction of a connecting line to Namibia and/or Zambia, the term may be extended up to 50 years.

Concession Assets – The assets comprising the concession will include the equipment and machinery, rolling stock, properties and other assets or improvements necessary for the operation of the Moçâmedes Railway Line, including the personnel and related contracts.

Concession Fees – The Concession Contract will establish the concession fees to be paid by the Concessionaire to the state, which may include the following:

1. Concession Premium;
2. Fixed fees;
3. Variable fees.

The particulars of the concession premium are set out in Presidential Order 134/22, of 1 June 2022.

Transport Fees – The fees to be charged by the Concessionaire for the railway transportation service are set out in the Tariff Regulations for Railway and Freight Transport;

Connecting lines to Namibia and Zambia – By no later than 3 (three) years from the commencement of the concession, the Concessionaire must present to the state an Additional Investment Proposal to build and operate a connecting line to Namibia.Within 5 (five) year from the commencement of the concession, the Concessionaire may also present an Additional Investment Proposal to build and operate a connecting line to Zambia.

Operational agreements with Namibia and Zambia – The Concessionaire may enter into operational agreements with the railway operators of Namibia and/or Zambia. The state shall endeavour to sign bilateral agreements with those countries to facilitate the implementation of the operational agreements.

Arbitration – Any disputes between the Concessionaire and the state will be resolved by arbitration in the terms set out in the Concession Contract.