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Guinea: CPCS helps keep Simandou megaproject on track

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Guinea entrusted CPCS with facilitating agreements for the Simandou mining and infrastructure megaproject.

Simandou, the approximately US$20 billion mining project, is set to boost the country’s economic and social development through the creation of rail and port infrastructure.

The Simandou agreements include, among other things:

  • the creation of Compagnie du Transguinéen (CTG), a company bringing togther the interests of the Guinean authorities and its partners, Simfer (Rio Tinto) and Winning Consortium Simandou (WCS).

  • CTG is committed to ensuring that the Simandou megaproject meets the highest environmental and social standards.

  • the construction of a 650 km railroad and a 120 million tonne capacity port to open up the country and facilitate the transport of iron ore.

Structuring infrastructure projects

CPCS excels at managing this type of complex mandate, thanks to its legal, institutional, economic, financial, and technical expertise in infrastructure projects.

For example, CPCS has been the lead advisor on a transaction between the government of Zambia and Chinese investors for the Kafue Gorge hydroelectric power plant project, and the lead financial advisor on the Dakar Regional Express Train project in Senegal.

For the Simandou megaproject, CPCS has been supporting negotiations between Guinea’s government and industrial partners on commercial and technical aspects since the beginning of 2023.

CPCS continues to support Guinea in finalizing the agreements and monitoring their implementation.

Key contributions by CPCS in the Simandou megaproject have included:

  • Negotiating several clauses of the Co-Development Agreement, as well as the Multi-User Agreement and tariff principles, and the Port and Rail Services Agreement, to name a few.

  • Negotiating the Implementation and Cooperation Agreement and the Interim Access Agreement.

  • Supporting the negotiation of shareholder pacts for CTG and infrastructure project companies.

  • Developing financial models and negotiation notes to enable informed decision-making.

Jean-François Arsenault, managing partner of CPCS and principal contributor to the Simandou megaproject:

“This historic project for Guinea will have positive economic and social impacts through the creation of new infrastructure for the transport of people and goods. The direct benefits represent a considerable proportion of Guinea’s gross domestic product. This should significantly improve Guinean citizens’ quality of life during the construction and operating periods.”

About the Simandou megaproject

Simandou (North and South) is the largest integrated mining-infrastructure project under development in Africa and the world. It has the potential to profoundly transform Guinea’s economic profile.

Our partners in the structuring of the Simandou agreements: Watson Farley & Williams, Global Sovereign Advisory, Egis Group, and setec.

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For more information: communications@cpcs.ca.

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