Citadel Capital Platform Company Africa Railways says its subsidiary Rift Valley Railways Investments has achieved a positive Earnings Before Net Interest and Tax (EBITDA) for the first time in its recent history.
And the African Development Bank has approved a US$40 million loan (Sh3.4 billion) to finance Rift Valley Railways Investments (RVRI).
RVRI of Kenya-Uganda has reported US$674,000 (Sh57.28 million) in EBITDA for the month of June 2011.
This marks the first time RVRI has recorded a positive EBITDA since Citadel Capital, the leading private equity firm in the Middle East and Africa with US$ 8.7 billion in investments under control in 15 industries spanning 14 countries, purchased an indirect stake in the company in December 2009. Following a shareholder restructuring in mid-2010, the Firm currently owns a 51 per cent stake in RVRI via its Platform Company in the Africa railways sector, Africa Railways.
RVRI CEO Brown Ondego confirmed this, attributing the positive earnings to the dedication of his team and the support from the shareholders. “This is indeed a significant start to RVRI’s turnaround process” Brown said.
RVRI has a 25-year concession to operate a century-old rail line with some 2,352km of track linking the Indian Ocean port of Mombasa in Kenya to the interiors of Kenya and Uganda, including the capital city of Kampala.