Sierra+Leone+Infrastructure

=Investment From Chinese Companies In Sierra Leone's Infrastructure Will Continue To Increase Over The Next Five Years=

Executive Summary:
It is highly likely that Chinese companies, including China Kingho Energy Group, Shandong Iron and Steel Group, Tianjin Minerals, and China Railway Materials Commercial Corporation (CRM), will continue to invest heavily in developing Sierra Leone's infrastructure over the next five years. The Tonkolili iron ore project has attracted large amounts of investments from a variety of Chinese companies in the past five years. The necessary infrastructure for the massive project has been funded in part by a variety of Chinese companies. In the next five years, Sierra Leone is set to receive a significant investment from China Kingho Energy Group for approximately USD 6-10 billion. In 2013, Sierra Leone and Ching Kingho Energy signed a memorandum of understanding for a group of specified infrastructure projects including road construction, power/transport/logistics facilities, an industrial park, a 250 km railway, a smelting facility, and a deepwater port.

Discussion:
Over the past five years, Chinese companies have invested into 6 large-scale projects involving infrastructure totaling to approximately USD billion. Of these, 3 corresponding directly to PNGSM projects in the country totaling approximately USD 2.75 billion. The Chinese government contributed to none of these investments with the funding coming solely from Chinese companies.

The Tonkolili iron mine has attracted large amounts of investment from Chines companies which has helped fund the necessary infrastructure required to get the mine fully operational. In 2010, CRM invested USD 260 million for a 12.5 percent stake in African Minerals Limited. In 2012, Shandong Iron and Steel Group purchased a 25 percent stake in the Tonkolili mine for approximately USD 1.5 billion. African Minerals said that this investment would be used to fund construction of a railway line linking the mine to the coast of Sierra Leone. Finally, in 2013, Tianjin Minerals invested USD 990 million for a 10 percent share in African Minerals and a 10 percent share in the Tonkolili project. The Tonkolili mine has The project continues to grow with plans for the development of existing railways and the port at Pepel being discussed.

Sierra Leone is set to receive significant investment in the next five years from China Kingho Energy. In 2013, the company signed a Memorandum of Understanding with Sierra Leone's Minister of Mines and Mineral Resources for future infrastructure projects that would total from USD 6 to 10 billion. Among the specified infrastructure projects were power/transport/logistics facilities, an industrial park, a smelting facility, road construction, a 250 km railway reaching from the Tonkolili district to the coastal town of Sulima, and a deepwater port. 2013 || 6-10 billion || N/A || China Kingho Energy Group Company || Construction of a variety of infrastructure projects including roads, power/transport/logistics facilities, an industrial park, 250 km railway, smelting facility, and a port. || Minerals/Misc. ||
 * Date || Cost (USD) || Location || Key Chinese Companies Involved || Description || Corresponds to ||
 * May
 * 2011 || 30 million || Freetown || Hunan Construction Engineering Group, No. 7 China Railway Group || Construction of the Charlotte Hydropower Project and road rehabilitation || Misc. ||
 * 2012 || 15 million || N/A || China government, Huawei Technologies || Installation of fiber optic cable infrastructure nationwide || Misc. ||
 * 2009 || N/A || Makeni, Port Loko || China government || Construction of dams in Makeni and Port Loko || Misc. ||

Analytic Confidence:
Analytic confidence is medium. Source reliability ranges from medium to high. There is no conflict between sources. The analyst had low expertise on the subject, did not use a structured analytic method, worked alone, and collaborated with a team. The subject is moderately complex and the deadline was moderately difficult to meet.


 * Analyst****:** Jared DeTal