Preferred bidders named for Lobito railway

Preferred bidders for the engineering, procurement and construction (EPC) contracts on the 830-kilometre Zambia Lobito Railway Project have been named

It follows a competitive international tender process by lead sponsor and developer, Africa Finance Corporation (AFC).

The consortium comprising Webuild S.p.A., Mota-Engil and IC İçtaş Construction has been selected as the preferred bidder for the Zambian section, while the consortium comprising Mota-Engil and Odebrecht Engineering and Construction has been selected as preferred bidder for the Angolan section of the project.

Preferred bidders:

Zambian section: Webuild S.p.A., Mota-Engil and IC İçtaş Construction

Angolan section: Mota-Engil and Odebrecht Engineering and Construction

AFC announced that contract negotiations will begin in November 2026, with the aim of concluding EPC agreements within eight to twelve weeks, subject to technical, commercial and legal negotiations.

Key infrastructure project 

The Zambia Lobito Railway Project is expected to unlock billions of dollars in economic value through new opportunities for trade and industrialisation along the corridor connecting Zambia to Angola's Atlantic coast, facilitating value addition to the region’s strategic minerals, including copper and cobalt, as well as agricultural products.

According to the AFC, by reducing logistics costs and improving access to global markets, the railway will strengthen regional integration and enable African economies to process their resources locally.

The project is being developed by AFC through the Trans African Rail Company FZCO (TARC), the holding company, and the project companies, Zambia Lobito Railway Limited and Zambia Lobito Railway S.A.

“Africa’s growing market needs infrastructure that connects our resources to production, our producers to consumers, and our people to opportunity,” said Samaila Zubairu, AFC’s president and CEO.

“The Zambia Lobito Railway will help build competitive battery mineral and agricultural value chains, anchoring new industrial cities and creating jobs along the corridor.”

Zubairu said the selection of the preferred EPC bidders brings the project closer to delivery.

“Working with our partners, we are building the foundations for African economies to produce more, trade more and retain more of the value they create.”

Project makes headway

The announcement follows significant progress since the signing of a memorandum of understanding in October 2023 involving the governments of Angola, Zambia, the USA and Italy, as well as the European Union and the African Development Bank.

Subsequent milestones include the completion of feasibility and technical studies, the signing of concession agreements in 2024 and intergovernmental agreements in 2025, and the completion of preliminary engineering designs.

The Lobito Corridor is a flagship project under Italy’s Mattei Plan for Africa, a government initiative to strengthen investment and economic partnerships with African countries.

It includes a €250mn financing facility from Italian development finance institution CDP, backed by Italian export credit agency SACE, to support Italian participation in infrastructure projects, including the railway.

AFC and its partners have also advanced the Environmental and Social Impact Assessments and Resettlement Action Plans, alongside preparations for the competitive EPC tender process.

Zubairu added that AFC remains committed to advancing this “transformative” infrastructure investment alongside its partners and mobilising capital to accelerate its implementation.