Announcement of Cameroon Borrows Twenty-Five Million Dollars for an Oil Palm Project on April 14, 1977

World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 77/82 APRIL lit, 1977 CAMEROON BORROWS $25 MILLION FOR AN OIL PALM PROJECT The World Bank today announced the approval of two loans totaling $25 million to help finance an oil palm development proj- ect. The $38.5 million project will help Cameroon meet a rising domestic demand for palm oi 1, inaugurate a smallholder de- velopment, and support recent efforts to stimulate the development of the southwest region of the country. The project includes the • establishment of a new estate in the southwest, clearing and plant- ing of high-yielding oil palm trees, provision of infrastructure, establishment of smallholder oil palm plantations and the provision of management. The project is scheduled to be completed in 1982. One loan of $18 million will have a term of 20 years, including 4-1/2 years of grace, with interest at 8.5% per annum. The other loan of $7 million is on the Bank's ''Third Window" terms. The "Third Window" loan will carry interest at 4-1/2% per annum. An additional 4% will be paid to the Bank by the Interest Subsidy Fund representing the difference between the Bank's current lending rate and the charge to Cameroon. ----------- • NOTE: Money figures are expressed in U.S. dollar equivalents. FORM NO. 1121 (5-76) T E C HN ; CA L DA T A 'PROJECT: COUNTRY: Second SOCAPALM Cameroon • TOTAL COST: $38.s mi 11 ion BANK F INANC I NG : $18 million loan for 20 years, including 4-1/2 years of grace with interest at 8-1/2% per annum and a loan of $7 million on "Third Window" terms. OTHER FINANCING: Government of Cameroon and the Societe Camerounaise de Palmeraies (SOCAPALM) IMPLEMENTING ORGANIZATION: SOCAPALM, B.P. 691, Douala, Republique Unie du Cameroun. PROJECT DESCRIPTION: Over a 5-year period, the project will provide for the establishment of 6,000 ha. of high-yielding oi 1 palm on Kienke estate and the first phase of an oil palm processing factory; establishment of 2,000 ha. of smallholder oil palm plantations; land clearing for 1,000 ha. of palms, and • planting and maintenance of 11 330 ha. of palms on M'Bongo estate; harvesting and collectio equipment and staff housing; and expansion of an oil processing mill at M'Bongo; management and administration; and the construction and equipping of a headquarters complex in Douala. PROCU.REMENT: Except for items specified below, procurement wi 11 be through international competitive bidding (ICB) following Bank guidelines. Goods and services subject to ICB--largely machinery, vehicles and equipment, fertilizer and some construction work (for the CEC complex)--are estimated to cost $20.6 million. Goods manufactured in Cameroon will be allowed a preference equal to the lower of a) 15% of the c. i .f. price on imported goods, orb) the prevailing duties generally applied to non-exempt imports. Contracts not exceeding $100,000 will be let under competitive bidding procedures advertised locally and satisfactory to the Bank. Most land clearing, estate road building, plantation work and minor estate construction, estimated at $10.9 million will be done on force account using equipment owned or to be acquired by SOCAPALM. ECONOMIC RATE OF RETURN: 15% ESTIMATED COMPLETION DATE: 1982 • - 0 -