Announcement of World Bank and IDA Provide Support for Fourth Highway Project in Cameroon on June 11, 1979

FOR IMMEDIATE RELEASE ' eWorldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 79/106 June 11, 1979 IDA NEWS RELEASE NO. 79/91 WORLD BANK AND IDA PROVIDE SUPPORT FOR FOURTH HIGHWAY PROJECT IN CAMEROON The World Bank and its affiliate for concessionary lending, the lnter- nat i ona 1 .Deve 1opment Association (IDA), have approved $48 mi 11 ion in loans to . help improve roads and road planning in the United Republic of Cameroon. The Bank will provide a loan of $38 million, while IDA will make available a credit of $10 million. · The $83 mill ion Fourth Highway Project includes a four-year program for the routine maintenance of about 16,900 kilometers (km) of roads, and the re- habilitation of about 1,350 km of unpaved roads by force account. An addi- tional 340 km of unpaved roads will be rehabilitated by domestic contractors. Through this project, contractors will gain experience in carrying out public works contracts, and it is expected. that they will ultimately be able to form joint ventures with foreign contractors to bid for major public works contracts. • A three-year training program will also be instituted for the staff of the Department of Highways and the National Civil Engineering Equipment Pool to provide employees with the skills needed to carry out road maintenance and rehabilitation. Two truck weighing stations will be installed on trunk roads, enabling the government to enforce load limits and prevent truck overloading, present- ly a common practice. Thus, taxpayers and the government will be spared the expense of premature expenditures for road rehabilitation. The creation of a Road Planning Unit within the Department of Highways will help establish a balanced program of road maintenance, rehabilitation, and construction, which will help meet Cameroon 1 s transport and development needs. Finally, the project includes pre-investment studies for the Douala- Yaounde road and about 500 km of forest roads. The primary benefit of this project will be the expected savings in operating costs accruing from improved road surface. The project will also stimulate agricultura1 development by providing better access roads, which will complement feeder roads already under construction, thus enabling farm products to be transported to markets more easily. The Government of Cameroon will provide $35 mill ion for the project. • The Bank loan is for a term of 20 years, including 5 years of grace, with interest at 7.9% per annum. The IDA credit is for 50 years, including 10 years of grace. The credit bears no interest, but carries a service charge of 3/4 of 1% per annum to cover administrative costs. NOTE: Money figures are expressed in U.S. dollar equivalents. FORM NO. 1121 (5-76) T E C HN I CA L 0 A T A PROJECT: COUNTRY: TOTAL COST: Fourth Highway United Republic of Cameroon $83 million • BANK FINANCING: $38 million, for a term of 20 years, including 5 years of grace, with interest at 7.9% per annum IDA FINANCING: $10 million, standard IDA terms OTHER FINANCING: Government of Cameroon, $35 million IMPLEMENTING ORGANIZATION: Ministry of Economic Affairs & Planning Yaounde United Republic of Cameroon 1 Telex: 8268 KN or 8203 KN Cable: MINEP, Yaounde PROJECT DESCRIPTION: It consists of: a) a three-year training program for the road maintenance staff of the Department of Highways and the National Civil Engineering Equipment Pool; b) a four-year program of i) routine maintenance for and minor repairs to about 16,900 kilometers (km) of roads, and (ii) rehabilitation of about 1,350 km of unpaved roads, which will include the provision of road maintenance and workshop equipment; c) the rehabilitation of about 340 km of ~ unpaved roads by domestic contractors, with technical assistance; d) the provision of· two weighing stations; e) the establishment of a Road Planning Unit within the Depart- ment of Highways; and f) the completion of a study currently underway for the economic feasibility and detailed engineering of the Douala-Yaounde road, and pre-investment studies of about 500 km of forestry evacuation roads. PROCUREMENT: The road maintenance and rehabilitation equipment and the workshop, training and weighing equipment ($41 mill ion) will be procured through international competitive bidding. Contracts for items cost- ing less than $50,000 but not exceeding a total of $1 million may be procured through local competitive bidding (LCB). Domestically manufactured goods will be allowed a preference rate of 15% of the c.i .f. price, or the customs duty, whichever is lower. Materials ($3.2 million), fr,1 and lubricants ($4.1 million) and spare parts ($4.9 million) for operating the r.1ad rehabilitation brigades will be procured through LCB. Road rehabilitation ($8.2 m;llion), infrastructure works for weighing stations ($1.7 million), and building construction ($300,000) wi11 be procured through LCB. Prospec- tive bidders will have to be prequalified. All procurement will be in accordance with Bank guidelines. CONSULTANTS: Technical assistance will be provided for the training program, the road maintenance and rehabilitation program, the promotion of domestic contractors and road planning. Consultants will carry out the study of the Douala-Yaounde road and the detailed engineering of forestry evacu- ation roads. ECONOMIC RATE OF RETURN ESTIMATED COMPLETION DATE: 82% 1985 - 0 - •