Announcement of Cameroon to Borrow Fifty Million Eight Hundred Thousand Dollars to Improve Oil Palm and Rubber Plantations on May 28, 1982

Q., . . . FOR IMMEqlA TE RELEA_s·E·, ·. ,o :eWorld Bank ' 0 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 82/104 Contact: Pamela Brennan May 28, 1982' (202) 477-5344 CAMEROON TO BORROW $50,8 MILLION TO IMPROVE OIL PALM AND RUBBER PLANTATIONS Came(ipon wi 11 borrow $50.8 mi 11 ion to improve productivity on- its oi 1 palm and rubber plantations, the Wor1d Bank announced today. Of this amount, $20.4 million will be used by the Soci~te Camerounaise de Palmeraies, responsible for oii palm production, and $29.6 million by the Cameroon Developmenf Corporation, engaged in rubber, oil palm,and other crops. The two agencies will consolidate their operations to make the best use of their assets. To help achieve this, they will receive support from the ~ank-assisted project to maintain until full production some 15,200 hectares of existing oil palm and rubber industrial plantations, and to carry out planting or •• replanting with rubber on some 5,200 hectares of existing plantations . Improvement or provision of palm oil and rubber processing facilities and oil storage capacity are also included in the project. Training and consul- tant services will also be provided. An important feature of the project is the continuation of programs undertaken under previous Bank-assisted projects, comprising the maintenance of some 3,100 hectares of oil palm and rubber plantations until they are in full production and planting with rubber an additional 2,500 hectares. These opera- tions will benefit some 1,500 smallholder farm families, mostly from low-income groups. Technical assistance will also be provided to smallholders. The $152.8 million project is expected to contribute to the success of the government's strategy for oil palm and rubber development. It will also help meet the domestic demand for palm oil, and earn about $79 million a year in foreign exchange from exports, mostly of rubber. The Commonwealth Development Corporation (U.K.), the Caisse tentr,le de Cooperation Economique (France), and the European Investment Bank (Luxembot•rg) are co-financiers of the project. This is the fifth oil palm and rubber project in Cameroon to receive Wt:;'."ld Bank support, The World Bank loan is for 20 years, including flve years of grace, with interest at 11.6% a year. The loan also carries an annual commitment charge of Ow75% on undisbursed balances and a front-end fee of 1.5% on the amount of the loan. NOTE: Money figures are expressed in U.S. dollar equivalents.