Announcement of Cameroon to Complete Development of Rubber Plantation in Southwest on January 18, 1985

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. BANK NEWS RELEASE NO. 85/20 Contact: Pamela K. Brennan January 18, 1985 (202) 477-3293 CAMEROON TO COMPLETE DEVELOPMENT OF RUBBER PLANTATION IN SOUTHWEST Cameroon is investing about $84 million to complete the development of a rubber plantation in the sparsely populated Kribi region in the southwest. At full development, the plantation will provide full-time employment for almost 6,000 workers. The project includes the building of infrastructure such as roads, schools, housing, and hospital facilities. The World Bank is providing a loan of $8.3 million for the project. Cofinancing loans, totalling $35.4 million, will come from three development agencies: Caisse Centrale de Cooperation Economique (France), Commonwealth Development Corporation (United Kingdom), and the European Investment Bank. This is the third phase of a program to complete the development of 15,000 hectares of the rubber plantation estate of Societe Hevea-Cameroun (HEVECAM). The earlier phases were also supported by The World Bank. HEVECAM is one of the country's parastatal organizations in the rubber sector. This project includes the maintenance of rubber trees planted under the first two phases. About 9,400 hectares of rubber will be tapped, in addition to the current area of 1,000 hectares. And facilities for the processing of crumb rubber will be expanded to produce 64 tons of latex and 32 tons of lower grade rubber a day. Field trials on rubber varieties, disease control, and tapping and dyeing techniques will be continued. And technical assistance, including training of Cameroonian staff, to HEVECAM will be provided. Under the second phase of the project, a pilot program was carried out to develop 250 hectares of village rubber plantations to support smallholder farmers. Another 250 hectares will be developed under the third phase. A pilot program of food crop production will also be carried out, as well as studies and field trials in Kribi, and the South and East provinces. The project is expected to be completed in four and a half years. Besides the financing from The World Bank and the other development agencies, $29 million will be provided by the Government of Cameroon and $11 million will come from HEVECAM. The World Bank loan is for 20 years including five years' grace, with a variable interest rate, currently 9.29 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.75 percent on undisbursed balances and a front-end fee of 0.25 percent on the amount of the loan. NOTE: Money figures are expressed in U.S. dollar equivalents.