Announcement of a Bank Loan of Six Million Five Hundred Thousand US Dollars to the United Republic of Cameroon for a Cocoa Development Project on September 9, 1974

• 1818 H STREET, N.W., WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 Bank Press Release No. 74/75 Subject: A Bank loan of $6.5 million Septe~ber 9, 1974 to the United Republic of Cameroon for a cocoa development project. The World Bank approved a loan of $6.5 million to assist the United Republic of Cameroon finance a $23.8 million cocoa planting and rehabilitation project covering about 50,000 ha located in the central southern provinces, adjacent to the capital city Yaounde. The project will be jointly financed with the French agencies Caisse Centrale de Cooperation Economique (CCCE) and Fonds d'Aide et de Cooperation (FAC). The Government of the United Republic of Cameroon and the farmers will participate for about 46% of the total project cost. The project will help raise farmers' income, Cameroon's foreign exchange earnings and Government's revenues by increasing cocoa production. At full development in 1988 the value of additional cocoa • production. resulting from the project will amount to $12.4 million a year, and Cameroon's net foreign exchange earnings from the project cocoa exports will increase by $10 million a year. About $6.4 million will accrue to some 32,000 farm families increasing existing farmer's average income by 70%. The project includes the rehabilitation of some 35,000 ha of existing cocoa land and planting up to 15,000 ha of new land with high yielding hybrid cocoa; strengthening of extension services; training of 230 extension workers and 2,000 new cocoa farmers; improvement of 950 km of rural roads; research en cocoa and food crop growing; equipment and staff of a newly created agency, Societe de Developpement du Cacao, which will be responsible for the carrying out of the project; and consultant services. The Bank loan of $6.5 million is made to the United Republic of Cameroon for 20 years including six years of grace with interest at 8% per annum. • Note: Money figures are expressed in US dollar equivalen~~,  September 9, 1974 PROJECT: Cocoa Project • COUNTRY: United Republic of Cameroon TOTAL COST: $23.8 million BANK FINANCING: $6.5 million, for 20 years including six years of grace with interest at 8% per annum OTHER FINANCING: Caisse Centrale de Cooperation Economique, $5.5 million Fonds 'd'Aide et de Cooperation, $1.0 million IMPLEMENTING ORGANIZATION: Societe de Developpement du Cacao B.P. 4083 Yaounde, Re.pub'lique Unie du Cameroun PROJECT DESCRIPTION: The project includes the rehabilitation of some 35,000 ha of existing cocoa land and planting up to 15,000 ha of new land wi.th high yielding hybrid cocoa; strengthening of extension services; training of 230 extension workers and 2,000 new cocoa farmers; ~mprovement of 950 km of rural roads; research on cocoa and food crop growing; equipment and staff of a newly created agency, Societe de Developpement du Cacao, which will be responsible for the carrying out of the project. PROCUREMENT: Items including equipment and vehicles costing US $1 • million, and amounting in total to some US $3.5 million, will be procured in accordance with Bank guidelines on the basis of international competitive bidding. Manufactured goods originating in UDEAC countries would be allowed a preference equal to the lower of (a) 15 percent or (b) applicable duties. CONSULTANTS: To be selected ESTIMATED COMPLETION DATE: December 31, 1980 -0- •