Announcement of Sixteen Million Dollars Credit to Cameroon for a Rubber Development Project on June 5, 1975

~") ~. ,• I\ I, 0 p ,It i:' 1, 'r' >, INTERNATIONAL DEVELOPMENT ASSOCIA.TION (~) 1818 H STREET, N.W .. WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 IDA News Release No. 75;J5 June 5, 1975 $1§ MILLION CREDIT TO CAMEROON FOR A RUBBER DEVELOPMENT PROJECT The International Development Association (IDA), an affiliate of the World Bank, has approvej a $16 million credit to Cameroon to help finance a rubber estate project. The project includes: 1) clearing of about 5,800 hectares and planting them with high-yielding rubber; preparation of land for a further 1,700 hectares to be possibly planted in 198]; and maintenance of the 5,800 hectares of plantings for the duration of the five year project development period; 2) constructing housing, health, education, and the social facilities for about 3,000 families living on the rubber estate and the building of service roads for the rubber estate; 3) conducting establishment and·yield trials with different clones of ·rubber and agronomic research; 4) establishing a commissariat on the rubber estate to provide food supplies and to supervise trials with foodcrops; 5) preparing a program for • training and technical assistance; 6) preparing a follow-up project, including the continuation of the pedological and topographical prospection; 7) preparing a master plan for the Kribi area which emphasizes the production of perennial crops. The project will contribute to meet important government development objectives in the Kribi area, a large but sparsely populated region with good agricultural potential. It will provide employment for about 3,000 persons and their families (10,000 or 12,000 people in total) and bring about a considerable improvement in their standards of living. At peak production, the completed 5,800 hectares estate will produce 13,000 tons of rubber (77 percent of Cameroon's present output), a level that can be sustained for more than 20 years with out major replacements. Net foreign exchange earnings through the eX'~ort of rubber of about $7 million are expected each year. The IDA credit to Cameroon is for 50 years including 10 years of grace and interest-free, except for a service charge of 3/4 of 1% to cover administrative expenses • • Note: Money figures are expressed in US dollar e~uivalents.  T E CHN I CAL DAT A PROJECT: COUNTRY: Niete Rubber Estate Project CamE=roon • TOTAL COST: $28. 5 million IDA FINANCING : $16 million, standard terms OTHER FINANCING: Government $8 .1 mi lJ.i on , CECCE $4. 4 million IMPLEMENTING ORGANIZATION: HEVECAM - B.P. 174, Kribi Department Ocean, Republique Unie de Cameroon. PROJECT DESCRIPTION: The project, comprising the first -phase of development -- 1975/76 - 1979/80 -- of a large government program in the Kribi area, will involve: clearing and planting 5,800 hectar~ of high-yielding rubber, land preparation for a further 1,700 hectares, maintenance of..., plantings during the project development period; conducting establishment and yield trials with different clones of rubber and agronomic research; constructing housing, health, education and social facilities for plantation personnel, and service roads for the estate; establishing a commissariat to ensure food supplies to est.ate employees, and supervising trials with food crops; establishing and staffing HEVEC.AfJI to own and operate the estate; training Cameroonians in rubber production; preparing a follow-up project, including the continuation of pedological and topographical prospection and preparing a master plan which emphasizes perennial crop development in the Kribi area. PROCUREMENT:. International competitive bidding (ICB) under IDA guidelines for contracts over $60,0QO. Man- ufactured goods in Cameroon and in countries which are a party to Central African ·states Customs Union (UDEAC) would be allowed a preference eq_ual to the lower of (a) 15 percent or (b) applicable duties; and prequalified Cameroonian contractors a pre~ ference of 7-1/2 percent. CONSULTANTS: SAFAC.AM will be employed to provide management staff and to make routine inspections; and Gov- ernment will prerare a regional development plant with the aid of consultants • ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 14 percent. 1980 •