Announcement of World Bank and IDA Lend Twenty-Five Million Dollars to Cameroon on September 9, 1976

.world Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 77 / 14 September9, 1976 IDA NEWS RELEASE NO. 77/6 WORLD BANK AND IDA LEND $25 MILLION TO CAMEROON The World Bank and its affiliate, the International Development Association (IDA), wil 1 support the Second Douala Port Project in Cameroon by providing a loan and a credit totalling $25 million. Cameroon's major economic center, Douala, located on the Gulf of Guinea, makes it a vital gateway for the country's exports and imports as well as for those of its landlocked neighbours: Chad, and the Central African Republic. The first Douala Port Project which received an IDA Credit of $1.5 million in 1971 was satisfactorily completed in 1974. The main elements comprised in the Second Douala Port Project are: (i) upstream port development, including new fishing berths, cold • storage and market facilities, new dockyard and floating dry dock; (ii) downstream port development, including an area for handling logs, three moorings for log carrying vessels, a berth for containers and general cargo and a transit shed; (iii) dredging the entrance channel; (iv) road and rail access and other port improv·ements; (v) consulting services for supervision of construction. In addition to increasing the timber export potential and the development of the forestry sector in Cameroon, the project is expected to increase Douala's import and export capacity. Provision of both fresh and frozen fish, an important part of Cameroonian diet 9 will be improved through the development of fishing berths. Avoidance of port congestion, reduction in delays to shipping caused by the 1 imited channel depth, the introduction of specialized log carriers now unable to use the port are among the benefits of this project. Co-financing is a special feature of the project. The African Development Bank (AfDB); the Arab Bank for Economic Development in Africa (BADEA); the Kreditanstalt fur Wiederaufbau (KfW); the European Economic Community (EEC); and the Canadian and French aid agencies will participate in the financing of the project with loans and grants amounting to about $71 mill ion. The $15 million Bank loan is for a term of 20 years including 4-1/2 year~ of grace at 8.9% per annum interest. The proceeds of the $10 mill ion • IDA credit wl 11 be re-lent to the National Ports A.uthority (NPA) on term~ and conditions similar to those of the Bank loan. NOTE: Money figures are expressed tn U.S. dollar equivalents. FORM NO. 1121 (5-76) T EC HN f CAL DA T A PROJECT: COUNTRY: TOTAL COST: Second Douala Port Cameroon $120 million • BANK FINANCING: $19 million, for 20 years including 4-l/2 years of grace with interest at 8.9% per annum. IDA Financing: $10 million, standard IDA terms. CO-FINANCING: Canadian International Development Agency (CIDA), $29 mill ion; African Development Bank (AfDB), $12.4 mill ion; Arab Bank for Economic Development in Africa (BADEA), $10 mill ion; Kreditanstalt fUr Wiederaufbau (KfW), $8 million; Caisse Centrale de Cooperation Economique (CCCE), $3,3 mil I ion; Fonds d 1 Aide et de Cooperation (FAC), $3.3 million: Fonds Eurooeen de Develoooement (FED). $4.9 mill ion. IMPLEMENTING ORGANIZATION: The National Ports Authority of Cameroon, P.O. Box 4020, Douala,Unfted Republic of Cameroon. PROJECT DESCRIPTION: It comprises the fol lowing principal elements: (a) upstream port development, including new fishing berths, cold storage and market facll ities, new dockyard and floating dry dock; (b) downstream port development, including an area for handling logs, three moorings for log carrying vessels, a berth for containers and general cargo and a transit shed; (c) dredging the entrance channel; (d) • road and rail access and other port improvements; and {e) consulting services fer super- visfon of construction. Construction Is expected to start in 1976 and be completed in 1983. PROCUREMENT: The project will be executed under several contracts. However, the main civil works (:ncluding some dredging and reclamation) will be undertaken as a single contract in order co ensure a reasonable coordination of the many elements of the project, and will be financed by BADEA, AfDB, FED, KfW, FAC, CCCE, Cameroon and the Bank. International competitive bidding procedures in accordance with Bank guidelines will apply to this main contract with the exception of equipment and materials for the workshop to be procured in France arr~unting to about 3 percent of the main civil works contract. Following pre-qualification, bids were submitted on March 31, 1976, and the lowest evaluated tenderer has been selected. The major part of the entrance channel dredging, and construction of fishing port buildings and floating dry dock, will be undertaken with tied bilateral aid from CIDA. CONSULTANTS: Supervision of construction of the project will be undertaken byconsultants under CIDA financing. The consultants will also advise on channel maintenance dredging and ensure training of NPA staff in the use of the dredqer. The consultants hav~ been selected in agreement with, and under terms and conditio~s acceptable to the Bank and the other co-donors. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 1983 ,., 0 - •