Cameroon - Proposals for a medium term public development program : a special study

Report No. 1097a-CM e C O P g Proposals for a Medium-Term Public Development Program A Special Study Cameroon April 23, 1976 Western Africa Region Country Programs II FOR OFFICIAL USE ONLY Document of the World Bank This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  EXCHANGE RATE Currency Unit CFA Franc (CFAF) Before August 11, 1969 US Dollar 1.00 = CFA Franc 246.85 CFA Franc 1.00 = US Dollar 0.00405 CFA Franc 1,000 = US Dollar 4.05 From August 11, 1969 to December 20, 1971 US Dollar 1.00 = CFA Franc 277.71 CFA Franc 1.00 - US Dollar 0.0036 CFA Franc 1,000 = US Dollar 3.60 From December 20, 1971 to February 12, 1973 US Dollar 1.00 = CFA Franc 255.79 CFA Franc 1.00 = US Dollar 0.0039 CFA Franc 1,000 = US Dollar 3.91 From February 12, 1973 to January 18, 1974 US Dollar 1.00 = CFA Franc 230.21 CFA Franc 1.00 = US Dollar 0.0043 CFA Franc 1,000 = US Dollar 4.35 Since January 18, 1974 The CFA Franc follows the exchange rate fluctuations of the French Franc which started to float as of that date and with which the CFA Franc maintains a fixed ratio of CFA Franc 50 = 1 French Franc. For projections a rate of CFA Franc 220 - 1 US Dollar has been used. FISCAL YEAR July 1 to June 30  This report is based on the findings of a mission that visited Cameroon in February/March 1975. It takes into account the comments given by representatives of the Government in Yaounde during November 1975. The mission consisted of: Heinz B. Bachmann Chief of Mission Ren6 Vaurs General Economist Paul A. Popiel Public Finance Michael J. Wilson Education Bocar Madani Thiam Power and Water Malise C. Dick Ports and Railways Roy Knighton (Consultant) General Transport Jacob G. Kleve (Consultant) Rural Sector Nogl Carrere (Consultant) Urbanism Jacques Champaud (Consultant) Migration The mission's assessments and conclusions include an analysis of the maintenance situation in the public sector carried out by Laszlo Garamfalwi (IMF) during the july 1974 preparatory visit to Cameroon. [ This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. |   CAMEROON PROPOSALS FOR A MEDIUM-TERM PUBLIC DEVELOPMENT PROGRAM TABLE OF CONTENTS Page No. Abbreviations. Maps Introduction d Summary and Conclusions l PART ONE: THE ECONOMIC FRAMEWORK FOR THE FOURTH DEVELOPMENT PLAN .................................................. 1 Chapter I The Socio-Economic Setting .................... 1 1. Structure of the Economy .......................... 1 2. Fundamental Economic Policies ...................... 3 Chapter II Economic Developments since the 1960's ........ 5 Chapter III Macro-Economic Outlook and the Overall Size of the Future Public Investment Program ....... 14 1. Introduction and Summary Conclusions .... ........... 14 2. Overall Economic Growth and the Use of Resources ... 18 3. Projection of Public Savings ....................... 26 4. Financing of Public Investments and the Optimum Size of a Public Development Program for the Period of the Fourth Plan .......................... 31 PART TWO: COMPOSITION OF THE PROPOSED PUBLIC INVESTMENT PROGRAM .. 37 Chapter IV Overall Analysis and Structure of the Program . 38 1. Approach Used in Determining the Proposed Sectoral Composition ........................................ 38 a. Absorptive Capacity ........................ 38 b. Sectoral Priorities ........................ 39 2. The Basic Priorities Underlying the Proposed Public Investment Program ................................. 40 a. Rural Sector, Energy and Low-Cost Housing ..... 46 b. Transport and Communications Infrastructure ... 47 c. Social Sectors ................................ 48  -2- Page No. 3. The Recommended Public Investment Program .... ...... 49 a. Description of the Program .................... 49 b. The expected Social and Economic Impact of the Proposed Investment Program .... .............. 53 4. Setting of Priorities within the Proposed Public Investment Program ................................. 54 Chapter V Outline of the Program by Sector .... .......... 61 1. The Rural Sector ................................... 61 a. Characteristics of the Proposed Development Program ....................................... 61 b. Problems of Absorptive Capacity .... ........... 64 c. Intra-Sectoral Priorities ..................... 66 2. Energy ............................................. 66 3. Industry and Services .............................. 67 4. Transport and Communications Infrastructure ... ..... 67 a. Characteristics of the Proposed Investment Program ....................................... 67 b. Transport Strategy ............................ 69 c. Intra-Sectoral Priorities ..................... 70 5. Education .......................................... 71 a. Characteristics of the Proposed Development Program ....................................... 71 b. Intra-Sectoral Priorities .................... 73 6. Urbanism, Sewage and Water Supply .... .............. 73 a. Characteristics of the Proposed Investment Program ....................................... 73 b. Intra-Sectoral Priorities ..................... 76 7. Sectors with Small Investment Programs .... ......... 76 Chapter VI The Longer Term Outlook .78  ANNEX: DETAILS OF THE PROPOSED INVESTMENT PROGRAM BY MAJOR SECTORS Pgr_n 1. The Rural Sector . a. Characteristics of the Proposed Deve]opment Programg. b. Probleras of Absorptive CapaciLy .11 c. Intra-Sectoral lPriorities. 14 2. Energy .14 3. Industry and Services .16 4. Transport and Communlications Infrastructure .17 a. Characteristics of the Proposed Investmert Program 17 b. Transport strategy .20 c. MajQr Projects and Problems by Sub-Sectors .21 d. Intra-Sectoral Priorities .25 5. Education .25 a. Characteristics of the Proposed Development Program .25 b. Major Projects by Sub-Sector .28 c. Intra-Sectoral Priorities .30 6. Urbanism, Sewage and W4ater Supply .30 a. Characteristics of the Proposed Investment Program Program .30 b. Mtajor Projects by Sub-Sectors .33 c. Intra-Sectoral Priorities .35 7. Sectors with Small Investment Prograis .36  STATISTICAL APPENDIX Past and Present Macro-Economic and Public Finance Data 1. GDP by Main Sectors and Use of Resources 2. Main Trends in Public Finance 1960-1974 3. Balance of Payments 1960-1974 Projection of Macro-Economic and Public Finance Data 4. Projection of GDP by Sectors 5. Projection of Rural Sector Value Added 6. Projection of Industrial Value Added 7. Projection of the Use of Resources 8. Projection of the Balance of Payments 9. Exports of Goods and Services: Detailed Projections 10. Imports of Goods and Services: Detailed Projections 11. Projection of Public Savings The Proposed Public Investment Program 12. Proposed Public Development Program by Priorities 13. Proposed Public Development Program by Tranches 14. Rural Sector: Proposed Public Development Program by Priority 15. Electric Power: Proposed Public Sector Development Program by Priority 16. Transport and Communications: Proposed Public Sector Development Program by Priority 17. Education: Proposed Public Sector Development Program by Plan Period 18. Education: Proposed Public Sector Development Program by Priority 19. Urbanism: Proposed Public Sector Development Program by Priority 20. List of Medium-Priority Plan Projects Proposed to be Included in the First Additional Tranche  BEAC Banque des Etats de l'Afrique Centrale (The Central Bank of the Central African Monetary Union) BCD La Banque Camerounaise de D6veloppement (National Development Bank of Cameroon) CAR Central African Republic CD Community Development CFAF (CFA Franc) Communaute Financiere Africaine Franc, the currency of the Central African Monetary Union CFJA Centre de Formation de Jeunes Agriculteurs (Young Farmers' Training Center) at Goyang, near Maroua. e, E in tables: estimates EDF European Development Fund EIB European Investment Bank ENIA Ecole Normale d'Instituteurs Adjoints (Training Center for Assistant Teachers) FONADER Fonds National de Developpement Rural (National Rural Development Fund) IPAR Institut de P6dagogie Appliquee a Vocation Rurale (Institute for Applied Rural Education) I.r.d.p. Integrated rural development projects ODA Official Development Assistance RTC Rural Training Center (Kumba) SEDA Societe d'Etudes pour le Developpement de l'Afrique (African Development Consulting Company), a public enterprise. SEMRY Societe d'Expansion et de Modernisation de la Riziculture a Yagoua, a public-owned rice growing company in the northern region. SIC Societe Immobiliare du Cameroun (Cameroon Building Society), a public- owned company building medium-cost housing. SNEC Societe Nationale des Eaux du Cameroun (National Water Company) SNI Socifte Nationale d'Investissements du Cameroun, a public-owned holding company.  SOCAPALM Societe Camerounaise de Palmeraies (Cameroon Oil Palm Company), a public-owned company. SODECAO Societe de Developpement du Cacao (Cocoa Development Company), a public-owned company. SODENKAM Societe de Developpement du Nkam (Nkam Development Company), a public-owned company in charge of a resettlement project in the Nkam area. SONEL Societe Nationale d'Electricite (National Electricity Company) SOTUC Societe des Transports Urbains du Cameroun (Cameroon Urban Transport Company), a public-owned company. UDEAC Union Douaniare et Economique de l'Afrique Centrale (Central African Customs and Trade Union) ZAPI Zones d'Action Prioritaires Integrees (Zones of Integrated Priority Action), a number of regional public enterprises in charge of integrated rural development.  N IGE R / C HA DCH N~ ~e SUDA N Wv ..-Ae > ~~~~~~~~>__11RAEPUERICAN V_1.CAMEROOIQ -12useI GojI o ;-.1 N ICGE R IA * GUINA ~ ZARE $ 5~~tN_> C H A D -~GABON 37CHARI A~r/ANTIC1 I OCCEAN/ J ne Mor.s UNITED REPUBLIC OF CAMEROON / 5eo e ADMINISTRATIVE DIVISIONS ):AAk/AREDIA AaAR ......,Province boundaries CDANAY Division boundaries0KIe ?Suui ..... .Internetianol boundaries S Gre Ub YAOUNDE* @Nctional capitol 1 OP MERTOUA I1Province capitals . atri 0 Division capitolsGAO -TiSet:i aSubdivision copitols Di-ok. 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