Announcement of Eleven Million One Hundred Thousand Dollars for Feeder Roads in Cameroon on November 17, 1977

.world Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 78/23 IDA NEWS RELEASE NO. 78/19 NOVEMBER 17, 1977 $11. 1 MILLION FOR FEEDER ROADS IN CAMEROON The condition of some 600,000 low-income farmers in Cameroon will be improved through a $4.6 mill ion loan approved by the World Bank and a $6.5 million credit approved by the Bank's affiliate, the Inter- national Development Association (IDA). Cameroon's broad range of ecocl imatic zones provides excellent diversification and potential for agriculture. By far the predominant sector in the country's economy, agriculture accounts for about 40% of its gross domestic product (GDP) and over 70% of its export earnings. • It provides the livelihood for over 80% of the population . About 46,000 kilometers of the country's mostly dry-weather roads and tracks are in very poor condition. The feeder roads project is designed to improve and maintain the feeder roads servicing four high priority rural development projects. In addition to the construc- tion of about 2,200 kilometers of feeder roads, the project will support, through technical assistance, a Feeder Roads Unit within the Department of Roads. The Bank's $4.6 mill ion loan to Cameroon is for a term of 20 years, including five years of grace, with interest at 7.9% per annum. The $6.5 mil 1 ion IDA credit is for 50 years, including a ten-year grace period. It is interest free, except for a service charge of 3/4 of 1% to m, ·,-:\ t I DA ' s ad mi n i s t r a t i ve cos t s . - 0 - • NOTE: Money figures are expressed in US dollar equivalents . FORM NO. 1121 (5-76) T ECHN I CAL DA TA PROJECT: COUNTRY: TOTAL COST: Feeder Roads Project Cameroon $17. 1 mi 11 ion • I DA FI NANC I NG: $6.5 million, standard terms BANK FI Nl' ,~It.JG $4.6 million for 20 years including 5 years of grace at an annual interest rate of 7.9 percent. OTHER FINANCING: Government of Cameroon~ ~6 mill ion IMPLEMENTING ORGANIZATION: Ministry of Economic Affairs and Planning Yaounde United R~public of Cameroon Cable Address: MINEP YAOUNDE Telex: 8268KN. PROJECT DESCRIPTION: The project consists of a four-year program for the construction and improvement of about 2,200 kilometers (km) of feeder roads; technical assistance to support a Feeder Roads Unit with the Department of Roads, to implement the above program and train local staff; and a study of a fee. road program and resources for feeder road maintenance. PROCUREMENT: Equipment, materials, spare parts and supplies amounting to abolt $8 million will be procured on the basis of international competitive bidding in accordance with Bank guidelines. Contracts for equipment, materials, and supplies costing under $50,000 may be awarded on the basis of competitive bidding following local procedures acceptable to the Bank. CONSULTANTS: Consultants for technical assistance and for the feeder roads studies wil 1 be employed in agreement with, and under terms of reference and conditions satisfactory to the Bank. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 14% September 1982. - 0 - •