Announcement of World Bank and IDA Provide Forty-Seven Million Dollars to Cameroon for Railway Project on June 21, 1979

FOR IMMEDIATE RELEASE .World Bank '1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 79/115 June 21, 1979 IDA NEWS RELEASE NO. 79/100 WORLD BANK AND IDA PROVIDE $47.MILLION TO CAMEROON FOR RAILWAY PROJECT The World Bank and its soft-loan affiliate, the International Development Association (IDA), have approv~d a loan and a credit of $27 million and $20 miil ion, respectively, for a railway project in Cameroon. Under the $59.2 million project--the fourth railway project the Bank has funded in Cameroon--rail traffic handling facilities will be improved, adequate maintenance facilities will be provided, and the capabilities of the administra- tive and technical departments responsible for the railway will be improved. The port city of Douala, on the Atlantic coast, is the country's principal commercial center and main seaport. Improvements to be made to the Douala rail- way facilities include the construction of a marshalling yard, a warehouse, ser- vice tracks, buildings and roads, fixed installations (including a signalling • system), a road connection to the freight station and yard, a road bridge, major workshop expansion, and training facilities. Equipment to be provided includes track maintenance and fire equipment, bogies (railway wagon wheels and their attachments), turnouts, locomotive spare parts, ·and training and workshop equipment. A locomotive running shed and rolling stock maintenance facilities will be built in Yaounde, located to the east of Douala. Technical assistance will be provided to assist railway operations and management, and for training. The project will foster greater efficiency of wagon movement and increase the railyard's capacity to handle more wagons. This will help avoid the diversion of a significant volume of traffic to trucks, a more expensive mode of transport, and reduce operating costs. The project will provide for adequate marshalling capacity to meet the growth 1n traffic demand until at least 1985, with extensions possible at low cost. The Regie Nationale des Chemins de Fer du Cameroun, the national railroad company, is contributing $12.2 million to this project. The Bank loan will be made directly to the company, with the guarantee of the government, and the IDA credit will be made available to it by the government. The Bank loan is for 20 years, including a 5-year grace period, with 7.9% interest per annum. The IDA • credit is for 50 years, including 10 years of grace. The credit carries no inter- est, but bears a service charge of 3/4 of 1% per annum to cover administrative costs. NOTE: Money figures are expressed in U.S. dollar equivalents. FORM NO. 1121 (5-76) T EC HN I CA L DAT A PROJECT: COUNTRY: TOTAL COST: Fourth Railway United Republic of Cameroon $59.2 million • BANK FINANCING: $27 million, for a term of 20 years, including 5 years of grace, at 7.9% interest per annum IDA FINANCING: $20 million, standard IDA terms OTHER FINANCING: Regie Nationale des Chemins de Fer du Cameroun (REGIFERCAM), $12 . 2 mi 11 ion IP LEMENTING ORGANIZATIONL Regie Nationale des Chemins de Fer du Cameroun B.P. 304 Douala, Cameroun Cable: REGIFERCAM, Douala Telex: 5607 KN, Douala PROJECT DESCRIPTION: It consists of: a) improvements to the Douala railyard, including: i) a marshalling yard; ii) cargo-handling faci- 1 ities; iii) a warehouse and service tracks; iv) a wagon maintenance shed; v) service buildings; vi) fixed installations, including a signalling system; vii) internal service roads and parking areas; viii) tracks for servicing and parking passenger coaches; ix) a road connection to the freight station and yard; and x) a road bridge on the Douala-. Yaounde road; b) railway equipment, consisting of: i) track maintenance equipment; ii) turnouts for service sidings; iii) 50 bogies; iv) a fire truck; and v) locomotive spare parts; c) expansion of the Douala workshops, consisting of: i) civil works; ii) a ser- vice station; iii) tools and equipment; d) construction of a locomotive running shed; e) rolling stock maintenance facilities; f) technical assistance to help improve rail- way operations and management, and for training; g) equipment and facilities for train- ing; and h) refinancing the outstanding amount of the engineering loan of the Third Railway Project, as planned under the terms of that loan. PROCUREMENT: The main contracts for civil works ($31 mill ion) and equip- ment ($7.7 mill ion) will be awarded through international competitive bidding in accordance with Bank guidelines. Consultants will be selected and appointed on terms and conditions acceptable to the Bank. An exception will be contracts for small buildings ($1 .7 million) to be built in the new Douala station area and at the training center, which will be advertised locally. Critical locomotive spare parts will be supplied by the manufacturer of the existing locomotives; the cost, with contingencies, will be about $800,000, of which the Bank will finance 50%. CONSULTANTS: Consultant services will be provided for improving railway operations and management, feasibility and engineering studies, and training. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 18% 1982 - 0 - •