Cameroon - Forestry Project

Document of The World Bank FILE COPY FOR OFFICIAL USE ONLY Report No. P-3189-CM REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE UNITED REPUBLIC OF CAMEROON FOR A FORESTRY PROJECT January 18, 1982 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.  UNITED REPUBLIC OF CAMEROON FORESTRY PROJECT CURRENCY EQUIVALENTS Currency Unit = CFA Franc (CFAF) US$1 = CFAF 270 1/ CFAF 1 million = US$ 3,700 1/ The CFA Franc (CFAF) is tied to the French Franc (FF) in the ratio of FF I to CFAF 50. The French Franc is currently floating. ABBREVIATIONS CELLUCAM - Societe Cellulose du Cameroun S.A. CDC - Commonwealth Development Corporation DEFC - Direction des Eaux et Forets et des Chasses FNFP - Fonds National Forestier et Piscicole SEMRY - Societe d'Expansion et de Modernisation de la Riziculture de Yagoua SNI - Societe Nationale d'Investissement du Cameroun USAID - US Agency for International Development FISCAL YEAR FNFP January 1-December 31 Government: July 1-June 30  FOR OFFICIAL USE ONLY UNITED REPUBLIC OF CAMEROON FORESTRY PROJECT LOAN AND PROJECT SUMMARY Borrower: United Republic of Cameroon Amount: US$17.0 million Terms: Twenty years, including a five-year grace period, at an annual interest rate of 11.6 percent. Co-financing: Commonwealth Development Corporation Project Description: The main objectives of the project would be: (1) to expand. the contribution of the forestry sector to the national economy through establishment of about 11,000 ha of plantations to provide fuelwood in the northern parts of Cameroon, and raw material for the pulp industry in southwestern Cameroon; and (2) to increase the capacity of the responsible Government agencies to maintain continuous regeneration of the forests, and to control the logging operations of forestry conces- sionaires. These objectives would be achieved over a five-year period through: (a) the establishment of a plantation of about 5,200 ha of pines and 3,600 ha of eucalyptus at Edea; (b) establishment of plantations of about 1,000 ha of eucalyp- tus in blocks and 200 ha in pilot village woodlots near Maga, and a plantation of 750 ha of pines and 250 ha of eucalyptus at Ngaoundere; (c) provision of 16 man-years of specialist services in plantation management and financial control; (d) overseas specialized training of selected personnel, and studies (including preparation of a possible follow-up project); and (e) provision of logistical, material, and operational support for DEFC to improve its capacity for tax and royalties assessment and collection. I This document has a restricted distribution and may be used by recipients only in the performance of I their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  - ii - Benefits and Risks: The project would produce some 19 000 m3 of fuelwood after six years (increasing to 26,000 mi after 14 years), and about 330,000 m3 of pine and eucalyptus which could be used as raw material by the pulp industry. The supply of plantation- grown pulpwood would reduce the industry's harvesting and pulp- ing costs (by 33 and 20 percent respectively). The project would also produce about half of the seed required for future FNFP plantation programs. The proposed establishment of village woodlots would provide experience which could help reverse the continuing degradation of dry-zone forestry resources in Cameroon. The project presents no major or unusual technical risks. There are, however, some risks associated with marketing of the plantation-grown pulpwood, should CELLUCAM (a pulp manufac- turing enterprise in which the Government holds a majority share) not purchase the entire production. This is considered unlikely. Nevertheless, other markets are available (albeit less profitable) where trees could be sold as woodchips, utility lumber or building and transmission poles.  - iii - Estimated Costs US$ million Local Foreign Total Edea Plantations 9.7 7.2 16.9 Semry II Plantations 0.7 0.7 1.4 Ngaoundere Plantations 0.6 0.4 1.0 FNFP Seed Production Unit 0.3 0.2 0.5 Technical Assistance - 2.3 2.3 Technical and Material Support for DEFC 0.8 1.8 2.6 Total Base Costs 12.1 12.6 24.7 Physical Contingencies 0.2 0.4 0.6 Price Contingencies 7.0 3.2 10.2 Total Costs (including taxes) 19.3 16.2 35.5 Taxes and Duties 2.3 - 2.3 Total Costs (excluding taxes and duties) 17.0 16.2 33.2 Financing Plan US$ million Local Foreign Total IBRD 5.4 11.6 17.0 CDC 2.8 4.6 7.4 Government 11.1 - 11.1 Total 19.3 16.2 35.5 Estimated Disbursement (US$ million) IBRD Fiscal Year FY83 FY84 FY85 FY86 FY87 FY88 FY89 Annual 1.5 3.1 3.6 3.3 2.4 2.0 1.1 Cumulative 1.5 4.6 8.2 11.5 13.9 15.9 17.0 Economic Rate of Return: 13.9 percent (on 88 percent of project costs) Appraisal Report: 3448-CM dated December 22, 1981 Map: IBRD 15692   INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE UNITED REPUBLIC OF CAMEROON FOR A FORESTRY PROJECT 1. I submit the following report and recommendation on a proposed loan to the United Republic of Cameroon for the equivalent of US$17 million to help finance a Forestry Project. The loan would have a term of 20 years, including a five-year grace period, at an annual interest rate of 11.6 percent. The Commonwealth Development Corporation (CDC) has agreed to participate in project financing with a loan to Fonds National Forestier et Piscicole (FNFP) amounting to US$7.4 million equivalent. The CDC loan would be made on the same terms as the Bank loan. PART I - THE ECONOMY 1/ 2. A report entitled "United Republic of Cameroon - Economic Memorandum" (No. 2877-CM), was distributed to the Executive Directors on April 30, 1980. Annex I provides basic country data. Background 3. Cameroon was a federation from the time it gained independence in 1960, until the United Republic, which unified the anglophone western and francophone eastern parts of the country, was formed in 1972. The Government has concentrated on fostering a sense of national unity among the different parts of the country: the sparsely populated eastern region, the relatively small but densely populated western part of the country, the sahelian zone in the north with Muslim traditions, and the southern tropical regions. 4. Cameroon has a population of 8.4 million (1980) and covers an area of 475,000 km2. It is one of Africa's most diversified countries, with a wide range of climatic zones, ecological conditions, population densities, ethnic groups and traditional cultures. Its main opportunities for develop- ment lie in the expansion of agricultural, livestock, and forestry production; the exploitation of energy and mineral resources; and the processing of agricultural, forestry and mineral products for domestic consumption and export. Cameroon became an oil producer in 1978 and is believed to have exported about 4 million tons of crude petroleum in 1981. Further increases in crude petroleum production are expected. In 1981, Cameroon began producing refined petroleum products. The country also has unexploited gas potential. 1/ The text of this Section is substantially the same as in the President's Report for the Post and Telecommunications Technical Assistance Project which was distributed to the Executive Directors on November 12, 1981.  5. Cameroon's main economic centers are separated by large areas of low population density and the country-s port facilities and transport network also serve landlocked Chad and the Central African Republic. Adequate port and trunk transportation systems are essential for promoting agriculture, forestry and industry, and for strengthening internal and international communications. With the growth of industry, transportation, construction and services, Cameroon is becoming increasingly urbanized. About 30 percent of the population now live in towns, with the heaviest concentrations in Douala the major port and industrial center, and Yaounde the capital. 6. Cameroon subscribes to a philosophy of planned liberalism, and the country's economic development has been pursued within a five-year investment planning framework. The Fourth Plan period ended in June, 1981, and the Fifth Plan is now in effect. Cameroon-s development and macro- economic policies have been rather cautious, with the result that, while growth has not been exceptionally rapid, the country has enjoyed noteworthy economic stability. 7. Growth. Over the past fifteen years Cameroon has experienced accelerating rates of output and population growth. The real GDP growth rate during the Second Plan Period (1966-71) averaged 4.2 percent; in the Third (1971-76), it rose to 4.5 percent; and in the Fourth (1976-81), it is estimated provisionally at 7.1 percent. Population growth in the three periods was about 1.8, 1.9 and 2.3 percent a year respectively. Per capita GNP rose between 1966 and 1980 at an annual rate of about 3.1 percent. 8. Within the overall pattern of accelerating growth, there was some unevenness in the performance of key productive sectors from one planning period to another. During the Third Plan in particular, both agriculture and manufacturing experienced periods of slowdown, although services grew strongly. Contributing to the agricultural slowdown were decreases in the output of two major export crops--cocoa and arabica coffee--related to declines in producer prices compared with food prices, and to the termination of a fertilizer subsidy program for arabica coffee. Forestry output dropped towards the end of the period because of reduced Western European demand and some transporta- tion bottlenecks. Growth of the manufacturing and mining sector slowed as a result of the declining momentum of import substitution activities, which had produced rapid increases in manufacturing output during the Second Plan years, and deteriorating terms of trade. The acceleration in growth during the Fourth Plan was helped by rapidly rising construction output, reflecting sharply higher levels of investment, by recovery in cocoa and robusta coffee production, as farmers responded to higher producer prices, and by recovery in forestry output. Since 1978, the start-up of oil production has contributed significantly to aggregate growth. 9. Investment and Savings. Underlying the longer term rise in GDP growth have been rising proportions of investment. The investment/GDP ratio averaged over 15 percent during the Second Plan, about 19 percent during the Third, and close to 24 percent during 1976-80. Investment priorities have shifted over time. The First Plan emphasized directly productive projects (53 percent), and the Second, infrastructure and social projects (58 percent).  - 3 - During 1976-80, directly productive activities were again favored (63 percent), with heavy emphasis on manufacturing, mining and energy (52 percent). Despite the rising investment/GDP ratios, the mobilization of domestic savings more than kept pace, due largely to increased public savings. Gross domestic savings rose from about 84 percent of total investment under the Second and Third Plans to about 87 percent during 1976-79. After allowing for net factor service and current transfers and the amortization of foreign medium- and long-term loans, reliance on foreign financing fell from about 33 percent of total investment during the Second Plan to about 30 percent during 1976-79. 10. Public Finance. Budgetary revenues amounted to about 15 percent of GDP during the Second and Third Plans, and increased slightly during 1976-79. Public savings after debt service declined from about 39 percent of total public investment during the First Plan to about 36 percent during the Second; however, it rebounded to 55 percent during 1976-79, thanks to substantial contributions from the agricultural export stabilization Funds. 11. Balance of Payments. Overall, the balance of payments has not posed particular problems, apart from some short-term deterioration during the 1974-76 period. In 1977-80, exports rose substantially (at an average annual rate of 26 percent) but imports also increased (at an average annual rate of 20 percent) because of more rapid economic growth and higher investment. International reserves were rebuilt in 1976-80, in part by the use of IMF credits, rising in 1980 to a gross level equivalent to about seven weeks of imports and to a net level of about five weeks. This was low by international standards, although still acceptable because of Cameroon-s membership in the Central African Monetary Union. Development Prospects and Issues 12. Short- and Medium-term Developments. Oil production is bringing with it significant changes in the Cameroonian economy. Historically, Cameroon has been dependent on the export of agricultural products for the bulk (72 percent in 1977/78) of its export earnings. Cocoa and coffee alone accounted for 53 percent of the value of 1977/78 exports. However, oil exports which represented about 1 percent of total exports in 1977/78, are estimated to have risen to about 28 percent in 1979/80, with the share of agricultural products dropping to close to 50 percent. Exports of oil are understood to have continued to rise sharply in 1980/81, further reducing the propor- tional importance of agricultural exports; this trend is expected to persist for at least two more years. 13. The outlook for agricultural and industrial growth in absolute terms during 1980-86 is nonetheless quite favorable. Agricultural growth expectations are based on some increase in cocoa output above 110,000 tons; recovery of robusta coffee; continuing expansion for arabica coffee; in- creased production of most food and other crops, as well as livestock; and expansion of forestry production. Growth of industrial and mining production is expected to result from existing and expanded manufacturing facilities (particularly those for food, beverages and construction materials), from some new industrial projects and from new mining ventures. An impact on the  -4- structure of the economy is expected from the Fifth Development Plan invest- ment program (1981-86). The proposed investment/GDP ratio under the Fifth Plan is 23 percent. The investment program stresses support to agriculture and expansion of the supply of technical and professional manpower, while energy, mining and industry will receive diminished emphasis. 14. Longer-Term Developments. Cameroon's promising potential in areas outside agriculture implies a longer-term shift towards a somewhat more diversified industrial base. Agriculture will play a critical but less dominant role, and a shift in priorities towards increased food production for the growing urban population appears probable. The rate at which agricultural productivity increases will be a crucial determinant of the pace of economic development, and will call for an appropriate mix of public intervention and private initiative. External Borrowing and Creditworthiness 15. Total debt outstanding and disbursed rose from US$514 million at the end of 1976 to over US$2 billion at the end of 1980. Debt service payments rose from US$39 million in 1976 to US$132 million in 1979, while exports increased from. US$715 million to more than US$1.3 billion during the same period. Notwithstanding a hardening of average loan terms in the 1970s, Cameroon's debt service ratio was still less than 10 percent at the end of 1979, and is projected to stay in the 12 to 14 percent range throughout the present decade. Borrowing on non-concessionary terms is expected to account for about two-thirds of total new commitments, and average terms are expected to harden during the period. Because of higher debt service payments, pro- jected net disbursements will probably be less than in the past but, with Cameroon's favorable export and savings prospects, are expected to be suf- ficient to allow an investment rate above 25 percent of GDP, as well as the restoration of a strong foreign reserve position. PART II - BANK GROUP OPERATIONS IN CAMEROON 16. Bank and IDA commitments in Cameroon as of September 30, 1981 amounted to US$600.9 million and covered 37 projects: 17 in agriculture, 11 in transportation, 3 in education, 2 in public utilities, 2 small- and medium-scale enterprise projects and 2 technical assistance projects. Transport accounts for the largest share (45 percent) of these commitments, followed by agriculture (41 percent). IFC has invested in seven enterprises, with total net loan and equity commitments of US$12.6 million. Annex II contains a summary statement of Bank loans, IDA credits and IFC investments as of September 30, 1981, including notes on the execution of ongoing projects. Although delays and setbacks have occasionally been encountered in implementa- tion, the Government has consistently shown willingness to collaborate with the Bank in finding solutions to such problems.  -5- 17. The Bank's initial investment strategy in Cameroon was to support the Government's development efforts in three main directions: (i) streng- thening and extending the road and rail trunk systems and expanding port facilities; (ii) raising agricultural output and net exports, with emphasis on the establishment of modern industrial plantations, and (iii) providing assistance to education. Through 1975, apart from one water supply project, Bank lending was concentrated entirely in the transport, agriculture and education sectors. Since 1975, lending has become more diversified, extending into other areas including the development of small- and medium-scale enter- prises and the provision of technical assistance. 18. For the future, projects are being prepared in agriculture--to consolidate existing tree crop operations, extend rural development efforts, and strengthen agricultural research--and to rehabilitate and expand the transport and communications infrastructure. Additional education and tech- nical assistance projects are also planned, as well as further SME and initial urban and water supply/sewerage projects. The Bank has carried out sector studies in forestry, energy, industry, and telecommunications, and additional projects in these areas have been tentatively identified. Thus, the trend towards further sectoral diversification of Bank lending, reflecting the growing complexity of Cameroon-s development needs, will continue. 19. In addition to actual lending operations, the Bank will expand its program of economic and sector work, develop the planning and provision of technical assistance, and strengthen and broaden its economic dialogue with the Government. In relation to short- to medium-term issues, this dialogue will address the pace, pattern and conditions of oil and gas development; the size and composition of the investment program; private versus public sector activities; technical, professional and other skilled manpower con- straints; training needs; improvements in the governmental administrative apparatus; development priorities for export and food crops; and general macro-economic management issues. With regard to longer-term issues, the dialogue would center on basic agricultural (especially food crop) and industrial development policies. An agricultural sector policy report is under preparation and will be discussed with the Government in early 1982. As regards industry, the Bank has recently completed a comprehensive study of industrialization and the system of incentives, which has been discussed with the Government. In the future, the dialogue will be expanded to cover the objectives, economic performance and accountability of public enterprises. Donor Activities 20. Overall disbursements of official development assistance to Cameroon during the second half of the 1960s amounted to about US$45 million a year, mostly in the form of grants. France provided most of the assistance, which was concentrated in infrastructure and some productive sectors. The European Development Fund (EDF) and the European Investment Bank (EIB) directed most of their assistance to agriculture and infrastructure. Bank and IDA disbursements were small during this period. In the 1970s, foreign aid increased to about  -6 - US$90 million a year, with only one-fifth in the form of grants. Bank and IDA financing amounted to about 23 percent of total disbursements. Bank Group lending to Cameroon has been closely coordinated with that of other donors; in 16 of the 37 Bank projects, joint or parallel financing was arranged, and expanded cofinancing is being actively sought for several future projects. 21. Cameroon is now borrowing increasingly from private sources; such borrowing rose to over 40 percent of external financing in 1975-79, compared with only 11 percent in 1967-69. Public debt outstanding and disbursed as of December 31, 1979, amounted to US$1.6 billion, about 7.9 percent of which was in the form of Bank loans and about 7.8 percent in IDA credits. Bank loans accounted for 9.4 percent of public debt service and IDA credits for 0.6 percent. By 1985, public debt is projected to reach US$2.6 billion. By 1985, Bank loans and IDA credits are projected to account for about 26 percent of debt outstanding and about 14 percent of debt service. PART III - THE FORESTRY SECTOR General 22. Cameroon has significant forestry reserves, covering about 33 mil- lion ha of which some 18 million ha are dense tropical forests mostly located in the southern parts of the country. About 8 million ha of the tropical forests have been allocated for industrial exploitation but activity remains relatively modest and the value added in the sector contributed only 4 percent of GDP in 1978. Little is known about Cameroon's forestry resources, but a survey of the forests (to be followed by an inventory) has been started with assistance from Canada, and this will provide the basis for better assessment of development potential in the sector. 23. Industrial exploitation of Cameroonian forests is undertaken on about 200 concessions of which half are relatively small, covering less than 50,000 ha each, and only about 20 are considered large by West African standards, ranging between 200,000 and 250,000 ha each. Total production on these concessions was estimated in 1978 to be about 1.6 million m3 round log equivalent, which implies a modest yield of 0.3 m3 per ha as compared to 1.0 - 2.0 m3 in neighboring countries. 24. Consumption of forest products for fuelwood is unknown in quantita- tive terms, but is nevertheless very high and increasing with expansion of the population. Tentative Bank estimates indicate that some 2 million tons of firewood are being cut annually. While this does not appear to pose any major problems in the southern parts of Cameroon, it is becoming a serious threat in the north in general and around the larger towns in particular, where serious degradation and depletion of the forest resources have been observed. In order to assess the pattern and supply of these resources, including fuelwood, a rural energy survey is being conducted by the Government with financial  support from USAID. The Government is also starting to review possibilities to produce charcoal and more fuel-efficient stoves with the assistance of several bilateral and multilateral sources. The proposed project would therefore deal with these issues but focus on regeneration of fuelwood supply. 25. A pulp industry commenced operations in 1980 at Edea (southwest of Douala) on a concession comprising 100,000 ha of harvestable forest. This industry, operated by a mixed enterprise CELLUCAM (67 percent Government, 33 percent private foreign capital) has capacity to produce 122,000 tons of pulp annually, and this level is expected to be reached in 1983. At present CELLUCAM exploits natural hardwoods, but its long-term profitability will depend on systematic replanting of harvested areas with trees of uniform size which would both reduce harvesting costs and increase the efficiency of pulping operations. The proposed project would assist in the establishment of such plantations. Institutions 26. The Ministry of Agriculture is responsible for the forestry sector. It exercises its responsibilities through two agencies, the Direction des Eaux et Forets et des Chasses (DEFC) which operates as a government department, and the Fonds National Forestier et Piscicole (FNFP) which operates as an autonomous public entity. 27. DEFC is responsible for sector planning and policy formulation, management of state forests and overall supervision of forestry exploitation. It is also responsible for assessment and collection of taxes and royalties from the forestry sector. Its function at the provincial level are carried out by staff supervised by a Forest Conservator. However, neither field staff nor provincial headquarters have means to travel nor the facilities or funds necessary to execute these tasks effectively. As a consequence DEFC has not been able to effectively carry out its responsibilities and taxes have neither been adequately assessed, nor collected. During 1981 a concerted effort has been made to improve DEFC's tax-collection performance. The early results of this effort have been encouraging and the proposed project would actively support DEFC in this regard. 28. FNFP is responsible for executing replanting programs on behalf of the Government. Ninety percent of FNFP's income comes from taxes and royalties collected by DEFC. Therefore, although FNFP has been given finan- cial autonomy in theory, in practice it remains dependent upon the performance of the Government and DEFC in the area of tax recovery. Since collections have declined since 1978, FNFP has had to rely on supplemental payments from the Treasury. The technical performance of FNFP in executing plantations has also been inadequate mainly due to the lack of field experience among FNFP technical personnel as well as its management. The proposed project would provide considerable assistance to the strengthening of FNFP.  -8- 29. Government revenues from forestry come from: (i) two annual taxes assessed on concessionaires to support local Government and reforestation; (ii) a licensing fee for issuance or renewal of concessions; and (iii) royal- ties charged per m3 of wood either exported or further processed within the country. The collection of revenues has, however, been difficult, and it was estimated that by June 30, 1981, about CFAF 1.5 billion (US$5.6 million) of assessed taxes and royalties were unpaid. This is an amount approximately equal to the revenue actually collected in 1979/80. The Government has shown considerable concern over the inefficiency of its tax collection service and a special commission was appointed early 1981 to propose ways and means of improving tax collection. In response to this intensified effort, over US$1.7 million were collected between April and November 1981. It is expected that, with the assistance to be provided under the proposed project all arrears outstanding as of June 30, 1980 would be recovered by December 31, 1982 (Section 4.03(a) of the draft Loan Agreement). The Government has also under- taken to carry out tax assessments promptly, and to ensure collections within one year of the assessment (Section 4.03(b) of the draft Loan Agreement). Bank Involvement in the Sector 30. The proposed project would be the Bank's first direct involvement in Cameroon in a project devoted exclusively to the forestry sector. However, forestry components have been included previously in two rural development projects: the Western Highlands Rural Development Project (Cr 784-CM) and Northern Province Rural Development Project (Ln 1919-CM; Cr. 1075-CM). These modest efforts aim to promote small-scale reforestation and erosion control, as interim steps in the absence of capable forestry institutions in the areas. The Western Highlands component is being well executed, and provides some experience which would be valuable in the execution of the pilot village woodlot components of the proposed project. The Northern Province component has just begun. PART IV - THE PROJECT 31. The proposed project was identified by an FAO/World Bank Cooperative Program (CP) sector mission in February/March 1979. A follow-up mission took place in November 1979 and project preparation was undertaken by the CP in May/June 1980. The project was appraised in January/February 1981 by a Bank mission, with participation of the Commonwealth Development Corporation which had expressed interest in financing the Edea Plantation component. Negotia- tions were held in Washington from November 30, 1981 to December 4, 1981, and the Cameroonian delegation was led by Mr. H. T. Kima, Charge d'Affaires of the Cameroonian Embassy to the U.S. Details of the proposed project are contained in the Staff Appraisal Report No. 3448-CM dated December 22, 1981 which is circulated separately. Key events and special conditions are listed in Annex III of the present report.  -9- Project Objectives and Description 32. As its principal objectives, the project would: (a) expand the contribution of the forestry sector to the national economy through the establishment of about 11,000 ha of pine and eucalyptus plantations both in the tropical high forest and on the savannah; (b) strengthen Government institutions responsible for forest regenera- tion and for application of existing regulations for forestry taxes and royalties. 33. The proposed project would finance: (a) establishment of a plantation of about 5,200 ha of pines and 3,600 ha of eucalyptus in the Edea project site; (b) establishment of plantations of about 1,000 ha of eucalyptus in blocks and 200 ha in pilot village woodlots near Maga, to be undertaken by SEMRY and FNFP; and a plantation of 750 ha of pines and 250 ha of eucalyptus at Ngaoundere, by FNFP; (c) provision of 16 man-years of specialist services not currently available in Cameroon in areas of plantation management and finan- cial control for FNFP and SEMRY, to upgrade technical execution of reforestation programs; (d) (i) 12 man-months overseas specialized training of selected personnel; (ii) studies, including preparation of a possible follow-up project; (iii) services and material/equipment for the establishment of an FNFP tree seed unit; and (e) provision of logistical, material, and operational support for DEFC to improve its capacity for tax and royalties assessment and collection. Project Implementation 34. Reforestation. FNFP would be the executing agency for these com- ponents in the proposed project. Accordingly FNFP would submit annual work- plans and budgets to the Bank for approval by March 31 of each year (Sections 2.04 of the draft Project Agreement and 3.07 of the draft Loan Agreement). In order to strengthen FNFP-s capacity to carry out reforestation programs, the proposed project would finance the services of a Program Officer, a Project Accountant and a Plantation Manager, each one for four years (para. 37). These officers would be internationally recruited (Section 2.05 of the draft Project Agreement).  - 10 - 35. Since FNFP-s present capacity to undertake extensive field operations is limited, special arrangements would be made for executing the plantation programs at Edea and SEMRY (Sections 2.02 and 2.03 of the draft Project Agree- ment). (a) Edea. The Edea component would be executed by CELLUCAM on the basis of a contract to be entered into with FNFP (Sections 3.01(b) of the draft Loan Agreement and 2.02 of the draft Project Agreement). Under this contract, which will have to be revised by the Bank and signed before the proposed loan can become effective (Section 6.01(a) of the draft Loan Agreement), FNFP would initially limit its involvement to approving workplans and budgets prepared by CELLUCAM, and monitoring progress through an accountant stationed at Edea. CELLUCAM would, on the other hand, organize and perform tree plant- ing in coordination with their own felling operations. CELLUCAM would also provide support services including accounting, personnel management and on-the-job training of FNFP seconded staff. The contract would specify on one hand full reimbursement by FNFP for costs incurred by CELLUCAM, and on the other hand that CELLUCAM would purchase and cut trees at maturity, paying a stumpage fee to FNFP which would ensure full cost recovery, including an accept- able return on project investments. In view of the key role to be played by CELLUCAM in executing the project, a special event of loan suspension would be the failure of CELLUCAM to carry out its respon- sibilities under the contract (Section 5.01(c) of the draft Loan Agreement). (b) SEMRY. The SEMRY reforestation component would be executed in cooperation between FNFP and the SEMRY Forestry Division on the basis of an agreement between the two agencies acceptable to the Bank (Section 2.03 of the draft Project Agreement), and the signing of which would be a condition for disbursement for the component (paragraph 4(b) of Schedule 1 of the draft Loan Agreement). Under this agreement, FNFP would provide the services of an inter- nationally recruited forester to direct the SEMRY Forestry Division. The following specific arrangements would be made for these components: (i) Block Plantation: The SEMRY Forestry Division would select reforestation sites on the basis of a land-use study to be financed under the project, and carry out the planting program following annual workplans agreed upon with FNFP and the Bank. (ii) Village Woodlots: Farmers would receive free tree seedings and plots of prepared land, and would plant and maintain the trees and pay a stumpage fee when trees are cut at maturity. Village woodlot pilot schemes are essentially new to Cameroon. This subcomponent has therefore been modeled on successful schemes carried out in India and East Africa and provision has been made for short-term consulting services of a socio-economist who would analyze the development program to ensure that it can  - 11 - be successfully reproduced and expanded. No village woodlot would be implemented before FNFP has submitted an acceptable action plan (including suggestions on the formula to be applied to determine the stumpage fee) (Section 2.03(b) of the draft Project Agreement). (c) Ngaoundere. This component would be carried out by FNFP alone using existing staff on the basis of agreed annual workplans. DEFC 36. The program to strengthen DEFC's capacity to assess and collect taxes and royalties from forestry exploitation would be the responsibility of the DEFC Director. In addition to the equipment and vehicles needed to improve DEFC's performance, provision has been made for any technical assis- tance which may be required to improve DEFC's effectiveness (Section 3.04 of the draft Loan Agreement). Training 37. On-the-job training of personnel in the development of the proposed plantations would be the principal approach for the project's training com- ponent. The 50 FNFP engineers and senior technicians presently employed would be given the opportunity of working at either CELLUCAM or SEMRY during the five-year project period. A program to second FNFP site supervisors and foremen would be organized and monitored by the Director of FNFP with assis- tance of the project-financed Program Officer. The Project Accountant would be responsible for upgrading FNFPs accounting services. Up to about 12 months of specialized short courses held outside Cameroon for selected FNFP personnel, under training programs satisfactory to the Bank, would also be financed by the project (Section 2.06 of the draft Project Agreement). Monitoring and Evaluation 38. The Program Officer would establish a procedure within FNFP to monitor plantation operations as a basis for annual work planning, budgeting and evaluation. Enforcement of forestry legislation and regulations would continue to be monitored by the DEFC. The Director of DEFC would institute a pattern of regular visits by staff in the provincial headquarters for control and verification of forestry exploitation activities. In the third year of the project, a mid-term evaluation would be conducted by consultants. Recom- mendations of this review would be discussed by Government, FNFP, DEFC and the Bank, and would be used inter alia as a basis for preparation of a possible follow-up project. Project Costs and Financing 39. The total cost of the project (based on January 1981 prices) is estimated at US$35.5 million, including US$2.3 million of identifiable taxes. However, Government has advised that goods imported and purchased for the project would be exempted from import taxes. Foreign exchange costs amount to  - 12 - US$16.2 million or 46 percent of total project cost (49 percent of total project cost net of taxes). Physical and price contingencies account for about 44 percent of project base costs and are based on expected domestic inflation of 12 percent annually and international inflation of 9 percent in 1981, 8.5 percent in 1982 and 1983, 7.5 percent in 1984, 7 percent in 1985 and 6 percent in 1986. The average cost of long-term expert and short-term consultancies totalling 294 man-months, is estimated at US$10,900 per month including price contingencies (US$10,360 would cover salaries, agency overheads and fees, international transportation and living allowances, and US$540 would cover operating costs in Cameroon), and total US$3.2 million or about 10 percent of total project costs. 40. The proposed project would be financed by a Bank loan of US$17 million (51 percent of total project costs net of taxes), a loan from Common- wealth Development Corporation of US$7.4 million equivalent for the Edea Plantation component (22 percent of total project cost net of taxes), and a Government contribution of US$8.8 million equivalent (27 percent of total project costs net of taxes). The Bank loan would be made to the Government for 20 years, including five years of grace. The CDC loan would be made to FNFP on the same terms as the Bank loan and would be disbursed on a pari passu basis with the Bank loan in the ratio of 4:3 for the Edea component. The fulfillment of all conditions precedent to the effectiveness of the CDC loan would be a condition of effectiveness of the Bank loan (Section 6.01(d) of the draft Loan Agreement). The Bank loan would finance US$11.6 million of the project's foreign costs (US$16.2 million) and US$5.4 million of the incremental local cost for the Edea component, for strengthening DEFC and FNFP, and applied research in the form of improved tree seed production. Local cost financing is justified to maintain the overall Bank contribution at a level commensurate with the important institution building objectives of the proposed project, which would be the first Bank operation in the forestry sector. 41. The Government would transfer as a grant to FNFP all funds necessary to carry out the project components for which FNFP is responsible, including Government s own contribution. The establishment of separate project accounts for each of the project components with funds sufficient to finance about six months of operating costs (estimated at US$1.9 equivalent) to start up the project would be a condition of effectiveness of the Bank loan (Section 6.01(b) of the draft Loan Agreement). Procurement and Disbursement 42. Contracts of US$100,000 or more, principally for the purchase of heavy equipment, would be awarded through international competitive bidding in accordance with Bank guidelines. Goods and services so purchased are expected to total about US$5.2 million, of which US$3.3 million would be financed by the Bank loan. Purchases would be grouped whenever possible to derive maximum benefits from bulk procurement. Contracts below US$100,000 but more than US$50,000 would be awarded through local competitive bidding procedures; those for less than US$50,000 would be on the basis of quotations from not fewer than three reputable suppliers. Such contracts would be expected to aggregate about  - 13 - US$1.1 million, of which Bank financing would total US$0.7 million. Land preparation and forest track construction which must be closely coordinated with planting operations do not lend themselves to procurement through com- petitive bidding and would therefore be carried out on force account by the respective project plantation entities (US$2.9 million, of which US$0.8 million would be financed by the Bank). Small buildings, valued at US$0.2 million (of which Bank US$0.1 million), at Edea, SEMRY and Ngaoundere would also be built on force account. However, for the FNFP Seed Production Unit and DEFC components, building contracts valued at US$0.7 million (of which Bank US$0.5 million) would be awarded following locally advertised competi- tive bidding procedures acceptable to the Bank. All terms of reference, qualifications and contracts of the experts and consultants to be recruited in accordance with Bank Group guidelines would have to be satisfactory to the Bank. Contracts for 294 man-months of technical assistance with a total value of about US$3.2 million (Bank, US$3.1 million) would be placed in accordance with normal procedures for international recruitment. About US$18.2 million of project expenditures, of which the Bank loan would finance US$7 million, would be for incremental operating costs which do not lend themselves to bidding procedures and would be committed in accordance with established practices, which are satisfactory. Payments to be made to CELLUCAM for management services would be defined in the proposed execution contract between CELLUCAM and FNFP, and are estimated at about US$4 million, of which the Bank would finance US$1.5 million. 43. The Bank loan would be disbursed over about seven years, and would be applied as follows to eligible project expenditures: (i) 75 percent of the cost of vehicles, equipment and buildings (except at Edea where only 60 per- cent would be covered in view of the contribution from CDC) (US$4.4 million); (ii) 35 percent of plantation investments and operating costs (50 percent for the SEMRY plantation) (US$8.6 million); and (iii) 100 percent of foreign expenditures and 80 percent of local expenditures for technical assistance (US$2.8 million). US$1.2 million would be unallocated. Disbursements for most civil works, vehicles and equipment, payments to CELLUCAM for support services, and technical assistance services would be fully documented. Disbursements against planting costs, including local salaries, and for buildings included in the plantation components would be against certified statements of expenditures. Supporting documentation not submitted with withdrawal applications would be retained for review by Bank supervision missions. Accounts, Audit and Reporting Requirements 44. FNFP would ensure adequate record-keeping for the FNFP components while the accounting services of CELLUCAM and SEMRY, would handle their respective components. FNFP's consolidated accounts for the whole project would be subject to an annual audit by independent auditors with qualifica- tions and terms of reference acceptable to the Bank. FNFP and DEFC would submit quarterly progress reports to Government and to the Bank adequate for full supervision of the loan (Section 3.09(c)(iii) of the draft Loan Agreement and Section 2.09(b)(iii) of the draft Project Agreement).  - 14 - Markets 45. CELLUCAM would be the primary market for wood grown at the Edea Plantation. CELLUCAM would pay a stumpage fee for the plantation-grown trees as determined in the execution contract with FNFP; the fee would be set at a level sufficient to assure FNFP of recovery of the full cost of planting and maintenance, and to yield a positive real rate of return after accounting for inflation (Section 2.02(a) of the draft Project Agreement). The market for fuelwood and building materials in the Northern province is expected to grow at about 5 percent a year, which is likely to create incremental demand for 30,000 m3 of wood in the SEMRY area and upwards of 72,500 m3 of wood in the Ngaoundere area. Therefore the incremental production of 14,000 m3 at SEMRY and 57,900 m3 at Ngaoundere should be readily absorbed at prices sufficient to allow Government to fully recover establishment and maintenance costs. Benefits and Risks 46. The 11,000 ha plantation program would result in: (i) an average increase in annual production in the wood-scarce Northern Province of 19,000 m3 of wood after six years, increasing to 26,000 m3 after 15 years; and (ii) an average annual production of 330,000 m3 of uniform pulpwood 15 years after project inception at Edea for the use of CELLUCAM. The supply of plantation- grown pulpwood would reduce CELLUCAM's harvesting and pulping costs by 33 per- cent and 20 percent respectively. The production of improved seed would provide about half of the seed required for future FNFP plantation programs. The two principal forestry sector institutions would be strengthened, estab- lishing the basis for better long-term management of forestry exploitation, and sound regeneration of forests. Finally, the pilot program for individual village woodlots, an approach which holds one of the keys to reversing the continual degradation of dry-zone forestry resources in Cameroon, would yield important results for the design of such efforts oni a larger scale. 47. The project's economic rate of return is estimated at about 14 percent or 88 percent of the project costs. This rate of return is only moderately sensitive to changing assumptions concerning the future value of pulp and pulpwood, delays in program implementation and yield variations. Even with combination of these factors which would increase costs by 20 percent or reduce benefits by 16 percent, the economic rate of return would still be an acceptable 12 percent. 48. No major risks have been identified which threaten the success of the proposed project. Normal risks of fire in the arid zone plantations and of plant diseases have been adequately dealt with in project design, and provisions have been made to assure normal protection. The planting tech- nologies proposed have been used successfully in several West African countries with similar arid and humid zone conditions. 49. As indicated above, CELLUCAM would be the primary market for planta- tion-grown wood financed by the project. In the unlikely event that CELLUCAM did not buy the project plantation wood, the pine and eucalyptus grown would  - 15 - find international and domestic markets as wood chips, sawn lumber, and transmission poles. Although these options would be less advantageous, they would still allow Government to earn a return sufficient to recover costs, and a real rate of return on investment of about 2.5 percent. PART V - LEGAL INSTRUMENTS AND AUTHORITY 50. The draft Loan Agreement between the United Republic of Cameroon and the Bank, the draft Project Agreement between the Bank and FNFP, and the Report of the Committee provided for in Article III, Section 4 (iii) of the Articles of Agreement are being distributed to the Executive Directors separately. Special conditions of the project are listed in Section III of Annex III. 51. Special conditions of loan effectiveness would be the fulfillment of all conditions precedent to the effectiveness of the CDC loan (para. 40); the signature of a contract between CELLUCAM and FNFP specifying arrangements for the execution of the Edea Plantation (para. 35(a)); and establishment by Govern- ment of separate accounts for each of the project components with funds suffi- cient to finance about six months of operation costs for these components (para. 41). 52. A condition for disbursement of the SEMRY component would be the signature of an agreement between FNFP and SEMRY specifying the arrangements for executing this component (para. 35(b)). 53. A special event of loan suspension would be the failure of CELLUCAM to carry out its responsibilities under the contract with the Government and FNFP (Section 5.01(c) of the draft Loan Agreement) (para. 35(a)). 54. I am satisfied that the proposed loan would comply with the Articles of Agreement of the Bank. PART VI - RECOMMENDATION 55. I recommend that the Executive Directors approve the proposed loan. A.W. Clausen President by M. Qureshi Attachments Washington, D.C. January 18. 1982   ANNE' I - 16 - Page I Page 1 of 7 TABLE 3A CAMEROON - SOCIAL INDICATORS DATA SHEET CAMEROON REFERENCE GROUPS (WEIGHTED AVERGES LANU AREA (IHOUSIAl SO. MEO) - HoST RECENT ESTIHATE) TITAL 475.4 MOST RECENT MIDDLE INCOME MIDDLE INCOME AGRICULTURAL 156.9 1960 /b 1970 /b ESTIMATE lb AFRICA SOUTH OF SAHARA LATIN AMERICA & CARIBBEAN 9NP PER CAP1IA (USS) 140.0 230.0 560.0/L 794.2 1616.2 ENERGY CONSUMPIION PER CAPITA (EIWGRAHS OF COAL EQUIVALENT) 86.9 111.3 147.5 707.5 1324.1 POUPLATION AND VITAL STATISIlCS POPULATION, MID-YEAR (THOUSANDS) 5680.7 6781.3 8245.0 URBAN POPULATION (PERCENT OF TOTAL) 13.9 20.3 33.0 27.7 64.2 POPULATION PROJECTIOUNS POPULATION IN YEAR 2000 (MILLIONS) 13.8 STATIONARY POPULATION (MILLIONS) 37.0 YEAR SIATIONARY POPULATION IS REACHED 2130 POPULATION DENSITY PER SQ. KM. 11.9 14.3 17.3 55.0 34.3 PER SQ. EM. AGRICULTURAL LAND 36.0 44.0 51.3 130.7 94.5 POPULATlON AGE STRUCTURE (PERCENT) 0-14 YRS. 38.9 40.5 41.5 46.0 40.7 15-64 YRS. 57.0 55.4 54.4 51.2 55.3 65 YRS. AND ABOVE 4.1 4.1 4.1 2.8 4.0 PUPULATION GROUWIH RATE (PERCENT) TOTAL 1.4 1.8 2.2 2.8 2.4 URBAN 4.9 5.6 7.6 5.1 3.7 CRUDE BlRTH RATE (PER THOUSAND) 42.8 42.0 42.3 46.9 31.4 CRUDE DEATH RATE (PER THOUSAND) 26.8 22.0 18.7 15.8 8.4 GROUS REPRODUCTION RATE 2.8 2.8 2.8 3.2 2.3 FAMILY PLANNING ACCEPTORS, ANNUAL (THOUSANDS) USERS (PERCENT OF MARRIED WOMEN) .. .. FOUD AND NUTRITION INDEX OF FOOD PRODUCTION PER CAPITA (1969-71-100) 89.0 101.0 110.0 89.9 108.3 PER CAPITA SUPPLY OF CALORIES (PERCENI OF REQUIREMENTS) 80.0 89.0 89.0 92.3 107.6 PROTEINS (GRAMS PER DAY) 43.0 51.0 51.0 52.8 65.8 OF WHICH ANIMAL AND PULSE 11.0 13.0 15.0 16.1 34.0 CHILD (AGES 1-4) HORTALITY RATE 41.0 31.3 25.4 20.2 7.6 HEALTH LIFE EXPECTANCY AT BlRlh (YEARS) 37.2 42.5 46.9 50.8 64.1 INFANT MORTALITY RATE (PER THOUSAND) 172.0 .. 157.0 .. 70.9 ACCESS TO SAFE WATER (PERCENT OF POPULATION) TOTAL .. .. 26.0 27.4 65.7 URBAN .. .. 35.0 74.3 79.7 RURAL .. .. 22.0 12.6 43.9 ACCESS TO EXCRETA DISPOSAL (PERCENT OF POPULATION) TOTAL .. .. .. .. 59.9 URBAN .. .. .. .. 75.7 RURAL .. .. .. .. 30.4 POPULAIION PER PHYSICIAN 48108.3 30139.0 16503.1 13844.1 1728.2 POPULATION PER NURSING PERSON 6151.Ojd 2869.8 2228.1 2898.6 1288.2 POPULATION PER HOSPITAL BED TOTAL 535.7kd 563.0 370.1 1028.4 471.2 URBAN 329.0jd 302.0 199.9 423.0 558.0 RURAL 579.0/d 722.0 606.5 3543.2 ADMIbSIONS PER HOSPITAL BED .. .. HOUSING AVERAGE SIZE OF HOUSEHOLD TOTAL .. .. 5.2 URBAN .. .. 5.1 RURAL .. .. 5.2 AVERAGE NUMBER OF PERSONS PER ROOM TOTAL .. .. URBAN .. .. RURAL .. .. ACCESS TO ELECTRICITY (PERCENT OF DWELLINGS) TOTAL .. .. 6.7 UKBAN .. .. 22.6 RURAL .. .. 0.5  ANNEX I - 17- Page 2 of 7 Page 2 TABLE 3A CAMEROON - SOCIAL INDICATORS DATA SHEET CAMEROON REFERENCE GROUPS (WEIGHTED AVE A ES - HOST RECENT ESTIMATE)- MOST RECENT MIDDLE INCOME MIDDLE INCOME 1960 /b 1970 /b ESTIMATE /b AFRICA SOUTH OF SAHARA LATIN AMERICA i CARIBBEE EDUCATION ADJUSTED ENROLLMENT RATIOS PRIMARY: TOTAL 65.0 91.0 101.0 73.7 101.7 MALE 87.0 105.0 112.0 96.8 103.0 FEMALE 43.0 77.0 91.0 79.0 101.5 SECONDARY: TOTAL 2.0 8.0 16.0 16.2 35.3 MALE 4.0 11.0 21.0 25.3 34.9 FEMALE 1.0 4.0 11.0 14.8 35.6 VOCATIONAL ENROL. (X OF SECONDARY) 23.0 23.0 25.0 5.3 30.1 PUPIL-TEACHER RATIO PRIMARY *- 48.0 50.0 36.2 29.6 SECONDARY .. 24.0 26.0 23.6 15.7 ADULT LITERACY RATE (PERCENT) 19.0 12.0 .. .. 80.0 CONSUMPTION PASSENGER CARS PER THOUSAND POPULATION 3.0 4.9 7.7 32.3 42.6 RADIO RECEIVERS PER THOUSAND POPULATION 3.0 31.3 30.5 69.0 215.0 TV RECEIVERS PER THOUSAND POPULATION .. .- .. 8.0 89.0 NEWSPAPER ("DAILY GENERAL INTEREST") CIRCULATION PER THOUSAND POPULATION 2.0 2.5 3.9 20.2 62.8 CINEMA ANNUAL ATTENDANCE PER CAPITA 0.1 .. 1.0 0.7 3.2 LABOR FORCE TOTAL LABOR FORCE (THOUSANDS) 2906.9 3299.2 3701.7 FEMALE (PERCENT) 43.0 42.7 40.6 36.7 22.6 AGRICULTURE (PERCENT) 87.0 85.0 83.0 56.6 35.0 INDUSTRY (PERCENT) 5.0 6.0 6.9 17.5 23.2 PARTICIPATION RATE (PERCENT) TOTAL 51.2 48.7 44.9 37.2 31.8 MALE 59.9 57.0 54.3 47.1 49.0 FEMALE 42.9 40.6 35.8 27.5 14.6 ECONOMIC DEPENDENCY RATIO 0.8 0.9 1.1 1.3 1.4 INCOME DISTRIBUTION PERCENT OF PRIVATE INCOME RECEIVED BY HIGHEST 5 PERCENT OF HOUSEHOLDS .. .. HIGHEST 20 PERCENT OF HOUSEHOLDS .. .. LOWEST 20 PERCENT OF HOUSEHOLDS .. .. LOWEST 40 PERCENT OF HOUSEHOLDS .. .. POVERTY TARGET GROUPS ESTIMATED ABSOLUTE POVERTY INCOME LEVEL (US$ PER CAPITA) URBAN .. .. 238.0 381.2 RURAL .. .. 105.0 156.2 187.6 ESTIMATED RELATIVE POVERTY INCOME LEVEL (US$ PER CAPITA) URBAN .. .. .. 334.3 513.9 RURAL .. .. .. 137.6 362.2 ESTIMATED POPULATION BELOW ABSOLUTE POVERTY INCOME LEVEL (PERCENT) URBAN .. .. 15.0 RURAL .. ., 40.0 Not available Not applicable. NOTES /a The group averages for each indicator are population-weighted arithmetic means. Coverage of countries among the indicators depends on availability of data and is not uniform. /b Unless otherwise noted, data for 1960 refer to any year between 1959 and 1961; for 1970, between 1969 and 1971; and for Most Recent Estimate, between 1976 and 1979. /c Fiscal year July-June; /d 1962, including ex-South Cameroon under British administration. May, 1981  ANNEX I - 18 - Page 3 of 7 DEFINITIONS OF SOCIAL INDICATORS Notes: Aithoogh the dat aedrn Rrnsucsgnrlyjded the motsnoltttead reliable, it ehonid also be noted thee they ma both Icc otca1c:eaitbcueo h oc fssdtle dtoticosl and concePts nand hy dtyrfrent -00r e t -oting the date. Tedt ae es ehtess, usfu Cu.. dbacrib- ordc f magnitude, lo. dic trns ted etrie ratmao ife Ice he.ee cou..to..s. The refeenc ropt ar 1 he a..m .. cntry o-op oP nit aohj.oc cootoy ned (2 (a coutry gtoof utih soseehon higher -rerog incee than the .nuetey genap ofthe beoh)eo coutry (euef fn. CaiaElric i -yrers grop obe- 'Middle ..ccee SNeth Afeica ad riddle Past" is chosen bcsegsneger Itce-uhurl otfinIties) .Intecgroogopdt the-puo-agos ar Paplatis weighted actshmoeto onsPo ouch idiaorad ho.- only ohe iaoetyof t_heIonre o ro hsdt c hnidica: . c the o,uo-ge of councei- -og tho c-dic-or. depeoda co the urilability of dons and i ntuiform,t cauio no.h n ie in .elain ourae o oe indtca tor ,a,hec. ot suerue ac ollY useful it coparing the come or one indicator. a a ifue ong the country end referec .. noy LAND ARIA (thousan.d q... Foyn.luion per (capitl. led - tot1, uhan, end rura - Popuation (total, Total - Tota1.lfsuet ac asocepiu ladornad tolen~d n-tors obon, and Io) dividedtby thioerepe tieohro hsialbd ARig -Iroler1 - Es. a f gIcoitonorsed Ismo-P. l orp-r Wsly uillanpbicond poluate -eral d specialteed hoapiet1 andes for cr Ps, tasree, market and kilhie gndeos or to Ito fallen; 197h dar. hbltioncnes.(oyti or eaeblithb-eaPnn - peontly craffted by at feast Ine phystilat.. Emtobts t pro-idieg priecepaily rsn 15F EDCAIT (o IP eecait er snasatcocec aronprce, al dial onto are tc n Iladed. oot hopeI ,htnr,lruehat miste.d by cm courl ehod as Word Sailt auto (1922-P hosts1); 196,and mdiacotstepe rmaentysafdb a1 phylotin (hur bya 19 70, and 1970 data. ndiciasitn, nese, midelfe. etc-) hich offertn-aioatf durtue sod proolde o limited range of medical facilities. Foesars ENERGYf CONSl(IMTION Pit CAPITA - nnA-I... cneption of comeecc1nle.eogy (col tlcol purpoe ... h.b hosptnel include WRRs1 principall/genera hospf.eals ad 1itgnitt, petoo.e.., naturo Ia std b.ydre-, nucea and georherol elec- adrrlh pIte I h.a r ua hopItal and eita and maeoty te Itcy) to kilIogeI. of coal equi-I-en per cpi-; 1960, 197i id 1979 leere ipeciulieed hospitals are irilad.d only nader total. data. Adeleeospe.fsla e - Total nub. of dmiasines to or discharges frue hospitals divided by nth nuber of beds. PSPUIATIfN SND VITdAL STATISTICS Total Popnlaico, Mid-Tearfh ad)-As of JuLy 1; 1962. 1970, nud 1979 fOOsiOC Urhgn Ppnoition (percene of Itota) -Faco of nobuo to tono1 population; A hnshoId cilstof agru of. tudinidua eho share livuig q-u-e different eftotetoo no .ca oct.. ma p ffect _ospnbitliy tof dsta and nisirmtte . A cee r egrmy or mayntb included It aengnutree 1960, 1970, ned 1079 data. the hcuaehId lc stuteclpepts Poaltian P.enjeoi.. useage numberoIesn e e t -total urban, sod -el-Aetg an Pnrulation it roa lot- uratpooac0 -rjcIoae oe en tt I ho of per_o prn oo ir nil _ra,admelncps nastia ttlpopulatlu by age an olned theic -aaiy sedfeeitry rae.dellgs .epro ti-ly. Dsanlliogs telode etptmtetrueaaad Projooltion p-r-mln tot1 etnuilty toe -oprise of theselerlnasea- anicuped puoa. tog life ennanyenhln t ocorasI.. tug etch toounr'spt cpita num Aocessoilciice (o _ ec... ofd.t ns el.nhn e ua level , ard femle 110. erupoct...y atabilistog at 7.5 ymca.. The pr-Conveoir.o.ni drelliag nith seetlcity ii irn qures -5p tosga meters foe fertility Imet uiao hare three lends esn..mlag decline it nftofat, urban, od mIn. d-ellingeee-p-nir-ly. Fer tytllpatoodieg cc iocode ler1 and past family Plonning ptoen loch co-tey is Iben -nigeed ooe of nh.e. nine combin-ncra of morIlt1ty EDUCATION Stattrypylcitlatsi-c...rp popu.innio rhete in nogoet tc Poian uchool- toalmltad femal - Cross total, male and feml the birthrt I.t.i equa tc the death rat, end elan ttnaesrcu e es s ro l ges at tbo primary le-1 s acetgaof es..p.ctire mao Inso tiruo. This In achir-d only after fertilitytoe decline cc primary schol-age poPulaIons..; noe ly iuoudes childre aged 6-il the replacemet mul of nunl net reproduonti. rate, oh. ...eah geo..ratiun ..ar Ibunt adjusted for diffetee lengths nof pl-ny edoostion; fee ofumtt tlcaierfoaey.The 'nt"iotar pop Iao aie as co J.ee itnh I un Ioo educa.tionruolmt map ...osd lOt pseoat estao nthebssfcspoeca chrcorsis ftepopularlor s-toc aunt .ppla er belo or about the official arhunl an.. in the year 2000, and ebe rate if decline of froriliIryeatrcore-plon- leonudey sob"o - "onl mal ed female _-.tspate as shr;b enda met -eel. tdiatto esquiresan leas.t tone yee f a.ppee-d pefat tstto Pear stationaey pupul.ine- in reached - The yea whar ataion-ny popuLari-e prov,ides geneal,ro efal, or teso.har -ealtgiaeotu foepipll sira has bee macbe.d. - sall of 12 to 17 ysars of age; cn_epodsn..rors . are enselty 1Pooltinlenr seclded. Per sq. bi.. - Mld-yntr Popu1ution pet sqance notet(1Sflcurs0f Ouc-I-uu oolen ceaio as-ild...l - '.o.tiunl taslist-s ttonal aea 1960. 1970 ad199 dora include techoll industrIl neoce Prormtnlb rrn independ- Per sq. fm utolaaiod- Coceputd at ohocs for egrlcultul lanI d etyousdepunmor cf s...nod-trI eaitutinne. only; 1960, 1970 and 1976data. Pnoil-tea-hso renio - pri--ry and secondary - TeeI1 sed entn enrolled in PPoyatlento hAs teutne trtse)- Children fl-iC years), -ctkie-age (15- peisaty and --udany Iorela dinided by -thne of tsIeral in the iipnr) and teited (65 yearn sndue) am p-etnenusa of sid-ye.. pnpu -corresponding lerein lin;190 17 ,sa 197 dta Adult lit-ray runs feeirn) - Liteat adults (shin to read and write) iouano .roeh FaIn foorcent) -ennui - Annual g-thwbse of teto1 eid- esprcetrage of tonal adult populatins aged 15 yeses a ad n-r. yea oynlcino or195-6, 11070,an 190-79 Porulanion Geo-tb Fae pecet - urban - A.oon1 gto-h catta of urban pops- CONSUMPTIION ltosf or 1950-60, 1960-70, and 1970-79. P.s..ng.a Cars (per thousand populatinaf - Passsg-r oars coeprias man- Crude BIrth Fats fpre ehoussod) - Annual liro bilthbs pat tho...sed of mid-yssr ..r. ..tiog irn ha _ih esos rludes aibu1s..... hearss ed yapuintion; 1960, 1970, sd17 d ot,mltr eils Crd eth Fte tyne thousand) - Annni deaths pee thnaenncds of old-year Fadio Rr-i-sre free theuand prprulirton - All types of eetefae radio ppoplation; 1960, 1970. n 97da. hbo-d-asn to gs...a .1publit per thousan.d ef popalasion; ..oildssso GInes eRaodu,.ieo ate -hostage nuthe ofdagtoawmnIl bear it licensed receivers in . coutries aad In years thee egisteIs e. ra dio hen normarprdutiveperiod if ohs neperinra preset ag-proif in Ien- sets va in erc; tan for eet ersmy not ha upatabln stun ntilty runes;uulyf-Cu-year -rneges ondieg in 1960,17,ad99.ms rotfre atisn lo ...sg Femur plannine- Ac.roots.Aia thuea). Anuln et cfureeonTinfclve 'tee thosn rerul1arion) - TV receiver for broado...t Ca of birtb-ceotrol device srdr a-pise. of nanlonal family piaoing pnogrn- goenipublic per Heuan pouato; eldeauolloe....d FTV r.rstuses P55Cm I . Fries - Pasts frre_.toef maried nuse) - Percen tage of maried itcunelo od in yenra whenerinetinof TV .tee sea in affeot. una of child-b earing age (15-44 yasre) h. nue bilte.-c.nneol dorce noL-swaare Cirolalo (ear thoasand p-nlathnL, - Shoss Ohs.rrgnt all maried woa in -am age genup. alneto of_daily . gsalIteret eppa"*datfined as pe iedlra pablictlndevoted prI-arIly to r...oeding gents news. It Cs ..e.side...d FfOO1 ANDi NUTRITION tobe "d y' if it appess at leas t rose tnnssb In,den of Food Production p. CapIta (1969-71el100 - loden of per cspito annual. Cinem hannl Attendance Per Capito p Teen- Bha.edon the s-mte en frdco 0r al food cusesditits. Peodoclnt noudeted n feed nod tiohets told during the yans, inclading tdm.issnn t drire-ia nias- Ici. calndr ea hsis. Co-odictse curer primety sud (e.g E-.. auecaead mobile units Instead of sugar) hioh are edible and contait nutrients (e.g. coff.. and teaor soIuded). Aggregane production of each coa..ry Is b...d en LABOR FORCE nat'rl, aeospuns prtoscaights; 1961-65, 19710, and 1979 datu- Tonl Labor nrce__(thn....nds( - footmicaIlyp active ses isolsdftg Pet cacita eupri f c-lo-t- (Pecan-o rnimnc)- Computed fine armed fuea no...d unmploynd hut enluding ha srs tudents, ste., nonegy eqoinalent of ne-food sple avilable ince--rry Pen capica `oveisg opula1tion of all agn. lDetiniti.. In u-s0ous utre e pee day. Available nuppliescoprs dnomest productolo, ispore lots sot noepar-bie; 1960, 1970 and 1979 date. np_rts, and changer In eroch. 71st auplisooad uninl feed,.seds, Fem%le o-teot - Femal Iehor force as peccetege of torel labor tot. qnoctitlea used In food iroatg, ad lossi. di-etibunion. Requ1ce- AsUlciruo froet) - Lehon facI namn g. .f.rrtny, butting sad ment Cs er intimated hr PAO tamed o physiolo gical ned for norma acti- fishing . aspsenrsgs of total labor foot; 1960, 197 end 1979 data. viy and bolth cons.idering svrom.na eperanu-, bdy e-igbt, age Industry (cr-cso, - Labor forte tn mining, losotru-tio,mnfs ig and -n diaribution of population and alionOng if p-er..o foonse t. end ale-tricity, water and gas as percentage of itel. Iao f errs; 1960, ht..a.hold leve; 1961-615, 1970, an 1977 data. 197 0 end 1979 darn. fernsPi,. aurpir of P,oi f grams Per day) - Prnlo onean of pee capita .atoytu aetecoi-ttl ae n female .- P tipt'tieno ner supply of foodprdAy. yt eupply of Pood Is defined as obeys. Is- ste itnl earntar oemstd as tel mate, ne feal au ns quinenr Fo al outriesotbiiehnd by USDA pro-idn fee minimu arnan fttl mi n el naetr fsiae epot alwneof 60 grams of totalprtenper day end 20 goums of an-Imalsd 1969, 1970. end 1929 data, Teasur hgas.d n- tIgO pestiolpatie res pulse protect, nt whIch 10 grums ahnuld be neinaI protein. Thes. eoasd- refiernio8s age-se .tr-rurs of the .popletlio, end ba.g time treed. A anImal enrote s nsceege fo the moid, proosed b PIAO in the Toted Onsmn-rerc ui am o eusl udes 10 sad. 65 ted noe Worl1d Pood nanny; 1961-65, 1970 and 19277dt.t h t oItal blabrfuec Per .eits protein supy rm ol and pulseV - Peoenspply of food de- rhivel d font enimoe and P.sts in frame P.t dy; 1961-65 90ad Fyas ltNCfnf DITIBiiniIoN ChId.Asts 1-4) fInreelity gate (pee than...ud) &-.nnul deaths Per thanesAd to Perr...etgo of rei-ane In-s (both to cash sod kied) reeve by rIchest aegoP 1-0 yr. toIhildren in thia age group; f5 orms developing cn- 5 Perce.r rihet09 Pelceon 20rnt percent, end p tre iF norent reins darn derIved felt lfs toblrn; 1960, 1970 and 1979 date. ohnsholis. HEAdLTH POVERTY TARGET GROFIJP Lii , leptota... no~, g6irtlh.d(moos) - Art-e nuber of yenta oP 110. e emining The.s. non esimtst very apprnisate msutnipovetyle ls en bIrth;1960, 197 and 197 daa o hndh nepreted etCh ....sidsoablecol Inan.t mortality Fael (cer thousand) - Annual doatha of inf.oloc nnd-on yea tomrd Abslue PvryOtt ee 09trarc)-ra n ua Acesf n SaeWte ioeeo fypuat n-hoa, Ao,so ua -Pss EutrictdeAbellydqtt. ie Ie s tPlnt-fond assitset in ant bee of people (trot1, uronb,an.d _tona)with rtasonblt urcees to safey . iIp.-.. .- rrraply (includes treated turf s I ueno _ttrotnd but u_cnnr.mIntd oft ftod Ri.1--F11yI--L. 1 - ,i, b d- Istmoedbeutt _ ctnn incom_ level iPS t eo cria _t i Rhe maP rra eater such as that f eon prtectetd hoehalsm, mprings, and sanitary Oslln Rura tl-rin-v povryIcm ee aoethr t eusprap pererges of thoir respertiv- populationa. Inunur-banaroan.pobjitt fuati oraadotlctd tot mor tha 20 meer tsIoue mar be perseoul inco of the toune. Irba lou1 is derived ftre the rural onsdee ntbeing nirhin resnbe reeo.ia os. nttlataee rich adjottert for hnbar tes..t of lining it -ebm ten d "-~~~~~~~~~~~~~~~~~~~Otimtd Foyulano Sen pbsoloet. Porbrn Com eelfdtnt essonebir nooses mould imPly thatlthn ho-sifo,h. on mebee of th han-shLd anod rural-PFer ero potten vano and ura) wh.oare "absolute dorthrtc pe a I dlryccporftoist partoftedy innthigt0 he fantly neare needs. Allnssntuoret 'Poon troNott ofooroltto- -ru.1 urbun soder- Nume f`eb (oe, oa, and total) str-ed by -norta dispons.aI pretgsof the ic nesp-oti-epo atas. -rton disposal may Incud tho oslisonion enS disp,1rel, mtt or nithout t--o...t, of humn- trt sA _ate-aerb e te-_ rne_ yIten oo abs nan of pin petniei andcinMIJ ftonor and Suniu1 Data Division -dy it 1,~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ra O Peenlation osr Fhrsiciss - Popuienion divided hy number fpetco physi- My18 casquiid frt. a madinal ecolh t unvni_ty er P..slatins retNuetsPno ouaton dividedby-uber of peo-cititug male and fem1i graduate ....... pra-tinsnrss and ass istantcus.  - 19 - ANNEX I Population: 8.4 million (mid-1980) Page 4 of 7 pages GNP per capita: US$668 (1980) cl UNITED REPUBLIC OF CAHEROON ECONO9IC INDICATORS(l) /a 1972 1973 1974 1975 1976 1977 1978 1979 1980 NATIONAL ACCOUNTS (IN CURRENT CFAF BILLIONS) GDP at Market Prices /b 355.9 400.5 492.6 569.7 657.3 789.9 945.8 1,135.4 1,356.2 Gross Domestic Savings 45.3 59.6 109.8 85.9 101.2 162.7 197.1 221.0 281.7 Pross Na ional Savinss 3.6 5QQ 94.4 69.7 6 146.4 -111 1.7 257.5 Current count alance _4.0 _ 0.3 _08 -7 -24 -16.2 -580 -22.3 Exports of Goods and NFS 80.9 90.6 132.6 138.9 156.8 202.6 296.0 314.8 384.2 Imports of Goods and NFS -98.5 -101.7 -118.4 -156.4 -173.4 -218.8 -295.9 -355.6 -383.9 (As I of GDP at Market Price) GDP at Market Prices 100.0 100.0 100.0 100.0 100.0 1000. 100.0 100.0 100.0 Gross Domestic Savings 12.7 14.9 22.3 15.1 15.4 20.6 20.8 19.5 20.8 Gross National Savings 10.3 12.5 19.2 12,2 12.7 18.5 17.6 16.6 19.0 Current Account Balance -6.8 -4.5 0.1 -5.4 -4.1 -3.0 -1,2 -5.1 -1.6 Exports of Goods and NFS 22.7 22.6 26.9 24.4 23.8 25.7 31.3 27.7 28.3 Imports of Goods and NFS -27.7 -25.4 -24.0 -27.5 -26.4 -27.7 -31.3 -31.3 -28.3 (Annual Real Rates of Growth) GDP at harket Prices 2.6 5.5 11.1 -1.7 5.0 8.0 7.3 8.5 8.5 GROSS VALUE ADDED BY SECTOR (In Current CFAFBlillions) Agriculture incl.Livestock etc 111.7 126.7 154.7 193,7 22048 259.7 297.7 359.2 404.4 Mining 0,8 1.2 1.8 2.3 2.1 3.2 7.3 23.2 52.6 Manufacturing 38.3 40.4 45.6 56.2 67.5 74.7 89.4 101.9 123.0 Construction 13.7 15.9 19.4 21.6 28.6 42.2 46,8 68.0 84.4 Electricity, Gas, Water 4,8 4.8 5.3 5.7 6.7 10.1 11.7 14.3 16.8 Transport and Coaeunications 26.4 31.9 40.1 49.3 55.1 57.7 65.9 77,6 90.0 Trade 77.3 81.0 88.1 93.9 107.1 126.9 159.7 183.4 202.3 Public Administration 32.6 33.0 34.4 43.6 45.1 56.2 67.7 90.4 108.2 Other Services 37.6 51.9 84.7 81.0 87.0 111.6 139.2 152.6 204,4 Import Duties 12.7 13.7 18.5 22.4 32.9 43,1 54.6 61.4 68.1 (As X of Total) Asriculture incl.Livestock etc 31.4 31.6 31.4 34.0 33.6 32.9 31.5 31.6 29,8 Mining 0.2 0.3 0.4 0.4 0.3 0.4 0.8 2.0 3.9 Manufacturins 10.8 10.1 9.3 9.9 10.3 9.5 9.5 9.0 9.1 Construction 3.8 4.0 3.9 3.8 4.4 5.3 4.9 6.0 6.2 Electricity, Gas and Water 1.3 1.2 1.1 1.0 1.0 1.3 1.2 1.3 1.2 Transport and Comsunications 7.4 8.0 8,1 8.7 8.4 7.3 7.0 6.8 6.6 Trade 21.7 20.2 17.9 16.5 16.3 16.1 16,9 16.2 14.9 Public Administration 9.2 8.2 7.0 7.7 6.9 7.1 742 8.0 8.0 Other Services 10.6 13.0 17.2 14.2 13.2 14.1 14.7 13.4 15.1 Import Duties 3.6 3.4 3.8 3.9 5.0 5.5 5.8 5.4 5.0 US $1.00= CFAF 265.0 241.0 230.1 222.4 225.1 248,0 239.0 216.7 209.2 (Period Average) SOURCE:Data supplied bv the Cameroonian authorities with reclassification by Staff. /a Fiscal Year (Ju1Y 1- June 30) is used with End Year shown in the table. /b FIsures for recent sears do not correspond exactly with the sum of gross value added bv sector shown below because updated sectoral data corresponding with the revized GDP figures shown are not vet available. /c Unrevised. WEST AFRICA CP2B 01/11/82  - 20 - ANNEX I Page 5 of 7 pages Population: 8.4 million (mid-1980) GNP per capita: US$668 (1980) d/ UNITED REPUBLIC OF CAMEROON ECONOMIC INDICATORS(2) 1973 1974 1975 1976 1977 1978 1979 1980 GOVERNMENT FINANCE SUMMARY /a (In CFAF Millions) Current Receipts 59,308 67,895 83,370 98,763 120901 162,331 200,761 218,865 Current Expenditure 50,590 58,600 70P898 78,872 95,132 118,902 128,749 1429347 Current Surplus with adjustments 8,718 9,295 12,472 19,891 25.769 43.736 57,954 76,518 Capital Expenditure 12,951 14,293 18,929 26,246 32,343 45,275 53,846 58,481 External Assistance (Net) 900 481 -993 -2,305 12,022 2,997 -5,774 17,227 (As Percentage of GDP) Current Receipts 14.8 13.8 14.6 15.0 15.3 17.3 18.4 16.6 Current Expenditure 12.6 11.9 12.4 12.0 12.0 12.7 11.8 10.8 Current Surplus (or deficit) 2.2 1.9 2.2 3.0 3.3 4.7 5.3 5.8 Capital Expenditure 3.2 2.9 3.3 4.0 4.1 4.8 4.9 4.4 External Assistance (net) 0.2 0.1 -0.2 -0.4 1.5 0.3 -0.5 1.3 MONEY, CREDIT AND PRICES /b (In CFAF Millions-end Period) MoneY and guasi-soneg 70,328 949458 105,688 132,482 183,496 212,314 260,088 315,416 Band Credit to Government 3,B00 5,221 6,368 8,691 13,125 16,595 19,389 26,681 Bank Credit to the Economy 67,701 87,914 111,444 142,486 204,590 266,820 323,750 416,613 Percentages or Index Numbers Monei I Quasi-aonen as X of GDP /c 17.6 19.2 18.6 20.2 23.2 22.7 23.8 23.9 Yaounde Consumer Price Index /a (1970=100) 124.8 143.3 168.5 185.0 206.8 237.4 259.1 279.1 Annual Percentage Changes in: Yaounde Consumer Price Index 7.3 14.8 17.6 9.8 11.8 14.8 9.1 7.7 Bank Credit to Government 8.4 37.4 22.0 36.5 51.0 26.4 16.8 37.6 Bank Credit to the Economg 15.4 29.9 26.8 27.9 43.6 30.4 21.3 28.7 SOURCE:Data supplied bv Caeeroonian Authorities with Bank Staff estimates and reclassification. /a Fiscal Year (Julg 1-June 30) is used. Year indicates the end sear for each fiscal sear. /b Civil Year is used. /c GDP is for Fiscal Year, /d Unrevised. WEST AFRICA CP2B 01/11/82  - 21 - ANNEX I Page 6 of 7 pages Population: 8.4 million (mid-1980) GNP per capita: US$668 (1980) a/ UNITED REPUBLIC OF CAMEROON ECONOMIC INDICATORS(3) /a 1972 1973 1974 1975 1976 1977 1978 1979 1980 BALANCE OF PAYMENTS (IN rILLIONS CFAF) Exports of Goods and NFS 80,915 90,606 132,563 138,946 156,750 202,635 296,007 314,817 410,764 Imports of Goods and NFS -98,464 -101,687 -118,440 -156,383 -173,350 -218,755 -295,937 -355,569 -427.173 Resource Gap (deficit = -) -17,550 -11,080 14,123 -17,437 -16,600 -16,120 70 -40,753 -16,409 Interest Paseents (net) -1,905 -2,279 -5,835 -8,572 -10,196 -9,292 -12,819 -18,584 -21,824 Workers' Remittances 123 165 607 2,160 1,993 2,557 3,254 4,675 4?665 Other Factor Paveents (net) -6,919 -7,498 -10,120 -9,766 -9,374 -9,266 -69510 -6.366 -7,010 Net Transfers 2,219 2,857 1,503 2,848 79103 8,761 4,858 3,011 692 Balance of Current Account -24,032 -17,836 277 -30,766 -27,074 -23,360 -11,148 -58,017 -39,885 Net Direct Foreign Investsent 2,604 -1,804 3,487 5,443 5,709 1.503 3,091 9,755 21.261 Total Net Medium and Long- Term Borrowing 13,657 21,552 9,188 13,978 28,613 32,016 24.773 35,928 58,634 :Disbursements 16,351 25,071 13,749 20,988 36,458 439093 51,575 58,180 80,239 !Amortization -2,694 -3,519 -4,561 -7,010 -7,845 -11,078 -26,802 -22,252 -21.604 Trade Credit (net) -706 -37 2,343 3,768 2,290 -3,532 2,991 610 3,006 Other Short Term Capital 1,218 -54 -4751 -4,984 -1P200 -2P287 -2,789 -11,225 -10,070 Other Capital n.e.i. -494 -1,176 2,772 -3,755 -5,677 -3,365 -1,828 -215 -443 Gross Official International Reserves 11,162 11,775 17,508 6,618 10,884 10,498 11,596 28,507 46,595 Net Official Foreign Reserves 11,146 11,763 14,301 2,874 709 60 -2,552 14,029 33,758 US $1.00= CFAF (Period Average) 265.0 241.0 230.1 222.4 225.1 248.0 239.0 216.7 209.2 SDR 1.00= CFAF (Period Average) 273.8 265.5 289.2 260.2 275.9 286.8 282.5 277.6 272.3 a/ Unrevised. SOURCE:Data suppied bo the Caseroonian authorities idth Bank Staff reclassification and estimates. Fiscal Year (Ju1l 1- June 30) is used with End Year shown in the table. WEST AFRICA CP2B 01/11/82  - 22 - ANNEX I Page 7 of 7 pages Population: 8.4 million (mid-1980) GNP per Capita: US$668 (1980) a/ UNITED REPUBLIC OF CAMEROON ECONOMIC INDICAT(RS (4) (millions US$ at current prices) 1975 1976 1977 1978 1979 1980 EXTERNAL CAPITAL AND DEBT b/ Gross disbursements Official grants 20 24 23 11 18 n.a. Concessional loans 45 55 122 133 174 128 DAC 17 32 40 53 83 70 OPEC 6 3 13 6 20 24 IDA 16 18 21 19 20 19 Other 6 2 48 55 51 15 Non-concessional loans 81 123 183 174 348 442 Official export credits 1 9 19 12 75 82 IBRD 21 8 15 37 30 28 Other multilateral 4 1 3 21 10 18 Private 55 105 146 104 232 314 External Debt Debt outstanding and disbursed 372 514 823 1133 1632 2002 Official 293 346 508 722 1014 1186 of which: IBRD 50 58 72 102 130 152 IDA 50 68 88 108 127 146 Private 79 168 315 411 618 816 Undisbursed debt 321 497 543 786 1071 607 Debt Service Total service payments 36 39 57 103 132 182 Interest 15 19 28 42 60 103 Payments as % of exports 5.6 5.6 6.9 8.3 9.1 9.3 Average interest rate on new loans (%) 4.5 6.3 5.6 6.8 9.2 6.2 Official 2.5 3.9 4.6 4.3 6.4 4.9 Private 9.2 7.6 7.5 1Q.3 12.5 16.3 Average maturity of new loans (years) 25.3 17.0 17.6 21.5 16.2 24.0 Official 32.0 32.5 23.0 28.9 21.0 26.6 Private 10.0 9.0 6.9 11.1 10.6 8.3 As % of Debt Outstanding at End of Most Recent Year (1980) Maturity structure of debt outstanding Maturities due within 5 years 77.0 Maturities due within 10 years 136.1 Interest structure of debt outstanding Interest due within first year 7.3 a/ Unrevised. b/ End-of-period figures are shown. West Africa CP2B 1-22-82  - 23 - ANNEX II Page 1 THE STATUS OF BANK GROUP OPERATIONS IN THE UNITED REPUBLIC OF CAMEROON A. Statement of Bank Loans and IDA Credits (as of September 30, 1981) Loan or US$ million Credit Amount (less cancellations) Number Year Borrower Purpose Bank IDA/1 Undisbursed Eleven Credits and nine Loans have been fully 106.84 117.4 - disbursed 320-CM 1972 Cameroon Education II 9.0 2.52 1039-CM 1974 Cameroon Cocoa 6.5 0.91 575-CM 1975 Cameroon Small- and Medium- Scale Enterprises 3.0 0.53 1245T-CM 1976 Cameroon Education III 17.0 9.09 673-CM 1977 Cameroon Technical Assistance 4.5 2.02 723-CM 1977 Cameroon Rural Development Fund 7.0 3.81 1391T-CM 1977 Cameroon Second SOCAPALM 7.0 1.71 1392-CM 1977 Cameroon Second SOCAPALM 18.0 4.40 749-CM 1977 Cameroon Feeder Roads 6.5 1.52 1494-CM 1977 Cameroon Feeder Roads 4.6 4.60 1508-CM 1977 Cameroon Second CAMDEV 15.0 3.34 776-CM 1978 Cameroon Zapi East Integrated Agriculture 8.5 3.81 784-CM 1978 Cameroon Western Highlands Rural Development 13.0 8.50 1512-CM 1978 Cameroon Second SEMRY Rice 14.5 2.17 1515-CM 1978 Cameroon Third Highway 16.5 0.35 926-CM 1979 Cameroon Fourth Highway 10.0 6.07 1723-CM 1979 Cameroon Fourth Highway 38.0 38.00 936-CM 1979 Cameroon Fourth Railway 20.0 11.23 1734-CM 1979 Regifercam Fourth Railway 27.0 25.17 1753-CM 1979 Cameroon Second Water Supply 21.0 20.93 975-CM 1980 Cameroon Hevecam II 15.0 7.87 1791-CM 1980 Cameroon Hevecam II 16.5 16.50 1010-CM 1980 Cameroon Livestock II 16.0 16.00 1919-CM 1981 Cameroon Northern Province Rural Development 25.0 25.0 1920-CM/2 1981 Cameroon Small- and Medium-Scale Enterprises II 15.0 15.0 TOTAL 348.44 229.90 231.05 of which has been repaid 18.37 5.97 TOTAL now outstanding 330.07 223.93 Amount sold 7.72 of which has been repaid 7.72 - - TOTAL now held by Bank and IDA /1 322.35 223.93 TOTAL UNDISBURSED 167.17 63.88 231.05 /1 Prior to exchange adjustment. tZ Not yet effective.  - 24 - ANNEX II Page 2 SDRs million Credit Amount (less cancellations) Number Year Borrower Purpose IDA Undisbursed 1075-CM 1981 Cameroon Northern Province Rural Development 9.5 9.5 1168-CM 1/ 1981 Cameroon Second Technical Cooperation Project 8.2 8.2 Total 17.7 17.7 B. Statement of IFC Investments (as of September 30, 1981) Investment Fiscal Number Year Obligor Type of Business Amount in US$ millions Loan Equity Total 311-CM 1975 BATA Shoe Factory - 0.38 0.38 355-CM 1977 SAFACAM I Rubber Plantation - 0.81 0.81 430-CM 1979 SAFACAM II Rubber Plantation - 0.41 0.41 452-CM 1979 ALUCAM Non-ferrous metal 7.00 0.93 7.93 551-CM 1981 SCM Food and Food Pro- cessing 1.12 0.19 1.31 578-CM 1981 SOCAVER Glass Bottle Factory 1.70 0.13 1.83 579-CM 1981 SAFACAM III Rubber Plantation - 0.19 0.19 Total gross commitments 9.82 3.04 12.86 Less cancellations, terminations, repayments and sales - 0.25 0.25 Total commitments now held by IFC 9.82 2.79 12.61 Total undisbursed 1.70 0.33 2.03 C. Status of Projects in Execution (as of September 30, 1981) 2/ Cr. No. 320 Second Education Project: US$9 million Credit of June 28, 1972; Effectiveness Date: February 27, 1973; Closing Date: June 30, 1982. All project-financed institutions are in operation, except for the adult vocational training center (CENAFOP) in Douala. Recently transferred from the Ministry of Education to the Ministry of Labor, this center is now expected to open in March 1982. Disbursements are lagging, however, and the project may not be fully disbursed by the closing date. 1/ Not yet effective. 2/ These notes are designed to inform the Executive Directors regarding the progress of projects in execution, and in particular to report any problems which are being encountered, and the action taken to remedy them. They should be read in this sense, and with the understanding that they do not purport to present a balanced evaluation of strengths and weaknesses in project execution.  - 25 - ANNEX II Page 3 Loan No. 1734 Fourth Railway Project: US$27 million Loan of Cr. No. 936 August 23, 1979; Effectiveness Date: January 22, 1980; Closing Date: June 30, 1983; and US$20 million Credit of same date; Effectiveness Date: January 22, 1980; Closing Date: June 30, 1982. All the contracts for equipment and machinery and civil works in Douala station and the Bassa workshops have been awarded; the contracts for some civil works in the depots in Yaounde are yet to be awarded. The equip- ment and machinery have started arriving and installation has commenced. The civil works in Douala station are in full progress and the new station is likely to be brought into use in the first half of 1983. The training school building works are in progress. Plans for designing courses and curricula are being drawn up and technical assistants are being recruited. The current financial situation of the Regie continues to be poor due to: (i) excessive staffing, (ii) over-ambitious investments, and (iii) reluc- tance to raise tariffs adequately and frequently. The special Government Commission appointed to review the railway's financial situation has made its recommendations, some of which are not in consonance with Bank-suggested remedial measures. It is proposed to discuss these issues at the highest levels of Government in January 1982. However, traffic is maintaining its steady increase; operating efficiency is satisfactory. Loan No. 1245-T-CM Third Education Project: US$17 million Loan of July 2, 1976; Effectiveness Date: December 31, 1976; Closing Date: December 31, 1982. The project is about three years behind schedule, primarily due to weak management and problems dealing with a 34 percent cost overrun (US$8.4 million). A secondary technical school, transferred from the previous proj- ect, is the only one of the twelve project institutions in operation. Con- struction work is completed or underway at ten institutions, and should start in early 1982 at the remaining two, for which rebidding was necessary. Most equipment bids have been invited and most of the technical assistance program and pre-investment studies have been completed. The Government has agreed to finance the cost overrun. Project implementation has improved somewhat recently. Of the three specialists required to strengthen project manage- ment, one architect was assigned in October 1981, and recruitment of the other two is underway. The original Closing Date of December 31, 1981, has been extended by one year initially, according to a detailed implementation sche- dule discussed with the Government. If this first stage is adequately imple- mented, the Closing Date should be postponed by another year to allow for project completion. Cr. No. 673 Technical Assistance Project: US$4.5 million Credit of June 15, 1977; Effectiveness Date: November 14, 1977; Closing Date: June 30, 1982. Project's funds have been fully committed and most pre-investment studies financed by it--largely in agriculture, transport and planning--have been completed. Long-term advisory consultants are continuing to assist Cameroonian staff to improve project generation and supervision capacity, which is being supplemented by on-the-job training and formal training courses.  - 26 - ANNEX II Page 4 Cr. No. 723 Rural Development Fund Project: US$7 million Credit of August 4, 1977; Effectiveness Date: January 30, 1978; Closing Date: December 31, 1982. The Project's delayed development continues to accelerate and to consolidate; standards of physical construction are generally good and the organization of most sub-projects is good, as are their planning, budgeting, accounting and reporting. However, the rate of physical development, par- ticularly for dams, boreholes, pump installation and bottomlands, where achievements are approximately 40 percent of appraisal targets and corre- sponding cost overruns are 100 percent, are significant problems. Develop- ment of the irrigated market garden credit scheme and the stall cattle fattening are reasonable but credit program loan recovery efforts need to be strengthened. Government has requested Bank Group assistance in financing for an enlarged second phase, terms of reference for a preparation study have been approved and consultants should commence the preparation stage by January 1982. The Bank has approved a six-month extension to the credit agreement with aim of covering a fourth construction season (81/82) and coincide with initiation of a proposed second phase development. Ln. No. 1392 Second SOCAPALM Project: US$18 million Loan and US$7 million Third Window Loan of August 25, 1977; Effectiveness Date: November 23, 1977; Closing Date: June 30, 1982. New plantings under the project are satisfactory though implementa- tion is slightly behind schedule. Production potential from earlier plantings is not being achieved due to lower than expected yields, labor problems, and processing difficulties. Cost to completion is expected to be 12 percent above appraisal estimate. SOCAPALM management has been strengthened by the appointment of an internal auditor and the financial situation has improved. ,The positive cash balance as of June 30, 1981, amounts to CFAF 230 million, however insufficient to cover three months of expenditures and an additional capital increase of CFAF 1,500 million would be required. Cr. No. 749 Feeder Roads Project: US$4.6 million Credit and Ln. No. 1494 US$6.5 million Loan of December 7, 1977; Effective- ness Date: March 7, 1978; Closing Date: December 31, 1983. The project includes establishing a Central Feeder Roads Unit within the Department of Highways and a four-year program of construction, improvement, rehabilitation and maintenance of about 2,000 km of feeder roads, including equipment purchase and operation, office and workshop construction and staff training in equipment operation and labor-intensive methods. The project-s implementation is behind schedule because the organization in charge of the feeder roads is understaffed and because of shortages of local funds. The Government is to submit for the Bank's approval a modified program for the execution of the project, reflecting the considerable increase in construction costs of the feeder roads.  - 27 - ANNEX II Page 5 Cr. No. 763 Second SEMRY Rice Project: US$14.5 million Credit Ln. No. 1512 of February 1, 1978; Effectiveness Date: April 14, 1978; Closing Date: September 30, 1984; and US$14.5 million Loan of February 1, 1978; Effective Date: April 14, 1978; Closing Date: September 30, 1984. Satisfactory solutions to erosion and piping problems of the dike have been found and permanent repairs are expected to be completed in 1983. Agricultural yields have reached appraisal levels, but the rate of resettlement of irrigated land has slowed. Government is now investigating means of encouraging migration of persons living in land-scarce, neighboring areas into the project zone. As a result of the slow rate of land use, Government has stopped the construction of more irrigation works until avail- able land is more fully used. This will reduce the need for supplemental financing. On the other hand, fishing in the man-made lake has produced greater benefits for the local population than expected at appraisal, and Government and SEMRY are studying ways of improving the management of this new resource. Ln. No. 1508 Second CAMDEV Project: US$15 million Loan of February 1, 1978; Effectiveness Date: June 30, 1978; Closing Date: December 31, 1982. The project planting program will only reach 75 percent of the appraised target and the estate development program has been voluntarily reduced to 281 hectares (against 600 at appraisal). For estate rubber devel- opment, the planting of 1,700 hectares in Pendamboko estate will be delayed until FY82-83 and will be included in a proposed tree crop consolidation project. The completion of the smallholders program (586 hectares) will also be postponed for the follow-up project. Financial and managerial pro- blems previously identified will be solved prior to the effectiveness of the follow-up action undertaken under the proposed tree crop consolidation project. In addition, (i) CAMDEV's capital will be increased by CFAF 6,000 million (US$22.2 million), (ii) CAMDEV's management will be strengthened by five internationally recruited specialists, and (iii) a reorganization study will propose solutions to improve CAMDEV's management. The General Management has already taken measures to control costs by reducing the labor force by 10 percent. Ln. No. 1515 Third Highway Project: US$16.5 million Loan of April 3, 1978; Effectiveness Date: October 17, 1978; Closing Date: June 30, 1982. Construction of the Garoua-Figuil road, the last section of the Trans-Cameroon rail and road route, was satisfactorily completed in 1979. Technical assistance to the Ministry of Transportation helped to carry out a comprehensive origin-destination survey with the final phase having been completed in mid 1981. Results of the origin-destination survey are expected to be available shortly. A transport advisor financed under the Project, is helping the Ministry of Planning evaluate and coordinate the transport component of the Fifth Development Plan and will finish his term in mid 1982. A US$5.6 million cost overrun, mainly due to exchange rate fluctuations, has been covered by the Government.  - 28 - ANNEX II Page 6 Cr. No. 784 Western Highlands Project: US$13 million Credit of April 17, 1978; Effectiveness Date: December 8, 1978; Closing Date: June 30, 1983. The project is achieving its objectives and technical and financial management is good. Although physical execution was lagging behind appraisal schedules, owing to organizational problems encountered during the first project year, improvements have been made in all components with corresponding increases in procurement and disbursement rates. Government's contributions to project financing continue to be regular, and liquidity problems due to delays in preparation of withdrawal applications have been partly rectified. In response to Government's request for Bank group assistance to extend the project into a second phase, the FAO/CP carried out an identification mission in June 1981, followed by a preparation mission in October 1981. Appraisal is planned for the second half of FY82. Ln. No. 776 ZAPI East Integrated Rural Development Project; US$8.5 million Credit of April 17, 1978; Effectiveness Date: October 4, 1978; Closing Date: June 30, 1984. The project continues to make satisfactory progress. Despite budgetary constraints, physical implementation of most components approached targeted levels for 1980/81. Crop production, processing, disease control, research and inland fisheries components are developing well. Reorganization of extension, credit and distribution services and ZAPI's management structure is proceeding. ZAPI's financial situation shows marked improvement. As a result of internal management reforms and a Government-authorized subsidy of US$2.1 million, ZAPI should be able to liquidate its long-standing deficit and resume program expansion in 1981/82. At midterm approximately 50 percent of the IDA credit has been disbursed. Cr. No. 926 Fourth Highway Project: US$10 million Credit of August 23, Ln. No. 1723 1979; Effectiveness Date: November 15, 1979; Closing Date: June 30, 1986; and US$38 million Loan of same date; Effec- tiveness Date: November 15, 1979; Closing Date: June 30, 1986. The project includes a training program for staff and workers for road maintenance, maintenance of about 17,000 km of roads and rehabili- tation of 1,700 km through force account and domestic contractors, technical assistance to the domestic construction industry, two permanent weighing stations, and pre-investment studies for a proposed Fifth Highway Project and forestry evacuation roads. Implementation of the project has started. The pre-investment study for the Douala-Yaounde Road is completed. The Bank group is currently considering, together with other financing agencies, the financ- ing of the Edea-Yaounde section of this road under the proposed Fifth Highway Project.  - 29 - ANNEX II Page 7 Cr. No. 975 Second HEVECAM Project; US$15 million Credit of April 18, 1980; Ln. No. 1791 Date: September 16, 1980; Closing Date: December 31, 1983; and US$16.5 million Loan of same date; Effectiveness Date: September 16, 1980; Closing Date: January 30, 1985. The area planted during PY1, 2,390 ha, exceeded appraisal estimate by 11 percent. Growth and upkeep are of acceptable standards and root disease (fomes) is being brought down and kept within manageable proportions. The PY2 planting target of 2,200 ha is expected to be achieved. Expenditures are well controlled and the overall management is satisfactory. Disbursements are on schedule and the financial situation is sound. Ln. No. 1753 Second Water Supply Project; US$21 million Loan of December 11, 1979; Effectiveness Date: May 12, 1981; Closing Date: June 30, 1984. The aims of the project are to improve and extend water supply systems in 13 secondary centers and two major cities, Douala and Yaounde; lay the groundwork for organizing urban development planning for Douala and Yaounde; initiate a pilot public health educational project; and strengthen the organization of the water supply sector. Engineering studies and bidding documents have been prepared, and tenders have been called for the majority of the project. Cost overruns are substantial due to implementation delays, but these will be financed by Government. The CDC co-finance loan is not yet effective. Cr. No. 1010 Second Livestock Development Project; US$16 million Credit of June 20, 1980; Effectiveness Date: May 12, 1981; Closing Date: December 31, 1984. This credit has recently become effective. The project will support the second phase of Cameroons "Meat Plan" through three major production components: a diversified credit program, continued eradication of tsetse flies from the grazing area of the Adamaoua Plateau, and a strengthening of veterinary field services. It will also support formal and informal training, and institutional reforms in aid of the productive components. Initial progress has been satisfactory. Ln. No. 1919 Northern Province Rural Development Project: US$25 million Cr. No. 1075 Loan of January 27, 1981; Effectiveness Date: June 1, 1981; Closing Date: December 31, 1981; and US$12.5 million Credit of same date; Effectiveness Date: June 1, 1981; Closing Date: June 30, 1984. The Loan and the Credit became effective last June and the project is off to a good start. Besides the introduction of improved technical packages for cotton, the project will also assist the development of foodcrops with improved seed and techniques and animal traction, as well as the streng- thening of the rural infrastructures, services and administrative structures in Cameroon's Northern Province. Notwithstanding the bad rain distribution 40,000 ha of cotton were planted this year. In addition, SODECOTON has started improvements on sorghum and maize, and will add groundnuts during the forthcoming season when quality groundnut seed will be available. Measures have been taken to fill all key staff positions and to reorganize and train the agricultural extension services as foreseen at appraisal.  - 30 - ANNEX III Page 1 UNITED REPUBLIC OF CAMEROON FORESTRY PROJECT SUPPLEMENTARY PROJECT DATA SHEET Section I: Timetable of Key Events (a) Time taken to prepare the project: 6 months (b) Project prepared by: FAO/World Bank Cooperative Program Sector Mission (c) Date of first Bank mission to consider the project: February/March 1979 (d) Departure of appraisal mission: January 1981 (e) Negotiations completed: December 4, 1981 (f) Planned date of effectiveness: June 1982 Section II: Special Bank Implementation Action None Section III: Special Conditions 1. All project components would be executed on the basis of annual work plans and budgets submitted for Bank approval (para. 34); 2. Before the start of execution of any village woodlot, a plan of action between SEMRY/FNFP and the farmers would be submitted to the Bank for approval (para. 35); 3. A Program Officer, a Project Accountant and a Plantation Manager, for FNFP, and a Director of Forestry for SEMRY would be recruited internationally (paras. 34 and 35(b)); and 4. Outstanding tax and royalty arrears would be collected before December 31, 1982 (para. 29). 5. Conditions of loan effectiveness would be: (a) fulfilment of all conditions precedent to effectiveness of the CDC loan (para. 40); (b) signature of a contract between CELLUCAM and FNFP, acceptable to the Bank, specifying arrangements for the execution of the Edea Plantation (para. 35(a)); and  - 31 - ANNEX III Page 2 (c) establishment by Government of separate accounts for each of the project components with funds sufficient to finance about six months of operating costs for these components (para. 41). 6. A condition of disbursement of the SEMRY component would be the signature of an agreement between FNFP and SEMRY, satisfactory to the Bank, specifying arrangements for executing the component (para. 35(b)). 7. A special event of loan suspension would be the failure of CELLUCAM to carry out its responsibilities under its contract with FNFP which would materially and adversely affect execution of the Edea component (para. 35(a)).  IBRD 15692 M ALI 'i f12 t"L i N I G ER ,C HA A D E R I CHAO SUDAN VOLTA -, f~~~ ~ z' 0;Zi ,, CE NTRAL AFRICAN . RE PUB LIC G.~~~o.sR EQV~~~~I GI O CNGO) ZAI R E Altal, 0(' GAS UNITED REPUBLIC OF CAMEROON FORESTRY PROJECT | PR.CP.D PROJECT PLANTATI-RS A PR.OSR '.O-CT SE.POETO A-ES 8 D IECTION DES EMJE ET FORETS k FNF~~~~P -EAODATRSi.- - |\ |rJ FNFP PL -TOTIO-S .RE * OAISTED A-T-AITJSE *ITH FORESTR- A FORESTRY REEAC. IIR,E STATIORSt |PED RO ADS N RRo | ~~~~~~~~~G-AEL ROADS { .... ........ I --- G ER AT- E ERTO ROADS .. /. -ENATIA GUINEA ,ACONTINRNRAJ -