Announcement of Cameroon to Develop Forestry with World Bank Assistance on February 18, 1982

. ' , · H >R JMtvH t1iA,ff REH A\f . ,4 • • (,/ 0 :·1818H strt!ef, N.W., Was.hington,D.C.20433, U.S.A.. Telephone: (202) 477-1234 " \\ i5 BANK NEWS, RELEASE'' N0.8:U48 Contact:, Pafuela Brennan Februa'r'( l 8, .·'1982 " (, (292) ·477,-5344 () CAM.EROON TO DEVEJ.OP. FORESTRY WITH WORLD. BANK ASSISTANCE CF {) . , ,., ~Cam~oo~ will increase fuelwoo.d and pulpwood prod~cti~ntwith .'.the assistance of a S17 miUion Joan; ther,World Bank announced today.·. F-uelwood ~upplie's in norther;,, Cameroon wi 11 ,be incr·eased. A pla~t-ion tb supply raw materi~l for t(he p'ulp i~Jlu~fry wi 11 ·~ es tab 1i shed ·' n the ~ouJhw(~~tn reg I on. · JU;,hd~r a $,JS.5 million ,~roje({t.;.-~h~ Ban~•·'s f!rst to ~ssist forestry in Cameroo~~- - 1 about l):;::,0000 hectare~ (ha)· will beipranted with p,ne and eucalyptust l?o"th fast-,grow1ng specie~-- The.gov~rnnient ag~ncies 'ies~onsible for· fo,r 7st~y ta~es and royalties will., 0 f ' b! prov1?ed w1 th transpor~ and o~~iat!n~, fund~ •• Special 1~ts 1,n plantat10~ management w111 ~~s1st the Fonds Nat1onaJ-:o/F-orest1er· et P1sc1cole, an autonomous publ 1c ag~ncy, to carry out its reforestation pr9grams. With such support, forestry will become a::;, more productive sector of the economy. To supply raw material for pulping, an 8~800 ha plantation with both hard and .••. <.· . soft woods will be estab.lished at.Edea, in the tropical forest zone. The harvest~) 1 expected to reach 330,000 cubic meters a year, wi 11 repla·ce·' natural, hardwoods now being used as -a raw material by ,CELLUCAM, a Cameroonian pulp make.r. CELLUCAM, which recently opened a mill at Edea, has an export marketing agreement with a .Swedish company, Svenska Cellulosa AB. Forest resources in the northern savannah regionc::are being depleted at a rapid rate to supply building materials and fuel for cooking. Both soft and hard wood plantations wi 11 be established near Magas:c and at NgaoundEfre, covering about 1 11 000 ha for each town. In addition, at Maga, the plant.ing of village woodlots will be tested. 'since village woodlots are not customary in Cameroon, the community will be surveyed to determine the willingness of farmers to participate. The harvest from the northern plantings will be used about 75%.as fuelwood, the rest as bui14ing material. After six years, the fuel produced will be sufficient for the annual use of about 4,700 families._ 0 A rural energy survey in Cameroon i~ being carried out separately with the flnancial assis ~ance of the U.S. Agency for lnternation~,1 Development ... Studies of charcoal pro- 1 duction and fuel-efficient stoves are al._so u~er way.Co-financing for the Bank-supported project will be provided by a $7.4 million loan from the Commonwe'alth Development Corporation • .· · The World Ban~l loan to Cameroon is repayable over 20 years, :including five years • , . of grace, at annual interest of 11.6%. \.l 1 NOTE: Mor,ey figures are expre~sed in U.S. dollar equivalents.  Q~· .· ,; c) ,~~t:.;!1~1 ,·.(~·~ .,,. ·., .o,'<' •• o·A T.A : D .' • C, . " \., ,II ··'/\ . . :Pl\OJECt: . '" 0 Fores'try ,, COUNTRY: Cameroon· I) $35 .s million, D TOTAL COST: {.I ·-· 0 1, 0 () BANK F INANC I NG : o $17 mJ 11 ion, rep~yable over 20 years, incl'-';ding a· five- x~ar grace period, »at an annual i!:lterest rate of'" 11.6% ( " 0 OtHE~~" F··, ~ANC I NG: Go~ernment of Cameroon, $11. 1 ..ml fl i.on O Commonwealth' Developi~nt, Corpora~tion, $Z.4 ml) 1ion 6 0 ,I) ''0 , 0 c , :(1 ,IHPLEHENTHIG., ORGANlZATION.:'' Fonds National11Forestier et Pis<:icole (FN,FP) 0 o ; "p~~t Box 0 1341 . . . o . \) Yaounde, Cameroon PROJECT DESCRIPTION: It will comprise: a) establishment o,f a plt-qtation of about 0 5,200 hectares Jha) of pines ·and 3,600 ha of eucalyptus· at 0 Edea; b) establishment of plantations of a61ut 1,000 ha of eucalyptus in blocks and 200 ha in pi lot vi 1 lage woodlots nea~, Haga, and plantation of 750 ha of pines and 250· ha of • a C)aucalyptus at Ngaoundere; c) specialist services in plantation-'.:>management and" financial control; d) overseas specialized training of selected persohneJ ~·and studies (includiJ1g . preparation of a possible fol low-up project); and e) logis.tical, ma~erial, and a:pera'tiona1 support for the forestr:y agency to improve its capac l ty 'for tax and roya 1ti es assessment O • / ;- '; · C and collection. · ·' · ' , Contracts of $100,000 or more, principa"lly for heavy equipment, Fl1ROCU.REHENT: wi~~l be awarded through international competitive bidd~ing in accordance with Bank guidelines. Goods and services so purchased are expj~ted to total about $5.2 m'i 11 ion, of which $3.3 mi 11 ion wi 11 be fi.nanced by the Bank loan. Purchases wiJ 1 be grouped whenever posslble. Contracts below $100,000 but more' than $50,000 wi 11 be award.ed through loca.1 co.mpet.iti.ve bidding. procedures; t.hos.eJfor less than $50,000will be ,on the ba-s is of quotations· from not fewer than three supp 1 i(,ers. In aggregate, such con- tracts are estimated to total about, $1.1 mi U ion, of which Bank financing wi 11 cove'r $0. 7 ~'i l1 ion." Land preparation and most forest .track cpnstrucdon wi l'l be carried out on , force 1 account by the;'/ respect"ive project plantatJ,on entities ($3. 1 mi 11 ion, o.f which $0.9 mnl ion wi 11 be financed by the Bank). However~ for the FNFP Seed Production Unit and Direction des Eaux''et Forets et des Chasses components, building contracts valued at $0.7 '!li 11 ion (of which $0",5 mi 11 ion) wi 11 be awarded fo11~ing 1oca11y advertise!.I competitive biddirrg n proc,edures , accep,table , ~r to the Bank. · ., CONSULTANTS) Sixteen man-years of spEfcial ist services not cu.rrently avai 1- able in C~meroon in areas of plantation management and fin ... and a 1 cont ro L. ECONOMIC RATE OF RETURN: , ESTIMATED COHPLETldN DATE: l3.9%, 1987 '"; () • - 0 -