Announcement of Cameroon Moves to Improve Services, Transportation in Major Cities on October 31, 1988

FOR IMMEDIATE RELEASE sVorld Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. * Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 89/11 Contact: Richard Kollodge (202) 477-4507 CAMEROON MOVES TO IMPROVE SERVICES, TRANSPORTATION IN MAJOR CITIES WASHINGTON, October 31, 1988 -- Poor people living in Cameroon's larger cities will have greater access to work and social services as a result of an urban development project being supported by a World Bank loan of $146 million. The project will help city governments, especially in Yaounde, the capital, and Douala, the main port, raise more revenues to finance road and sewer construction and upgrading of slum areas. The project also includes measures aimed at streamlining the operations of government agencies that oversee urban development projects. Road improvements are expected to boost urban economies, leading to more jobs and improving access to key services, such as Yaounde's newest hospital. As part of the project, Cameroon will transfer a large share of the responsibility for urban development over to the private sector, freeing limited government resources for investments in other parts of the economy. The World Bank loan is for 17 years, including five years of grace, with a variable interest rate, currently 7.59 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.75 percent on the undisbursed balance. Note: Money figures are in U.S. dollar equivalents.