Announcement of 1.5 Million Dollars Credit to Cameroon on December 23, 1970

\"l,;.\' I\ I, o ,,.11 "'t • INTERNATIONAL DEVELOPMENT ASSOCIATION (~) 1818 H STREET, N.W .. WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 IDA Press Release No. 70/58 Subject: $1.5 million credit to Cameroon December 23, 1970 Immediate needs for increased capacity at Douala, the main port of Cameroon, will be met with the help of a $1.5 million credit from the International Develop- ment Association (IDA). Douala handles over 85% of Cameroon's foreign trade and increasing congestion at the port is threatening the growth of vital economic activities; in particular, it is retarding the development of the promising timbeL industry. Improvements now to be undertaken comprise short-term measures urgently needed to keep traffic moving, pending the completion of a long-term port develop- • ment program • The Port of Douala is located on the Wouri River some 20 miles upstream from the ocean. Installations include 11 deep·water quays at Douala itself and one quay on the opposite bank at Bonaberi, the site of a developing industrial zone. Traffic at the port has increased from an annual average of 830,000 tons to 1,525,000 tons in · the past decade. Imports of petroleum products, construction materials and indus- trial goods account for three quarters of total imports. Exports consist mainly of agricultural products, such as coffee, bananas, cotton and logs. Log exports are the largest single item, amounting to 380,000 tons in 1969. Traffic volume is ex- pected to reach over 3,000,000 tons in 1975. The most spectacular growth will be in log exports which are expected to reach over 1,000,000 tons as a result of in- creased output from new logging concessions. This increase in traffic can materi- alize oniy if additional port capacity is provided • • A comprehensive study of Cameroon's ports, including alternative port develop- ment programs, is now being carried out by a French-German consulting group and /more IDA P.R. No. 70/58 - Cameroon - Port Project - 2 - will be completed in the second half of 1971. The interim project being assisted by the IDA credit is designed in such a way that it will not conflict with the • recomnendations for longer-term development which will come out of the broader Cameroon port study. The project consists mainly of the construction of a new deep-water quay at Bonaberi, the improvement and expansion of log-handling facilities at Douala, and the acquisition of a small suction cutter dredger for dredging in front of the log- handling area. The project also includes a feasibility study for the possible de- velopment of a long-tenn log-handling scheme at Manoka, 20 miles downstream from Douala. Measures directed toward improved port efficiency will be taken; these in- clude the institution of modern accounting methods, and an inventory of the port's assets. The Government intends to es~ ~blish a new company, partly public and partly private, to operate the Douala log depot under a concession agreement and in accord- ance with sound c~mmercial principles. This company will acquire all log-handling equipment now owned by the Goverrunent and will procure new equipment for the log • depot. The project will be carried out by the Cameroon Directorate of Ports and WAter- ways, with the assistance of consultants who will prepare tender documents, super- vise construction of the new industrial quay and carry out the feasibility study. The project is scheduled for completion by the end of 1972 at an estimated cost equivalent to $2.8 million. The IDA credit of $1.5 million will cover the foreign exchange cost of civil engineering works, the dredger and consultants' services. The Government will cover local expenditures equivalent to $700,000, and the new log-handling company will finance the log-handling equipment estimated at $600,000. The IDA credit to the Federal Republic of Cameroon will be for a term of 50 years, including 10 years of grace. It will be interest-free but a service charge • of 3/4 of 1% will be made to cover IDA's administrative costs. - 0 -