Cameroon - Railway Project

RETURN TO . ~~~~~~~~~~~RESTRICTED REPORTS DESK Report No. PTR-50a WITHiN r'L E COPY R OSJE WEEK This report was prepored for use within the Bank and its affiliated organizations. They do not accept responsibility for its accuracy or completeness. The report may not be published nor may it be quoted as representing their views. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION APPRAISAL OF A RAILWAY PROJECT FEDERAL REPUBLIC OF CAMEROON May 12, 1970 Transportation Projects Department  Currenc Eqvalents Currency Unit: CFA Franc CFAF 1 US$ 1 a CFAF 278 CFAF I = US* 0.36 CFAF 1,000,000 = US$ 3,600 Weight and Measures 1 Metric ton a 2,205 lb. 1 Kilogram (kg) - 2.2 lb. 1 Kilometer (km) -0.62 mile 1 Meter (m) = 3.28 feet Fiscal Year July 1 - June 30 BEI - Banque Europeenne d'Investissement CAR - Central African Republic CCCE - Caisse Centrale de Cooperation Economique FAC - Fonds d'Aide et de Cooperation FED - Fonds Europeen de D4veloppement FIDES - Fonds d'Investissement et de Developpement Economique et Social KfW - Kreditanstalt fuer Wiederaufbau OCCR/SOGREAAH/DSBI - Organisation, Controle, Conception, Realisation/ Societe Grenobloise d'Etudes et d'Applications Hydrauliques/Deutsche Societat Beratender Ingenieure OCFT - Office du Chemin de Fer Transcamerounais OFEROM - Office Central des Chemins de Fer d'Outre-Mer REGIFERCAM - R6gie des Chemins de Fer du Cameroun UDEAC - Union Douaniere et Economique de l'Afrique Centrale UNDP - United Nations Development Program USAID - United States Agency for International Development  FEDERAL REPUBLIC OF CAMEROON APPRAISAL OF A RAILWAY PROJECT TABLE OF CONTENTS Page No. SUMMARY ... ............................................... i 1. INTRODUCTION ......... ............................. ....... 1 2. BACKGROUND ............................................... 2 A. Economic Setting ..................................... 2 B. Transport System ..................................... 3 C. Transport Policy and Coordination .................... 5 3. THE REGIFERCAM .......................... 6 A. Organization, Management and Staff ................... 6 B. Property .................................. 7 C. Operations .................................. 9 D. Tariffs ....................... ....................... 10 E. Traffic ..10 4. THE PROJECT .............................................. 11 A. Third Development Plan 1970/71-1975/76 .............. . 11 B. Description of the Project ........................... 12 C. The Proposed Loan .................................... 15 D. Execution of the Project and Procurement .... ......... 15 5. ECONOMIC EVALUATION ..................................... 17 A. Rail Relaying ........................................ 17 B. Japoma Bridge ........................................ 18 C. Freight Oriented Investment ..... ..................... 18 D. Passenger Oriented Investment ..... ................... 18 E. Douala Station ....................................... 18 F. Douala-Yaounde Realignment ........................... 19 G. Conclusion ........................................... 19 6. FINANCIAL EVALUATION ..................................... 19 A. General ............................................... 19 B. Past Financial Record ................................ 20 C. Projected Financial Results ..... ..................... 22 D. Transcamf!roon Extension and its Effect on Railway Fi.nances ....................................... 25 E. Financial Rate of Return ............................. 26 F. Financial Implications of Proposed Future Extensions and Major Realignment .......................... 26 G. Audit . ................................................ 27 7 . RECOMMEN'DATIONS .......................................... 27 This Y:eport has been prepared by Messrs. Brechot (Engineer), Masse (Consultant Economist) and Sander (Financial Analyst) and has been edited by Miss V. Foster.  Table of Contents (Continued) TABLES 1. Composition of Motive Power and Rolling Stock as of June 30, 1969 2. Summary of Operating Statistics 3. Future Freight Traffic ('000 Tons) 4. Future Passenger Traffic 5. The Project - Analysis of Estimates 6. The Project - Annual Expenditure Fatdftft aV& Sources of Finance 7. Income Account 1963/64 to 1977/78, with Notes 8. Source and Application of Funds 9. Summary Balance Sheets as of June 30, 1964 -