Announcement of Twenty-Four Million Dollars Loan and Twenty-Four Million Dollars Credit to the United Republic of Cameroon for a Highway Project on July 5, 1973

INTERNATI01\TAL BANK FOR • RECONSTRUCTION AND DEVELOPMENT IN'rEHNA'rIONAL DRVELOPMBNT ASSOCIATION 18 1 8 H ST R E ET, N W WASHINGTON D. C. 20433 TELEPHONE; EXECUTIVE 3-6360 Bank Press Release No. 73/50 Subject: $24.0 million loan and IDA Press Release No. 73/65 $24.0 million credit to the July 5, 1973. United Republic of Cameroon for a highway project. The World Bank and its affiliate, the International Development Association (IDA), are together providing $48 million to help finance a second highway project in the United Republic of Cameroon. The country's location on the Gulf of Guinea, at the junction of West and Equa- torial Africa, makes it an important gateway for its landlocked neighbors; Chad, and to a lesser extent, the Central African Republic. The distances between Cameroon's principal agricultural areas and the sea are great. Given these distances and the country's dependence on exports and imports, low- cost transportation is a prerequisite to economic growth. During the last ten years major investments have been made in transportation, all designed to reduce transport costs, open up new areas for development especially in the remote North, improve tran- sit services for its landlocked neighbors, and integrate the country. In 1970, in order to assist the Government in meeting these objectives, the World • Bank and IDA helped finance the improvement of the N1Gaoundere-Garoua road section of the Transcameroon route, a major interregional and international link about 1,240 miles long which connects the heavily populated and potentially productive northern provinces with the rest of the country and the sea, particularly with Yaounde, the capital, and Douala, the main port. It.also serves the southwestern part of land- locked Chad. To·complete the Transcameroon route system involves expanding the port of Douala, increasing the capacity of the railway link from Douala to Yaounde, extending this railway to N'Gaoundere, and providing a better road from Garoua to Mora. The present project will contribute to meeting this objective by reconstructing the last low-standard road section of the Transcameroon route. Two sections of the heavily traveled Douala-Ba.foussam-Foumban axis will also be reconstructed. Feasi- bility and detailed engineering studies were partly financed through the first project. The present project also includes financ1ng of a feasibility study of forestry feeder roads and studies and technical assistance for the improvement of the highway maintenance system, improvement of transport planning and coordination and formulation of forestry policy and legislation. The United Nations Develop- ment Programme is providing technical assistance. The Bank loan and IDA credit, of $24 million each, will be made to the United Republic of Cameroon. The Bank loan will be for a term of 2.5 years, including a five-year grace period, with interest at 7!.tl,. The IDA credit 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 administrative costs • • - 0 -  • July 5, 1973 TECHNICAL DATA PROJECT Second highway project COUNrllY United lepublic of c..eroon TOTAL COST: $71.0 million equivalent BAB PI1WfCI!IG: $24.0 million, 25 years, S yea~• of grace, annual interest of 7\1. IDA PllfANCilfG: $24.0 million, 50 years, 10 year• of grace, intereat free except for 3/4 of 11 service charge to meet IDA'• aclminiatra- tive expenaea. OTHER. FINAHCING: Govermaent of Cameroon; United Nations Developmant Programme. IMPLEMENrING ORGANIZATION: PROJECT DESCRIP1'ION: Ministere du Plan et de l'Amenagement du Territoire, Yaounde~ Republique Unie du Cameroun. Cable Address: KIIIPAT, Yaounde'. B.ecqnatruction of three ro•d sections, totalins about 300 • miles: Garoua-Mora ~-160 miles; Douala-Pont du H'kam (Xekeua) -- 110 miles; and Pont du Noun (Bafouuam) - Po~an -- 30 milea. Con1ulting services for: auperviaion of the above worka; a atudy ~o improve highway maintenance and to define a betterment program for secondary and feeder roads; feasi- bility study for forestry feed~r roads; technical assistance for forestry policies' formulation and for improving transport planning and coordination, and 1tudies of special problems 1n that area. PROCUREMINT: Conatruction contracts to be awarded on basis of international com- petitive bidding. CONSULTANTS: To be selected. ESTIMATED COMPLETION DATE: June 1977. - 0 - •