Announcement of World Bank Lends Twenty-One Million Dollars to Cameroon for Water Supply Project on September 6, 1979

- . FOR IMMEDIA Ti RELEASE . . •World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. •Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 80/8 September 6, 1979 WORLD BANK LENDS $21 MILLION TO CAMEROON FOR WATER SUPPLY PROJECT The World Bank has approved a $21 million loan to Cameroon for a second water supply project. The project will benefit some 1.2 miltion people, including about half a million poor people in urban areas. The $51.4 million project is designed to improve and extend water supply systems in 13 secondary centers and two major cities, Douala and Yaounde, with particular emphasis on low-income areas. The project is a first major step toward achieving the government's program of supplying potable water to all inhabitants of urban areas by 1990. • The project will also lay the groundwork for organized urban development planning for Douala and Yaounde and initiate a pilot public health education proj- ect to en;ure that the public health benefits, to be derived from the project, are rea 1 i zed. Consultant services will be provided for assisting a management and operation improvement program for the Societe Nationale des Eaux du Cameroun, the project implementing authority, and for making a public health education study. The World Bank loan to Cameroon is for 20 years, including a grace period of 5 years, and carries interest at 7.9% per annum. The Commonwealth Development Corporation (United Kingdom) will also provide a loan of $15 million for this project. NOTE: Money figures are expressed in U.S. dollar equivalents . • FORM l\;0. 1121 (5-76) T ECHN I CAL D A T A PROJECT: COUNTRY: TOTAL COST: Second Water Supply Cameroon $51 . 4 mi 11 ion • BANK FINANCING: $21 million, for a term of 20 years, including 5 years of grace, at 7.9% interest per annum OTHER FINANCING: Commonwealth Development Corporation, $15 million (t6.75 million), Societe Nationale des Eaux du Cameroun (SNEC), $14.2 million; and Government of Cameroon, $ 1 • 2 mi 11 i on IMPLEMENTING ORGANIZATION: Societe Nationale des Eaux du Cameroun (SNEC) B.P. 157, Douala, United Republic of Cameroon Cable Address: SNEC Douala TELEX: 5551 KN PROJECT DESCRIPTION: It covers water supply systems for 13 secondary centers; expansion and reinforcement of Douala water systems; expansion and reinforcement of Yaounde water systems; master plan studies for water supply, sewerage, and drainage for Douala and Yaounde; consulting services for hygiene education; and a program of specific actions to be undertaken by SNEC to strengthen its management and organization, including provision of training and • management advisors for SNEC. PROCUREMENT: Contracts for goods and services for major components of the project wi 11 be procured on the basis of international competitive bidding in accordance with Bank guidelines. Civil works for the stand- pipes may be carrie<l out under contracts procured on the basis of competitive bidding advertised locally, in accordance with local procedures satisfactory to the Bank or on force account by SNEC's services. Equipment and materials for the pilot hygiene education campaign may be procured on the basis of contracts negotiated after solic- itation of price quotations from at least three suppliers. To the extent possible, bidding documents will group civil works, the laying of pipes,and supply of equipment and pipes into lots that wi 11 attract both local and international bidders. Pro- curement wi 11 be carried out in two stages for the 13 secondary centers and in one stage for the Douala and Yaounde subprojects .. Supply and construction of social connections and standpipes wi 11 be partially executed by the successful bidders for the. above-mentioned works at the same time as the construction of the distribution ~ystem. The remaining work wi 11 be carried out by SNEC. CONSULTANTS: Consultant services will include about 18 man-years of technical assistance for training and management improve- ment for SNEC; four man-months for identifying specific public health education needs;and 12 man-months for detailed design of a pilot public health education campaign. ECONOMIC RATE OF RETURN: 7% ESTIMATED COMPLETION DATE: 1983 - 0 - •