Announcement of World Bank and IDA Provide Support for Second Hevecam Rubber Project in Cameroon on April 24, 1980

.- FOR IMMEOIA TE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-J 234 BANK NEWS RELEASE NO. 80/84 Apr i 1 24, 1980 IDA NEWS RELEASE NO. 80/ 53 WORLD BANK AND IDA PROVIDE SUPPORT FOR SECOND HEVECAM RUBBER PROJECT IN CAMEROON The World Bank and its affiliate for concessionary lending, the International Development Association (IDA), have approved a loan and a credit of $16.5 million and $15 million respectively, for a second rubber project with the Soci~t~ H~v~a--Cameroun (HEVECAM). The $95 million project is the second five-year phase in the development of an industrial rubber estate within HEVECAM's 40,000 hectare (ha) Niete concession in southeast Cameroon. • The project will provide continuing support for the government's plans for the economic developm~nt of the sparsely populated Kribi region. It will h~lp to finance the clearing and preparation of a further 9,800 ha of forest which, added to the 5,200 ha cleared under the first project, will complete-the clearing for the total 15,000 ha development planned by the government. The estate's total planted area will be increased from 4,200 ha to 13,500 ha and will be maintained during the pre-production period. The Bank and IDA financing will also support the construction of processing facilities and the establ.ishment of the infrastructure necessary for the expansion of the estate. The latter will include the construction of housing for the workers, the installation of water arid electricity services and the provision of a hospital, schools, markets, stores arid recreational facilities. Field trials on rubber varieties, disease control and tapping techniques will be continued, and a survey will be conducted to determine the quantity of timber available for salvage logging tn the areas to b~ cl eared. The expansion of rubber production will reduce significantly Cameroon's present heavy dependence on cocoa and coffee for its agri- cultural export earnings. At maturity, the HEVECAM development will provide full-time employment for about 7,000 workers and will contribute to the future development and economic prosperity of the region . • ---------------- --,....-.,,- NOTE: Money figures are expressed in U.S. dollar equivalents.  • - 2 - The Commonwealth Development Corporation will provide a loan of $25.7 million and the Caisse Centrale de Cooperation Economique a loan of $19 million towards the project. The Government of Cameroon will contribute $18.8 mllliori. The Bank loan will be for a period of 20 years, including 5 years of grace, with interest at 7.95% per annum. The IDA credit is for 50 years, including 10 years of grace. The credit carries no interest but bears a service charge of 3/4 of 1% per annum to cover administrative expenses. • • ._,. FORM NO. 1121 (5-76) T EC HN I CAL • PROJECT: COUNTRY: TOTAL COST: Second HEVECAM Rubber Cameroon $95 million BANK FINANCING: $16.5 million, for a term of 20 years, including 5 years of grace, with interest at 7.95% per annum IDA FINANCING: $15 million, standard IDA terms OTHER FINANCING: Commonwealth Development Corporation, $25.7 million; Caisse Centrale de Cooperation Economique, $19 million; Government of Cameroon, $18.8 million. IMPLEMENTING ORGANIZATION: Soci~t~ H~v~a--Cameroun B.P. 1298, Douala, Republique Unie du Cameroun Cable: c/o SAMLED 5222 KN Douala, Cameroun PROJECT DESCRIPTION: The project comprises a second five-year phase in the development of an industrial rubber estate within HEVECAM's • 40,000 h~ctare (ha) Niete concession. Its main objectives are to: e><pand by 9,300 ha the area planted with rubber; maintain this new planted· area as well as the 4,200 ha planted under the first project (which are still in the pre-production phase); bring 1,500 ha planted under the first project into production, construct a rubber factory and provide technical assistance to HEVECAM. PROCU.REMENT: Contracts for goods of $100,000 or more wi 11 be awarded through international competitive bidding in accordance with Bank guidelines. Goods so purchased will total about $7 million of which the Bank and IDA will finance $2.3 million and will cover heavy vehicles, equipment, fertilizers and chemicals and factory equipment. Caisse Centrale de Cooperation Economique (CCCE) will finance, under its procurement ~ules, light vehicles and wheeled tractors with a value of FF 4.4 million ($1 million). Contracts of between $50,000.and $100,000 will be procured through local competitive bidding procedures acceptable to the Bank. Purchases below $50,000 will be made on the basis of quotations from not fewer than three suppliers and limited in total to an equivalent of $4 million for contracts so procured. A 15% margin of preference may be granted in favor of goods manufactured in Cameroon. CONSULTANTS: Managemen_t services und~r _an existing technical assistance contract wfll be financed by.CCCEJ • ECONOMIC RATE OF RETURN: 15% ESTIMATED COMPLETION DATE: 1985 - 0 -