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

FOR IMME~IATE.RELEASE .\IVorld Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 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 co~cessionary 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 Societe Hevea--Cameroun (HEVECAM). The $95 million project is the seconc 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 development of the sparsely populated Kribi region. It will help 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 establishment 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 and electricity services and the provision of a hospital, schools, markets, stores and recreational faciliti~s. Field trials on rubber varieties, disease control and tapping techniques will be continued, and a survey will be conducted to determine the quantity of timher available for salvage logging in the areas to be cleared. 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 million. The Bank loan will be for a period of 20 years, including 5 years of grace, with interest at 7.95% per annum. The ~DA 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. • • f FORM NO. 1121 ' (5-76) T E C HN I CA L DA T A • PROJECT: COUNTRY: TOTAL COST: Second HEVECAM Rubber Cameroon $95 mi 11 ion 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: Societe Hevea--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 1 s 40,000 hectare (ha) Niete concession. Its main objectives are to: expand by • 9,300 ha the area planted with rubber; 'dntain this new planted· area as well as the 4,200 ha planted under the first project twhich are still in the pre-production phase); bring 1,500 ha planted under the first project into production, construct a rubber f3ctory and provide technical assistance to HEVECAM. PROCU.REMENT: Contracts for goods of $100,000 or more will be awarded through international competitive bidding in accordance with Bank guidelines. Goods so purchased wi 11 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 rules, 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~ services und~r an existing technical assistance contract wi 11 be financed bv. CCC.E .. • ECONOMIC RATE OF RETURN: 15% ESTIMATED COMPLETION DATE: 1985 - 0 -