Announcement of Fifth Highway Project in Cameroon to Receive Seventy Million Dollars Loan on June 17, 1982

. v,. f-OR_ IMMEDIAH RHI i\Sf · . . eWorfdBanK 1818 HStreet, N.W., Washington, D.C. 20433, U.S.A.• Teleph9ne: (202) 477-1234 ,_, BANK NEWS RELEASE N0.82/124 CONTACT: Pamela Brennan Jurie 17, 1982 (202) 47f!-5344 FIFTH HIGHWAY PROJECT IN CAMEROON TO RECEIVE $70 MILLION LOAN (f Ct:tmeroon 's most important highway--the Douala-Yaounde road--will be improved for year-round use with World Bank assistance. A loan of $70 million will help· finance the fifth World Bank-supported highway project in Cameroon. The project is estimated to cost $220 million. Co-financiug for the project is expected from: Canada, $16.4 million; Netherlands, $43.7 million; and a consortium of Kuwait and Abu Dhabi Funds and Islamic Bank, $31.4 million. The ·construction of the Douala-Yaounde road is a nigh priority with the Cameroon government. The road linking three major cehters--the port of Douala, the industrial center of Edea, and the capital of Yaounde--is in poor condition and is virtually closed during the rainy season. Constructi.on of a paved road ineludi~~~ t\::-alignment would reduce the length of the existing road.from 288 kilometers to 246 kilometers. About 1,700 vehicles a day are expected to use the road when it is opened to traffic in 1986. The fifth highway project will ass:Lst the government in constructing the ---"' of the Douala-Yaounde Edea-Yaounde cect.ion ,. road. It will also provide . urgently needed technical assistance to improve project preparation, coordination, and implementation in the highway sector, and strengthen institutions. The project will also help prepare a nat)lonal transport surv:~Y---~d highway projects for external financing. \\ · The technical assistance ~ii go to the Ministries of Equipment and Transportation and strengthen Labogenie, the National Civil Works Laboratory. The World Bank loan is for 20 years, including five years of grace, with interest at 11.6% per annum. The loan also carries an annual commitment charge of O. 75% on undisbursed·. balances and includes a front-end fee of 1. 5% on the amoun,; of the loan. The fifth highway project was prepared by consultants financed in part under the fourth project which is now being implemented. The fourth p~oject comprises mainly strengthening of instit~tions and training for road maintenance, maintenance of some 17,000 kilometers ,and rehabilitation of 1,700 kilometers of unpaved roads. Earlier highway projects have provided support for the construction to paved standard of the Ngaoundere-Mora, and the Douala-Kekem and other important roads totaling about 740 kilometers. NOTE: Money figures are in U.S. dollar equivalents. (;