Announcement of First World Bank Urban Project in Cameroon to Receive Twenty Million Dollars Loan on March 17, 1983

' • FOR IMMEDIATE RE[EASE .. • d' • •World Bank 1818 H Street, N.W., Wa~hington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 83/51 Contact: Pam Brennan March 17, 1983 (202) 477-3293 FIRST WORLD BANK URBAN PROJECT IN CAMEROON TO RECEIVE $20 MILLION LOAN Over 100,000 residents, mostly poor people,of Cameroon's two largest cities will. benefit from an r;rban development project that will use a $20 million loan from the International Bank for Reconstruction and Development (IBRD). The first World-Bank financed urban development project in Cameroon will introduce the concept of slum upgrading in the government's urban development program. The project will help the development of these economic centers. The $55 million project will provide better basic infrastructure and urban amenities at Nylon, a 600-hectare squatter settlement in Douala, the country's main port and largest city, with a population of 600,000. At • present, the 90,000 people of Douala-Nylon are poo1ly served with water and sanitation facilities, as well as roads, lighting, and drainage. The project will provide facilities to improve these conditions. To introduce a long-term slum upgrading pro~ram as a model for other neighborhoods, a smaller area of 50 hectares in NyJm,. with 13,000 inhabitants has been choseno The area will be completely upgraded. In ~idition, 600 loans will be granted for plot purchase and home improvement with an average loan amount of about $2,400. The northwest area of Yaounde, the nation's capital and a main economc center, will be provided with community facilities, including primary school classrooms, health centers, markets and an artisan center. Technical assistance, training, and studies totaling 20.5 staff- years will be provided for project execution, preparation of follow-up projects, and urban investment planning. The United Republic of Cameroon will provide $29.5 million for the project. Swiss co-financing totaling $5-5 million is providing Nylon with a large retail market and community facilities. The IBRD loan is for 20 years, including five years of grace, at a fixed annual interest rate of 11.6%. The loan also carries an annual commitment charge of 0.75% on undisbursed balances and a front-end fee of 1.5% • on the amount of the loan • NOTE: Money figures are expressed in U.S. dollar equivalents.