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Cameroon: Value Drop in Dollar Affects Douala Road Projects
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The Post (Buea)
11 April 2008
Posted to the web 11 April 2008
Joe Dinga Pefok
Buea
Companies engaged in the rehabilitation of roads and drainages in Douala and those that would soon embark on a number of similar projects, have complained that the current drop in the value of the US dollar is having adverse effects on their projects.
This complaint was raised in Douala on April 7 during the 5th meeting of the Follow-up Committee for the Douala Infrastructural Project, chaired by the Minister of Urban Development and Housing, Clobert Tchatat.
The same complaint resurfaced when the Minister and the other members of the Committee who included the Government Delegate to the Douala City Council, Dr. Fritz Ntone Ntone, went on a field trip later that day to observe the progress of some of the projects.
The road construction companies recalled that the Cameroon government and its partners (donors) had done the costing in US dollars, which was then converted into franc CFA. On their part, the companies did their costing in franc CFA since they had to execute the projects on the ground such as payment of wages, the purchase of fuel and so on.
But the companies explained that with the drop in the value of the dollar, the money they get now for the projects are less when converted from US dollar to franc CFA.Talking to the press, the Government Delegate disclosed that from a rough calculation which they did with the contractors, the drop in the dollar rate will cause a loss of between FCFA 2-3 billion to the companies.
Though neither the Minister of Urban Affairs and Housing nor the Government Delegate could provide any immediate solution, government officials urged the contractors who had started the execution of their own projects to go on. Those, whose projects are still to start, were equally asked to prepare to commence work. The Minister reassured the contractors that government would study the situation and look for a solution.
Douala New Look
At the end of the field trip, the Urban Affairs Minister was impressed that the contractors were handling the ongoing projects well. Tchatat said the target was to give Douala a new look before the end of 2009 when the Infrastructural Project is supposed to end. He, however, observed that the execution of some of the projects was slow and behind schedule.
The Minister told the Government Delegate to ensure that all the remaining road projects comprising the third and last lot in the programme, effectively take off before the end of this month as was agreed upon with the contractors.
Tchatat disclosed that the next Follow-up Committee meeting will hold in three months time to see the progress of the projects expected to start before the end of this month.
FCFA 180 Billion Programme
The FCFA-180 billion Infrastructural Project was launched to rehabilitate the roads and drainage systems in Douala. The programme, which was launched in 2006 following Cameroon's attainment of the Completion Point of the HIPC Initiative, was scheduled to run for three years with funds from C2D (France), HIPC Initiative Fund and the state of Cameroon.
The roads and drainages to be rehabilitated were divided into three lots. Work on the first lot has been completed, while work is going on in the second lot - Deido (Ecole Publique) through Sic Cacoa, Cité Sic (in front of Douala University), and Guinness Cameroun headquarters to Ndokotti Market.
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Ntone Ntone disclosed on that April 7 that work will start on the third lot on the Old Road in Bonaberi and the BP Cité to Ndokotti stretch among others before the end of this month.
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