Cameroon: ADF Approves U.S. $165 Million for Transport Facilitation On the Douala-Bangui And Douala-N'djamena Corridors

5 July 2007
African Development Bank (Abidjan)

Tunis — The African Development Fund (ADF) the concessional window of the African Development Bank (AfDB) Group has approved a loan and a grant amounting to US$ 164.89 million to finance a Transport Facilitation Programme on the Douala-Bangui and Douala-N'djamena corridors.

The ADF Board approved the loan of 48 million Units of Account (UA*), equivalent to US$ 72.74 million and the grant of 60.80 million UA, equivalent to US$ 92.14 million on Thursday in Tunis to facilitate the movement of goods and Services among the Central African Economic and Monetary Community (CEMAC), which groups 6 countries in the sub-region including Cameroon, the Central African Republic and Chad.

The Programme aims at improving the effectiveness of the transport logistic chain, including road infrastructure, railway and accessibility along the Douala-N'Djamena and Douala-Bangui corridors in order to increase the CEMAC intra-Community and external trade.

The programme has many components grouped under Road Improvement and Rehabilitation, Improvement of the Douala-Ngaoundéré railway service, related works, transport facilitation actions and measures as well as institutional support programmes.

The road will generate highly beneficial socio-economic impacts. The implementation of the Programme will contribute to improved road safety and passenger comfort, reduce transport costs and travel time between localities and increase employment opportunities for the local population. It will also revitalize micro-enterprises such as vehicle repair workshops, food sale points, restaurants, garages as well as provide access to periodic food markets. Other positive impacts include disease prevention and improvement of the health of residents and accessibility to the key poles of employment or economic activities in the sub-region.

The project will definitely improve access to the port of Douala for Chad and CAR. On the whole, the project will help reduce poverty and improve the living environment and conditions of the population. Women will benefit the most. Moreover, sub-regional integration will be strengthened with direct links to Cameroon, CAR and Chad.

The estimated cost, net of taxes and customs duties of the entire Programme, is UA 409.32 million, about US$ 620 million.

The Programme will be jointly financed by the ADF, private operators of the inter-State transport sector, the Executive Secretariat of CEMAC, the Governments of Cameroon, CAR and Chad and other donors (EU, IDA, AFD and Camrail). The ADF Grant to CEMAC will be devoted to the financing of the "transport facilitation" and "institutional support and management of programme components.

* 1 UA = US$ 1.51 557 as at 5/07/2007

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