Japanese ODA Loan to the Republic of Cameroon

March 31, 2009
Japanese

The Government of Japan has decided to provide a Japanese ODA loan of up to 4,540 million yen to the Government of the Republic of Cameroon to implement the Transport Facilitation Program for the Bamenda - Mamfe – Ekok / Mfum – Abakaliki - Enugu Corridor. Notes to this effect were exchanged in Yaoundé on March 31 (Tue) between Amb. Keiji Yamamoto, Ambassador of Japan to Cameroon, and Mr. Louis Paul Motaze, Minister of Economy, Planning and Regional Development of Cameroon.
Outline of the Project

　This loan is intended to strengthen the transportation capacity by paving the international highway from Bamenda, Cameroon to Enugu, Nigeria. By so doing, the loan will contribute to the vitalization of the economy, the promotion of economic integration, and poverty reduction in the areas near the highway, in the regions of both the Economic Community of Central African States (ECCAS) and the Economic Community of West African States (ECOWAS). The loan is also provided by a co-financing scheme with the African Development Bank, based on the Enhanced Private Sector Assistance for Africa (EPSA for Africa).

Significance of the Project

　Cameroon’s transportation sector depends on road transportation for about 90% of its passenger service and about 75% of its cargo service. In recent years, the traffic volume on the paved roads has shown a dramatic increase of 9% per annum. But, as the pavement rate is only 10% of the total road network of about 50 thousand kilo-meters, increasing it is urgent for vitalizing the economic activities.
　Through this loan, it is expected that the transportation routes between Cameroon and Nigeria and between southern Africa and central Africa will be improved, vitalizing the economy and improving the people’s life. Supporting the social and economic reforms of Cameroon will also contribute to the stabilization of the whole of central Africa.
　The targeted district for this loan is a part of the concept of an international corridor, which is planned to connect Lagos (Nigeria) and Mombasa (Kenya). The loan is the embodiment of the support for the African region-wide corridor, which Japan announced at the TICAD IV.
　The present ODA loan to Cameroon is the first one in 23 years since 1986.

Terms and conditions of the loan

(1) Interest rate: 0.65% per annum

(2) Repayment period: 40 years (including a ten-year grace period)

(3) Procurement method: general untied

(END)

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