(Japanese Note)


      Yaounde, March 26, 2015

Excellency,

 I have the honour to confirm the following understanding recently reached between the representatives of the Government of Japan and of the Government of the Republic of Cameroon concerning a Japanese loan to be extended with a view to promoting the economic stabilization and development efforts of the Republic of Cameroon:

1. A loan in Japanese yen up to the amount of six billion two hundred and sixty-four million yen (\6,264,000,000) (hereinafter referred to as “the Loan”) will be extended, in accordance with the relevant laws and regulations of Japan, to the Government of the Republic of Cameroon by the Japan International Cooperation Agency (hereinafter referred to as “JICA”) for the purpose of implementing the Bachenga-Lena Road Project (hereinafter referred to as “the Project”).

2. (1) The Loan will be made available by a loan agreement to be concluded between the Government of the Republic of Cameroon and JICA.  The terms and conditions of the Loan as well as the procedures for its utilization will be governed by the said loan agreement, within the scope of the present understanding, which will contain, inter alia, the following principles:

 (a) The repayment period will be thirty (30) years after the grace period of ten (10) years;

 (b) The rate of interest will be nought point three per cent (0.3%) per annum; and

 (c) The disbursement period will be eight (8) years after the date of coming into force of the said loan agreement.

 
 (2) The loan agreement mentioned in sub-paragraph (1) above will be concluded after JICA is satisfied with the feasibility of the Project, including environmental consideration.

 (3) The disbursement period mentioned in sub-paragraph (1)(c) above may be extended with the consent of the authorities concerned of the two Governments.

3. (1) The Loan will be made available to cover payments to be made by the Cameroonian executing agency to suppliers and/or contractors of eligible source countries under such contracts as may be entered into between them for purchases of products and/or services required for the implementation of the Project, provided that such purchases are made in such eligible source countries for products produced in and/or services supplied from those countries.

 (2) The scope of eligible source countries mentioned in sub-paragraph (1) above shall be agreed upon between the authorities concerned of the two Governments.

 (3) A part of the Loan may be used to cover eligible local currency requirements for the implementation of the Project.

4. The Government of the Republic of Cameroon shall ensure that the products and/or services mentioned in sub-paragraph (1) of paragraph 3 are procured in accordance with the Guidelines for the Implementation of the Accelerated Co-financing Facility for Africa by the African Development Bank, the African Development Fund and JICA, which set forth, inter alia, the procedures of international competitive bidding to be followed except where such procedures are inapplicable or inappropriate.

5. With regard to the shipping and marine insurance of the products purchased under the Loan, the Government of the Republic of Cameroon shall refrain from imposing any restrictions that may hinder fair and free competition among the shipping and marine insurance companies.

6. Japanese nationals whose services may be required in the Republic of Cameroon in connection with the supply of the products and/or services mentioned in sub-paragraph (1) of paragraph 3 shall be accorded such facilities as may be necessary for their entry into the Republic of Cameroon and stay therein for the performance of their work.

 
7. The Government of the Republic of Cameroon shall exempt:

 (a) JICA from all fiscal levies and taxes imposed in the Republic of Cameroon on and/or in connection with the Loan as well as interest accruing therefrom;

 (b) Japanese companies operating as suppliers and/or contractors from all fiscal levies and taxes imposed in the Republic of Cameroon with respect to the income accruing from the supply of products and/or services to be provided under the Loan;

 (c) Japanese companies operating as suppliers and/or contractors from all duties and related fiscal charges imposed in the Republic of Cameroon with respect to the import and re-export of their own materials and equipment needed for the implementation of the Project; and

 (d) Japanese employees engaged in the implementation of the Project from all fiscal levies and taxes imposed in the Republic of Cameroon on their personal income derived from Japanese companies operating as suppliers and/or contractors for the implementation of the Project.

8. The Government of the Republic of Cameroon shall take necessary measures to:

 (a) ensure that the Loan be used properly and exclusively for the Project;

 (b) ensure and maintain the safety of persons engaged in the implementation of the Project and of the general public of the Republic of Cameroon in constructing the facilities under the Loan and in using such facilities; and

 (c) ensure that the facilities constructed under the Loan be maintained and used properly and effectively for the purpose prescribed in the present understanding.

9. The Government of the Republic of Cameroon shall, upon request, furnish the Government of Japan and JICA with: 

 (a) information and data concerning the progress of the implementation of the Project; and

 (b) any other information related to the Project.

 
10. The two Governments shall consult with each other with respect to any matter that may arise from or in connection with the present understanding.

 I have further the honour to propose that this Note and Your Excellency’s Note in reply confirming on behalf of the Government of the Republic of Cameroon the foregoing understanding shall constitute an agreement between the two Governments, which shall enter into force on the date of Your Excellency’s Note in reply.

 I avail myself of this opportunity to renew to Your Excellency the assurance of my highest consideration.







     (Signed) Kazuhiko Fujita
      chargé d’Affaires ad interim
      of Japan 
      to the Republic of Cameroon







His Excellency
Mr. Emmanuel Nganou Djoumessi
Minister of Economy, Planning
and Regional Development
of the Republic of Cameroon

(Cameroonian Note)


      Yaounde, March 26, 2015

Sir,

 I have the honour to acknowledge the receipt of your Note of today’s date, which reads as follows:


“(Japanese Note)”


 I have further the honour to confirm on behalf of the Government of the Republic of Cameroon the foregoing understanding and to agree that your Note and this Note in reply shall constitute an agreement between the two Governments, which shall enter into force on the date of this Note in reply.

 I avail myself of this opportunity to renew to you the assurance of my high consideration.







    (Signed) Emmanuel Nganou Djoumessi      Minister of Economy, Planning
      and Regional Development
      of the Republic of Cameroon







Mr. Kazuhiko Fujita
chargé d’Affaires ad interim of Japan
to the Republic of Cameroon