Cameroon secures US$19.87m AfDB loan to fund phase 3 of Transport Sector Support Project

CAMEROON – The government of Cameroon has secured a
US$19.87 million (about CFAF 12 billion) loan from the African Development Bank to fund the implementation of Transport Sector Support Project phase 3

The loan agreement deal was signed by Cameroon’s Minister for Economy, Planning and Development, Alamine Ousmane Mey and the Director General of the African Development Bank for the Central African Region, Ousmane Doré.

AfDB noted in a statement that the Ring Road project is in line with the objectives of the 2010-2020 Growth and Jobs Strategy (GESP), adopted by the Government of Cameroon, as well as with the Bank’s guidelines for infrastructure development. as defined in its 2013-2022 Long-Term Strategy

Transport Sector Support Project phase 3 which involves the construction of a 365km road is the third major project that the AfDB has supported in Cameroon and is among the country’s vast program of rehabilitation and development of its road network

The road crosses five of the seven departments of the North West Region, which are believed to have great economic potential, and includes several connections to the Nigerian border.

According to AfDB, the total cost of this emblematic project of the Ring Road is estimated to cost US$282.07 million (167.3 billion CFA francs) and is being co-financed by the AfDB, the Africa Growing Together Fund, and the government of Cameroon.

Given the importance of the resources to be mobilized, the option of financing in two installments was chosen, the AfDB said

AfDB also revealed that the second tranche, worth US$178.69 million, is in the process of appraisal and will be submitted to the Council before the end of the year.

The signing of Transport Sector Support Project Phase 3 loan brings to 30, the number of AfDB’s operations underway in Cameroon, for a commitment of more than US$2.26 billion (1340 billion CFA francs).

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