Press Release

OPEC Fund extends US$5 million to Cameroon

77/2005 June 24, 2005, Putrajaya, Malaysia
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The OPEC Fund for International Development today signed a US$5 million loan agreement with the Republic of Cameroon in support of the Yaoundé - Kribi Road Project to upgrade the first section of the existing RN8 from the southern outskirts of the capital Yaoundé to the town of Olama. The project road stretches over 271 km and consists of two sections. The Fund’s loan will complement the recently upgraded 191 km section linking Olama to Kribi.

The rehabilitation of the National Road 8 linking Yaoundé to Kribi through Olama, is one of the development priorities of the Government of Cameroon, due to its regional strategic importance for transit traffic from the landlocked neighbouring countries of Chad and the Central African Republic to the port of Kribi.

On completion, the enhanced road will serve in the transport of agricultural products of the region both to the capital city and the port of Kribi. Furthermore, the importance of the road stems from the need to develop the port of Kribi as a deep-sea port to complement the activities of the existing port of Douala, whose present location on the river Wouri constrains its expansion.

Other factors include the development of an industrial zone close to Kribi port and plans for processing and exporting LNG and an export terminal for the crude oil coming from Chad, in addition to meeting the export requirements for bauxite, steel and timber.

This is the third loan to be approved by the OPEC Fund to Cameroon in support of the transport sector. Other previous loans were extended as balance of payments support and to finance projects in the agriculture and the health sectors. The country has also benefitted of several grants from the Fund.

Today’s agreement was signed in Putrajaya, Malaysia, by H .E. Mr. Mahamadou Labarang, Ambassador of the Republic of Cameroon to the Kingdom of Saudi Arabia and H.E. Jamal Nasser Lootah, Chairman of the Governing Board of the OPEC Fund.