Press Release

Cameroon receives US$5.49 million loan from OFID for road rehabilitation project

72/2006 July 20, Vienna, Austria
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The OPEC Fund for International Development (OFID) has signed a US$5.49 million loan agreement with the Republic of Cameroon to help finance rehabilitation of a portion of the Foumban-Tibati Road, an important stretch that links coastal and southwest provinces to the north of the country. Once completed, the scheme is expected to boost the country’s socio-economic development through the facilitated transport of agricultural produce, inputs and people.

Cameroon ’s climate and fertile soils provide an ideal growing environment for a number of cash and subsistence crops, contributing substantially to the country’s economy. Roads are crucial for the transport of goods to marketplaces and to Cameroon’s major shipping port in Douala. The 313 km-long Foumban-Tibati Road plays a vital role in the transport of produce, and provides landlocked neighboring countries Chad and the Central African Republic with access to Douala Port. Although most of the stretch is paved, the 40 km-long Foumban-Manki section is earth-surfaced and becomes easily flooded during the rainy season.

Under the project, the Foumban-Manki Road will be upgraded to an all-weather asphalt surface and provided with drainage structures. Bridges will be either repaired or newly constructed and safety enhanced through the installation of traffic signs and lane markings. The newly-paved road will help stimulate the economic activities of nearby businesses and promote the integration of central Cameroon with the rest of the country. Access to health care centers and other important social infrastructure will also be facilitated. In addition, a number of employment opportunities will be created throughout the project’s implementation.

Cameroon has been the recipient of six other OFID loans, one of which was extended for balance of payments support, while five others helped finance projects in the transportation, health and agriculture sectors. The country has also benefited from several regional grants, including one that supported an eyecare program in the South West Province

The agreement was signed in Kuwait City, Kuwait by HE Mr. Lamère Daniel Njankouo, Deputy Minister of Economy and Finance of Cameroon, and by Mr. Suleiman J. Al-Herbish, Director-General of OFID .