Bank Increases its Support for Transport Corridors in Central Africa

Contacts                                                           

In Washington: Herbert Boh (202) 473 3548

hboh@worldbank.org; 

In Yaoundé: Henri Laurent Bateg (237) 22 20 38 15
hbateg@worldbank.org 

In Bangui: Jelena Pantelic (236) 61 65 77

Jpantelic@worldbank.org 

In Ndjamena: Edmond Dingamhoudou (235) 52 33 60

edingamhoudou@worldbank.org          

WASHINGTON, November 5, 2009– The World Bank Board of Executive Directors today approved an additional financing of US$217 million to help ensure the completion and expansion of critical rail and road links in Cameroon and the Central African Republic under the CEMAC Transport and Trade Facilitation Project.

The overall project development objective (PDO), approved in 2007, is to facilitate regional trade among the Central Africa Economic and Monetary Community (CEMAC) Member States and improve the Central African Republic’s, the Republic of Cameroon’s and the Republic of Chad’s access to world markets. This objective is to be achieved mostly through support to the CEMAC Customs Union, coupled with facilitation measures and investment in road and rail infrastructure along the Douala-Bangui and the Douala-N’Djaména corridors.

The additional financing will secure the achievement of the project objective by: (i) funding the financing gap for the Bouar/Garoua Boulaï road paving works, the main component of the project along the Douala Bangui Corridor; (ii) contributing to bridge the gap for the Kousséri road by-pass along the Douala N’djamena corridor; (iii) strengthening the road maintenance component of the Bangui-Douala corridor in CAR to take into account deteriorated conditions on several sections; (iv) rehabilitating part of the Maroua-Kousséri road section on the Douala and N’Djaména Corridor; and (v) supplementing the original IDA contribution to the rail infrastructure investment plan in Cameroon for 2009-2013.

“The additional financing of the project will secure the achievement of the PDO by bridging funding gaps and providing rehabilitation of additional rail and road infrastructure on both corridors to improve their efficiency” said Jean-Francois Marteau, Task Team Leader for the project. “The World Bank acts in conjunction with and in support to the European Commission, France and the African Development Bank, which reflects the high degree of collaboration between these institutions”.

Transport costs in central Africa are among the highest on the Continent. For Chad and the CAR, both landlocked countries, transit costs represent 52% and 33% of the value of exports respectively. Road travel from Douala, Cameroon --the main port and regional gateway-- currently takes about 15 days to N’Djamena, Chad and 10 days to Bangui, CAR. The proposed project and the additional financing activities will help reduce transit time by at least twenty percent along corridors and also improve transport conditions, which should also lead to a decrease in transport costs.

As pointed out by Richard Scobey from the Africa Region’s regional integration department, “this project essentially helps connect landlocked Central African Republic and Chad to regional markets, and should also increase regional trade in Central Africa. At a time when the global economic crisis severely threatens Africa’s recent economic achievements, regional solutions like this project are essential to unblock economies of scale and restoring growth”.

“The project is a key element of our support to economic growth and poverty reduction in both the Central African Republic and Cameroon”, said Mary Barton-Dock, the Country Director for Cameroon, CAR and Chad. Beyond its obvious regional benefits, it will also provide opportunities for the people living along both corridors, and will facilitate trade and travel within the respective countries,” she added.

The regional CEMAC Transport and Transit Facilitation Project was developed within the framework of the Central African Economic and Monetary Community (CEMAC) and with strong support from the community member countries.  The project finances activities in Cameroon, Central African Republic (CAR) and Chad.  The project addresses key objectives of the Africa Action Plan, including deepening regional integration, improving governance, facilitating trade and supporting infrastructure development.  The project, with the inclusion of the additional financing, has leveraged a total of about US$980 million, including US$418 million by IDA, for a multifaceted operation designed to secure access to landlocked CAR and Chad, enhance regional integration, and increase trade in the CEMAC region.