Cameroon signs XAF 106 billion loan agreement with AfDB for the construction of the ring road
(Business in Cameroon) – On June 18, 2021, Cameroon signed a loan agreement of CFAF 106 billion with the African Development Bank (ADB) for the financing of the bypass, third phase of the support program for the transport. The agreement was signed by the Minister of the Economy Alamine Ousmane, representing Cameroon, and Serge N’guessan, Director General of the AfDB for the Central African region.
This new loan brings the overall financing already provided by the ADB under this project to 117.7 billion FCFA.
The agreement is signed almost a year after being authorized by Paul Biya, President of the Republic of Cameroon. On June 22, 2020, the President signed a decree authorizing the Minister of the Economy to sign a loan agreement of 160.6 million euros (approximately 106 billion FCFA) with the ADB, on behalf of Cameroon. At the moment, there is no information on why it took so long to sign the deal. But one thing is certain, the 12-month waiting period will surely contribute to an extension of the delivery time initially set at December 31, 2024.
Construction work suspended
It is all the more certain that the infrastructures will not be delivered within the initial deadlines, given that the construction works are currently suspended due to the socio-political crisis raging in the English-speaking regions of Cameroon. On November 30, 2020, while defending the 2021 budget of the ministry for which he is responsible, the Minister of Public Works (MINTP) Emmanuel Nganou Djoumessi revealed that construction work was suspended due to “insecurity”.
The 365 km Ring Road crosses five of the seven departments of the North-West, which together with the South-West forms the English-speaking part in effervescence since the end of 2016. It is a kind of ring connecting Bamenda, Bambui, Ndop, Babessi, Kumbo , Nkambe. , Misaje, Nyos, Wum and Bafut. The Ring Road also includes several connections to the Nigerian border, from Misaje in particular.
For the ADB, this road axis is a key section for boosting trade between Cameroon and Nigeria (a market of nearly 200 million consumers) through the Bamenda-Enugu highway (also financed by the ADB).
“This motorway cannot be a real instrument of development and integration if it is not connected to a road network, the base of which is the Ring Road â, said Ousmane DorÃ©, then Director General of the AfDB for the Central Africa region.
Brice R. Mbodiam