Bank Supports Transport Improvements in Central African States
Published June 26th, 2007 in UncategorizedContacts:
In Washington: Tim Carrington, (202) 473 8133
In Yaounde: Henri Laurent Bateg, (373-22) 233565
In Bangui: Jelena Pantelic, (236) 61 65 77
In Ndjamena: Edmond Dingamhoudou, (235) 52 33 60
WASHINGTON, June 26, 20067– The World Bank Board of Executive Directors today approved a US$201 million regional operation to finance transport and trade improvements in Cameroon, Chad and the Central African Republic.
The financing package consists of an International Development Association (IDA) credit of US$147 million to the Republic of Cameroon and an IDA grant of US$24 million to the Central African Republic and an IDA grant of US$30 million to the Republic of Chad for a Transport transit Facilitation project.
The three-country project is aligned with the CEMAC (Central African Economic and Monetary Community) Transport and Trade Facilitation project, approved by the CEMAC heads of state in 2006, which aims to facilitate regional trade among the CEMAC member states and improve the countries’ access to world markets. It is part of an unprecedented multi donor effort in the region to improve transport infrastructure, which is co funded by the African Development Fund, the European Union and the Agence Française de Développement (French Development Agency), as well as the three governments. IDA’s participation to the project will be less than thirty percent.
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. Delays in the port can add another 28 days.
The project targets specific sections of the road corridors connecting N’Djamena and Bangui to Douala for rehabilitation, along with rail improvements, in a context which will allow a sustainable institutional framework for the rail sector.
In addition to supporting the core transit infrastructure, the project will advance operationalization of the customs union among the three countries and reduce physical and other barriers along the Douala-N’Djamena and Douala-Bangui corridors. It is also expected to increase the regional integration of CEMAC member states by supporting a new transit regime in the sub-region that can streamline movement of goods among the CEMAC countries. Finally, the project will finance technical assistance and computerization to enhance the efficiency of the port of Douala, thereby speeding the port clearance process .
In Chad’s case, the IDA grant will finance 25% of the works and equipment costs for the transport improvements. The remaining 75% will be financed through Chad’s oil revenues.
“This project recognizes the need for regional approaches in a part of Africa where landlocked economies are profoundly disadvantaged by costly and unreliable transport and trade processes,” said Jean-Francois Marteau, Task Team Leader for the project. “What we should see as a result are more reliable services, lower transport costs and in the long term improved access to world markets and greater trade flows among the three countries.”
The Roads and railway Infrastructure component of the project, co-funded by four donors, will focus on periodic maintenance, rehabilitation and upgrading works on selected rail and road sections along the corridors and paving of existing gravel road sections. It will help harmonize and enforce the axle road control policies, improve rest areas, help rehabilitate key rail infrastructure and implement HIV/AIDS awareness and mitigation measures.
The Transit and Transport Facilitation Investments will include information and communication technology between stakeholders, especially within the port community. It will improve transit regime and border crossing through cargo tracking, borders posts and, strengthen port safety and security.
The Customs and Transport Sector Institutional Strengthening and Capacity Building will strengthen CEMAC customs union, mostly through improving national customs and transport facilitation institutions.
The credit is provided on standard International Development Association (IDA) terms, with a commitment fee of 0.35 percent, a service charge of 0.75 percent over a 30 year period of maturity which includes a 10-year grace period.
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For more information on the World Bank in sub-Saharan Africa visit: www.worldbank.org/afr
For more information about the World Bank in Cameroon visit: www.worldbank.org/cameroon
For more information about the World Bank in CAR visit: www.worldbank.org/car
For more information about the World Bank in Chad visit: www.worldbank.org/chad
For more information about this project visit the project web site.