The World Bank, on February 15, 2022, approved a US$538 million (XAF311 billion) for a project to improve the road and rail infrastructure along the Douala (Cameroon)-N'djamena (Chad) corridor. This financing is part of the US$816 million to be invested in the project over the next 10 years (according to the project document of which Business in Cameroon received a copy).  The World Bank’s financing specifically includes a XAF181 billion loan for Cameroon and a XAF130 billion grant for Chad. According to the Bretton Woods institution, the disbursement of the financing will start this year and run till 2031.  It adds that the financing will be active till June 30, 2032. Meaning that in case of any sort of delay, the disbursement can continue up to that active date. 

For the same project, the European Union (EU) is expected to contribute XAF101.2 billion on behalf of the Republic of Chad. That financing includes a XAF75.2 billion loan from the European Investment Bank (EIB) and a XAF26 billion grant from the European Development Fund (EDF). The approvals officializing the EIB loan and the ADF grant are expected to be signed in the first half of 2022. To complete the financing required for the above-mentioned project, close to XAF60 billion (remaining) will be raised by Camrail, the concessionaire of Cameroon’s railway network. 

Project scope 

The project has four components. The first is the rehabilitation of the railroad between Douala and Yaoundé and the modernization of railway signaling between Douala and Ngaoundéré (XAF212.7 billion). The second component is the rehabilitation of railroad freight exchange platforms and enhancement of railway capacities and road safety (XAF14 billion). The third is the reconstruction, maintenance of road and rail infrastructure as well as improvement of road safety (XAF224.9 billion). And finally, trade facilitation and support for project implementation (XAF20.2 billion).

The first two components will be exclusively implemented in Cameroon. As for the third component, it is exclusively for Chad where some 595 kilometers of sections along the beneficiary corridor will be rehabilitated. Those sections include Koutéré, Moundou and N'Djamena. Still in Chad, in the framework of the third component, the pavement on the remaining sections will be reinforced, the entire road maintained and the terminals helping control axle loads will be rendered operational. 

Trade facilitation  

According to the World Bank, the Douala-N'djamena corridor "concentrates 35 percent of the GDP for both countries, 20 percent of Chad’s population, and 35 percent of Cameroon’s population.” Therefore, the planned investments will facilitate trade and improve “the flow of people, goods, and services” along that corridor. 

This year, the reconstruction of the 330-kilometer Belabo-Ngaoundéré railway line (a railway section on the Douala-N'djamena corridor) is scheduled to start. A XAF80.7 billion financing from the European Union and the European Investment Bank is already available. Another one is expected from the French Development Agency AFD.  For years now, Cameroon and Chad have been elaborating on a project aimed at extending that railway line to N'djamena. 

Source:  Business in Cameroon