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  • Signing of Japanese ODA Loan Agreement with Cameroon: Improvement of a section of an international corridor connecting Central African countries and stimulating the sub-regional distribution of goods

Press Releases

May 31, 2017

Signing of Japanese ODA Loan Agreement with Cameroon: Improvement of a section of an international corridor connecting Central African countries and stimulating the sub-regional distribution of goods

photosigning ceremony

On May 30, the Japan International Cooperation Agency (JICA) signed a loan agreement with the Government of the Republic of Cameroon in Yaoundé to provide a Japanese ODA loan of up to 5.894 billion yen for the Yaounde-Brazzaville International Corridor Development Project (Mintom-Lélé Section).

The project will develop approximately 67 kilometers of unpaved road between Mintom and Lélé in the south part of Cameroon, which makes up a part of the key international corridor in Central Africa that connects Yaoundé and Brazzaville, the capital cities of Cameroon and Republic of the Congo, as well as reaching Gabon and Equatorial Guinea. The objective of the project is to ensure an efficient transportation route between Cameroon and the Republic of the Congo, with the aim of promoting poverty reduction and economic development in the target region as well as the integration of the sub-regional economy of Central Africa. The loan funds will be allocated to public works procurement related to paving the target road section. The project will be co-financed by the African Development Bank (AfDB).

Located in the South Region, the target area produces foods, including agricultural products such as cassava, cooking bananas and cacao, which are exported to trading partners including Japan. The South Region also has a high potential for development as it is endowed with high-quality timber and minerals including iron ore. However, the poor conditions of the unpaved road along the Mintom-Lélé section make the domestic and external transportation of such products inefficient and costly, which has resulted in a lag in poverty reduction and economic development in the south.

Support for improvement of the Yaoundé-Brazzaville international corridor outside of the project target section is being provided by the AfDB, the Central African Development Bank [1] and other development partners, with the aim of promoting sub-regional economic integration by connecting the corridor from the Port of Douala in Cameroon, the largest regional logistics hub, to Brazzaville via Yaoundé with paved roads.

Through co-financing with the AfDB, JICA supports improvements of major trunk roads in Cameroon, including the Transport Facilitation Program for the Bamenda-Mamfe-Ekok/Mfum-Abakaliki-Enugu Corridor (loan agreement signed in March 2009) and the Batchenga-Lena Road Project (loan agreement signed in March 2015). Through such projects, JICA will continue to contribute to economic development in Cameroon and sub-regional integration in Central Africa.

1: Banque de Développement des États de l’Afrique Centrale



1. Terms and Amount of Loan

Project title Amount (million yen) Annual interest rate (%) Repayment
period
(years)
Grace
period
(years)
Procurement
Project Consulting services
Yaounde-Brazzaville International Corridor Development Project (Mintom-Lélé Section) 5,894 0.3 - 40 10 General untied

2. Executing Agency
Ministry of Public Works
Address: BP 15406 Yaoundé, Cameroon
Phone: +237-222-22-22-94, fax: N/A
3. Planned Implementation Schedule
(1) Completion of project: May 2021 – when the road is put into service
(2) Issuing of letters of invitation for consulting services: Not applicable
for this loan. Consulting services will be provided through financing from the AfDB.
(3) Tender announcement of initial procurement package for international competitive bidding on project construction:
Procurement package title: Civil Works
Release date: May 2016 (already released)

(Map)

photoMap of the target region and surroundings. Dotted lines represent unpaved roads. The target section is located on the dotted line in red.

photoMap of the target section.

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