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Special Issue on Projects Infrastructure Mining Energy Agriculture MAJOR PROJECTS AGRICULTURE ENERGY BUSINess IN MINING INDUSTRY SERVICES FINANCE 2012 - SI 01 2012 CAMEROON Special issue on projects Infrastructure Mining Energy Agriculture BUSINESS IN CAMEROON CONTENTS 4 • Four ongoing giant projects 16 • Cameroon: Abounding to boost the in all forms of energy economy BUSINESS IN CAMEROON Publisher Stratline Limited - Rooms 1102-1103, 11F, Kowloon Building, 555 Nathan Road, Monkok, Kowloon, Hong Kong Publication Director 24 • Emmanuel Yasmine BAHRI-DOMON Bonde: Contributors Agence ECOFIN, Ayissi LE BEAU, “Cameroon’s Beaugas-Orain DJoyUM, Mamadou CISSÉ, Jude Viban, John MACINTOCH sub soil is www.agenceecofin.com rich, even Operator Séquence Media SA if only 40% www.sequencemedia.com Design : Jérémie FLAUX, has been Web : Christian ZANARDI, Proofreading : Codou Mbassy DIENE explored” Advertisement Séquence Media, Genève Benjamin FLAUX Tel +41 78 699 13 72 [email protected] In Cameroon 38 • Agriculture: [email protected] Tel +237 99 41 60 15 Mainstay of Printing and Distribution Cameroon’s Ste GALMA (imprimerie du soleil Levant) BP 15903 Yaoundé, Cameroun economy Marlyse BIEME ONANA (DG) Tel. : 00 237 22 21 97 84 - 99 59 11 95 [email protected] Free – cannot be sold 2012 / SI 01 -3- BUSINESS IN CAMEROON INFRASTRUCTURE Four ongoing giant projects to boost the economy Several giant projects are being imple- mented in Cameroon. Among these projects, three are in the energy sector: Lom pangar in the East, Memve’ele and Mekin dam projects in the South of the country. The last one is in the transport sector: Kribi deep seaport located in the Southern part of Came- roon. “Without energy, there cannot be any development. There will be no industries, transformation of our primary products President Paul Biya laying the foundation stone of the Memve’ele hydroelectric power and minerals. Without energy, we would plant on June 15, 2012. not talk of a modern economy”, P r e s - ident Paul Biya said on June 15, 2012 transmission line of 225 Kva (kilo volts tral African States Development Bank while laying the foundation stone of the amperes) that would serve as a bridge (BDEAC) are some of the country’s par- Memve’ele hydroelectric power plant. between the dam power station and tners in the project. As per the project Yaounde for a distance of about 300 Km. factsheet, Eximbank has already availed MEMVE’ele dAM PROJECT Work is being executed by Chinese engi- CFAF 243 billion as expected. The pro- Estimated at CFAF 420 billion, the neers from Sinohydro Corporation Ltd ject is financed through build-operate- Memve’ele dam project, upon comple- while Egis Cameroun is supervising the transfer (BOT). tion in late 2016 or early 2017, would work. The project is expected to create pump about 201 megawatts into the na- at least 3,000 direct jobs. LOM PANGAR tional grid. It would comprise of a dam, Lom Pangar project is relatively more a mill, and a transformation station. The Chinese Eximbank, the African Deve- advanced and the Chinese constructor, latter would be built in Ebolowa with a lopment Bank (AfDB) and the Cen- China International Water and Elec- tric Corporation (CWE), is expected Cameroon a country underconstruction. to complete work in 38 months so that the dam can go online in July 2014, said Electricity Development Corpora- tion (EDC) general manager, Theodore Nsangou. Coyne & Bellier/ISL Group is supervi- sing the execution of the project, super- vising work on the site, and assisting the executing authority during and after the project, as well as building the capacities of the personnel of EDC accordingly. They would earn CFAF 9.8 billion for the job according to the contract. The project consists in building a six billion-cubic metre water reservoir, an electricity plant of 30 megawatts (for rural electrification schemes in the East region) and a high tension line of 90 ki- lovolts. With this, 170 megawatts of ad- -4- 2012 / SI 01 INFRASTRUCTURE BUSINESS IN CAMEROON Kribi deep seaport currently under construction by the China Harbor Engineering Company. ditional energy will be produced and the minium smelter. As the largest electrici- the first phase of the project which took project will help sustain other project ty consumer in Cameroon, Alucam has off in December 2010, will ease the along the Sanaga River like the Nachtigal vowed to triple its output if Lom Pan- evacuation of minerals notably Bau- dam (to produce about 280 megawatts) gar were to provide them with enough xite, Iron, Cobalt and Nickel. Also, the and Song Mbengue dam (expected to power. port will have an off-shore container produce about 900 megawatts). terminal that will eventually encourage MEKIN DAM transshipment. Lom Pangar in its entirety would cost As concerns the Mekin hydroelectric Upon completion, the main port of five CFAF 247 billion according to EDC dam, 40% of the work has been com- to 16 metres depth will receive big vessels officials. The Lom Pangar Hydropower pleted in July 2012 according to govern- with a capacity close to 100,000 tonnes. Project is a multi-donor partnership. ment sources. This will fill the gaps of the Douala Sea- The World Bank is part of an interna- port which is only six to seven meters tional partnership that is supporting the Authorities are hopeful that these scores in depth and can at best receive vessels venture to help bring badly needed elec- of energy projects would reverse the with a capacity of 15,000 tonnes. tricity to Cameroon. International par- energy deficit plaguing the country at The second and third phases of the pro- ject are expected to be financed by pri- All those projects will lead Cameroon to an vate companies on the “Build-Operate- Transfer (BOT)” system. emerging economy by 2035 with a double Of the CFAF 200 billion raised in trea- digit economic growth. sury bonds, CFAF 21 billion were alloca- ted to this project. China had disbursed a loan of CFAF 207.7 billion through tners in the project include the African the moment, thereby laying the founda- Eximbank. Counterpart funding to the Development Bank (AfDB), the French tion for emergence. tune of CFAF 36 billion to meet the en- Development Agency (AFD), the Cen- tire budget of the first phase evaluated at tral African States Development Bank KRIBI DEEP SEAPORT over CFAF 240 billion had equally been (BDEAC), and the European Invest- As for the Kribi deep seaport in the mobilised. ment Bank. South region, it is expected to go ope- Financing from BDEAC and the AfDB rational by 2014. This important project All those projects, upon achievement for Lom Pangar were both signed in will not only serve Cameroon but the will lead Cameroon to an emerging eco- January 2012. whole of the Central African sub region. nomy by 2035 with a double digit eco- One of the main beneficiaries from this Presently under construction by the nomic growth. megaproject would be Alucam, the alu- China Harbor Engineering Company, JOHN MACINTOSH 2012 / SI 01 -5- BUSINESS IN CAMEROON INFRASTRUCTURE CFAF 15 trillion to implement Cameroon’s railway plan Cameroon has developed a new railway Gross Domestic Product (GDP) of ment intends to start implementing the master plan that will connect the country about 4.75% per year until 2040, ac- rail plan this year through 2020. with neighbouring states and also help cording to the Ministry of Economy. reduce the relative isolation of agricultu- “Similarly, the volume of imports of raw The following lines are scheduled for the ral and mining production areas. and secondary materials will be reduced first phase: Edea/Kribi (136 km, CFAF in favour of an increase in the volume of 468.7 billion), Mbalam/Kribi (602.6 km, With the proliferation of major pro- jects, particularly in the field of mining (iron in the South and bauxite in Ada- mawa) coupled with the construction of the Kribi deep seaport, Cameroon wants to expand its rail network, cur- rently stands at 1000 km. The first draft of the national railway master plan was The new national railways will result in a steady GDP increase of an estimated 4.75% per year until 2040 presented to the press on April 28, 2011 by the then Minister of Planning, Louis Paul Motaze. This national rail network will run along several cities. In addition to trans- porting mineral resources for export, it seeks to improve the sub-regional traf- fic. According to the Ministry of Eco- nomy sources, it will link major ports in mining areas, thus helping the Came- roon industry to emerge while boosting exports in the region. The cities to be serviced by the rail exports in the Central Africa sub-region,” CFAF 310.9 billion), Douala/Limbe (73.5 network, is the Kousseri-Kribi section the ministry added. The project could km, CFAF 341 billion), and Ngaoundéré/ through Ngaoundere, Bertoua, Obala, generate 348,300 short-term jobs and Douala (907.5 km, CFAF 4,545 billion). Yaoundé, and Mbalmayo. Linear lines 256,000 medium-term jobs. from Mbalam-Kribi and Limbe-Mba- The new version of the national railway The railway will have 50 kg rails. The speed lam. Several other sections such as Ba- plan presented by the General Directorate will be between 150 km/h and 170 km/h touri-Limbe are also earmarked. for Economic and Public Investments for passenger trains and between 70 km/h Programming indicates that the total and 90 km/h for freight trains. The Natio- BENEFITS project cost is estimated at CFAF 14,977 nal Railway Master Plan was completed in Starting 2015, this new national plan trillion (€ 23 billion). Funding is currently partnership with a Korean company.
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