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                     f OR IMMEOJA TE ~LEAS                   -




                1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1"234



                           BANK NEWS RELEASE NO.           82/31                             Contact:   Hugh Blackman
                           December 21, f981_·                                                          (202) c:_~-;77-3879



                           WORLD BANK APPROVES LOAN TO CAMEROON F0-R POST· AND TELECOMMUNICATION SERVI CE
                                  Cameroon will establish an independent postal and telecommunications
                           service to be operated on commercial lines. To provide the technical
                           assistance needed for this effort, the World Bank has approved a loan of
                           $7 • 5 mi 11 i on •
                                The Post and Telecommunications Ministry wi11 transfer its operating
                           responsibilities to the new organization but will cont~nue to make policy
                           and regulations.
                                A consulting consortium has already been selected to prepare an organi-
                           zational plan and an investment program. This consortium is led by a
                           Canadian firm, Maheu, Noiseux and Co.; other memb~rs are Bell Canada
                           International, Postes Canada, and Kooh and Mure, a Cameroon-based auditino
                           firm. Consulting expertise will be supplied by two specialized agencies
                           of the United Nations, the International Telecommunications Union and the
                           Universal Postal Union, to improve technical training at the existing post
                           and telecommunications school at Yaounde. The government will contribute
                           $3.6 mill ion to the cost of the project.
                                The postal service operates 200 post offices complemented by 25 rural
                           mobile units. Through these facilities, it also provides essential checking
                           and savings services to some 250,000 clients. Because private banks do
                           not operate outside the main business centers, the post is the only
                           institution channeling savings from agricultural areas.
                                The telecommunications network links the two major cities, Yaounde
                           and Douala, to the northern region across vast, underpopulated areas.
                           The country has about 40,000 telephones, 84 telegraph offices, and 500
                           telex subscribers. The telecommunications network is in poor condition,
                           and repair waiting ti mes of 6 tt.) 18 months have been reported.

                                While all Bank projects in Cameroon include provisions for strengthening
                           institutions, this will be the third specific technical assistance project
                           aimed at strengthening the central technical ministries and executing
                           agencies. For this purpose, a Bank loan of $4.3 million was made in 1977,
                           and followed in 1981 by a $10 million credit from the International
                           Development Association, the World Bank's concessional lending affiliate.
                           The new World Bank loan of $7.5 million to Cameroon is repayable over 20
                           years, with five years of grace 1 at 11.6% interest per year.


                           NOTE:     Money figures are expressed in U.S. dollar equivalents.