.World Bank
 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202:) 393-6360



            BANK NEWS RELEASE NO. 76/48                                             May 6, 1976

                            $2.3 MILLION FOR RAILWAY DEVELOPMENT IN CAMEROON


                      The World Bank has today approved a $2.3 million loan to help finance
            a third railway project in the United Republic of Cameroon.

                         Cameroon's major economic center, Douala, located on the Gulf of
            Guinea, at the junction of West and Equatorial Africa, makes it an important
            gateway for the country's exports and imports as wel1 as for those of its
            landlocked neighbors: Chad, and to a lesser extent, the Central African
            Repub 1 i c.

                      The project includes (i) a feasibility study to determine, as part of
            a master plan, the capacity demand for railway terminal facilities in the area
            of the capital Douala by 1985; (ii) a final engineering of the new Douala
            Railway Station and Marshalling Yard including geotechnical studies; and (iii)



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            other consulting services to cover railway operations, commercial activities,
            management, and study capacity restraints on the Douala-Yaounde corridor.

                      The proposed Marshalling Yard will have a much larger capacity than
            the existing one. It will be located at a better site and cioser to the Douala
            workshops, and will cope with increased traffic and link with proposed port
            supervision.

                           Improved productivity of the wagon fleet, reduced cost of movement
           of locomotives between yard and workshops, shorter mainline hauls, elimination
           of delays and damage caused by periodic flooding of the existing yard, and
           avoidance of diversion to road transport of additional traffic beyond the
           capacity of the existing Marshalling Yard are the benefits expected from this
           project. These benefits will accrue when the facilities are constructed and
           will provide strong enough justification for financing the engineering of these
           fac i 1 it i es.

                      The Bank loan is for a term of 10 years including two years of grace
            at 8-1/2% interest.




•           Note:    Money figures are expressed in U~S. dollar equivalents .
Form No. 1121
   (9-75)
                              TECHNICAL                DATA



   PROJECT:

   COUNTRY:
                              Thi rd Ra i 1way

                              Cameroon
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   TOTAL COST:                $2. 9 mi 11 ion

   BANK FINANCING:            $2.3 million. Repayment over 10 years, including two
                              years of grace, at 8-1/2% interest




  OTHER FINANCING:            Regie Nationale des Chemins de Fer du Cameroon (REGIFERCAM).


   IMPLEMENTING ORGANIZATION: Regie Nationale des Chemins de Fer du Cameroon (REGIFERCAM)
                              B.P. 309
                              Douala, Republique Unfe du Cameroon

   PROJECT DESCRIPTION:      The project includes (a) a feasibility study to (i) determine,
                             as part of a master plan, the capacity demand for railway
  terminal facilities in the Douala areas by 1985; (If) determine the optimum distribution
  among individual facilities; (iii) produce a pr.elimlnary design and cost estimates for t h .
  proposed facilities; and (iv) provide economic and financial justifications for these
  facilities; (b) final engineering of the new Douala Railway Station and Marshalling Yard
  including geotechnical studies, the preparation of cost estimates and tender documents;
  and (c) other consulting services to (t) cover railway operations, commercial activities
  and management; and (Ji) study capacity restraints on the Douala-Yaounde corridor. These
  consulting services were originally included in the Second Railway Project.

  CONSULTANTS:                (i) The feasibility study will be carried out by consultants
                              to be selected on terms and conditions acceptable to the Bank;
  (ii) the final engineering of facilities and preparation of tender documents will be
  carried out by consultants to be selected on terms and conditions acceptable to the Bank--
  an exception wi 11 be made for the set of tracks for the passenger terminal and the
  Marshalling Yard that will be executed by REGIFERCAH assisted, if necessary,by the Office
  de Chemin de Fer Transcamerounais; and (iii) Consulting services for assistance to
  REGIFERCAM's operation and management and execution of the corridor study will be pro-
  vided by SOFRERAIL and SOFRERAIL/OCCR who have been already selected following procedures
  c'onsJstent with the Bank's guidelines. These consulting services were originally in""
  eluded in the Second Rail~ay Project.

  ECONOMIC RATE OF RETURN:   The best present estimate of the economic rate of return on
                             the construction project is 29%. This return applies only
                             to freight traffic which will be handled by the Marshalling
                             Yard facilities.



   ESTIMATED COMPLETION DATE: 1978

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