Document of The World Bank ^5.1-E COPY FOR O CIAL USE ONLY IY Report No. P-3460-CM REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN IN AN AMOUNT EQUIVALENT TO US$20.0 MILLION TO THE UNITED REPUBLIC OF CAMEROON FOR THE URBAN DEVELOPMENT PROJECT February 16, 1983 I This document ha a resricted distribution and may be used by recipients only In the performance of I their official duties. Its contents may not otherwise be disclosed without World Bank authoriation. CURRENCY EQUIVALENTS Currency Unit CFA Franc (CFAF) US$1 = CFAF 270 a/ CFAF 1 million US$3,704 ABBREVIATIONS ARAN - Agence de Restructuration et d'Amenagement de Nylon BCD - Banque Camerounaise de Developpement CAPME - Centre d'Assistance aux Petites et Moyennes Entreprises CFC - Credit Foncier du Cameroun CPN - Caisse Populaire de Nylon FEICOM - Fonds Special d'Equipement et d'Intervention Interconmunal MAETUR - Mission d'Amenagement et d'Equipement des Terrains Urbainu et Ruraux MINUR - Ministere de l'Urbanisme et de l'Habitat PME - Petites et Moyennes Entreprises SIC - Societe Immobiliere du Cameroun SNEC - Societe Nationale des Eaux du Cameroun SONEL - Societe Nationale d'Electricite UCPY - Union des Caisses Populaires de Yaounde USAID - United States Agency for International Development FISCAL YEAR (Government, CFC and MAETUR) July 1 to June 30 a! Floating exchange rate. The CFA Franc (CFAF) is tied to the French Franc (FF) at the ratio of FF1 to CFAF 50. FOR OFFICIAL USE ONLY UNITED REPUBLIC OF CAMEROON URBAN DEVELOPMENT PROJECT LOAN AND PROJECT SUMMARY -Borrower: United Republic of Cameroon Beneficiaries: Ministry of Urban Development and Housing (MINUH)/Credit Foncier du Cameroun (CFC)/Mission d'Amenagement et d'Equipement des Terrains Urbains et Ruraux (MAETUR) Amount: US$20.0 million including capitalized front end fee Terms: Twenty years including a five-year grace period, at an annual interest rate of 11.6 percent. Co-Financing: Government of Switzerland Project Description: The first,Bank Group-financed urban project in Cameroon is designed mainly to provide basic infrastructure, school and health facilities and improved shelter to lower urban income groups at appropriate standards and reasonable cost in the country's two largest cities and economic centers. The project would introduce the concept of slum upgrading in the Government's urban development program, strengthen existing institutions, and provide site-specific assistance to artisans to increase productivity. The infrastructure and building credits to be provided by the project are expected to be an important incen- tive to private sector and self-help house construction. The project, to be implemented over a 6-year period, would consist of the following main components: (i) Development of Douala-Nylon, the city's least developed squatter area, by: (a) providing basic infrastructure (roads, drainage, water supply, street lighting, refuse points) for 90,000 residents, as well as community facil- ities, pilot health education program, a retail market and technical assistance to artisans; and (b) carrying out a complete slum upgrading program for 13,000 inhabitants, including housing loans and land tenure; (ii) Community facilities in Yaounde-Northwest, one of the city's least developed areas, such as schools, health centers, markets and artisan center; and (iii) Technical assistance, training and studies for project execution, preparation of follow-up projects and urban investment planning. This document has a restricted distribution and may be used by recipients only in the performance of their oMcial duties. Its contents may not otherwise be disclosed without World Bank authorization. Benefits and Risks: Direct quantifiable benefits would be better sanitary andw infrastructure conditions, particularly for the poorer segments of the population in the country's two largest economic centers. Indirect benefits include improvements in the beneficiaries' health status, generation of unskilled construction employment and incentives for house construction. The project would support private sector initiatives and activities, and would help strengthen institutions and policies. A major risk relates to the innovative nature of the country's first slum upgrading operation. To minimize the risk, technical assistance will be provided to the executing agencies, particularly during the start-off period, to reinforce coordination of project activities and improve the training of counterparts. - iii - Estimated Costs: US$ million Foreign Local Total 1. Development of Nylon 14.1 12.7 26.8 2. Community facilities, Yaounde N.W. 1.4 1.4 2.8 3. Technical assistance, training, studies 3.7 3.1 6.8 Total base cost 19.2 17.2 36.4 Physical contingencies 2.8 2.4 5.2 Price contingencies 5.8 7.3 13.1 Total cost (incl. taxes) 27.8 26.9 54.7 Taxes - 9.5 9.5 Cost net of taxes 27.8 17.4 45.2 Total Cost (inc. taxes) 27.8 26.9 54.7 Front end fee on Bank loan 0.3 - 0.3 Total financing reqtiired (incl. taxes) 28.1 26.9 55.0 Financing Plan: Foreign Local Total IBRD 20.0 - 20.0 Switzerland 3.5 2.0 5.5 Cameroon 4.6 24.9 29.5 28.1 26.9 55.0 Estimated Disbursements: US$ Million FY83 FY84 FY85 FY86 FY87 FY88 Annual 0.3 3.4 7.9 5.4 2.4 0.6 Cumulative 0.3 3.7 11.6 17.0 19.4 20.0 Rate of Return: 18 percent (on. about 70 percent of project costs for which benefits have been quantified). Staff Appraisal Report: Report No. 3455-CM, dated February 16, 1983. Maps: No. 15292R-Douala, Project Locations No. 15293R-Yaounde, Project Locations INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE UNITED REPUBLIC OF CANEROON FOR AN URBAN DEVELOPMENT PROJECT _ 1. I submit the following report and recommendation on a proposed loan to the United Republic of Cameroon for the equivalent of US$20 million to help finance an urban development project. The loan would have a term of 20 years, including a five-year grace period, at an annual interest rate of 11.6 percent. The Swiss Government has agreed to participate in the financing of the project with a loan of US$5.5 million equivalent, on terms similar to IDA's. PART I - THE ECONOMY 2. A report entitled "United Republic of Cameroon--Economic Memorandum" (No. 2877-CM), was distributed to the Executive Directors on April 30, 1980. Since then, three economic missions, as well as a number of sector missions, have visited Cameroon. Their major findings are incorporated in the following paragraphs. Annex I provides basic country data. Background 3. Cameroon has a population of 8.9 million and covers an area of 475,000 km2. It is one of Africa's most diverse countries, with a wide range of climatic zones, ecological conditions, population densities, ethnic groups and traditional cultures. Its main opportunities for development lie in the expansion of agricultural, livestock, and forestry production; the exploitation of energy and mineral resources; and the processing of agricul- tural, forestry and mineral products for domestic consumption and export. Cameroon became an oil producer in 1978 and is estimated to have produced some 6 million tons of crude petroleum in 1982. In 1981, Cameroon began producing refined petroleum products. 4. Cameroon' s main economic centers are separated by large areas of low population density, and the country's port facilities and transport network also serve landlocked Chad and the Central African Republic. Adequate port and trunk transportation systems are essential for promoting agriculture, forestry and industry, and for strengthening internal and external communica- tions. With the growth of manufacturing industry, government, transport, construction and services, Cameroon is becoming increasingly urban. About 35 percent of the population now live in towns, with the heaviest concentrations in Douala, the major port and industrial center, and Yaounde, the capital. - 2 - 5. Cameroon subscribes to a philosophy of "planned liberalism" and the country's economic development has been pursued within a five-year investment planning framework. The Fourth Plan period ended in June, 1981, and the Fifth Plan (1981-86) is now in effect. Cameroon's macro-economic policies have been cautious and the Government has concentrated on fostering a sense of national unity among the different regions of the country. Thus, while until the second half of the 70's growth was comparatively moderate, the country has enjoyed exceptional economic and social stability. 6. Growth. Over the past fifteen years, Cameroon has experienced accelerating output and population growth. Real annual GDP growth during the Second Plan Period (1966-71) averaged 4.2 percent; in the Third (1971-76), 4.5 percent; and in the Fourth (1976-81), an estimated 7 to 8 percent. Population growth in the three periods was, respectively, about 1.8, 1.9 and 2.3 percent a year. Per capita GNP rose between 1966 and 1980 at an annual rate of about 3.1 percent. 7. Investment and Savings. Underlying the longer term rise in GDP growth have been rising proportions of investment. The investment/GDP ratio averaged over 15 percent during the Second Plan, close to 20 percent during the Third, and about 23 percent during the Fourth. Despite rising investment/ GDP ratios, the mobilization of domestic savings more than kept pace, due largely to increased public savings. Gross domestic savings rose from about 84 percent of total investment under the Second and Third Plans to about 94 percent during the Fourth Plan. After allowing for net factor service and current transfers and the amortization of foreign loans, reliance on foreign financing fell from about 33 percent of total investment during 1966-71 to about 30 percent during 1976-79. 8. Public Finance. Budgetary revenues amounted to about 15 percent of GDP during the Second and Third Plans but increased to close to 17 percent during the Fourth Plan. Public savings after debt service declined from about 39 percent of total public investment during the Second Plan to about 36 percent during the Third; however, they rebounded to 55 percent during 1976-79, thanks to substantial contributions from the agricultural export stabilization funds. 9. Balance of Payments. Overall, the balance of payments has not posed particular problems, apart from some short-term deterioration during the 1974-76 period. In 1977-80, exports rose substantially (at an average annual rate of 26 percent), but imports also increased (at an average annual rate of 20 percent) because of more rapid economic growth and higher investment. International reserves were rebuilt in 1976-80, rising in 1980 to a gross level equivalent to about seven weeks of imports. This was low by interna- tional standards, although still acceptable given Cameroon's membership in the Central African Monetary Union. Since late 1980, Cameroon's official reserve position has fluctuated, reflecting variations in short-term capital transac- tions. - 3- Development Prospects and Issues 10. Short- and Medium-term Developments. Oil production is having a significant impact on the Cameroonian economy. Historically, Cameroon has been dependent on the export of agricultural products for the bulk (72 percent in 1978) of its export earnings. Cocoa and coffee alone accounted for 53 percent of the value of 1978 exports. However, oil exports, which represented about 1 percent of total exports in 1978, had risen to an estimated 63 percent in 1982, with the share of agricultural products as a result dropping to about 28 percent. Exports of oil have continued to rise in 1983, further reducing the proportional importance of agricultural exports. The structure of output is also changing, with production of the agricultural sector falling from 32 to 26 percent of GDP between 1978-1981, and oil production rising from less than a half to over 11 percent. 11. The Government is nonetheless projecting significantly rising agricultural production in the years ahead. Its targets for the Fifth Plan period are based on 3 percent annual increases in cocoa output; 5 percent for robusta coffee; and 7 percent for arabica coffee; increased production of food and other crops, as well as livestock; and expansion of forestry produc- tion. An impact on the structure of the economy is expected from the Fifth Plan under which the proposed investment/GDP ratio is 23 percent. The Plan stresses increased support to agriculture and expansion of the supply of technical and professional manpower, while energy, mining and industry are to receive diminished emphasis. However, apart from appearing ambitious, the Government's targets, especially for agricultural production and invest- ment, are not based on explicit identification of the probable patterns of hydrocarbons development and oil revenue-use and are, therefore, subject to more than the usual margin of uncertainty. The projected annual GDP growth rate of 7 percent over the Fifth Plan period is in line with estimated recent growth in the 7 to 8 percent range and appears comfortably attainable. 12. Longer-Term Developments. Cameroon's promising potential in areas outside agriculture implies a longer-term structural shift towards a more diverse industrial base, with expanded mining, manufacturing, power and service sectors. Agriculture will probably play a still critical but less dominant socio-economic role; within agriculture, a gradual shift in the composition of output towards increased food production for the growing urban population appears likely. External Borrowing and Creditworthiness 13. Total public external debt outstanding and disbursed rose from US$514 million at the end of 1976 to US$2.0 billion at the end of 1981. Debt service payments rose from US$39 million in 1976 to US$200 million in 1981, while exports increased from US$770 million to about US$2.2 billion during the same period. Notwithstanding a hardening of average loan terms in the 1970s, Cameroon's debt service ratio was still about 9.1 percent in 1981 and is projected to stay in the 12 to 14 percent range throughout this decade. - 4 - Borrowing on non-concessionary terms is expected to account for about two- thirds of total new commitments and average terms are expected to harden during the period. Because of higher debt service payments, projected net disbursements will probably be less than in the past but, with Cameroon's favorable export and savings prospects, are expected to be sufficient to allow an investment rate above 25 percent of GDP, as well as the maintenance of a strong foreign reserve position. PART II - BANK GROUP OPERATIONS IN CAMEROON 14. Bank and IDA commitments in Cameroon as of September 30, 1982, amounted to US$746.2 million and covered 41 projects: 19 in agriculture, 12 in transportation, 3 in education, 3 in public utilities, 2 small- and medium-scale enterprise projects and 2 technical assistance projects. Transport and agriculture each account for about 40 percent of these commit- ments. IFC has invested in five enterprises, with total net loan and equity commitments of US$12.7 million. Annex II contains a summary statement of Bank loans, IDA credits and IFC investments as of September 30, 1982, including notes on the execution of ongoing projects. 15. Although implementation delays and setbacks have occasionally been encountered, the Government has consistently shown willingness to collaborate with the Bank in finding solutions. In the past, Cameroon's disbursement rate compared very favorably with that of most other countries. Recently, however, performance has deteriorated somewhat, apparently partly symptomatic of admin- istrative difficulties, notably in the central procurement agency. Several steps, including the provision of technical support to expedite procurement procedures, are underway to improve the situation. 16. The Bank's initial investment strategy in Cameroon was to support the Government's development efforts in three main directions: (i) strength- ening and extending the road and rail trunk systems and improving the Port of Douala; (ii) raising agricultural output and exports; and (iii) improving education. Through 1975, apart from one water supply project, Bank lending was concentrated entirely in the transport, agriculture and education sectors. Since 1975, the Bank has diversified its lending, extending it into other areas, including forestry, small- and medium-scale industry, and technical assistance. 17. For the future, projects are being prepared in agriculture, to extend rural development efforts and strengthen agricultural research, and in transport, to rehabilitate or expand the road system. Additional education/manpower and technical assistance projects are also planned, as well as further port, small- and medium-scale industry, urban, and water supply/sewerage projects. The Bank has carried out sector studies in energy, industry, telecommunications and health, and additional projects have been tentatively identified in these areas. The Bank's lending strategy is essen- tially determined by the country's growing need for project-related assistance, -5 - its evident creditworthiness, and the need for the Bank to maintain an ade- quate overall and sectoral presence in order to remain a major source of macro-economic and sector policy advice. Thus, the trend towards further sectoral diversification of Bank lending, reflecting the growing complexity of Cameroon's development, will continue and the overall volume of lending will rise. 18. The Government's main current need is to convert the transient windfall of oil-augmented revenues into a permanent enhancement of national productivity and income. This will call for a strengthening of the Govern- ment's policy-formulating capabilities, the identification of economically sound development options, and the evolution and adoption of an explicit oil-revenue-use strategy to guide decision-making throughout the economy. Of particular importance will be sound decisions concerning the size and composi- tion of the domestic investment program and the identification and removal of the major development bottlenecks. 19. In response to Cameroon's changing needs, the Bank's economic and sector work program is now emphasizing a broadening of the macro-economic and sectoral policy dialogue with the Government and the implementation of an integrated program of technical assistance to the central and technical ministries. With regard to short- and medium-term policy options, the dialogue is expected to include: the pace and pattern of oil and gas development; the size and composition of the public investment program; improvements in resource allocation; the roles of the private and public sectors; technical and other skilled manpower constraints and needs; and Government administrative reform. The dialogue on longer-term issues will probably cover basic agricultural and industrial policy options and related manpower development needs. A study on agricultural policy options is nearing completion and will be discussed with the Government shortly. The Bank earlier completed a basic study of indus- trialization and incentives leading to the provision of technical assistance to strengthen the Government's capacity to analyze and reformulate industrial policies. Studies and dialogue on the role of the public sector in industrial development and on the framework of industrial, agricultural and housing financial intermediation are also planned. Donor Activities 20. Disbursements of official development assistance during the second half of the 1960s amounted to about US$45.0 million a year, mostly in the form of grants. France provided most of the assistance. In the 1970s, foreign aid increased to about US$90 million a year, with only one-fifth in the form of grants. Bank and IDA financing amounted to about 23 percent of total disburse- ments and the Bank Group became the major public donor. Bank Group lending to Cameroon has been closely coordinated with that of other donors; in 20 of the 41 Bank projects, joint or parallel financing was arranged and expanded cofinancing is being actively sought for several projects under consideration. 21. Cameroon is now borrowing increasingly from private sources; such borrowing rose to over 40 percent of external financing in 1975-79, from only 11 percent in 1967-69. Public external debt outstanding and disbursed as of - 6 - December 31, 1981, amounted to US$2.0 billion, 8.2 percent of which was in the form of Bank loans and 8.5 percent in IDA credits. Bank loans in 1981 accounted for 7.8 percent of public external debt service and IDA credits for 3.2 percent. By 1985, Bank loans and IDA credits are projected to account for about 26 percent of debt outstanding and about 14 percent of debt service. PART III - THE URBAN SECTOR Stage of Urbanization 22. With an estimated 3.1 million urban residents out of a total population of 8.9 million in 1982, Cameroon is the fourth most urbanized country in West Africa after Congo, Ghana, and Ivory Coast. The high growth rate of 10 percent is expected to decrease to about 5 percent by the year 2000 when Cameroon's estimated 9 million urban residents will represent 65 percent of total population versus 35 percent in 1982. 23. Cameroon divides roughly into three principal economic regions, corresponding roughly to the main ethnic groupings. Douala, the country's main port and largest city (some 600,000 inhabitants), is also the economic center of the western region. The second largest city, Yaounde (some 400,000 citizens), is the economic center of the southern and eastern regions as well as the nation's capital. The secondary towns of Garoua and Maroua serve as economic centers of the sparsely populated northern savannah lands. 24. Even though Cameroon is still a predominantly rural society, the country's changing economic structure--illustrated by growing petroleum production and an expanding industrial sector--will have important repercus- sions on the urban sector in the years to come. Current and projected urban needs are substantial, in particular basic infrastructure, land registration and tenure, and development of new areas. Almost half of all urban residents lack access to piped water, and existing standpipe systems are mostly sub- standard. Less than 10 percent of urban residents hold registered land titles. The needs for improvement were particularly felt in the two largest cities, and the Government's initial efforts to define and implement a more systematic urban policy were, therefore, concentrated on these two centers. Principal cities: Douala and Yaounde 25. More than one million people live in the two largest cities or about 12 percent of the total population. An estimated 150,000 people or 25 percent of Douala's population live below the absolute poverty level in Douala of approximately US$290 per capita. In Yaounde, some 100,000 residents--or 25 percent of total population--have an estimated annual per capita income of less than US$320 which is considered to be the poverty income threshold there. In squatter areas, however, the proportion of the population below the absolute poverty level is much higher than the 25 percent average share for - 7 - both cities indicates: in Douala-Nylon the principal project area, the share is 55 percent, and in Yaounde's squatter areas, the share is 33 percent. Urban infrastructure and services in both cities are seriously deficient, notably in low-income areas. Inadequate drainage, insufficient water supply and solid waste disposal, limited road access and lack of basic health and education facilities pose severe socio-economic problems, including reduced labor productivity and sub-standard sanitation and health conditions. 26. Urban conditions are particularly poor in Douala-Nylon which is mostly composed of Bamileke migrants from the western part of the country who are noted for their cohesive social structure. Nylon's area of some 600 ha houses about 90,000 people who represent about 15 percent of Douala's popula- tion, about one third of the city's poor. Nylon's inhabitants contribute significantly to rapidly expanding informal sector activities and the growing urban labor market in Douala. Demand for urban services is specially acute because previous development plans called for Nylon's transformation into a reserve or green belt, and virtually no infrastructure or urban services were provided for a prolonged period of time. By the mid 1970s, however, Nylon was selected as a priority area for upgrading in the framework of the Government's evolving urban program. Until very recently there were no public schools in Nylon, and there are currently no public health facilities or organized local market facilities at all. In the past, Nylon's minimum basic infrastructure was essentially provided through considerable self-help by 13 neighborhood action committees and organized work groups of its inhabitants. Institutions and Policies 27. The Ministry of Urban Development and Housing (MINUH) has overall responsibility for the Government's urban development program and policies including land registration and management and regional planning. Several specialized semi-public agencies carry out most of the day-to-day operations: SIC constructs and manages houses primarily for higher income residents; MAETUR implements land development programs; CFC is primarily in charge of housing finance; and FEICOM finances municipal infrastructure investments and local training programs. 28. Other Ministries such as Ministries of Education, Health and Social Affairs and some semi-public agencies participate in urban development programs. The municipalities of Yaounde and Douala have traditionally only limited responsibilities for urban development. The bulk of their relatively small budgets, funded mainly by centrally collected taxes, are principally earmarked for basic urban services such as street lighting and garbage collec- tion. 29. Recognizing the expanding needs for urban infrastructure and housing, the Government started to develop a more systematic program during the second half of the 1970s. Earlier, some of the most pressing needs were addressed by projects with selected urban components including projects financed by the Bank Group. Parallel to the evolving urban policies, new institutions were established to help implement the expanding development programs. At the - 8 - Government's request, the Bank has played an active role in developing appro- priate policies through project preparation and sector work, provision of technical assistance and funding of feasibility studies under the First Technical Cooperation project. The Government has generally been receptive to Bank advice and has indicated its intention to continue to seek the Bank's assistance. Areas of future priorities include provision of basic infrastruc- ture, land development and upgrading, housing finance, strengthening of institutions, and streamlining of procedures. Private initiative and self- help should support and complement public programs both in larger cities and secondary centers. PART IV - THE PROJECT 30. The proposed project would be the first Bank-financed urban develop- ment project in Cameroon, expanding and complementing ongoing Bank Group projects with selected urban-related components in water supply, transport, small-scale enterprise and technical assistance projects. Following identi- fication in 1978, a feasibility study was initiated under the First Technical Cooperation Project and completed in September 1980. Appraisal took place in November 1980 with brief follow-up missions during 1981 to firm up institu- tional arrangements. Negotiations were held in Washington from February 24 to March 4, 1982. The Cameroonian delegation was led by the Minister of Urban Development and Housing. While project implementation began as envisaged in 1982, final Government agreement was delayed. In February 1983, the Govern- ment agreed to the project as negotiated (including a fixed interest rate of 11.6 percent, reflecting the financial terms in effect at the time of nego- tiations). The Staff Appraisal Report No. 3455-CM is being circulated separately. Project Objectives and Description 31. The proposed project is designed mainly to provide infrastructure, community facilities and improved shelter to lower urban income groups at appropriate standards and reasonable cost in Douala and Yaounde. The project would introduce the concept of slum upgrading in the Government's urban development program, would strengthen the institutional framework for a continuing upgrading and low-cost housing programs, and would provide site- specific assistance to artisans to increase their productivity. The infra- structure and building credits to be provided by the project are expected to be an important incentive to private sector and self-help construction. 32. The project, to be implemented over a 6-year period, would consist of the following main components: (i) Development of Douala-Nylon, the city's least developed squatter area, by: - 9 - (a) providing a primary network of basic infrastructure (roads, water, drainage, street lighting, refuse collection) for 90,000 residents on the entire 600 ha area as well as community facilities, pilot health education program, a retail market and technical assistance to artisans; and (b) carrying out a more complete slum upgrading program through provision of secondary and tertiary infrastructure for 13,000 inhabitants in a 50 ha pilot zone, including housing loans and land tenure. (ii) Community facilities in Yaounde-Northwest, one of the city's least developed areas, such as schools, health centers, markets and artisan center; and (iii) Technical assistance, training and studies for project execution, preparation of follow-up projects, and urban investment planning. 33. Development of Douala-Nylon. Major roads, drainage, refuse bins, street lighting and water will be provided to the entire 600 ha area to ensure basic access, to solve the major drainage and garbage removal problems and to increase the availability of potable water. The drainage system in Nylon, which is the largest single component in the project, also serves a significant portion of the city of Douala outside Nylon. The project includes financing to dredge and straighten the Mgoua river, main drain of the Nylon watershed. As a first phase of long-term complete slum upgrading, a first tranche of 50 ha (13,000 residents in one of the oldest and best organized of Nylon's 13 neighborhoods) has been chosen, and upgrading here would serve as a model for other neighborhoods. On-site infrastructure would be installed in order to demonstrate how full upgrading, including delivery of tenure, should be carried out. In addition, 600 loans will be granted for plot purchase and home improvement, with an average loan amount of about US$2,400. 34. The project will also help finance two primary schools, Nylon's first public health facility, and a health and nutrition education program. Five community centers will be built and equipped by residents using materials financed under the project, and a retail market will be constructed. Site- specific technical assistance to artisans and small entrepreneurs will be provided through CAPME and CPN, to be complemented by an US$1 million line of credit through BCD financed by the ongoing Second SME Project. 35. Community Facilities in Northwest Yaounde. Upgrading of Northwest Yaounde was considered in the feasibility study but implementation was post- poned because of financial constraints and lack of appropriate resettlement and land tenure arrangements. However, a component consisting of community facilities such as primary school classrooms, health, dispensary and youth centers, as well as a market and artisan center, was retained for this first project. Further assistance to artisans will be provided through CAPME and UCPY. - 10 - 36. Technical Assistance, Training and Studies. A total of 20.5 staff- years of consultant support will be provided to assist in project implemen- tation, to promote institution-building, and to increase sector knowledge and prepare follow-up projects. Technical assistance to facilitate project implementation will be provided to MAETUR (3 staff-years) and MINUH (5 staff- years). 12.5 staff-years of technical assistance have been earmarked for project preparation, including feasibility studies for possible follow-up projects and for urgently needed studies in urban investment and financial planning. Cost and Financing 37. Project cost is estimated at US$54.7 million of which US$27.8 million (51 percent) represent foreign exchange cost. Government taxes amount to US$9.5 million. Project costs are based on December 1981 prices. Physical contingencies are estimated at 15 percent on civil works and construction, and 10 percent on other project components. Price contingencies are estimated at 15 percent per year for local purchases of domestic and foreign goods and services and between 8.0 percent and 12.6 percent per year for direct foreign procurement. The proposed loan would provide for a total of 20.5 staff-years of technical assistance at an average monthly cost of US$11,000 per expert. The unit costs are in line with prevailing and projected billing rates of consulting firms operating in Cameroon. 38. The proposed loan of US$20.0 million would finance 44 percent of project cost net of taxes and 72 percent of foreign exchange cost of the project. Swiss cofinancing would provide US$5.5 million or 10 percent of total project cost. Thus, together with the proposed Bank loan of US$20.0 million, external financing would cover 85 percent of the project's foreign cost or 47 percent of total cost including taxes. Financial Arrangements 39. On-lending arrangements are as follows: US$1.0 million of the loan would be on-lent through CFC to MAETUR for slum upgrading in Douala-Nylon at 5.5 percent p.a. for four years including two years of grace. US$18.7 million for primary infrastructure, community facilities and technical assist- ance will be channeled to the executing agencies through budgetary allocations of the Cameroonian Government. 40. Agreement has been reached on the on-lending arrangements of the loan to the financial intermediaries and executing agencies on terms satis- factory to the Bank. This would include that CFC would recycle the loan proceeds repaid by MAETUR by making further loans to it for urban projects. CFC would also make available purchase and house construction/improvement loans for all plots provided under this project (Sections 3.02 and Schedule 6 of the draft Loan Agreement). - 11 - 41. Cost Recovery. The project will introduce the slum upgrading concept in Cameroon and at the same time the recovery of costs from bene- ficiaries in upgraded areas through plot sales with full title. The project will also introduce municipal participation in the financing of improved conditions for the urban poor. In terms of affordability, the project will reach to the 5th to 10th percentile of the income spectrum for final bene- ficiaries of the upgrading component. Thus the project would have a sub- stantial poverty impact. To ensure replicability, the project will rely essentially on existing institutions and will strengthen them through tech- nical assistance. 42. 85 percent of project costs which includes primary roads, major drainage, other non-allocable infrastructure, and community facilities would be charged to the central government. Small amounts for street lighting, standpipes and garbage disposal would be charged to the municipality of Douala. The relatively large central government share reflects the substan- tial drainage expenditures associated with this project because Nylon is a swampy area through which drainage for a large part of the city of Douala passes. The whole city, therefore, benefits from expenditures on the primary network. 43. 15 percent of project costs would be recovered. Costs of market facilities (ten percent) would be fully charged to the beneficiaries in the small business community. The remaining five percent of project costs would be recovered from beneficiaries in upgraded areas through plot sales with full title. In addition to attributable infrastructure and land costs, beneficiaries will be charged costs of housing construction financed by the project as well as interest during the construction period. Financing for plot purchase and house construction would be consolidated in a single loan from CFC to each final beneficiary to be repaid over 15 years including one year of grace, at an average annual interest rate of 4.5 percent and with a required ten percent downpayment. 44. The interest rate charged to final beneficiaries appears low in relation to past and anticipated inflation rates of approximately ten percent. However, the housing credits from CFC would be financed entirely through a para-fiscal mechanism involving a housing tax levied by the Government on all salaried employees. These tax revenues are channeled through CFC exclusively for social housing. Thus CFC's sources of funding for housing credits is the salaried workforce which is also a target group of its lending operations. To the extent that borrowers--who will be closely monitored by CFC--are low-income or unsalaried, this para-fiscal system results in a cross-subsidy benefitting low-income target groups. 45. The existing financing system permits CFC to cover its operating costs and a margin for risks and profit. If in future, however, CFC, due to increased demand for housing credits requires to borrow funds, then the need to adjust interest rates will become more urgent to maintain CFC's financial viability. The Bank discussed these issues with Government, and assurances were obtained that CFC would apply lending terms that would - 12 - preserve CFC's sound financial position. In addition, a five year investment program for CFC was agreed which defines housing development programs in terms of currently known resources. The Government has indicated its intention to review lending conditions including interest rates based on an ongoing study of CFC's financial policies, and to discuss future actions with the Bank. The Bank will continue to encourage Government to adjust interest rates and other lending terms in a manner compatible with sound management of financial intermediaries, and in line with prevailing economic and financial conditions in the country. Project Execution and Management 46. The proposed project makes maximum use of existing agencies and procedures with modifications, as appropriate, to help increase efficiency. Project execution responsibilities can be summarized as follows: (i) MINUH for general project coordination and overall supervision; and for studies, technical assistance and training; (ii) MAETUR/ARAN for Nylon slum upgrading; and community facilities in Yaounde NW; (iii) CFC for housing loans for slum upgrading; and (iv) CAPME for technical assistance to artisans. 47. MINUH. MINUH will create a Project Office and appoint a qualified Project Coordinator who will be responsible in particular for monitoring the execution of the project and the preparation of progress reports (Section 3.04 (a) of the draft Loan Agreement). He will also focus on replicability and affordability and will initiate corrective measures, if necessary, during project execution. The Project Office will also be responsible for overall supervision and coordination. Assurances have been obtained that appro- priate monitoring responsibilities for the project will be set up (Section 3.07(b) of the draft Loan Agreement). 48. MAETUR/ARAN. MAETUR management and staff are considered competent. USAID provided technical assistance for project planning and development for several years. Further technical assistance will be provided under the proposed project. MAETUR created recently the Nylon upgrading unit ARAN tailored to the specific needs of the first complete upgrading operation in the country--to implement infrastructure upgrading works, to sell plots, and to assist in house improvements. ARAN's activities will initially be limited to Nylon, however, if this arrangement proves to be successful, ARAN's activities could be extended to other upgrading activities elsewhere in the country. ARAN will be managed by a Cameroonian director assisted by a Steering Committee consisting of representatives of urban development institutions and two representatives of the Nylon residents. This broad representation will ensure the widest possible participation of all parties concerned. 49. CFC. It is well managed and has had no major default in its mort- gage portfolio; technical assistance is being provided by Credit Foncier of France. CFC's revenues from housing tax proceeds amounted to about US$21 million in FY 79/80. By mid-1980 CFC made about 150 housing loans totalling nearly US$2 million, and lent US$16 million to MAETUR and SIC for some 1,700 - 13 - plots or houses. CFC's new management recently decided to start general savings operations, and is considering mobilizing external financing to blend with housing tax proceeds to expand CFC's future operations. CFC would on-lend proceeds of the proposed loan to MAETUR for infrastructure works, and would provide loans to individual beneficiaries for plot purchase and house construction and improvement. The house construction loans are included in the project but are not financed from the proceeds of the loan. 50. Other Participating Agencies. Other participating agencies such as SNEC, SONEL, CAPME, CPN and UCPY will collaborate with MINUH and other executing agencies in project implementation in their specific fields of activity. The neighborhood action committees in Nylon will be involved in pilot upgrading and the construction of community centers. These committees have proven to be very effective in mobilizing local resources, channelling them into community development activities, and coordinating community projects. Procurement 51. Contracts for an aggregate value of US$16.7 million base cost for procurement associated with major civil works and equipment would be awarded on the basis of international competitive bidding. If possible, contracts would be grouped to permit bulk procurement and to meet targets. For bid evaluation, a preferential margin of 15 percent or the value of the applicable customs duties, whichever is lower, would be allowed for products made in Cameroon. 52. Small contracts totalling US$6.4 million not likely to attract foreign suppliers would be awarded after competitive bidding advertised locally but open also to bidders without local representation. These would include small supplies for ARAN and the land registry offices, the Swiss- financed market and facilities in Nylon, and the civil works of pilot upgrad- ing except for the drainage works to be carried out by force account by the Nylon neighborhood action committee. Small items totalling no more than US$1 million could be purchased locally based on at least three quotations. Consultant services totalling US$7.6 million would be procured according to Bank Group's guidelines. Dredging of the Mgoua river requires special equip- ment which is already in place for the Douala port dredging. Since it would prove more expensive to bring in other equipment for this operation only, a contract of US$1.6 million was negotiated directly with the contractor based on competitive rates obtained for the ongoing port contract. An extension of this contract of US$0.9 million with similar unit costs has been negotiated. Disbursements 53. The loan proceeds would be disbursed within 6 years to cover the following expenditures: (i) 50 percent of total expenditure for civil works for the upgrading component; (ii) 60 percent of total expenditure for material and equipment for project executing agencies and for technical assistance; and (iii) 70 percent of total expenditure for consultant services and studies. - 14 - All disbursements would be fully documented except for local expenditure (US$0.2 million) for force account work to be done by the Nylon neighborhood action committee to be supervised by MAETUR/ARAN. Reports and Auditing 54. Separate project accounts will be maintained by each executing agency; comprehensive project accounts will be kept by the Project Coordinator who will prepare quarterly progress reports to be sent to the Bank. Assurances have been obtained that no later than six months after the close of the fiscal year, financial statements of CFC and MAETUR would be submitted to the Bank (Section 3.07(b) of the draft Loan Agreement and Section 4.02 of the draft CFC Project Agreement and Section 4.02 of the MAETUR Project Agreement). These financial statements would be audited by an independent auditor acceptable to the Bank, and would be submitted to the Bank no later than 12 months after the close of the financial year. Benefits and Justification 55. Direct quantifiable benefits of the project would be better sanitary and infrastructure conditions for the poorer segments of the population in the two largest cities. Some 90,000 residents would benefit from the provision of basic infrastructure in Douala-Nylon, and 13,000 inhabitants from a first complete slum upgrading operation in a 50 ha pilot zone where residential infrastructure would be provided on a non-subsidized basis. Other improve- ments would include some 10,000 new primary school places, market facilities and workshops for artisans. Indirect benefits include improvements in the beneficiaries' health status, generation of unskilled construction employment, and incentives for house consolidation. The project would have a substantial poverty impact; about half of total project cost is estimated to create direct benefits to some 50,000 residents of the urban poverty group. This project would introduce the concept of slum upgrading in the country's urban develop- ment program, would support private sector initiatives and activities, and would help strengthen institutions and policies. 56. Economic rate of return computations were made separately for individual project components. An overall rate of return of 18 percent was obtained on about 70 percent of project costs for which benefits have been quantified. Sensitivity analyses show that the overall rate of return did not fall below 14 percent in any of the sensitivity tests. Risks 57. A major risk relates to the innovative nature of the country's first upgrading operation. Also, the varied nature of project components involved will require careful coordination and supervision. To minimize these risks, appropriate technical assistance will be provided to the executing agencies, particularly during the startoff period, to reinforce MINUH's control and coordinating functions, and to train Cameroonian counterparts. - 15 - PART V - LEGAL INSTRUMENTS AND AUTHORITY 58. The draft Loan Agreement between the United Republic of Cameroon and the Bank, the draft Project Agreements between the Bank and CFC and between the Bank and MAETUR, and the Recommendation of the Committee provided for in Article III, Section 4 (iii) of the Articles of Agreement of the Bank are being distributed to the Executive Directors separately. 59. Special conditions of the draft Loan Agreement are listed in Section III of Annex III. 60. Special conditions of effectiveness would be that subsidiary financing agreements are signed between the Government and CFC, and between CFC and MAETUR (Section 6.01 of the draft Loan Agreement). 61. I am satisfied that the proposed Loan would comply with the Articles of Agreement of the Bank. PART VI - RECOMMENDATION 62. I recommend that the Executive Directors approve the proposed loan. A. W. Clausen President Attachments Washington D. C. February 16, 1983 ANNEX I - 16 - Page 1 of 7 Page I TABLE 3A CAMEROON - SOCIAL INDICATORS DATA SHEET CA.MEROON REFERFNCE GROUPS (WEIGHTED AVERACES AEA (TIHOUSAND SQ- KM.) - MOST RECENT ESTIMATE)- TOTAL 475.4 MOST RECENT MIDDLE INCOME MIDDLE INCOME ALRICULTLRAL 152.1 1960 /b 1970 /b ESTIMATE /b AFRICA SOUTH OF SAHARA NORTH AFRICA & MIDDLF EAST GNP ELR CAPITA (US$) 15O.0 254.0 670.0/c 1053.2 1253.6 ENLLSY CONSLMPTION PER CAPITA (KI L)CEAS[S oP- COAL EQLIVEAL`NT) 85.2 149.6 142.5 610.1 713.5 POPULATION AND VITAL STATISTICS POPULATION, MID-yTSAR (THOUSANDS) 5681.0 6781.0 8444.0 CLEAN POPULATION (PERCENT OF TOTAL) 1 3.9 20.3 34.6 28.3 47.3 POPLLATION PROJECTIONS POP'LATION IN YEAR 2000 (MILLIONS) 14.2 sTATIONARY POPULATION (MILLIONS) 40.8 YEAR STATILNARY POPULATION IS RFACHED 2110 POPULATION DENSITY PER SQ. KM. 11.9 14.3 17.3 54.7 35.8 PER SQ. EFt. ALhICLLTURAL LAND 38.7 46.8 54.2 129.9 420.9 FuFULATION AOLE STRUCTURE (PERCENT) L-14 YRS. 38.9 40.5 41.3 46.0 44.3 i5-b4 YES. 57.0 55.5 54.2 51.1 52.4 65 YES. ANE ABOVE 4.1 4.1 4.4 2.8 3.3 POPULATION CRiOli RATE (PERLENT) TOTAL 1.4 1.8 2.2 2.8 2.8 URBAN 4.9 5.6 7.5 5.2 4.6 CREUDO DIRTH RATE (PER THOUSAND) 42.9 42.0 42.3 47.2 41.2 ACRDE DEATH RATE (PER THOUSANOD) 27.1 22.2 18.6 15.7 12.2 .ROSS REPRODUCTION RATE 2.8 2.8 2.8 3.2 2.9 FA11LY PLANNINSt ACCEPTORS, ANNLAL (THOUSANDS) .. .. LS_KS (PERCENT OF TARRIED WOMEN) .. .. .. PUoL AND NRTRITION INDEX OF FOOD PRODLCTION PER CAPITA (1969-71=100) 89.0 101.0 110.0 90.7 100.4 PER CAPIEA SUPPLY OF CALORIES (PESCENT OF REQLLREMEYNTS) 91.3 93.1 106.0/d 93.9 108.5 PROTEINS (GRAMS PER DAY) 48.6 52.9 61. 8/d 54.8 71.9 OF WHICH ANIMAL AND PULSE 11.5 14.3 15.9/d 17.0 18.0 ClilLR (AGES 1-4) MORTALITY RATE 36.3 28.0 21.0 23.9 15.1 HEALTH LIFE EXPECTANCY AT BIRTH (YEARS) 37.2 42.2 47.1 51.0 56.9 INFANT MORTALITY RATE (PER THOUSAND) 162.5 133.7 108.8 118.5 104.3 ACCESS TO SAFE WATER (PERCENT OF POPULATION) TOTAL .. .. 26.0/e .. 59.1 URBAN .. .. 35.0/i .o. 83.1 RURAL * - * 22.Ole . . 39.8 ACCESS TO EXCRETA DISPOSAL (PERCENT Oi PCPULATION) TOTAL .. .. LRBAN . . . . .. .. RURAL .. .. . POPULATION PER PHYSICIAN 48108.3 30137.8 16503.1/d 14185.2 4015.5 POPULATION PER NURSING PERSON 3276.4/P,6 2722.2 1154.1/d 2213.2 1802.2 POPULATION PER HOSPITAL BED TOTAL 535.7/g 563.0/h 370.1/d 1036.4 641.7 URBAN 505.37,F 302.07/i 199.77/ 430.8 538.3 RERAL 527./lf ,g 722.0/h 606.8/d 3678.6 2403.3 ADMISSIONS PER HOSPITAL BEI .. .. .. .. 25.5 HOUSING AVERAGE SIZE OF HOUSEHOLD TOTAL .. .. 5.2/e URBAN .. .. 5.17.. 6URAL .. .. 5.2/e AVERAGE NUMBER OF PERSONS PER ROOM TOTAL .. .. URBAN .. .. RURAL .. .. ACCESS TO ELECTRICITY (PERCENT OF DWELLINGS) TOTAL .. .. 6.I7/e URBAN .. .. 22.6/e . RURAL * - 0.57*e - 17 - ANNEX I Page 2 Page 2 of 7 TABLE 3A CAMEROON - SOCIAL INDICATORS DATA SHEET CAMEROON REFERENCE GROUPS (WEIGHTED AVE ACES - MOST RECENT ESTIMATE)- MDST RECENT MIDDLE INCOME MIDDLE INCOME 1960 /b 1970 /b ESTIMATE /b AFRICA SOUTH OF SAHARA NORTH AFRICA & MIDDLE EAST EDUCATION ADJUSTED ENROLLMENT RATIOS PRIIARY: TOTAL 65.0 91.0 103.0 83.3 88.7 MALE 87.0 105.0 113.0 96.1 104.5 FEMALE 43.0 77.0 93.0 80.4 72.0 SECONDARY: TOTAL 2.0 8.0 17.0 15.3 39.7 MALE 4.0 11.0 22.0 19.4 49.3 FEMALE 1.0 4.0 12.0 11.3 29.0 VOCATIONAL ENROL. (Z OF SECONDARY) 23.0 22.8 25.1/d 4.7 10.1 PUPIL-TEACHER RATIO PRIMARY .. 47.7 50.0/d 38.6 34.1 SECONDARY .. 23.1/i 26. 27 23.4 23.7 ADULT LITERACY RATE (PERCENT) 18.9/f 12.0 .. 35.6 43.3 CONSUMPTION FASSENGER CARS PER THOUSAND POPULATION 1.7 4.9 7.7/e 31.9 17.8 RADIO RECEIVERS PER THOUSAND POPULATION 1.7 31.3 91.0 71.8 131.3 TV RECEIVERS PER THOUSAND POPULATION .. .. .. 17.9 44.1 NEWSPAPER ("DAILY GENERAL INTEREST") CIRCULATION PER TdOUSAND POPULATION 1.2 2.5 3.4 19.1 31.5 CINEMA ANNUAL ATTENDANCE PER CAPITA 0.1 .. 1.Ot 0.6 1.7 LABOR FORCE TOTAL LABOR FORCE (THOUSANDS) 2907.0 3299.0 3833.7 FEMALE (PERCENT) 43.0 42.7 41.7 36.5 10.6 AGRICULTURE (PERCENT) 87.0 85.0 83.0 56.5 42.4 INDUSTRY (PERCENT) 5.0 6.0 7.0 17.7 27.8 PARTICIPATION RATE (PERCENT) TOTAL 51.2 48.7 45.4 37.0 26.0 MALE 59.9 57.0 53.9 46.9 46.2 FEMALE 42.9 40.6 37.2 27.2 5.6 ECONOMIC DEPENDENCY RATIO 0.8 0.9 1.0 1.3 1.9 INCOME DISTRIBUTION PERCENT Of PRIVATE INCOME IRECEIVED BY HIGHEST 5 PERCENT OF HOUSEHOLDS .. HICHEST 20 PERCENT OF HOUSEHOLDS .. LDWEST 20 PERCENT OF HOUSEHOLDS .. LOWEST 40 PERCENT OF HOUSEHOLDS .. POVERTY TARGET GROUPS ESTIATED ABSOLUTE POVERTY INCOME LEVEL (USS PER CAPITA) URBAN .. .. 238.0 507.0 279.2 RURAL .. .. 105.0 200.6 178.6 ESTIMATED RELATIVE POVERTY INCOME LEVEL (US$ PER CAPITA) URBAN .. .. .. 523.9 403.6 RURAL .. .. .. 203.6 285.6 ESTIMATED POPULATION BELOW ABSOLUTE POVERTY INCOME LEVEL (PERCENT) URBAN .. .. 15.0 .. 22.1 RURAL .. .. 40.0 .. 30.9 Not available Not applicable. NOTES /a The group averages for each indicator are population-veighted arithmetic means. Coverage of countries among the indicators depends on availability of data and is not uniform. /b Unless otherwise noted, data for 1960 refer to any year between 1959 and 1961; for 1970, between 1969 and 1971; and for Most Recent Estimate, between 1978 and 1980. /c Fiscal year July-June; /d 1977; /e 1976; /f 1962; 11 including ex-South Cameroon under British administration; /h 1968; /i 1972; /J 1974. may, 1982 - 18- ANNEX I ...w ~Page 3 of 7 DIEPINITIONS OP SOCiAL INDiICATORIS Nones Although the de. are drawn Eros s-ce g-eneally judged the -s uthortra,ioe nod rlae,It should als be notd rh.t thy sun noh bier-- nation1, Pally upaa ie b ..us of the loch of sndacdled defnitions end concpts used by different -out-i to collecing the data. The dar ar, none- tbe.s. usful todescibe ordero o Sagitud., indicat treds, and beract-i- -e-otin s-J.or dIff-wence be ner .. c -irin- MTh - ..f.e.c groups ore IfIthe non c...try goup f the subject county und (2) a.county group with toehthgoranee-uceta the -c-ty g-cp of Eb ujeccuty(xep c hg oue ditp--t`n group ehore "twiddle Inton North1 Africa a,d Middl lean' in chosen teceus of -ruger .incl-cultual uffotties. I i the r-f-r-c gucp dote the acn.ag..or . up,le Ion weghe anitset I sans I oat i-lodice and show only obh- Iauit f lbccntIr I gruphas.. date Ifu tho todi -onor ....e the .u...ge of.counties uhon theled iarsdepends c the -ana blo i ny of ar nndiccnnoits. auton n5t.eworci -dinelatogoscess -fon lndi-utortooutiw- Th-enw-.ra...n . -lynftl iocs rnt -nl-tui nedcarat attneascngh.countyn.drefer--c g..u... RAli Fnoun sis)Pupulatlu per Hopirel led - nural. -rhu,adtui- PPopaliat a ttl Tot-L Total u-f-ce urea -osqctulog leod are and tia1nd natwr; 1979 dar, urban, and rural) diolded by their eoetonober of hospita,l beds- dd 1cu -tua - En ate- of-arclurlue ued tewypro-ily u pe-saneely analibie inpbic al pIlnst genrl n seilioed boe iF lcdr- furo epu.panurn .sacetuudkithe garIdns or Iu lie felow 199di. hiimtincnes opi,.,.5 arres whi:plshwt esneti tfe by at iwas on physIcIan. -b Tslasbat.nt proIdingIprlntlynii'yc-- GIMP PIR CAPITA (11$) - lP per cuPita euntIe at ono aket Prices, cal- dio .ae ar non included. iurl1 huspitlal. husee. utlde health cu.letd by -aa uneuu IIthu en Oi lack Atla.. (19781-80 basis); 1960, end loica, err -Ir,eel staffed by a byniio an (hu.t by a 1971. and 192aa.sdinai sntaai . us. wfe t - I uichofe ti-pttnta detion and peonide aIunited rngw of sediallfa, ltis. Po stall- ENERGY CONSUMfTIlIO P11 CAPITA- Aluna. couwro oruecal engy "o"a Iitol .Purpoes ubanhoslas -ldWlisennla/enr hoepinInI, aud l1IIgnt.feret,nauagoanhyo-nclrad getraaee--o7rrl opias.tnl1 or rura hospiralw aod =ei-1 dmtent mb mliy) in AIIlogoo of onal eq Pult e tapiri; 1960, 1919,. ad 19)9 cetrs peciel bed hospitals te IncLuded.oly u Ie t..n. data, Adelnionia pee Ilwyta led - TtoInuber rfdwIs s none, dich-rg-s Iron . hsitals dided by the nutte of beds. POPUL.ATION ANIT VITAL STATISTICS lTel. Popo1anior, Mid-fesr (bihse...dn) - he ci July 1; 1960, 1979, and 1980 HOUINGl Udate~O. inera.ge Siew of Househol yro e uueud -ttl urba.. andrual irha Pouato )pe-c- oftoal-i of urban to total population; A house.hold cons ists of Earop f didualt sIt sha- lining quantern dilfeeent dofinirioo of uran. a aeusooffoct cosparabiliny of data and rhe, Ia seals. A-hadro ogrsyo ay not he Included in asng luti,a; lihi , 1971. and 1969 dana- tehoshold fo st.ati tirlpups. Poculatlon PeujectiiaunsJ-Aiwrag.wbsS.erP- eweospttur-o ,uIen n ..re ...Inree u n;t.,.pI e .lot. iy uge and urn and their -.flitry and fertility rae.d-eil gs. e-pet inely. D..1 lesetld u-e s etsrutrsed Prjecionp pa- -eer foesraiyeteIopieo t.hree -ees-so ocpied p--tn ing life enp--any on birth In...reasgEih .conty's e pitlal ucus Acces Et -iticit'ylecn of deellitogo t -n,uban. -nd r..nsI - 1-1el ..adIfn Ieonetnynula liei1 at 77. 5 yeaco. The p,ar- Conneciona d-e IlIngswith el t-ic ity In lining quener as Percetag so-- fr fetlt nr tobn tho .moeasnigdeclin In of ron-,uran an 'ual dwellIgn resp-ctinly. fertility uc-oding tu Incom l-e end yos feily pIlauirg p-rf-rac.- tEch, c-uoy in the- anniged one I ithe- ote o-bi-uniu- of -o.laity EDICATIIfN nod fErtilicy trends for yrojec - Fr pupoorn Adjusted Enrli11ent horto SItetio -ry popalaio-n 0 tta inoyyplio her is no grooth sic- PrGr col-rra,sl n eae - aion total, sole erd flesl the birth rat is rqual to the deahrt,adas-h g tttn e noietn i gs0 h rsr ed a preages of refe tn sati costat. Tis u -hi-ed ol afte tittiltr ae elIet r school-age .populatins normaly Incudschlre aea'i ofsner-plw- eennrl encY- hnatueynrltuniw cosnt dinonlnh ontno iwlnducuionenrollepntsayence-alliporcon loteyar2 ,ad nhe rune at decline of fertility rot Io rePlaceS- eudery schu- - tta, sole and fe-ln Costted as whore; secdary sen "eI l racto rqie a es fo er fO,oppr-nd primay_ nrutin fer- ta layrosa lti reached - Thr 'rear nh-r anainnery pup,ulat to rnie en 2 ccerina .. IIt reacher training insrutin fee pupi see will heb hce. usually of 12 to12 fears cf ag; cornetponde- ro.rs.. are generally Pe kq-h. - Mid-yea population p-c uquere kil-nte (Ill hect,ene) or locaional er lien "ecel of secondary) - locatioe . n. lu in tono1 are;191. 11. 19 199dt.icuetcnca,idora rohrprgam. w. icb oprt idpn Per sn. kr. ogiulua lend -l9oIspud ne abon for agnicultu..alIlend ently or as deparn-et of necodary lo tnos onl y; I960, 1970 and 1979 date. Ptrll- -no -_e atIo - prtrary. and-ecud-py- Tot-I stdents ec-11d in PopuLatIon Agetetr pecn)- Ildew ..l-lA years), worktog-age (15- plisa,y and secondary e-ls dlnided by nuber uf teaher in the 64 Yearn), nd eird(5 er andhner as.eoe ge f rid-yea popu- -rrep-nd i.S -evls. luste; 19t1 .i9(i, ..ed 1991 adsa. Adult literacy rae-- ere- - Liteete adults (nil~ et red and erine) Popula lion Growth lace (pecen) - t.... .A "o month rates of toteI rid- anaprcnrge of total adult poilarinn aged 15 years and une yapuuaIun fur 19)1-hI 1960-71. and 1971-I.. Popul.atio lroteh Foue (perrent) -ubien- onu-1 growth roles of urban poy- CONiSUIPTIOs lotions fur 1911-Al, 1960-70,en 1970-8i. Pasaetg ..(per Crler,thousoed popu1otion) - Passesgee oar -oqtine seno Crude lihbIate(pen ihou-ad) - A,-suali-o birhs Per thousand If ild-y-a oar seat lo les t hae Eglt persons; enI.deu abhula-te. hearses and population; 1960. 1979. and 1991 dora. oil ary nehirl-s Code aloah gat (per thousand) - lanI death Per thou..oad of nd-yeor Hadll Reeiners (pe thousod prulosion) - All types o -ilf eenn Io radio pplto;196(), 1979. and 1980 dat, broa cal ogrrlpoblic pe t,housan d of popolanto-; err ideo- Cirons Merducnio hon- -erge -oher of d-ogherna ree- ill I.. lo l loend eelesIcturne ar.I ' inyasoe rgsrro f roll her - n I.' rerd-t.i. pepiod if th AoeI-nn preetEg-spc ifiten sets wa . r effet; dats fIr rcet years soyntl be cos'parbleels.1ie tllt acs usally fInn-yer cege-dngIn 1960, 19701.od 1961. sow --unrion abolished lilt...ing. PasillcPI...tig A--urcetn A,-.1oet)h-...nds) - Ann-atnusherof ceposTVPwR-i-eesf-eeho..and pnealistn-T- rVe-nlnwe. forbh...d-ut ofbpbcerld-vi- uede- anopi- of onti-nl folly plan-ing progruw. g,enwoa pabilt p.aI thounad populaion;-enlde- unlicen..ed TV eene Pir aisig-ne (pretofmrid sa) .-.Perce.tge of.re..d.i conties asd in peer w,henrgitatn f 7V sets eo is 0ffet. nsnochild-hening age (15-hA yeena ihlue hnt-coonrl dence tofenae icIlliu her thousan.d enesletion) -SOboe the aceregeie all sarnldeo-e In ros . grou.p. cannof"algeeo test ewap".died saperd "oIa publication denoted primarily no neu dinggnrl en t ars idened FOOD AND1 IUTRITIIM tobh "daily" if It oppers at leest four rIses e e-e. loden of Tod Poduclio- per apito f1969-71-101) - loden of penc -pita anulC,eIAal lAtderpnCaieprTe -eed on the unher of pnouciu o.1lt on to_te. Prduction 000ldes need and teed and Iticket a.Id during the yea, including odrirsin toI dome-i crr Is on-al-dar yerr halla. Conmditiesco-- prisery go-an (e.g. w-g--en and sebiles.tr.. notional wI erag Prodoc- price -e ighte; 1961-65, 1970, end 1980 data. lTal. Labor Frce (ths...aeda) - ....noically wottr pe ie - ol.diag Pe al Iosrplo ceinries (errey 1t0 r...I..e ... )s _ C..P.sd tron are nItoes end uneslynpd but -ncuding isu.ee-ien, stdents. et.. -negy equaesofetfood ispplies anIlblo In counrey Pen taPila -neigpplto of oil oge. lefimm loon Co oaio outies see per day. Ane Iabl spplies -opei- dosetic production. isp on la not -osrbl; l960, 1970 nal 9999 daa e.P.-., end changes lateh Net sppl ion ent lode anisel feed, seeds, Feol pecon IPsLe lau force as percentge of total labue force. qoantitIrs. used 1i fond Processng, ad lose in dIsn- ulr tlin rolueyrw I- LbIr fort in frr.R f..ee..y . binnIg and setsnoe s metd b PIAC base.d on physiologica ensfrnrlutifshgaspcnagof total labor fort; 191 91ae 91d otyod elb osdeiogennirosna lrecrr.bdy egt,aeIdsr peet Labor Inro in mining. - nnuto. sfe ttering and -e dietrihr Ion of popullaion, end o11nIng I percent for -at at a-d s1-ert lytp,eae n guIs cetge of total Iwbor forc; househol1d. .e.el; 1961-h),61j971 led 1977 date., 1960, 19710l 11 dera. Per- capIe suplyo rti (dan Ie day) - IPetnei conten of pe-c lpima Participation tRe (percen) - .oIr, sale, ond fesl -PrtIia inO ntapyof.fod pen doy. eN- supply of fn-d in defined as shn.- s- acninftyre ar -op-rd as total,sole and femalelabo I_een qurn-e.t fon ni contie esabise nySILd proide for iis eretae f tta. el end fesal population of eli uges reaperi-ely oiloa..r-- of 60,goso oo rnic per day al 20 gnaw of ainl and 1960, 1971, and 1901 Ot, as new hTh. asadb oni Ii'Lo antywln plepoen of ehibIh eras sl-'hould he snise1 protetn. These stand- relc ogeosntutr tthppoeIon, ond long nine 1 nIed rdorlia than thone of 75 grown of Inte protin and 23 geee f feI strtw e fru aios oucs aimal Pnonit as -aoeug for th sol. p-po.n.ed by FAO in rho Third 12Fnoosnlopnet al a fpplto u-dwr lb red 65 andoe Worid Pood So-ne; 1961-t5, 171 end 1917 dao. tthe toal abo force Per 0011 eroatel aupply Iron onwa nod pulse Pn-tein uupply of fond dI-- niund four aiso end pulsesCogowspee day 1961-65, 1970 end 1977 dote. ItNCOMnE DISTRBUTION Child (ages 1-A) Death lat (per tho=od) - A.unsal deaths Per thossa..d In" P..cst.g of Peinate Income (butthin sh ard kAtd) - Rt-ined by rithens uge group 1-4 y.ewp, so childro- in this ge groP, fop seu denlopirgonn- 5perceon. riohe- 20 percent, p-o-s 210ete end poorest 40 percent ntes. dots deeme.d F'.s life rehIre; 1960, 1977 and 1989 data, of househods. IALT PO -FTYATT AbET GR9UP1 Lif twtny tlehlwas org nusher of years of life reneinig The following m.ine tea are ney aPpr....n measres f p-neeny s-e1.' an bitrt; 1961. 1971 we 19110 Ina. end should ha interpreted silt . tnider1,i lestio.. Infan ~lotajlt Yat - (pe- thoue...d _ A- b deathr of i.feet. ondeeon rose Ywlote gbsolete Pn"erY Irtume Leve (Il P 'Pcaito, urban .d -utl of age Pe th.u.s Ine V births; p19161.19,70 andt1980 ldana. dhsolute poneter I Isr. lend is ths mos iESn-l below which a minimal1 Acoes to Iaelae (percent ofpoaInf-totl oban aed rural - fNs- etritiowlly adeqowr7diet plio.wase..nia1 son-Pola -eguirsets Is sot her of peple (torn1, urban. asd etral) with raw....ahle..reI..afr faffodable. eser.u"asthnfrm rtete orbow. spe-ng. wed saniayEols.sture-rt aid pon-pty Inrem "nI inow-tir ofi n brgepe oad pine cessildeed an esg withi .e..wassbie Iceso that house. . -r.eI sEw.s Paritnerd Po...iation Dame Abslste Poverty te-m iVoel lewenest -urban essowi so Iswud iply rhar rho housew ife rIabers efthe house hold and Iurrl1 Peeet fpos-tn f urIbswe rIllwh are absolute do ne he- owt speed adisyrpnrsoJra.. pac o-- f nhs day in fereblog she -" fowily'e ester eeds. A-rwa to fcE-t I Lepsa Ietrt ofeelto) - totl urhsub, wed rural - NosbIe of peopl Inol urbas, aId aaIf sensd by enet disposa as Penceesa.ges f thete rms Pnti_o ~popaties.. Farreta disposa map Wlild the air n ealdipes.wth or wlrt srpstas.ofbeosr- papsIiste roe Obysicts- ealsn dslded byotp of prsotlaieg physt- &tesomi wed Seoiwi Dat g1lel.ge nlan qIlfifld fro e medical srhel ml _wiewe.try levelE ...fo IIm Analywis wed Peajeetiesm Dlpaptang Pepaiwtiaw I.e Vering rn P- Plptiee dinided by nmbwr of p-atisLag May 1W2 maewdfml rdeeers.wssnraes.pssotnpo e - 19 - ANNEX I Population: 8.7 million (mid-1981) Page 4 of 7 GNP per capita: US$790 (1981) UNITED REPUBLIC OF CAIEROON ECONOMIC INDICATOR5(1) /a 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 NATIONAL ACCOUNTS (IN CURRENT CFAF BILLIONS) 6DP at Market Prices 355.9 400.5 492.6 579.9 657.3 799.9 945.8 1135.4 1,380.3 1,703.7 Gross Domestic Savinss 45.3 59.6 109.8 85.9 104.2 158.9 222.9 231.5 291.9 373.8 Gross National Savings 38.8 52.8 96.0 72.6 93.7 151.7 211.7 214.2 268.4 341.1 Current Account Balance -24.0 -17.8 0.3 -30.8 -27.1 -23.4 -11.1 -58.0 -3.19 -25.1 Exports of Goods and NFS 80.9 90.6 132.6 138.9 156.8 209.0 296.0 313.3 410.8 538.8 Imuorts of Goods and NFS -98.5 -101.7 -118.4 -156.4 -189.5 -231.9 -295.9 -355.6 -427.2 -526.2 (As Z of GDP at Market Price) 6DP at Market Prices 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Gross Domestic Savinss 12.7 14.9 22.3 14.8 15.9 20.1 23.6 20.4 21.1 21.9 Gross National Savings 10.9 13.2 19.5 12.5 14.3 19.2 22.4 18.9 19.4 20.0 Current Account Balance -6.8 -4.5 0.1 -5.3 -4.1 -3.0 -1.2 -5.1 -2.9 -1.5 Exports of Gocods and NFS 22.7 22.6 26.9 24.0 23.8 26.5 31.3 27.6 29.8 31.6 Isports of Goods and NFS -27.7 -25.4 -24.0 -27.0 -28.8 -29.4 -31.3 -31.3 -30.9 -30.9 (AInrnal Real Rates of Growth) GDP at Market Prices 2.6 5.5 11.1 -1.7 5.0 8.0 7.3 8.5 6.0 7.0 GROSS VALUE ADDED BY SECTOR (In Current CFAF Millions) Agriculture incl.Lovestock etc 111.7 126.7 154.7 193.7 220.8 259.7 305.4 359.2 404.4 444.9 ;iinins 0.8 1.2 1.8 2.3 2.0 3.2 5.2 23.2 76.7 196.7 Marufacturing 38.3 40.4 45.6 56.2 67.5 74.7 87.4 101.9 123.0 145.0 Construction 13.7 15.9 19.4 21.6 28.6 42.2 50.6 68.0 84.4 102.0 Electricite, Gasp Water 4.8 4.8 5.3 5.7 6.7 10.1 11.7 14.3 16.8 20.0 Transport and Cosmunications 26.4 31.9 40.1 49.3 55.1 57.7 66.9 77.6 90.0 103.0 Trade 77.3 81.0 88.1 93.9 107.1 126.9 154.1 183.5 292.3 240.0 Public Administration 32.6 33.0 34.4 43.6 45.1 56.3 70.4 81.3 100.1 120.0 Other Services 37.6 51.9 84.7 85.3 91.5 115.9 140.3 159.0 206.1 252.1 Iaport Duties 12.7 13.7 18.5 28.3 32.9 43.2 53.8 64.4 76.5 80.0 (As Z of Total) Agriculture incl.Livestock etc 31.4 31.6 31.4 33.4 33.6 32.9 32.3 31.6 29.3 26.1 Mining 0.2 0.3 0.4 0.4 0.3 0.4 0.5 2.0 5.6 11.5 Maufacturini 10.8 10.1 9.3 9.7 10.3 9.5 9.2 9.0 8.9 8.5 Construction 3.8 4.0 3.9 3.7 4.4 5.3 5.3 6.0 6.1 6.0 Electricity, Gas and Water 1.3 1.2 1.1 1.0 1.0 1.3 1.2 1.3 1.2 1.2 Transport and Communications 7.4 8.0 8.1 8.5 8.4 7.3 7.1 6.8 6.5 6.0 Trade 21.7 20.2 17.9 16.2 16.3 16.1 16.3 16.2 14.7 14.1 Public Administration 9.2 8.2 7.0 7.5 6.9 7.1 7.4 7,4 7.3 7.0 Other Services 10.6 13.0 17.2 14.7 13.9 14.7 14.8 14.0 14.9 14.8 IsPort Duties 3.6 3.4 3.8 4.9 5.0 5.5 5.7 5.7 5.5 4.7 US S1.00= CFAF 264.8 241.0 230.1 222.4 225.1 247.8 238.6 216.6 209.2 235.3 (Period Averase) SOWCE:Data supplied by the Caeeroonian authorities with reclassificatior, bs Staff. /a Fiscal Year (July 1- June 30) is used with End Year shown in the table. WEST AFRICA CP2B 02/07/93 - 20- ANNEX I Page 5 of 7 Population: 8.7 million (mid-1981) GNP per capita: US$790 (1981) UNITED REP'BLIC OF CAMEROON ECONOMIC INDICATORS(2) 1972 1973 1974 1975 1976 197? 1978 1979 1980 1989 GOERNMENT FINANCE SUMMARY la (In CFAF Millions) Current Receipts 56,500 59,308 67Y895 23,370 98,763 120,901 162,331 200Y761 219,260 314.399 Current Expenditure 49,400 50,590 59,600 70'Q99 79,972 95,132 !1S19n2 128.749 163,394 2no.)7 Current Sjrplus with adjusttents 7,100 8,719 9,295 12,472 19,591 2C,76D 43,736 5',954 76.5!9 8 1O.9' Capital E,,Penditure 13,100 12,951 14,293 1,92?9 2",246 32,343 45,275 53B346 59,491 6 .400 External Assistance (Net) 0 900 481 -993 -2,305 12,022 2,997 -50774 1',227 9.984 (As Percentage of GDP) Current Receipts 15.9 14.8 13.8 14.4 15.0 15.3 17.2 17.7 15.9 19.5 Current Expenditure 13.9 12.6 11.9 12.2 12.0 12.0 12.6 11.3 11.8 11.7 Current Surplus (or deficit) 2.0 2.2 1.9 2.2 3.0 3.3 4.6 5.1 5.5 5.9 Capital Ex:penditure 3.7 3.2 2.9 3.3 4.0 4.1 4.8 4.7 4.2 4.0 External Assistance (net) 0.0 0.2 0.1 -0.2 -0.4 1.5 0.3 -0.5 1.2 0.5 MONEY, CREDIT AND PRICES /a (In CFAF Millions-end Period) Money and 0uasi-onev 0 59Y530 78,550 94720 117,780 155.420 194,809 221,831 288,391 362,700 Band Credit to Government 0 3,470 3,9860 5,510 6,551 9,853 14,!49 16,731 21,149 28.500 Bank Credit to the Ecanrom 0 60,760 78,930 101,510 119,970 169,740 236,502 297,918 361,647 479.400 Percentages or Index Numbers Mcnev I Quasi-money as Z cf GDP /b 0.0 14.9 15.9 16.3 17.9 '9.7 20.6 19.5 20.9 21.3 Yacunde Consumer Price Index "a (1970=100) 116.3 124.8 143.3 168.5 185.0 206.9 237.4 259,1 279.1 30i 6 Annual Percentage Changes in: Yaounde Consumer Price Index 6.9 7.3 14.8 17.6 9.8 11.8 14.8 9.1 7.7 9.9 Bank Credit tc 5;overnzent 0,0 0.0 11.2 42.7 '8.- 50.4 43.6 18.2 26,4 31-8 Bank Credit tc the EconCaY 0.0 0.0 29.9 28.6 18.2 41.5 39.3 26.0 21.4 32.6 SOURCE:Data supplied by Caeerocnian Authorities with lank Staff est::ates and reclassification. /a Fiscal Year (Julj 1-June 30) is used. Year indicates the end sear for each fiscal sea-. lb GDP is for Fiscal Year. WEST AFRICA C?2B 02/02/93 - 21- ANNEX I Page 6 of 7 Population: 8.7 million (mid-1981) GNP per capita: US$790 (1981) UNITED REPUBLIC OF CAHEROON ECONOMIC INDICATORS(3) 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 AULMCE OF PAYMENTS (IN MILLIONS CFAF) Exports of Goods and NFS 80,915 90.606 132,563 138,946 156,750 209,000 296,007 313,300 410,764 538,0oo Isports of Goods and NFS -98,46i -101,687 -118,440 -156,383 -189,482 -231,900 -295,937 -355,569 -427,173 -526, 200 Resource Gap (deficit -) -17,550 -11,080 14 , 123 -17,437 -32,732 -22,900 70 -40.753 -16,409 12 ,600 Interest Paveents (net) -1,905 -2,279 -5,835 -8,572 -10.196 -9,292 -12,819 -18,584 -21,824 -31,300 Vorkers' Remittances 123 165 607 2,160 1,993 2,557 3,254 4,675 4,665 2,400 Other Factor Pas ents (net) -6.919 -7,498 -10,120 -9,766 -9*374 -9,266 -6.510 -6,366 -7.010 -13,800 Net Transfers 2,219 2,857 1,503 2,848 7,103 8,761 4,858 3,011 692 5,000 Balance of Current Account -24,032 -17,836 277 -30,766 -27,074 -23,360 -11,148 -58,017 -39.8B5 -25.100 Net Direct Foreign Investment 29604 -1,804 31487 5,443 5.709 1,503 3.091 9,755 21.261 36,000 Total Net Medium and Long- Term Borrowins 13,657 21,552 9,188 13,978 28,613 32,016 24,773 35,928 58,634 777800 :Disbursesents 16,351 25,071 13,749 20,988 36,458 43,093 51,575 58,180 80,239 10O900 :Amortization -2,694 -3,519 -4,561 -7*010 -7,845 -11,078 -26,802 -22,252 -21,604 -23*100 Trade Credit (not) -706 -37 2,343 3,768 2,290 -3532 2,991 610 3,006 2,700 Other Short Term Capital 1,218 -54 -4,751 -4,984 -1,200 -2,287 -2,789 -11,225 -10,070 -9,350 Other Capital n.e.i. -494 -1,176 2,772 -3,755 -5,677 -3,365 -1,828 -215 -443 -670 Gross Official International Reserves 12,578 11,196 20,522 11,116 11,706 13,798 25,358 18,235 40,322 13,000 Net Foreign Assets 10,400 9,970 18,760 89110 6,680 -160 14.990 -9,300 22,770 10,040 US $1.00= CFAF (Period Average) 264.8 241.0 230.1 222.4 225.1 247.9 238.6 216.6 209,2 235.3 SDR 1.00= CFAF (Period Average) 276.5 272.1 277.5 271.4 263.4 286.3 286.1 277.6 272.2 294.5 SOURCE:Data suppied be the Caseroonian authorities with Bank Staff reclassification ad estimates. Fiscal Year (JulY 1- June 30) is used with End Year shown in the table. WEST AFRICA CP23 02/07/83 - 22 - ANNEX I Page 7 of 7 pages Population: 8.7 million (mid-1981) GNP per Capita: US$790 (1981) UNITED REPUBLIC OF CAMEROON ECONOMIC INDICATCRS (4) (millions US$ at current prices) 1975 1976 1977 1978 1979 1980 1981 EXTERNAL CAPITAL AND DEBT a/ Gross disbursements Official grants 20 24 23 11 18 n.a. n.a. Concessional loans 45 55 122 133 174 128 267 DAC 17 32 40 53 83 70 -- OPEC 6 3 13 6 20 24 -- IDA 16 18 21 19 20 19 32 Other 6 2 48 55 51 15 -- Non-concessional loans 81 123 183 174 348 442 104 Official export credits 1 9 19 12 75 82 -- IBRD 21 8 15 37 30 28 19 Other multilateral 4 1 3 21 10 18 -- Private 55 105 146 104 232 314 -- External Debt Debt outstanding and disbursed 372 514 823 1133 1632 1997 2034 Official 293 346 508 722 1014 1186 -- of which: IBRD 50 58 72 102 130 152 167 IDA 50 68 88 108 127 146 173 Private 79 168 315 411 618 816 -- Undisbursed debt 321 497 543 786 1071 607 550 Debt Service Total service payments 36 39 57 103 132 182 200 Interest 15 19 28 42 60 103 115 Payments as % of exports 5.6 5.6 6.9 8.3 9.1 9.3 10.1 Average interest rate on new loans (%) 4.5 6.3 5.6 6.8 9.2 6.2 6.7 Official 2.5 3.9 4.6 4.3 6.4 4.9 5.0 Private 9.2 7.6 7.5 10.3 12.5 16.3 8.4 Average maturity of new loans (years) 25.3 17.0 17.6 21.5 16.2 24.0 19.4 Official 32.0 32.5 23.0 28.9 21.0 26.6 25.0 Private 10.0 9.0 6.9 11.1 10.6 8.3 6.0 As % of Debt Outstanding at End of Most Recent Year (1980) Maturity structure of debt outstanding Maturities due within 5 years 77.0 Maturities due within 10 years 136.1 Interest structure of debt outstanding Interest due within first year 7.3 a/ End-of-period figures are shown. West Africa CP2B 2/2/83 - 23 - ANNEX II Page 1 of 8 THE STATUS OF BANK GROUP OPERATIONS IN THE UNITED REPUBLIC OF CAMEROON A. Statement of Bank Loans and IDA Credit (as of September 30, 1982) Loan or US$ million Credit Amount (less cancellations) Number Year Borrower Purpose Bank IDA/4 Undisbursed Eleven Credits and thirteen Loans have been 120.34 127.4 - fully disbursed 320-CM 1972 Cameroon Education II 9.0 1.62 575-CM 1975 Cameroon Small- and Medium- Scale Enterprises 3.0 0.22 1245T-CM 1976 Cameroon Education III 17.0 6.07 673-CM 11977 Cameroon Technical Assistance 4.5 1.36 723-CM 1977 Camneroon Rural Development Fund 7.0 3.87 1592-CM 1977 Cameroon SOCAPALM II 18.0 0.08 749-CM 1977 Cameroon Feeder Roads 6.5 0.95 1494-CM 1977 Cameroon Feeder Roads 4.6 4.60 1508-CK 1977 Cameroon CAMDEV II 15.0 2.41 '776-CM 1978 Cameroon Zapi East Integrated Agriculture 8.5 2.83 784-CM 1978 Cameroon Western Highlands Rural Development 13.0 4.89 1512-CM 1978 Cameroon SEMRY Rice II 14.5 0.10 1515-CM 1978 Caineroon Highway III 16.5 0.23 1723-CM 1979 Cameroon Highway IV 38.0 33.23 936-CM 1979 Cameroon Railway IV 20.0 0.00 _ 1734-CM 1979 Regifercam Railway IV 27.0 23.76 1753-CM 1979 Cameroon Seconl Water Supply 21.0 20.76 97'j-CM 1980 Cameroon Hevecam II 15.0 1.86 1791-CM1 1980 Cameroon Hevecam II 16.5 16.50 1010-CM 1980 Cameroon Livestock II 16.0 13.43 1919-CM 1981 Cameroon Northern Province Rural Development 25.0 25.00 1920-CM 1981 Cameroon Small- and Medium- Scale Enterprises II 15.0 15.00 1075-CM 1981 Cameroon Northern Province Rural Development 12.5 6.76 116'3-C'M 1981 Cameroon Technical Cooperation II 10.0 10.0 2073-CM 1981 Cameroon Post and Telecommunica- tion Assistance 7.50 7.50 2092-CM 3/ 1981 Cameroon Forestry 17.00 17.00 2160-CM 2/ 1981 Cameroon Oil Palm/Rubber Consolidation 50.8 50.8 2180-CM 2/ 1981 Cameroon Aighway V 70.0 70.0 TOTAL 493.74 252.40 340.89 of which has been repaid 23.33 6.37 TOTAL now outstanding 470.41 246.03 Amount sold 7.72 of which has been repaid 7.72 - - TOTAL now held by Bank and IDA 4/ 470.41 246.03 TOTAL UNDISBURSED 293.09 47.80 340.89 17 Balance of $67.35. 2/ Signed on July 26, 1982, but not yet effective. 3/ Approved bit not yet signed. 4/ Prior to exchange adjustment. - 24 - ANNEX II Page 2 of 8 B. Statement of IFC Investments (as of September 30, 1982) Investment Fiscal Number Year Obligor Type of Business Amount in US$ millions Loan Equity Total 311-CM 1975 BATA Shoe Factory - 0.38 0.38 355-CM 1977 SAFACAM I Rubber Plantation - 0.81 0.81 430-CM 1979 SAFACAM II Rubber Plantation - 0.41 0.41 452-CM 1979 ALUCAM Non-ferrous metal 7.00 0.93 7.93 551-CM 1981 SCM Food and Food Processing 1.12 0.20 1.32 578-CM 1981 SOCAVER Glass Bottle Factory 1.70 0.18 1.88 579-CM 1981 SAFACAM III Rubber Plantation - 0.25 0.25 633-CM 1982 SOSUCAM Food and Food Processing 1.38 - 1.38 Total gross commitments 11.20 3.16 14.36 Less concellations, terminations, repayments and sales - 0.26 0.26 Total commitments now held by IFC 11.20 2.90 14.10 Total undisbursed 3.08 0.22 3.30 C. Status of Projects in Execution (as of September 30, 1982) I/ Loan No. 1734 Fourth Railway Project: US$27 million Loan of Cr. No. 936 August 23, 1979; Effectiveness Date: January 22, 1980; Closing Date: June 30, 1983; and US$20 million Credit of same date; Effectiveness Date: January 22, 1980; Closing Date: December 31, 1982. All contracts have been awarded except for the maintenance facili- ties near Yaounde, the engineering studies for which have been delayed by Consultants. Civil works in Douala Station are nearing completion and the works in the workshops (Phase I, Part I), are progressing well. Procurement of all equipment, including training equipment, is nearly completed. Remain- ing contracts for workshop remodeling (Phase I, Part II) are likely to be awarded early 1983. Technical Assistance for designing training programs is being organized. Due to the excessive staffing and investments, the financial situation of the Regie continues to be serious, but due to 12 percent traffic increase in FY 82, it has recently improved. Regifercam's management is still weak, but improvements are expected through technical assistance, to be pro- vided under the project, and to be discussed early 1983. 1/ These notes are designed to inform the Executive Directors regard- ing the progress of projects in execution, and in particular to report any problems which are being encountered, and the action taken to remedy them. They should be read in this sense, and with the understanding that they do not purport to present a balanced evaluation of strengths and weaknesses in project execution. - 25 - ANNEX II Page 3 of 8 Loan No- Third Education Project: US$17 million Loan of July 2, 1245-T-CM 1976; Effectiveness Date: December 31, 1976; Closing Date: December 31, 1982. Project implementation is about two years behind schedule because of weak management and problems in dealing with a 34 percent cost overrun in civil works, now covered by Government budgetary provisions and the US dollar rise. Construction is completed or underway at 11 of 12 institutions, and the contract for the 12th is being approved. Equipment procurement is completed at one school; for all others, most contracts have been approved or awarded, and the few remaining tender documents are being prepared. The technical assistance program is mostly completed; some essential services are being prolonged under Government financing. Two schools are in operation, six are expected to open in early 1983, and the remaining four later in 1983. The Project Unit has improved its performance and recruited three specialists, a condition which we had set up to finance the proposed fourth project prepara- tion from Third Project funds. Last year, we agreed to extend the Closing Date by one year to December 31, 1982, and to consider a further one year extension if good progress was made toward a revised implementation schedule. However, one more year would be necessary to complete disbursements for the preparation of the proposed fourth project. Since the main issues have been resolved and significant progress has been made, an extension of the Closing Date is under consideration. Cr. No. 673 Technical Assistance Project: US$4.5 million Credit of June 15, 1977; Effectiveness Date: November 14, 1977; Closing Date: December 31, 1982. Project's funds have been fully committed and most pre-investment studies financed by it--largely in agriculture, transport and planning--have been completed. Long-term advisory consultants are continuing to assist Cameroonian staff to improve project generation and supervision capacity, which is being supplemented by on-the-job training and formal training courses. Cr. No. 723 Rural Development Fund Project: US$7 million Credit of August 4, 1977; Effectiveness Date: January 30, 1978; Closing Date: December 31, 1982. The project's organization and progress continues to accelerate and to consolidate; construction standards of all but one sub-project are good, as are their planning. budgeting and accounting. It is expected that with the available funds about 60 percent of overall objectives will be achieved at completion. However, implementation has been slow, and Government has asked that the closing date be extended for an additional year to make full use of the remaining funds. A follow-up project is under consideration. - 26 - ANNEX II Page 4 of 8 Ln. No. 1392 Second SOCAPALM Project: US$18 million Loan and US$7 million Third Window Loan of August 25, 1977; Effectiveness Date: November 23, 1977; Closing Date: December 31, 1982. The initial loans of US$25.0 million have been reduced to US$23.6 million by elimination of the coastal estate center component. Both loans are fully disbursed as of October 1982. Further upkeep of immature trees and completion of processing facilities will be carried on under the Oil Palm and Robber Consolidation Project (Loan 2160-CM). Main achievements under the Second SOCAPALM Project have been the planting of 6,639 ha of oil palms at Kienke estate (95 percent of the appraisal target) and of 1,746 ha by smallholders (87 percent of appraisal). The cost to completion is estimated at US$37.3 million against an appraisal estimate of US$32.2 million. Cr. No. 749 Feeder Roads Project: US$6.5 million Credit and Ln. No. 1494 US$4.6 million Loan of December 7, 1977; Effectiveness Date: March 7, 1978; Closing Date: December 31, 1983. Implementation of the Feeder Roads Project started in 1978. The project includes creation of the Central Feeder Roads Unit within the Depart- ment of Highways and a four-year construction program for 2,200 km of feeder roads. Project implementation is behind schedule because the organization in charge is understaffed and because of shortage of local funds. The Government has submitted a modified program for project execution reflecting cost in- creases, and a decentralized organizational structure, which should permit a faster project implementation. Cr. No. 763 Second SEMRY Rice Project: US$14.5 million Credit of Ln. No. 1512 February 1, 1978; Effectiveness Date: April 14, 1978; Closing Date: September 30, 1984; and US$14.5 million Loan of February 1, 1978; Effectiveness Date: April 14, 1978; Closing Date: September 30, 1984. A satisfactory solution to the problems of dike erosion and piping has been found, and no new erosion or piping has occurred in a test zone that was protected. Permanent dike protection is now proceeding. Paddy yields continue at appraisal estimates. Further irrigation works have been suspended until existing land is fully used. Thus funds from the original financial envelope appear to be sufficient to complete dike protection and the project as far as is presently feasible. The program of resettlement of farmers from neighboring, over-populated zones is proceeding at a rate consistent with SEMRY's ability to provide adequately serviced town sites near paddy fields. The Loan and Credit have been fully disbursed. Ln. No. 1508 Second CAMDEV Project: US$15 million Loan of February 1, 1978; Effectiveness Date: June 30, 1978; Closing Date: June 30, 1983. Disbursements covering CAMDEV's estates investment program have been completed by June 1982 with a cost overrun of 29 percent in spite of reduced planting targets: 6,300 ha of rubber (against an appraisal estimate of 7,900 ha; and 281 ha of oil palm compared to an initial estimate of 1,000 ha. The - 27 - ANNEX II Page 5 of 8 closing date has been extended by one year to allow further disbursements related to the vegetable oil marketing study and the management reorganization study, both considered essential preconditions for the Oil Palm and Rubber Consolidation Project (Loan 2160-CM). Cr. No. 784 Western Highlands Project: US$13 million Credit of April 17, 1978; Effectiveness Date: December 8, 1978; Closing Date: June 30, 1983. The project is achieving its objectives and technical and financial management is good. Although physical execution was lagging behind appraisal schedules, owing to organizational problems encountered during the first pro- ject year, improvements have been made in all components with corresponding increases in procurement and disbursement rates. Government's contributions to project financing continue to be regular, and liquidity problems due to delays in preparation of withdrawal applications have been partly rectified. Government has requested Bank group assistance for a follow-up project extend- ing coverage to the entire Western Province and the project has been appraised. Ln. No. 776 ZAPI East Integrated Rural Development Project: US$8.5 million Credit of April 17, 1978; Effectiveness Date: October 4, 1978; Closing Date: June 30, 1984. Project execution has deteriorated significantly since January 1983, for a number of reasons which result from an over-ambitious and very complex design, and a less-than-full support from some Government departments. This has led to poor production and financial performance. Major problems now in- clude: (i) lack of efficient, cost-effective management and staffing, whereas the range and complexity of operations involved would require strong staffing and control; (ii) structural deficiencies in ZAPI's marketing and credit operations, exacerbated by inadequate and untimely Government financial sup- port; (iii) generally insufficient and uncoordinated support from agencies providing the needed overall support services for agriculture, such as input supply, marketing and crop protection services. In view of this, a detailed Aide-Memoire has been sent to the Government requesting specific corrective actions to the problems. Additionally, the Bank recommended and drafted TOR for an in-depth study focussing on an assessment of viable options for ZAPI in the future. Government has responded positively to these requests, has appointed a new ZAPI director and has accepted the principle of the study. Cr. No. 926 Fourth Highway Project: US$10 million Credit of Ln. No. 1723 August 23, 1979; Effectiveness Date: November 15, 1979; Closing Date: June 30, 1986; and US$38 million Loan of same date; Effectiveness Date: November 15, 1979; Closing Date: June 30, 1986. The project comprises training of staff and workers for road main- tenance, maintenance of about 17,000 km of roads and rehabilitation of 1,700 km through force account and domestic contractors, technical assistance to the domestic construction industry, two permanent weighing stations, and pre- investment studies for the proposed project and forestry evacuation roads. - 28 - ANNEX II Page 6 of 8 Implementation of the Fourth Highway Project has started after initial diffi- culties with recruiting consultants, equipment procurements, setting up the training brigade and the training center. Equipment has been delivered to three regions and road maintenance operations have started. Cr. No. 975 Second HEVECAM Project: US$15 million Credit of Ln. No. 1791 April 18, 1980; Date: September 16, 1980; Closing Date: December 31, 1985; and US$16.5 million Loan of same date; Effectiveness Date: September 16, 1980; Closing Date: January 30, 1985. As of June 30, 1982, total plantings amount to 9,429 ha against an appraisal target of 9,650 ha with a cost overrun of 18 percent mainly due to higher than expected salary increases (annual average of 15 percent against appraisal estimate of 10 percent) and costs associated with social programs not included in the SAR. Growth and upkeep are of acceptable standards, the management team is good and HEVECAM's financial situation is sound and dis- bursements are 97 percent of appraisal estimates. Ln. No. 1753 Second Water Supply Project: US$21 million Loan of December 11, 1979; Effectiveness Date: Kay 12, 1981; Closing Date: June 30, 1984. The aims of the project are to improve and extend water supply sys- tems in 13 secondary centers and two major cities, Douala and Younde; lay the groundwork for organizing urban development planning for Douala and Yaounde; initiate a pilot public health educational project; and strengthen the organi- zation of the water supply sector. Engineering studies and bidding documents are completed. Contracts for Douala and Yaounde have been awarded. However, procurement problems are being encountered with award of contracts for the 13 centers. Cr. No. 1010 Second Livestock Development Project: US$16 million Credit of June 20, 1980; Effectiveness Date: May 12, 1981; Closing Date: December 31, 1984. The project faces a number of moderate managerial and technical problems. Parastatal ranches are under improved supervision which has de- tected considerable animal losses threatening the ranches' financial viabi- lity. A review of possible measures to be taken in dealing with the ranches is underway. One of two slaughterhouses has begun operations. Management and technical problems continue to make the tse-tse fly eradication program less than fully successful and corrective measures are being discussed with Govern- ment. The credit component has not become effective owing to difficulties in making co-financing effective. However, restructuring of animal health ser- vices is proceeding satisfactorily in the Adamoua Plateau Zone. - 29 - ANNEX II Page 7 of 8 Ln. No. 1919 Northern Province Rural Development Project: US$25 Cr. No. 1075 million Loan of January 27, 1981; Effectiveness Date: June 1, 1981; Closing Date: June 30, 1986; and US$12.5 million Credit of same date; Effectiveness Date: June 1, 1981; Closing Date: June 30, 1984. Since effectiveness on June 1, 1981, this project has achieved remarkable results. Despite lower than normal rainfall during 1981, seed cotton production with 93 percent of the buying campaign completed, is expect- ed to reach 47,000 tons or about 85 percent of the SAR target of 56,000 tons for PY1. Food crop production during the first year was negligible, for 1982/83, however, the project estimates to plant about 1,200 ha and 250 ha, respectively, of improved maize and groundnuts. The project accounts are kept by computer and the system developed permits the Financial Controller monthly balances and comparison with annual budgets for each project component. More- over, reimbursement applications are produced on a monthly basis by means of a simple program established by the project's Financial Controller. Key local personnel and expatriates have largely been recruited. Cr. No. 1168 Second Technical Cooperation Project: US$10 million Credit of November 5, 1981; Effectiveness Date: June 16, 1982; Closing Date: December 31, 1985. The project aims at improving Government capacity to execute the Fifth Development Plan. It is expected to strengthen existing national plan- ning and external debt management systems, to help define better policies and investment programs in key sectors, and to generate sound projects by stress- ing the training of Cameroonian experts. Recruitment of 10 experts in various sectors is underway and further subprojects (procurement and legal advice) are being prepared. Ln. No. 2073 Post and Telecommunications Technical Assistance Project: US$7.5 million loan of March 19, 1982; Effectiveness Date: July 21, 1982; Closing Date: December 31, 1985. The purpose of the project is to reorganize and strengthen the Post and Telecommunications entity so as to improve its financial situation and the quality of service and to pave the way for a sound long term development of the sector. It provides for establishment of a new operating entity, prepara- tion of an investment program and improved technical training. The consul- tants have submitted their diagnosis and proposals for a new entity (Part I of the Project) which are being reviewed by Government. A decision on a follow- up course of action (Part II of the Project) is expected shortly. Ln. No. 2092 Forestry Project: US$17 million loan, not yet signed. Not yet effective. The project's objectives are to strengthen the contribution of the forestry sector to the economy through the establishment of plantations for fuelwood and pulp industry raw material. It is also expected to increase the capacity of Government agencies to continue the regeneration of forests and to control the logging operations of forestry concessions. Signing has not taken - 30 - ANNEX II Page 8 of 8 place yet because Government changed the legal status of the Project's execut- ing agency. Ln. No. 1920 Second Small- and Medium-Scale Enterprise Project: US$15 million Loan of September 30, 1981; Effectiveness Date: October 29, 1982. The project s objectives are to expand the provision of financial and technical assistance to artisans and small- and medium-scale enterprises and to further strengthen institutions responsible for the promotion of the small enterprise sector. Ln. No. 2160 Oil Palm and Rubber Consolidation Project: US$50.8 million Loan of July 26, 1982; Not yet effective. The project aims at consolidating investments made under previous Bank Group-assisted projects. It will help strengthen the financial situation of SOCAPALM and CAMDEV and will allow the structural improvements needed for oil palm and rubber development. The project also includes provision for technical assistance, training and studies and continued support to small- holder schemes. Ln. No. 2180 Fifth Highway Project: US$70 million Loan of July 26, 1982; Not yet effective. The purpose of the project is to assist the Government in the con- struction of the Edea-Yaounde section of the Douala-Yaounde road. It also provides for technical assistance to improve the management of the transport sector, and to help prepare a national transport plan and future projects. Implementation of the project is so far on schedule with the exception of the civil works for lot 7 of the Douala/Yaounde road, where a procurement issue has delayed start up of construction works. - 31 - ANNEX III UNITED REPUBLIC OF CAMEROON URBAN DEVELOPMENT PROJECT SUPPLEMENTARY PROJECT DATA SHEET Section I. Timetable of Key Events (a) Time taken to prepare the project: 12 months (b) Project prepared by: consultants financed under the First Technical Assistance Project (c) Date of first Bank mission to consider the project: August 1980 (d) Date of departure of appraisal mission: November 1980 (Modifica- tions by Government of the institutional arrangements in mid-1981 and follow-up mission to review institu- tional framework) (e) Negotiations completed: March 4, 1982 (f) Planned date of effectiveness: June 1983 Section II. Special Bank Implementation Actions None Section III. Special Conditions A. The Government would: (a) on-lend proceeds of the loan to the financial intermediaries and executing agencies on terms satisfactory to the Bank. This would include that CFC will recycle the credit proceeds repaid by MAETUR for urban projects; CFC would also make available purchase and house construction/improvement loans for all plots provided under this project (paras. 39 and 40); (b) nominate a project coordinator acceptable to the Bank within MINUH (para. 47). B. Special conditions of effectiveness would be that subsidiary financing agreements are signed between the Government and CFC, and between CFC and MAETUR (Section 6.01 of the draft Loan Agreement). IBRD 15292B. CAMEROODN Meni URBAN DEVELOPMENT PROJECT r."s' \' V . ;f; 0M HIU D'MA4 Ck' f DOUALA - PROJECT LOCATIONS < \t) 0 ;:0: 0 t; 0 j / j b l o m P r ai g /ec5t ng n d s a r e ais r 2 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Nyl- Do..a a North De-elyp-et Area b-nd-ry 2 ~~~~~~~~~~~~~~~~~~~~~~~~~~~MAETIUR rite C e aer Pa.m-r FTF D-ual North to ' MomR re ads.-: X X- *S iSg S=- X -V2--L X <~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~-t~ p, / Esreirsior of poton.,t - Potgri- o-inutra ae METERO 0 100 2000 30,00 Tl~~lll!!~~~~::/ /j e! -- / CAMOROONA TU R -40' r,,ra,~r n~n,ereTE Dr 6--e~~~~~~~~~Nwrsr~e,r-. a/a sirrisnieirzaCAMiEtROOeN. - - re5ee~~ri.re5 er rn SresSse,zr r Monet Fd6~~~~~~~~~~~ J~~tTc oIOfN r ,AaS.rb'7 Mount F e b e CAMEROON URBAN DEVELOPMENT PROJECT YAOUNDE-PROJECT LOCATIONS * Comnr--ty focilties i project - N. W Yaounde \ I [lN~~~~~~~~~~~~~~~~~~~~~semiyorg EEt..g-Ekse >OLIGA h X - >B\ D= Biyemossi U Mai, roads -n-R-.-Ril.ays / stati-n t~~~~~~~~~~~~~~~~~~~~1Z R><_ ivers/ streams B.ilt-op ara 19731 o 400 800 1200 1600 METERS ( WM KA : \== j C~~~~~~~~~~~~~~~~~~~~~~~~~~AD D 7 )<_ o~~~~~~<~ ELG_