The Republic of Cameroon and BADEA sign a US $ 8 million Loan agreement

 

DATE: 30/11/2007

 

The Republic of Cameroon and BADEA sign a US $ 8 million Loan agreement

 

In a ceremony held on 30 November 2007, in Yaoundé, a loan agreement signed between the Republic of Cameroon and the Arab Bank for Economic Development in Africa (BADEA). By virtue of this agreement BADEA extends to the Republic of Cameroon a loan of US $ 8 million to help finance the Foumban – Magba Road Project (Part Two: Manki – Magba –Mapé Bridge).

The agreement was signing on behalf of BADEA by H.E. Mr. Ahmed Abdullah El Akeil, Chairman of BADEA Board of Directors, and on behalf of the Republic of Cameroon by H.E. Mr. Louis Paul Motaze the Minister of Economy and Planning.

 

The loan will be repaid in 30 years including a grace period of 10 years and at an annual interest rate of 1%. .

The aims of the project are to extend the country’s asphalted road network, to make the western province more accessible and to offer a safer route that will link the agricultural production centres to the trade centres of the capital Yaoundé and the port located in Douala. The project also aims at reducing transportation and maintenance costs for the existing road and facilitating the transportation of goods between both the Republic of Chad and the Central African Republic and the port of Douala (Atlantic Ocean).

Including this new loan, the total commitments of BADEA to the Republic of Cameroon will amount to US $ 83 million.