15 April 2020
Promoter – Financial Intermediary
REPUBLIQUE DU CAMEROUN
The project will finance the renewal of one section (about 330 km) of a single-track non-electrified railway line between Belabo and Ngaounderé.
The aim is to increase the quality, availability and reliability of rail services in Cameroon. It is expected to generate time and vehicle operating cost savings, reduce the maintenance costs of the infrastructure and improve railway safety. It should also contribute to the modal shift from road to rail, thus bringing climate, environmental and road safety benefits.
The project is also in full support of the Sustainable Development Goals (SDG's), as improved railway transport infrastructure (SDG 9) is expected to facilitate the free movement of passengers and freight between the north and south of the country, while reducing the country's GHG emissions (SDG 13) and transportation costs, thereby supporting economic development (SDG 8) and inequality reduction (SDG 11). The project will also contribute to the implementation of Cameroon's Nationally Determined Contributions (NDC), agreed under the COP 21 Paris Agreement, which prioritizes the development of low-carbon transportation.
Under ELM Guarantee
This operation is covered by the ELM Guarantee.
Under Global Europe NDICI guarantee
The proposed operation is expected be covered by the comprehensive guarantee granted to the EIB under the Dedicated Investment
Proposed EIB finance (Approximate amount)
EUR 123 million
Total cost (Approximate amount)
EUR 243 million
The project will be implemented on the existing alignment of the railway and within the existing right of way; therefore potential negative environmental and social impacts are likely to be minor. If situated in the EU, the project would likely fall within Annex II of Directive 2011/92/EU as amended by the Environmental Impact Assessment (EIA) Directive 2014/52/EU and therefore be subject to screening.
The project will be undergo an Environmental Social Impact Assessment (ESIA) in line with the national legislation and the EIB environmental and social standards.
The promoter has to ensure that implementation of the project will be done in accordance with the EIB's Guide to Procurement.
Signed - 31/12/2021