The three parties include ; Cameroon Water utilities (Camwater), a public company responsible for the production and distribution of drinking water in Cameroon, the Chinese Cgcoc, responsible for carrying out the second phase of the nine cities drinking water supply project (Paep) and Bgfi Bank Cameroon. According to information obtained from the public company and the bank, this agreement relates to the financing of the amendment of 10.6 billion FCFA, signed on August 28 between Camvater and Cgcoc for the realization of this drinking water supply project for the cities of Maroua, Garoua, Garoua-Boulai, Yabassi and Dschang.
“We will put 3.5 billion FCFA immediately,” said an authorized source within the local subsidiary of needed the Gabonese banking group BGFIBank, hinting that the bank could mobilize all the financing for this amendment. The conditions for investment remain unknown (interest rate, maturity, repayment mechanism) for the 3.5 billion FCFA loan already granted. « BgfiBank Cameroon strengthens its commercial dynamics with Camwater and is once again a major role player in financing with a social impact and which contribute to the development of the country », the bank commented.
We recall that when this amendment was signed, which represents 20 % of the basic market, the terms of its financing, which will be supported by Cameroon in addition to the initial counterpart funds, were still under discussion between the Ministry of Energy and Water (Minee), the Ministry of Economy, Planning and Spatial Planning (Minepat) and the Autonomous Depreciation Fund (CAA), manager of the country’s public debt. With this amendment, the cost of the project has been increased to approximately 63 billion FCFA. The other financing comes from a loan of 594 million yuan (or 49.2 billion FCFA at the current value of the yuan) contracted, on September 22, 2018, with the Chinese public bank Eximbank, for a grace period of 7 years, a maturity of 36 years and an interest rate of 2 %, according to the CAA.
It must be said that the laying of the first stone of the project took place on August 28th, almost 5 years after the signing of the financing agreement. « The start-up conditions for the second phase included the completion and receipt of Phase one. This was delayed due to the late connection of the sites to the electricity grid, the reception took place in 2020 », explains Camwater. The first phase of this project started in 2014, covering the cities of Bafoussam, Bamenda, Kribi and Sangmélima. The project is part of Camwater’s five-year priority investment program.