China Eximbank provides $97.13 million preferential buyer's credit for Phase 2 of the Douala (Yato) Water Supply Project (Linked to Project ID#315)

On November 5, 2009, China Eximbank and the Government of Cameroon's Ministry of Economy, Planning, and Regional Development signed a preferential buyer's credit (PBC) agreement [CHINA EXIMBANK PBC NO. (2009) 36 TOTAL NO. (98)] worth $97,130,000 (CFA 57 billion) for Phase 2 of the Douala Water Supply Project. The PBC was provided on the following borrowing terms: a 20-year maturity, a 5-year grace period, a 2% interest rate, a 0% default (penalty) interest rate, a 0.30% commitment fee, and a 0.30% management fee. The proceeds of the PBC were to be used by the borrower to finance 85% of the total costs (EUR 80 million) of a commercial contract between Cameroon Water Utilities Corporation (Camwater) and CGC Overseas Construction Co., Ltd (CGCOC), which was signed on June 24, 2009. As of December 31, 2020, the loan had achieved a 100% disbursement rate and its outstanding amount was equivalent to CFA 36.6 billion. Its outstanding amount was equivalent to CFA 54 billion as of December 31, 2016, CFA 44 billion as of December 31, 2017, CFA 43 billion as of December 31, 2018, and CFA 41 billion as of December 31, 2019. CGCOC was the contractor responsible for project implementation. Construction began on September 1, 2011 and ended on December 28, 2014. The supply of water in Douala reportedly increased from 160,000 to 260,000 cubic meters per day. Project works included: building a 100,000 m3/day water treatment plant in Ayatto along the Moungo River, laying 21.2 kilometers of ductile iron water pipes to connect the treatment plant and the distribution center, laying steel pipes across the Wouri river, and extending the entire distribution network using iron pipes. China Eximbank also provided an RMB 171 government concessional loan for Phase 1 of this project (as captured via Project ID#315). According to Source ID#137918, Camwater provided 7 billion XAF of counterpart funding for Phase 1.

Additional details

1. The Chinese project title is 杜阿拉城市供水项目二期. The French project title is Projet de renforcement et d'amélioration de l'Alimentation en Eau Potable (AEP) de la ville de Douala (phase II) or Yato II. 2. The PBC agreement can be accessed in its entirety via SourceID#132334 or https://www.documentcloud.org/documents/20485425-cmr_2009_170. 3. The project ID number for this transaction in Cameroon's Development Assistance Database (DAD) is CAM/000710. 4. Camwater is Cameroon's state-owned water utility company. 5. The loan identification number in the Government of Cameroon's Commonwealth Secretariat Debt Recording and Management System (CS-DRMS) is 2009108.

Number of official sources

19

Number of total sources

23