Cameroon Takes 366 Billion Loan for Water Project

Cameroon-backed loans of 366 billion CFA francs from the Export-Import Bank of China to finance water supply projects, the government said Wednesday.

The programmer will rise to 2 million people in the capital Yaounde and villages along the pipeline, marking a significant increase in infrastructure for the central African state, where the UN says only half of the 19.5 million population has access to clean water.

The project should begin in January, Water and Energy Minister Michael Tomdio said on state radio.

China’s Exim Bank, one of three policy banks that extend credit in line with government initiatives, said last month it sees plenty of opportunity to extend loans in Africa as commercial banks steer clear of risk.

Chinese investment across Africa has grown rapidly as the country seeks to secure access to raw materials to feed its breakneck economic growth.

Cameroon’s government hired the China National Machinery and Equipment Corporation on a 28-month contract for the water project, which will involve construction of a 56-kilometer pipeline from the Sanaga River.

Tomdio said, the total cost will be 430 billion CFA.  He also said that China Exim Bank will provide Cameroon with 366 billion CFA “soft loan” and the rest will come from the government of Cameroon.