Africa Growing Together Fund provides EUR 42.6 million loan for Transport Sector Support Programme — Phase III: Construction of the Ring Road (Linked to Record ID#36104)

Africa Growing Together Fund provides EUR 42.6 million loan for Transport Sector Support Programme — Phase III: Construction of the Ring Road On May 22, 2014, the African Development Bank (AfDB) and the People's Bank of China (PBOC) signed an agreement for the Africa Growing Together Fund (AGTF) (see Umbrella Record ID#36104).

The purpose of this $2 billion loan facility was to finance large development projects in Africa between 2014 and 2024. The AGTF is sponsored by the PBOC and the administered by AfDB.

Then, on December 30, 2021, AGTF signed an EUR 42.6 million million loan agreement (ID#5050200001056) with the Government of Cameroon for the Transport Sector Support Programme — Phase III: Construction of the Ring Road. The AGTF loan agreement entered into force on April 5, 2022.

Approximately six months earlier on June 18, 2021, the AfDB signed a EUR 161.6 million loan agreement (ID#2000200004664) with the Government of Cameroon for the same project. The AFDB loan agreement entered into force on March 4, 2022. The first disbursement under the AFDB loan agreement took place on March 4, 2022.

The first disbursement under the AGTF loan agreement took place on April 5, 2022.

By December 2023, the AGTF loan had achieved a 2.94% disbursement rate and the AFDB loan had achieved a 0.44% disbursement rate.

The purpose of the project is to support part of a 365-kilometer Ring Road that forms a loop from Bamenda-Bambui-Ndop-Babessi-Kumbo-Nkambe-Misaje-Nyos-Wum-Bafut back to Bamenda.

It crosses five of the seven divisions of the North West Region and includes several links to the Nigerian border, including one from Misaje.

Transport Sector Support Programme — Phase III: Construction of the Ring Road involves 4 components: road works; related facilities and support for women and youths; institutional support; and program management and coordination.

The road works component involves (1) construction/rehabilitation of 280 kilometers of road corresponding to the Kumbo-Nkambe-Misaje section, including the Nkambe bypass road (96 kilometers), the Misaje-Dumbo-Nigeria border section (50 kilometers) and the Wum–Bafut-Bamenda road section (80 kilometers) and the Bambui-Ndop-Babessi junction, including the Babungo-Dawaa sliproad section (54 kilometers); (2) development of parking areas along the road; (3) measures to protect the environment; (4) sensitization of the population on HIV/AIDS and other pandemics, environmental protection, as well as road safety in the program impact area; (5) implementation of the environmental and social management plan; and (6) reinstallation action plan.

The expected major positive impacts of the project are: (i) temporary and permanent jobs, and local trade opportunities during the construction phase; (ii) opening up of the area, regional integration and facilitation of the movement of people and goods; (iii) development of economic activities in the North-West Region; (iv) increase in the number of tourists; and (v) increase in government revenue.

The expected negative impacts on the natural environment are: (a) the quality of water that will be slightly altered; (b) the dust and exhaust gas emissions that the local population will have to suffer will be very limited and temporary; and (c) the risk of soil pollution, erosion, and modification of soil structure.

The program’s executing agency is Cameroon’s Ministry of Public Works (MINTP), through the CSEPR-BAD/BM set up in 1998 by the AfDB.

The CSEPR BAD/BM’s powers were gradually extended in 2008 to cover World Bank-financed projects and, since 2015, to projects funded by other Technical and Financial Partners (TFPs).

Implementation of the Transport Sector Support Programme — Phase III: Construction of the Ring Road commenced in February 2019. The project was originally scheduled to reach completion on October 31, 2024.