RAILWAY CONCESSION PROJECT

closed

The Railway Concession Project intends to improve Cameroon's transport sector sustainability, through the private operation of the railway sector, thus eliminating the burden on public finance for provision of railway services. The project components consist of: 1) rehabilitation, and modernization of the rail infrastructure, to be implemented by CAMRAIL, comprising rehabilitation of tracks; construction of small, and medium structures, and bridges; acquisition of signaling, and radio-telecommunications equipment to improve railway operational safety; and general engineering works, including the extension of the railway system to the port of Douala. International aid will further contribute to financing this component, in order to complement concessionaire financing, particularly civil works, sleepers, and welding; 2) rehabilitation of rolling stock, track maintenance equipment, and workshops, for which CAMRAIL will have overall responsibility for implementing this component, given it will not be financed by the Bank; and, 3) environmental, and social activities, focused on the clean-up of polluted railway sites prior to concessioning, particularly the creosote facility, and the diesel fuel stations in Douala, and Yaounde, and includes engineering studies, and pollution abatement supervision works. Regarding social issues, overall safety measures, and resettlement compensation of populations in the railway right-of-way will be undertaken. In accordance with the Concession Agreement, the Government assumes responsibility for pollution abatement that predates the concession, whereas CAMRAIL will implement this activity on behalf of the Borrower.