China’s Eximbank has made a loan of XAF415.8 billion (US$673 million) to Cameroon, for the Kribi deep water seaport project.
The financing – part concessional loan (US$145 million) and part buyer preferential credit agreement (US$528 million) – represents around 85% of the total cost of the project.
Cameroon’s minister of economy, Louis Paul Motaze, said in a statement that phase II of the port project could now proceed, including extending the dyke by 675m, reconfiguring the access channel, construction of the container terminal and a 700m-long dock.
He said the work would double both the port’s current capacity and its raft of handling equipment.
Eximbank’s loan was offered with an interest rate of 2%, and the repayment term is 20 years, with a grace period of 7 years.
Speaking about phase II of the port project, Motaze said, “…its completion before 2020 became a key point for the additional demand in traffic to meet a substantial offer in operational structures.”