Cameroon Prime Minister Joseph Ngute has welcomed the €106-million loan from development finance institution European Investment Bank (EIB) and the €17.1-million European Union (EU) grant to support upgrading of the 330 km Bélabo-Ngaoundéré railway line.

The new EIB loan, EU investment grant and technical assistance will finance and support the €243-million project to enable faster and more reliable freight and passenger rail transport between central and northern Cameroon, enhance connections between the Port of Douala, Chad and the Central African Republic, and provide a sustainable alternative to road transport.

“Upgrading Cameroon’s national transport network is crucial to improve lives and create new opportunities for our people. I welcome the EIB’s support for the Bélabo-Ngaoundéré railway. The EIB’s largest-ever investment in Cameroon is a flagship of sustainable transport for our country and for Africa,” said Ngute.

“Renovation of transport infrastructure is, just like meeting energy needs, essential for the performance and competitiveness of our economy,” said Cameroon Economy, Planning and Regional Integration Minister Alamine Ousme Mey.

“This shows the broader importance of the financing agreements for the project to renew the Bélabo-Ngaoundéré Line Renewal Project (PRBN).

“This major rail project will help establish our multimodal transport strategy and strengthen connection of places and people across Central Africa. This blended financing totalling just over CFAfr80-billion demonstrates the strength of our strategic partnership with European financial institutions,” he said.

Investing in sustainable transport is crucial to unlock economic opportunities, connect communities and reduce carbon emissions. The EIB is pleased to provide €106-million combined with a €17.1-million EU investment grant to renew the Bélabo-Ngaoundéré railway and back visionary investment to transform Cameroon’s transport network, said EIB VP Thomas Ostros.

“The excellent cooperation between Cameroonian and EIB transport, technical and financial experts will enable the project to benefit from international best-practice and benefit future generations of Cameroonians,” he said.

Agreements for the financing and implementation of the PRBN mark a decisive step in the renewal programme for the entire operational rail network, initiated at the end of the 1990s, said Cameroon Transport Minister Ernest Ngallè Bibèhè.

“With the PRBN, we will have 330 additional km of railway track renewed - approximately 30% of the national network. Operating performance will be improved thanks to the substantial reduction in journey times for both passenger and freight trains; improvement of passenger comfort, safety and the capacity of rail traffic, all crucial to shift traffic from mining in the Adamaoua region and contributing to delivering national development objectives in the sector,” he said.

“Cameroon and the EU are committed to climate action. Upgrading the Bélabo-Ngaoundéré demonstrates investing in sustainable transport will benefit both Cameroon and neighbouring countries. This project will be supported by both the EIB loan and EU grants to accelerate upgrading work and deliver better transport connections for this country,” said Ambassador of the EU to Cameroon Phillipe van Damme.

Opened in 1974, once upgrading work on the Bélabo-Ngaoundéré line is completed in 2028, more than one-million passengers a year are expected to benefit from the improved service and upgrading the railway is expected to stimulate economic growth and create jobs along the route and in northern Cameroon.

The project includes upgrading rail tracks and engineering work, improving station facilities and improving rail crossing safety. Once complete the line is expected to enable passenger trains to travel at 90 km/h and freight trains at 70 km/h, the EIB said.

Further, the project is benefiting from technical support from the EU to help project implementation and share international best practice. An EU technical assistance grant of €5.5-million has been mobilised by the EIB. The technical assistance package includes, first, technical assistance for project preparation support, financed and managed by the EIB, using a EU technical assistance grant of €2-million, which has supported project preparation over the past year.

Project implementation will also benefit from a second technical assistance package through a grant managed by the EIB and backed by €3.5-million EU grant support, the finance institution said.