12.5 Billion for Grassfield Project phase II

Minister Njoumessi and Racine Kane share documents after the signing in the presence of Leonard Sentone ADB Administrator

Minister Njoumessi and Racine Kane share documents after the signing in the presence of Leonard Sentone ADB Administrator

The Cameroon government and the African Development Bank (ADB) have signed a loan and grants agreement worth 12.5 billion FCFA for the financing of the second phase of the Grassfield project (The Grassfield Decentralized and Rural Development Project – GP DERUDEP) in a ceremony at the Bamenda Congress Hall, Monday afternoon.

Minister Emmanuel Nganou Njoumessi of Economic Planning and Regional Development signed on behalf of the government of Cameroon, while Racine Kane, Resident Representative of the ADB signed on behalf of the bank.

“With this funding … representing approximately CFA F 12.5 billion, the Bank Group is once again showing its commitment alongside the Cameroon Government to consolidate the achievement of the first phase of the Grassfield project” minister Djoumessi said in his opening speech.

Senator Achidi achu, NW Governor and Minister Djoumessi at the signing cermony

Senator Achidi achu, NW Governor and Minister Djoumessi at the signing cermony

Administrators,senators, MPs, and mayors attended the signing

Administrators,senators, MPs, and mayors attended the signing

Mr. Djoumessi also recounted that today’s signing ceremony is as a result of the success recorded in phase I of the project which he said helped to reduce poverty in the rural areas of the North west Region notably in the generation of CFAF 5 billion as additional income for the beneficiaries, increase by 60% marketed production, rehabilitated some 257 Km of rural roads, and improved on the capacities of local communities amongst other.

“This project would develop through a participatory approach with the full involvement of the government of Cameroon, the beneficiaries, civil society organizations and other development partners” Racine kane said.

The  project to run from 2014 to 2018 according to the technical document would cost 19.14 billion F CFA, with the ADB to loan out 10.17 billion (53% of project cost), then a further 2.38 billion as grant (representing 13% of the project cost) while the government of Cameroon would contribute 6.59 billion (34%) through the Public Investment Budget (PIB). The loan would be reimbursed in a period of 50 year, with a 10 years grace period at an interest rate of 1% per year between the 11th and 20th and 3% from the 21st.

The project is expected to impact at least 250 000 beneficiaries (over 50% of whom would be women) from producer organizations, transporters and retailers to municipalities and envisage additional agricultural production of about 37 000 tonnes and to increase the annual revenue of producers from 250 000 FCFA in 2013 to 357 910 FCFA in 2018 and to 477 210 FCFA by 2024.

The Grassfield Project aims to contribute to poverty reduction amongst the rural population, remove the major constraints to the development of the agricultural sector and to promote youth employment. This phase of the project is made up of three main components which are rural infrastructures, capacity building and participatory development and management and coordination.

Most of the project’s activities shall be concentrated in the Santa/Tubah basin in Mezam and in the Widikum basin in Momo, considered the priority areas in an effort to maximize the impact on the targeted population, while two other areas, the Gayama and Mbaw Mbonso basins would also benefits from activities such as capacity building and infrastructural development to improve on areas of production and marketing.

The loans and grants agreement was signed in the presence of the Administrator of the ADB, Leornard Sentone, Steering Committees Members of the Grassfield Project, lead by its chairman, Northwest Governor Adolph Lele L’Afrique,  the Hon. Senator Achidi Achu, SDOs. DOs mayors and MPs of the council areas.

By Abongwa Fozo

 

2 Responses to 12.5 Billion for Grassfield Project phase II

  1. Bamenda Pikin February 11, 2014 at 12:46 pm

    They should just tar the Ring Road completely. That alone will greatly improve economic development of the whole region.

  2. abakwa Boy December 19, 2013 at 11:04 pm

    This is good for the northwest, but it shouldn't only end in Santa and widikum, what about the other areas. is this the Santa Mafia at work?

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