(Business in Cameroon) – Banque Atlantique Cameroun has committed to financing a significant part of the construction of dock 17 at the Port of Douala, CEO Eric Valery Zoa reported on January 17. The bank will provide CFA60 billion, covering 85.7% of the CFA70 billion loan contracted by the project’s leader, French company Negri.
Eric Valery Zoa expressed pride in the bank’s role in supporting such a major national project. “It’s an honor for us to finance a project of this importance for the country,” he said when signing the partnership agreement with the Port Authority of Douala (PAD) and Negri.
The remaining CFA10 billion will be funded by two local banks, namely CCA Bank and Bange Bank. The money to be provided by each bank was not disclosed. However, the loan comes with a 7.5% interest rate and a repayment period of eight years. It was arranged by ASCA, a subsidiary of Morocco’s Attijariwafa Bank, and Matha Capital AFG Capital SA, a pan-African financial advisory firm.
Raphaël Abouem Halde, Negri’s Commercial Director for Africa, highlighted the significance of local banks being able to fund such large-scale projects. “This marks a shift in the banking sector, showing that local institutions are now equipped to raise the necessary funds for major infrastructure projects. Just a few years ago, this would have seemed impossible without relying on foreign financing”.
The expansion project will involve building a 250-meter dock, developing 7.9 hectares of backland, and installing 1,200 meters of automated crane tracks. The total cost is estimated at CFA47.2 billion before taxes (CFA55 billion including taxes). However, Negri has accounted for potential risks and commission payments, which brings the total loan amount to CFA70 billion.
The project is being carried out under a 12-year Public-Private Partnership (PPP) agreement signed in 2022 between PAD and Negri. Construction is set to take 30 months. After completion, Negri will manage the new infrastructure for the next 10 years, while PAD’s Container Terminal Authority will oversee operations and billing during that time.
