CAMEROON: Support to Cameroon Railway Project

Cameroon’s 1,100 kilometer railway system is a significant contributor to the country’s growth. The railway links the country’s leading urban centers and facilitates economic and social connections with its neighbors, mainly Chad and the Central African Republic. Camrail, a subsidiary of the French transportation conglomerate, Bolloré, has operated the railway under a concession agreement since 1999—a rare example of a successful railway PPP in Africa.

The development of the railway is a top priority for the government. In 2012, it adopted a railway development plan to develop existing railroads and build new lines to connect Cameroon to neighboring countries and the Kribi seaport. Under Camrail, the railway has seen improvements in passenger and freight traffic, fewer derailments, and infrastructure upgrades. Despite this success, the performance and quality of passenger services have grown worse in recent years, prompting public criticism.

The World Bank Group, which first supported the efficiency and sustainability of the transport sector by enabling the private operation of the railway sector, is currently supporting Cameroon to improve the efficiency and effectiveness of its multimodal transport along the Yaoundé–Kousseri Corridor. This will lead to improved performance of the country’s rail/road corridors and are expected to have a regional impact.

At the government’s request, PPIAF funded a study supporting the railway development plan in collaboration with GIF. The study, which supplements the technical feasibility work financed by the World Bank, assessed the performance of the current concession agreement between the government and Camrail, provided recommendations for a new institutional framework, and proposed PPP options for extending the network. It will also inform government decisions regarding potential PPP arrangements and amendments to the concession agreement.

These activities build on PPIAF’s work to modernize Cameroon’s legal and institutional framework for PPPs and strengthen the government’s capacity to prepare them. A law is currently being prepared to strengthen the institutional framework for the sector. It includes several options for reinforcing the role of the government of Cameroon in the supervision of its infrastructure. The risk-sharing between the public and private sectors has important implications for the railway concession’s viability, making the thorough review of options supported by PPIAF critical.

The study may support the development of modern, cost-effective railway infrastructure that will reduce greenhouse gas emissions and particulate matter, thanks to improved efficiency and a shift from truck to rail transport. In addition, the railway will enjoy improved capacity, safety, speed, and reliability. The government will also be better positioned to attract private sector participation in infrastructure development.