Cameroon: Modernization of highways, an economic catalyst!
Recurrent traffic jams, road insecurity, vulnerability of the toll and collection system are all obstacles to mobility weighing at once on the living environment of the populations, on the economic development of Cameroon and on the public revenues of the State.
Thus, following the call for tenders launched at the end of 2016 by the Ministry of Public Works of the Republic of Cameroon, the project company TOLLCAM Partenariat SAS (owned by the Egis Projects (50%) and Fayat (50%) groups) signed a 20-year concession contract for the design, construction, equipment, operation, and maintenance of 14 automated toll booths on certain roads in the Cameroonian road network.
This project, which will be rolled out in two consecutive phases over a period of nearly 15 years, will improve the mobility of goods and people and contribute to the improvement of the country's infrastructure. It will thus contribute directly to the economic development of the cities of the Littoral, Center and West of Cameroon, the most popular and attractive cities in which the tolls will be located. As soon as it is implemented, it will allow the Cameroonian State to increase its public revenues without impacting the existing toll rates thanks to the increase in users, motorists will benefit from a more fluid traffic, and the safety and working conditions of public agents and traders working at the toll stations will be improved.
Within the framework of this project, Societe Generale Group, solicited by TOLLCAM Partenariat SAS, acted as Arranger of a 14-year project financing, through its structured finance platform based in Abidjan and with the support of the infrastructure finance team of the corporate and investment bank based in Paris. This innovative financing includes a set of guarantees issued by GuarantCo, a member company of the Private Infrastructure Development Group.
Societe Generale is thus once again illustrating its long-term commitment to the African continent, as part of its "Grow with Africa" initiative; the implementation of this innovative 14-year financing in local currency thus contributes to the United Nations' Sustainable Development Goals, including: #9.1: Develop quality, reliable, sustainable and resilient infrastructures, including regional infrastructures, to support economic development and human well-being, and #17.1: Strengthen domestic resource mobilization to improve national capacity to collect taxes and other revenues.
"Tollcam is very proud to be involved in the development and modernization of Cameroon's roads through this emblematic project. We are pleased to have benefited from the expertise of Societe Generale teams who successfully arranged this 14-year positive impact financing in local currency. Tollcam is a concession company created by the consortium of Egis Projects (50%) and Fayat (50%). We are delighted to have been able to work with the experts at Societe Generale, particularly in structuring our positive impact financing of approximately €50 million (32.5 GXOF)."
Philippe Serain, President of Tollcam and Director of Concessions and PPP, FAYAT Group
|"Societe Generale is uniquely positioned on the African continent to offer the expertise and know-how of an international bank and the proximity of a local bank. We are a player committed to positive change alongside our clients. This infrastructure project financing is a perfect illustration of this and will enable Cameroon to develop and optimize the economic performance of the national road network in order to improve the daily life of the population."|
|Mareme Mbaye Ndiaye, Regional Director for Central and Eastern Africa, Societe Generale|
|"This 14-year multi-tranche financing is the result of the joint work of Societe Generale’s local teams and the Paris-based corporate and investment bank's infrastructure finance teams to develop a long-term financing structure in local currency that is robust and protects financiers from traffic risks; this success demonstrates Societe Generale’s ability to innovate and support the development of private sector investment in public-private partnership projects in Sub-Saharan Africa."|
|Laurent Bouchilloux, Co-head of infrastructure and financial projects, Paris|