Belgian export credit agency Credendo has guaranteed a €73mn loan from ING to finance the first phase of a project to reconfigure the water supply in Cameroon’s capital city Yaoundé.
An ING spokesperson said the loan was signed on February 13, has a 15-year tenor and is linked to an engineering, procurement and construction contract won by Belgian company Putman SA.
“We are proud to enable improved access to drinking water for the population of Yaoundé, and support our client Putman in making it all happen,” said Bart Degrauwe, ING’s head of structured export finance in Belgium, Luxembourg and France.
Credendo and Putman did not respond to questions about the loans or project.
Last April, Business Cameroon reported that Cameroon’s president signed three decrees authorising the raising of CFAFr111.6bn in debt from three European lenders, including ING, to fund three phases of the water project.
Belfius Bank will provide a loan of similar value to ING’s for the second phase, according to a report in Business Cameroon, while Deutsche Bank Italy is set to lend €38.5mn to finance the third phase.
The project is an extension of a plan called Paepys, which focused on drawing water for a new treatment plant, the publication reported. However, further work was needed to plug a shortfall in water production to meet the city’s demand.
Deutsche Bank declined to provide information about the deal when asked by GTR, while Belfius Bank did not respond.
