Unlocking Douala's Economic Potential Through Cutting-Edge Urban Mobility Project
Douala, Cameroon's main economic hub, faces congestion and inefficiencies in its public transport system. To address these issues, the government, along with donors like the World Bank, is spearheading a comprehensive transport strategy. The project involves creating mass transit corridors with Bus Rapid Transit (BRT) lanes, restructuring the bus network, and renewing the taxi fleet. Private investors are showing interest in the project, which aims to enhance urban mobility, boost economic growth, and attract private capital opportunities.
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Douala A cutting-edge project to unlock the city s economic potential
Urban mobility is an issue D o u a l a 1. Douala is Cameroon s main economic hub and port of entry: 32% of national GDP 5.5% annual population growth. 2.7M -> 4M inhabitants in 2025 2. Congestion competitiveness (World Bank report: Cameroon City Competitiveness Diagnostic) is the main bottleneck of city s 3. Public Transport is mainly informal, inefficient, pollutant 83% of motorized trips are done by public transport, out of which 40% by moto taxis Low individual motorization rate, high dependency of the population to public transport
. But we can solve it! D o u a l a 1. Government of Cameroon, Douala Urban Council with the help of donors (World Bank, Agence Fran aise de D veloppment, etc) have started the preparation of a WB-financed project 2. Comprehensive transport strategy in an integrated land use and public transport vision : Mass transit corridors with segregated lanes (Bus Rapid Transit or BRT) Bus public transport network restructuring Taxis fleet renewal 3. Project status Lots of preliminary studies Preliminary design for identified BRT corridors High ridership potential 4. Private investors have already shown interest for BRT 5. Existing successful best practices worldwide for fleet renewal leasing mechanism
. But we can solve it! D o u a l a 1. Government of Cameroon, Douala Urban Council with the help of donors (World Bank, Agence Fran aise de D veloppment, etc) have started the preparation of a WB-financed project 2. Comprehensive transport strategy in an integrated land use and public transport vision : Mass transit corridors with segregated lanes (Bus Rapid Transit or BRT) Bus public transport network restructuring Taxis fleet renewal 3. Project status Lots of preliminary studies Preliminary design for identified BRT corridors High ridership potential 4. Private investors have already shown interest for BRT 5. Existing successful best practices worldwide for fleet renewal leasing mechanism
Private capital opportunities D O U A L A Track Record Regulatory Frameworks Procurement Capacity Government Co-Financing 1. We can see gaps and weaknesses in the Public Private Partnership regulatory framework and representation (PPPs) 2. A lot of ongoing initiatives : Guichet unique for issuance of urbanism documents, Ongoing municipal finances reform financed by AFD grant recurring PEFA (Public Expenditure and Financial assessments : 2012 and ongoing : Real Estate Market Capacity Land Use Regulations Land Security of property rights Local Fiscal Powers LVC track record Cadaster / Land Data Management Accountability)
Our Project, Our Numbers D O U A L A 1. BRT Infrastructure financing: WB and other donors loans for up to USD250M Investment Snapshot Investment cost Debt Equity ratio Equity IRR Payback period Debt tenor Interest rate Risk sharing 50,000,000 70:30 2. Expected private sector participation for BRT : 10-year concession CAPEX ~USD50M (assumption: 30% equity and 70% debt) Potential WB guarantee on the debt Private sector would finance, purchase, maintain and operate the Rolling Stock Operational risks on the private operator Revenues risks transfer to be assessed: full commercial risks or cap-and-collar mechanism (potential revenue guarantee needed) 20% 6.5 years 10 years 10% The local authorities might provide a revenue guarantee to the operator to mitigate the commercial risk. Conversely, we might envision that any return in excess of 20% would be split between the private operator and the local 3. Other opportunities for private investors in the project: Design-build-operate: Transit-oriented Development / Land Value Capture around the stations Leasing mechanisms for taxi fleet renewal authorities.
