Cameroon Water Affermage contract - OBA for coverage expansion

Despite having one of the highest GNP per capita of sub-Saharan Africa, Cameroon lags well behind countries such as Cote d’Ivoire and Senegal in terms of coverage for piped water services. Access to piped water does not exceed one third of the national population. With support from the World Bank and other donors (AFD, EIB), the Government of Cameroon is implementing a major institutional reform, with the contracting of an international operator to operate the water systems nationwide under a 10-year affermage contract. Responsibility for financing and investment will remain with the Government through a newly created asset-holding company, Camwater. While the introduction of an experienced private operator under a well-tested PSP framework does provide a golden opportunity to expand access to piped water for the population, the high cost of getting an individual connection represents a major barrier for low- and middle-income households. The proposed project aims to address the cost of connection through the design of an OBA scheme.

Grant Agreement Signed on April 7, 2008. User contributions totaling US$1,300,000 are not included in total project cost figures.

This project will bring new piped water connections to 40,000 poor households.

The proposed GPOBA program would subsidize the cost of new connections for domestic customers, in order to facilitate access for low- to middle-income households without access to piped water.

The Government of Cameroon

TBD

Jan Drozdz [4]