AfDB Eases Suspension on Chinese CR20 Road Project in Cameroon

The African Development Bank (AfDB) has partially lifted the suspension on a road project in Cameroon, which is being executed by the Chinese company China Railway 20 Bureau Group Corporation (CR20). This project involves the construction of the Ntui-Mankim road, a crucial part of the country’s infrastructure development.

The suspension was initially imposed due to concerns over project management and compliance with contractual obligations. However, after a thorough review and negotiations, the AfDB has decided to allow the project to proceed under certain conditions. These conditions include ensuring that CR20 meets specific equipment and performance standards and that all necessary documentation is submitted for approval.

This decision is significant for Cameroon as it aims to improve its road network, vital for economic growth and regional connectivity. The Ntui-Mankim road project is expected to enhance transportation, boost trade, and support local communities by providing better access to markets and services.

The decision follows negotiations initiated by this company, which was awarded the contract for the asphalting work on the Ntui-Ndjolé road (Central region).

A picture of the work on the Ntui – Ndjolé section

After three months of shutdown, the China Railway 20 Bureau Group Corporation (CR20) can now resume asphalting work on the Ntui-Ndjolé section (60km); an integral part of the Ntui-Ndjolé-Mankim line (96.7 km) in the central region of Cameroon. The reason is that the Chinese manufacturer was notified of the decision to lift the partial suspension by the African Development Bank (AfDB), which is the main financier of the project, following a letter signed by Serge N’Guessan, its Director General for the Central Africa zone on July 1. “Because of the corrective measures taken by the company and the assessment of the project owner, the AfDB also recommended to the government the immediate lifting of the suspension of work on the lot concerned,” reports the Ministry of Public Works, the project owner.

This decision in favour of CR20 comes following recent evaluation missions by AfDB teams on the recommendations issued to the successful bidder during its formal notice. Indeed, it was on April 18 that the donor decided to suspend disbursements on this project due to CR20’s failure to comply with environmental and social obligations and requirements.

To this end, seven recommendations aimed at improving the working conditions of employees were made by the African Development Bank to the Chinese company. To date, it is indicated that six have already been respected and one point remains to be improved. Hence, there is a partial lifting of the suspension of work and the lifting of the suspension of disbursements.

In detail, it is revealed that the company has significantly improved the social security of its employees. “The current situation of the staff shows 233 contracts declared with actual contributions to the Cnps and 164 contracts are in pre-registration.”, declares the ministry. These data have seen a relative increase compared to the previous check carried out last June as part of this recommendation. It reported 22 copies of contracts of expatriate staff targeted by the Minister of Employment, 239 employees in pre-registration at the Cnps head office in Bafia and only 68 employees who obtained their Cnps number during May 2024. The social security point still needs to be improved, the AfDB experts decided to raise funds based on the satisfactory implementation of the enrollment plan at the National Social Security Fund (Cnps), of the staff of the CR20 company.

Let us recall that the provisional budget for the asphalting works on the Ntui-Ndjolé road amounts to 29.7 billion CFA francs jointly financed by the AfDB and the State of Cameroon. China Railway has been on the ground since October 2021 (nearly three years, Editor’s note) with a physical execution rate of 62% to date. The Chinese company has already received five formal notices, the evaluation of which was not satisfactory.