The money is meant to facilitate electricity transmission network from Edea to Yaounde from 2018 to 2019.
The loan agreement was reached in three separate accords in Yaounde last July 4.
The Minister of the Economy, Planning and Regional Development, MINEPAT, Louis Paul Motazé signed for Cameroon, while the Director of Operation of the Spanish bank, Antonio Navarro Escabias, endorsed for his institution.
“These funds will help us build a very important transmission line from Edea to Yaounde. We will now have two transmission lines such that when one has a problem, we can be secured with the second one”, Mbemi Nyankga, SONATREL Managing Director stated.
The importance of power in the development of the country cannot be overemphasized.
However, the Biya regime has of recent, stepped up borrowing. Cameroon, last month received an approved loan of close to FCFA 400 billion from IMF to fund the dwindling economy in the face of a drastic fall in the prices commodity products.
Some few months back, Cameroon equally borrowed a huge sum from the Islamic Development Bank, IBD.
Cameroon is perusing her borrowing drive, despite numerous warnings from the IMF about the country’s mounting debt burden.
Yet Cameroon has continued to go in for loans from foreign countries and banks, especially the Exim Bank of China with the recent case of FCFA 75 billion to offer computers to students by the Head of State and FCFA 139 billion to build Paul Biyas’ Stadium at Olembe, Yaounde.
Observers say rising debt burden will inevitably lead to economic slowdown in the near future, considering that the loans have to be serviced.
Cameroon’s public debt now stands at about FCFA 4,754 billion.
It should be recalled that before IMF’s advice against heavy indebtedness, the World Bank had in another report in April 2016, classified Cameroon amongst countries in the Sub Saharan Region under high debt risk.
The Minister of Finance, Alamine Ousmane Mey, has repeatedly pleaded for greater caution and efficient management of public funds.
With the recent granting of the IMF loan, Government is planning to engage a thorough head count of public servants and State agents in order to weed out ghost workers through which huge sums of State budgets are swindled as salaries every month.
By Chia Hycenth (ISTBER Journalism Student On Internship)