African Export-Import Bank (Afreximbank) has signed an indicative term sheet with APD-Cameroon to finance the development and operation of a €210 million (US$227 million) port terminal in Douala, Cameroon.

According to the term sheet, the proposed facility will be in two tranches, euro and Central African francs (XAF), of up to €147 million, with a proposed Afreximbank participation of €80 million.

The new terminal, an extension of the existing Port of Douala on Wouri River, will consist of two berths. Douala is the biggest city in Cameroon, and is also a financial and commercial hub.

Helen Brume, director of project and asset-based finance at Afreximbank, says the facility will help to address the “significant infrastructure financing gap” on the African continent.

“We applaud the initiative of APD-Cameroon, which through its commitment to this project, is helping to promote an innovative financing mechanism through a public-private partnership, thereby, reducing the financial burden of these strategic investments on the Government of Cameroon,” Brume says.

Port of Douala is a regional trade gateway for Central African countries, and has played a strategic role in regional integration by serving as a natural port for landlocked countries like Chad and the Central African Republic.

 “We are honoured to be part of the expansion and specialization of the Port of Douala by building additional berths that will be dedicated to dry bulk," says APD-Cameroon founder and chairman Marc Tabchy. "The committed resources will allow to develop this critical infrastructure, significantly contributing to the growth of the economy, creating employment opportunities and encouraging inter-African trade.”