Nouvelles /

The Prime Minister details Government’s Economic, Financial, Social and Cultural Programme for fiscal year 2010

20/11/2009

Mr President of the National Assembly,

Honourable Members of the Bureau of the National Assembly,

Honourable Members of Parliament,

            It is an honour and pleasant duty for me to adhere to the tradition instituted by Article 34 of the Constitution which requires the Government to present to your august Assembly its Economic, Financial, Social and Cultural Programme for the next fiscal year.

Mr President of the National Assembly, I would like to begin by expressing Government’s happiness with the quality of the welcome given to it every time in this Glass Palace by the honourable Members of Parliament. This is a shining symbol of our representative democracy.

As you are aware, the Head of State, His Excellency Paul BIYA, during the Council of Ministers that he chaired last July 3rd, dwelled on the welfare of all Cameroonians, his major concern. He stressed particularly that the task of the Government is (I quote): “to ensure the development of our country and the improvement of the living conditions of our population” (end of quote).

To that end, the Government during fiscal year 2009 continued the quest for the social progress of Cameroonians.

However, the combined effects of the global financial and economic crises, which did not spare our country, helped to weaken international demand and made international capital scarce.

This situation impacted negatively on the growth rate of our Gross Domestic Product, which dropped from 3.9% in 2007 to 3.5% in 2008; it is estimated at 2.5% at the end of 2009.

Faced with unexpected difficulties, the Government received from the International Monetary Fund an assistance of CFAF 69 billion under the Exogenous Shocks Facility. Furthermore, the Government took a number of mitigative measures to cushion these external shocks and limit their impact on the national economic sector.

            In this perspective, the bank deposits usually demanded from taxpayers of the timber sector and the factory-entry tax for 2nd and 3rd timber processing were scrapped. Similarly, VAT credits in the cotton sector were settled. These measures helped to lighten the burden on businesses of this sector, which experienced net improvements in their cash-flow of about CFAF 13 billion.

            Furthermore, the fight against contrived scarcity and the rising prices of staple products was stepped up.

            Thus, the suspension of customs duty and dues on certain consumer goods and the reduction of the Common External Tariff on cement remained in force.

            Price control measures were tightened and promotional sales campaigns of staple foodstuffs intensified. Similarly, the consumer protection policy was beefed up with a new instrument – the Quality and Standards Agency.

            Concurrently, efforts were intensified to mobilize non oil revenue. In this regard, significant progress was made in reforms undertaken to modernize the taxation services, with the introduction of GPS, a new satellite tracking system meant to monitor goods in transit.

In its constant search for sustainable growth, the Government adopted a long-term strategy based on two instruments.

The first is the Cameroon Vision 2035 Paper which aims to make Cameroon an emerging, democratic country, united in its diversity. The second is the Growth and Employment Strategy Paper which, from 2010, will replace the Poverty Reduction Strategy Paper and marks the start in the concretization of the Vision in the following sectors: infrastructure, rural development, industries and services, health, education, social development and governance.

 

This Paper reaffirms Government’s commitment to implement the Millennium Development Goals, which entails the putting in place of a voluntary infrastructural policy.

Thus, like in the past, the increase in infrastructure was a priority of the Government in 2009. Overall, over CFAF 800 billion was invested for the development of socio-economic infrastructure, thanks to domestic resources and funding obtained from debt relief, and bilateral and multilateral cooperation.

In road infrastructure, apart from conducting numerous studies, public action centred on the maintenance, extension and protection of the national road heritage, as part of the implementation of the construction sector strategy.

The rate of maintenance of the priority road network is 67%, corresponding to a linear distance of 3,555 km. As to the principal network, 5,591 km of earth roads and 4,336 km of surfaced roads were maintained.

Similarly, the construction, development and rehabilitation of roads and engineering structures were continued throughout the national territory. The completed projects include the rehabilitation of the Garoua-Figuil and Muea-Kumba roads, the reinforcement of the banks of the Benoue and the Ngaoundere-Garoua and Loum-Nkam Bridge roads; the improvement of traffic conditions on the Kumba-Mundemba road; the rehabilitation of the Wouri, Mezam, Noun, Sanaga (Ebebda) bridges and two viaducts at Bangangte.

Furthermore, 35 multi-year projects are underway, with an overall pace of implementation of 38.19%. These include, but are not limited, to:

·         the construction of the Yaounde-Olama bridge road, 95% complete;

·         the tarring of the Numba-Bachuo Akagbe road stretch within  the Bamenda-Mamfe-Ekok corridor;

·         the tarring of the Obala-Nkolessong via Batchenga and Mva’a – Konabeng roads;

·         the improvement of travel conditions on 21 routes spread across 7 regions through the construction and/or rehabilitation of engineering structures.

As concerns urban infrastructure, emphasis was placed on decongesting the main approaches to large urban centres, the rehabilitation of urban roads and improvement of the living conditions of the populations.

Thus, to ease the flow of traffic, the following projects are underway:

·         the construction of the Yaounde North approach in motorway profile, 20% complete;

·         the start of construction works of a concrete canal downstream River Mfoundi;

·         the launch of the 2nd phase of extension works on the East and West entry roads into Douala;

·         the construction of a by-pass road in Bamenda, 62% complete.

In the same vein, studies on the East by-pass road of Yaounde are nearing completion.

To stimulate trade in goods and services and ease the movement of persons in the main urban centres, the rehabilitation of the following overarching roads is underway:

·         In Yaounde

-       construction of a traffic circle at the Prefecture road junction, 85% complete;

-       launch of works to widen the Olezoa junction – Officers’ Mess road stretch;

-       construction of the Yaounde Sports Complex – EPC Messa Parish road stretch.

·         In Douala

-       completion of rehabilitation works of the Independence Square and the opening up of the port area,

-       rehabilitation of the former Bonaberi road, 52% complete;

-       repair of the BP Cité – Ndokotti and Place Leclerc – Carrefour Deux Eglises road stretches, which includes the Douches Municipales roundabout.

 

Added to these works is the ongoing rehabilitation of important roads in the towns of Bafoussam and Nkongsamba.

The action of public authorities to improve the living environment of urban populations focused on the development of urban facilities in Yaounde, the construction and rehabilitation of various networks under the Debt Cancellation and Development Contract (C2D), and feeder roads in some neighbourhoods in Yaounde and Douala. An extensive road maintenance programme is underway in some thirty secondary towns, financed by the Road Fund.

Honourable Members of Parliament,

After the Head of State, I would like to come back to the challenges of energy development in our country.

Despite efforts made to build thermal power plants, especially the already completed heavy fuel plant at Yassa, which will boost current capacities by 86 megawatts, the needs of households and industries are still not fully met. Understandably therefore, the ambition of the Electricity Sector Development Plan is to triple the current production level of about 1,000 megawatts by 2020.

One of the keys to guaranteeing security in this sector is the short- and medium-term implementation of energy projects. In this perspective, the following actions were undertaken in 2009:

 the launch of the construction process of the Kribi gas plant, with the selection of successful bidders, the signing of construction contracts and the grant of power generation and sales licences;

·         the signing between the State of Cameroon and SinoHydro of the CFAF 365 billion service contract, to finance the construction of the MEMVE’LE storage dam project;

·         the completion of engineering design studies and the environmental and social management plan of the LOM PANGAR dam construction project which is expected to start in September 2010;

·         completion of the final design for the construction of the Nachtingal hydro-power dam, which will boost the production capacities of ALUCALM;

·         the signing of an outline agreement on engineering design studies of the WARRACK hydro-power dam on the Bini River;

·         the launch of rehabilitation works of the Lagdo, Song Loulou and Edea power plants.

·         the signing of a memorandum of understanding with the South African partner, BUILT AFRICA, for the feasibility studies of the 1,200 megawatts Noun-Wouri hydro-power dam.

The rural electrification programme was intensified, with the ongoing connection of 161 additional localities.

In the water sector, the implementation of the rural water supply programme nationwide made it possible to sink 1,223 bore holes, construct 40 drinking water supply schemes and rehabilitate 9 stations in the West, South and South-West regions. At the same time, 13,000 new connections were made under the CAMWATER investment programme.

Furthermore, phase one of the construction of a drinking water production unit on River Mungo at Ayatto is complete, which will increase water production for the city of Douala from 115,000 cubic metres per day to nearly 170,000 cubic metres.

Regarding the development of telecommunication infrastructure, the fibre optics backbone project was launched, thanks to the signing of a loan agreement with EXIM Bank China for the laying of 3,200 km of optic fibre. The same holds true of the “Central Africa Backbone Project” in its dual national and regional components, which will make it possible to ultimately upgrade and extend the existing network and interconnect the countries of Central African Economic and Monetary Community (CEMAC) and the Economic Community of Central African States (ECCAS).  

Concurrently, the Government recently took measures aimed at further protecting mobile telephone subscribers by making their identification compulsory.

On account of their central place in economic and social life, the different modes of transport are a constant concern for the Government.

In air transport, I want to reassure the National Assembly of Government’s determination to make the new national carrier, CAMAIRCo operational in the months ahead. An air transporter’s licence has been obtained from the Civil Aviation Authority and the certification process, which is the last stage, is on track with the support of LUFTHANSA Consulting Group and the aircraft maker, Boeing.

In maritime transport, in order to boost the competitiveness of the Douala Port, the Government received nearly CFAF 12 billion in financing for a five-year programme of dredging and maintenance of the port channel, effective since last June. Similarly, the implementation of the Kribi Port complex is on track. Land has already been secured for the project and the companies responsible for technical investigation works, environmental data collection and handling of the project’s social aspects are already at work on the site.

Government’s strategy in the rural sector aims to ensure sustainable production qualitatively and quantitatively in the plant, animal, fishery and forestry sub-sectors in order to guarantee food security, supply local industries and increase export revenue.

One year after the food crisis that affected most countries of the South, our country embarked on a drive to increase the production of profitable foodstuffs like roots and tubers, rice, maize and plantain. At the same time, thanks to multi-faceted State support, the production of key cash crops like cocoa and coffee also increased significantly.

Our agricultural mechanization policy was given fresh impetus this year through the CFAF 18.25 billion partnership with India for the supply of farm tractors and equipment, including an assembly plant.

In livestock and fisheries, the main achievements include:

·         the revival of the milk production development project which was granted CFAF 430 million as support for various common initiative groups;

·         assistance to the non-conventional livestock support project, which especially enabled the training of 1,500 farmer leaders;

·         the porcine sector development programme which received this year CFAF one billion meant to support 29,665 pig rearers;

·         the launch of construction works of the National Nautical Arts and Fishing Trade Institute of Limbe, thanks to the Spanish Government’s support of over CFAF 9 billion.

Under the environmental protection policy, Government continued its tree-planting campaign. Ten thousand trees were planted on Mount Bamboutos and in the Lake Chad area. However, despite awareness campaigns, the poaching of our rich wildlife continued unabated which explains the sharp response against poachers and their accomplices and the all-time high seizure of the products of illicit hunting.

In the national education system, the action of public authorities remained centred on improving the offer and quality of education.

Recruitments were organized in primary and secondary education to address the shortage of teachers and 6,490 new Grade One teachers signed employment contracts, financed by the Debt Cancellation and Development Contract (C2D) resources. Infrastructure supply was also strengthened with the ongoing construction and equipment of nearly 1,000 classrooms and 500 staff houses in remote rural areas.

In secondary education, apart from the beefing up of the school map, draft partnership agreements were formalized with the Ministry of Public Health and AES-SONEL to promote work-study programmes. In a bid to accompany profitable sectors of our economy, studies for the creation of agricultural training and production institutes are nearing completion.

Similarly, State assistance to private education increased from CFAF one billion one hundred million in 2008 to CFAF one billion four hundred million in 2009.

Higher education is experiencing clear vitality for some years now. Since January 2009, the University of Maroua hosts over 7,000 students in the Higher Teachers Training School. Soon, the Higher Institute of the Sahel will receive its first students following the recently launched competitive entrance examination. Other universities also offer more training avenues, as new schools and streams like the Institute of Fine Arts in Foumban are opened. The creation of a second cycle in the Teachers’ Training College Annex, Bambili, is an achievement whose positive impact on the Anglophone sub-system will soon become perceptible.

The annual tranche of the Higher Education Technological and Professional Component Support Programme amounting to CFAF 5 billion was used for the construction of several infrastructures in State universities, including:

·         the rehabilitation and extension of the Faculty of Medicine and Biomedical Science in the University of Yaounde I ;

·         the launch of construction works of buildings of the Faculty of Industrial Engineering and Medicine in the University of Douala;

·         the launch of studies for the rehabilitation of the University Institute of Technology and the Faculty of Agronomy and Agricultural Sciences in the University of Dschang:

·         the construction of specialized laboratories in the University of Buea;

·         the finalization of studies for the rehabilitation of the University Institute of Technology and the Higher Teachers’ Training School of Agro-Industrial Sciences and the launch of architectural and geo-technical studies for the construction of the National School of Veterinary Medicine in the University of Ngaoundere;

·         the start of construction works of the university restaurant and two halls of residence, with capacity of 300 beds in the University of Maroua;

·         the construction of pedagogic and computer science blocs in various universities.

To accompany this trend, the President of the Republic decided last April to open an earmarked account for the modernization of research in State universities.

In public health, efforts were made to build more infrastructure and this translated into the continuation of the special equipment programme through which the Bamenda and Garoua hospitals were equipped with hemodialysis apparatuses and those of Ebolowa and Bertoua with medical imaging apparatuses.

The contract for the construction of the Douala Gynaecological and Obstetrics Hospital was signed recently with the Chinese government for an amount of nearly CFAF 10 billion. The commissioning of this referral institution is planned for 2011 and it will boost the health map of the city. Other health facilities were constructed with internal State resources or with funding from international cooperation like the neuro-surgical ward in the Yaounde Central Hospital, the Tignere and Maga district hospitals, some forty integrated health centres with staff quarters.

Existing infrastructure was given a face-lift, especially: the Ngaoundere, Garoua and Maroua regional hospitals, and Ambam and Kribi district hospitals. Mention should also be made of the rehabilitation and extension of the Edea district hospital.     

            With regard to the availability and affordability of drugs, the cost of treatment of uncomplicated cases of malaria was reduced by 50%. This measure is backed by the distribution of long-lasting treated mosquito nets to pregnant women and under-5 children.

            The Government pursued the fight against HIV/AIDS and sexually transmitted infections. In this regard, 2,019 health facilities offer minimum services for the prevention of mother-to-child transmission. At the same time, 178 health districts have at least one health institution involved in this prevention.

            On the social front, the Government spared no effort to guarantee, in various forms, the protection of the most vulnerable segments of the population. In this respect, among the many ongoing programmes, it is worth mentioning the campaign against the phenomenon of street children which aims not only at improving the accommodation capacities of social centres but also at identifying and offering psychological care to at least 300 children, to ensure their socio-economic integration.

             In terms of employment, as part of its programmes, the National Employment Fund, during the year in review, received more than 17,000 job seekers, placed close to 16,000 in gainful employment, integrated 3,647 in independent jobs and trained 4,426 young people.

            The Informal Sector Actors’ Integrated Support Project, which is firming up, provided crucial assistance in the campaign against unemployment. Thus, during fiscal 2009, 1,353 projects were financed at CFAF 800 million, creating more than 3 000 new jobs. Also, 456 master craftsmen received training to enable them set up their own micro projects. Similarly, the Rural and Urban Youth Support Programme, which promotes the socio-economic integration of young uneducated persons and dropouts, assists 38 junior enterprises and finances 600 micro-activities. Also, the construction of multi-purpose youth centres in Bertoua, Douala, Maroua, Bamenda and Yaounde will give fresh impetus to Government’s youth supervision policy.

With regard to vocational training, negotiations have been finalized with South Korea for a loan agreement for the construction of excellence centres in Douala, Limbe and Sangmelima. 529 vocational training scholarships were granted to unemployed young people all over the country, to develop their skills and facilitate their integration.

As you are aware, the Government has always been concerned with maintaining social peace. Government’s efforts helped to safeguard jobs and maintain peace throughout the year. About 7,000 former workers of State-owned corporations were thus paid close to CFAF 5 billion as owed retrenchment benefits.

In sports, one of the high moments of the year was definitely the inauguration of the Yaounde Multi-purpose Sports Complex by the President of the Republic. This architectural jewel, symbol of our fruitful co-operation with China, is the pride of our country and now enables us to once again organize international sports competitions other than football. In 2009, co-operation with China led to the signing of a funding agreement for the construction of the Limbe and Bafoussam stadiums, to cost CFAF 19 billion.

 Also, the process to renew the management bodies of sports federations which began at the close of 2008 ended in 2009, infusing new blood into these organizations which are partners of the State in the conduct of the sports policy. This new spirit led to the participation of our country in more than 80 international sports events.

In this respect, our national volleyball and football teams qualified, respectively for the World Championship in Italy, and for the African Cup of Nations in Angola. There is great hope for the Indomitable Lions to qualify for the World Cup to be played in South Africa in 2010

 Honourable Members of Parliament,

Government’s achievements in 2009, some highlights of which I have presented above, are eloquent proof of the patient, yet resolute materialization of the “Greater Achievements” policy, which the President of the Republic, His Excellency Paul Biya advocates for our country. Foremost of these concerns is the safeguard of peace and stability, which the Cameroonian people hold dear, and whose indefatigable architect is the Head of State.

We are delighted that 2009 was once again a year of peace, the prerequisite for prosperity, which we all are building every day with already tangible and promising results.
 

Unfortunately, this glowing trend was somehow marred by the outbreak, quickly checked, of a cholera epidemic in the North and Far North regions; two train accidents in Yaounde that claimed some ten lives; the continuous cases of kidnappings and highway robbery in the northern part of the country as well as urban and road insecurity.

            Honourable Members of Parliament,


During fiscal year 2010, the Government will continue implementing the “Greater Achievements” policy, especially by carrying out the priority thrusts which were specified by the President of the Republic during the Council of Ministers of 3 July 2009. Amongst others, it will entail giving decisive impetus to energy development, upgrading infrastructure, enhancing industrial and mining growth as well as increasing the quality and quantity of agro-pastoral productions.

The modernization of our Public Service will continue in 2010 with the reform of the assessment system of State workers through the introduction of output standards and the operationalization of the project to make advancements automatic, which will ease career development.

At the level of public finances, our major project will be to implement a new financial regime of the State. Efforts will thus be geared towards:

-          the implementation of the plan to sensitize and train the stakeholders of budgetary reform;

-          the adoption of the statutory framework defining the budget preparation process;

-          the setting up of a technical forum for the validation of budgetary programmes before they are presented in  Parliament;

-          the definition of the framework, content and the institution of management audit within administrative services;

-          the design of summary budgetary and financial statements formats.

As economic growth in our country is a continuous concern, Government will therefore in 2010 strive to attract public and private investments, and consolidate a more conducive climate for the conduct of business.

Being the first year of implementation of the Growth and Employment Strategy Paper, fiscal year 2010 will enable the laying of the groundwork for the success of this project. Actions will include updating sector-based strategies and linking them to medium-term expenditure frameworks.

Infrastructural development will be continued in order to sustain economic and social growth and, hence, satisfy the people’s demand for diverse infrastructure.

            Thus, efforts in the public works sector will be chiefly geared towards:

-          the rehabilitation of the Maroua-Kousseri road;

-          the reinforcing of the Figuil-Maroua road;

-          the opening of the Mamfe-Akwaya road;

-          the tarring of the Kumba-Mundemba; Maroua-Bogo, Djoum-Mintom; Zoetele-Nkolyop; Foumban-Mape Bridge; Bamenda-Ekok; Nkolessong-Nding roads;

-          the construction of  the Lokomo Bridge between Yokadouma and Moloundou and the Mayo Galke Bridge;

-          the start of the construction works of a new bridge on the Sanaga at Nachtigal.

            Besides, studies relating to the construction of the Yaounde-Douala motorway will be finalized.

            Regarding urban development, the Government will, in collaboration with the relevant local authorities, pursue the modernization and embellishment of our major cities as part of a multi-year programme. The major projects here include:

-          the doubling of Nouvelle Route Bastos and the widening of the road linking Mont Febe to the town;

-          the rehabilitation of the main roads of Garoua town;

-          the construction and rehabilitation of urban roads in Ebolowa;

-          the rehabilitation and construction of urban roads in Douala;

-          the rehabilitation of the Messa water treatment plant in Yaounde;

-          the start of construction works of the Yaounde – Nsimalen highway;

-          the start of the construction works of  the Yaounde East axial road and the Maroua urban thoroughfares;

-          the construction of  the Bafoussam bypass road;

-          the drafting of the development master plan of  the Yaounde metropolitan area.

            As concerns trade, in addition to measures aimed at checking inflation and fighting the high cost of living and anti-trust practices, the Government intends to revive some ten periodic markets, in an effort to increase staple food supplies to major consumer centres. It will at the same time strive to finalize the “NTEM project” with the aim of developing three markets on the South border and build the MINTOM II border market.

            One of Government’s major objectives in the fight against poverty is to transform small and medium-sizes enterprises and handicrafts into levers of growth, and providers of wealth and decent employment. Specifically, it will entail:

-          setting up centres for the development of small and medium size enterprises in each of the ten regions;

-          constructing new agro-food processing centres in Limbe, Bertoua, and Ebolowa and equipping the existing ones in Yaounde, Maroua and Ndom;

-          assisting the opening and development of business incubators in Douala, Yaounde and Maroua;

-          finalising the construction of the Yaounde International Handicraft Centre;

-     commencing works for the building of handicraft villages in Ngaoundere, Bertoua, and Ebolowa and equipping those of Douala, Bamenda and Garoua.

In the area of tourism, there are plans to continue the classification and reclassification of hotels throughout the country with a view to rehabilitating the sector and developing some priority tourist sites, including that of Ekomkan in Littoral, the Kola gorges in the North Region and the Ngaoundere cliffs

MTN Official sponsor South Africa 2010