Gov't seek 893,3 bn CFA F to upgrade SONARA

Paul Biya, has signed two decrees for upgrading the national refining company (SONARA) for a total amount of 893,3 billion CFA FRANCS.

The first text empowers the Minister of finance to sign a mandate letter with the Chartered Bank Cameroon and the Société Générale Paris, to throw a funding of about 750 billion CFA FRANCS for the refinancing of the company, the partial financing of the three-year emergency and certain development projects plan.

The second decree empowers the same Minister to sign a credit agreement for 143.3 billion CFA FRANCS for the refinancing of SONARA with a syndication of local banks like BGFI Bank Cameroon, the SocieteGeneral Cameroon and Afriland First Bank Cameroon,).

Although the details of the transactions related to these financial flows have not been given, several interviewed observers suggest that these funds will enable SONARA to develop a technology capable of treating local production of black gold.

Indeed, since the launch of its activities in 1981, the Limbe plant (South-West), which deals with seven different light products (butane, gasoline, kerosene and diesel), imports raw materials from Nigeria, because the Cameroon oil, classified 'heavy crude', is essentially intended for export.

SONARA is facing a huge debt from banks, because of missed profits accumulated over the years because of the Government of subsidy of the price of fuel at the pump from 2008 to June 2014, as well as policy of non repayment of the gap.