Partial View of Limbe Port
The Presidency of Cameroon has approved the signing of a memorandum of understanding with Turkish company Yenigün Construction to build the deep-water port of Limbé under a Build-Operate-Transfer (BOT) model. Ferdinand Ngoh Ngoh, Minister of State and Secretary-General of the Presidency, informed the Transport Minister of the presidential green light in a letter dated July 7.
Yenigün accordingly will raise financing, construct the port infrastructure, and operate the facility for a period to be agreed with the Cameroonian government.
US Interest and Pursuit
Turkey is not the only country interested in this strategic project. The United States also expressed investment interest. In April, the US Ambassador to Cameroon visited the Southwest region.
During the visit, Thomas Ndive Mulongo, Deputy Director of the Autonomous Port of Limbé, highlighted public-private partnership opportunities and collaboration potential in maritime risk management and port operations.
This presidential approval confirms earlier statements by Transport Minister Jean Ernest Masséna Ngallè Bibéhè in March. He said negotiations with a Turkish partner were well advanced for the project, estimated at CFA400 billion.
In December 2023, the Transport Ministry announced that an operator volunteered to manage both the Limbé port and the rehabilitation of Tiko airport in the same region.
An Extended Project Timeline
The Limbé deep-water port project has been in development for nearly 15 years. The government updated a feasibility study in 2019 with an international firm’s help. The National Port Authority secured CFA2.6 billion to hire a consultant to advance the project.
The COVID-19 pandemic suspended the project in 2020. Cameroon relaunched the project in 2021 and finalized it in 2022.
BOT: Loss or Profit?
The BOT model lets Cameroon tap private financing without increasing public debt and leverage Turkish technical expertise. However, this approach carries risks. BOT partnerships require high upfront costs for project preparation, including lengthy and costly planning, technical, and legal studies. The contracts’ complexity, covering decades, can cause interpretation challenges, high administrative expenses, and disputes.
Long concession periods expose the project to economic, political, and social uncertainties that may affect profitability and management. Although the private partner operates the port, transferring it back to the public sector could pose quality control and service continuity challenges.
Yenigün’s Track Record in Cameroon
Yenigün Construction already has experience in Cameroon. The company built the Japoma stadium, a 50,000-seat sports complex near Douala. The project faced delays and cost controversies. While Yenigün shows technical skill, its port management experience remains unproven.
