(Business in Cameroon) - To support Sonara, the government created a new line in the price structure of petroleum products. For every liter of petroleum product bought at the pump, XAF47.88 goes to that line. According to government sources, XAF26 billion has already been raised through the said line.

For the time being, there is no information about the use of the funds raised but, there is reason to believe that it will fund the reconstruction of Sonara’s plant. According to initial estimates revealed by the Minister of Water and Energy, this reconstruction requires about XAF250 billion FCFA.

"Negotiations are already underway with technical and financial partners who have expressed interest in the reconstruction of this refinery. However, the finalization of these negotiations depends on the restructuring of Sonara's large debt (ed. note: over XAF700 billion). The government is working hard to complete this restructuring operation and allow the gradual amortization of this debt," the Minister said while defending the budget of his ministry before the parliament on December 1, 2020.

BRM