(Business in Cameroon) - Cameroon’s ministry of water and energy has launched the tender for construction of a pipeline to transport petroleum products from the city of Limbe to the rest of the country.

In a statement last Thursday, Minister Basile Atangana Kouna, said the tender is to select prequalified enterprises to do the job.

Built, owned and transferred, the project will be constructed in two phases: Lot 1 leaves Limbe via Douala and Edea to Yaoundé, the political capital. Lot 2 will reach Bamenda from Limbe through Bafoussam. Also, new depots will be built in Limbe, Douala, Bafoussam, Bamenda and Yaoundé.

As of now, some enterprises have shown interest in the bid. Nigerian and South African consortium, Petroleum Products Pipeline SA (3PL) has signed a memorandum of understanding with Cameroon to construct the 248km long lot 2. And, the American company, Govind Development LLC, signed the same document with authorities to carry out feasibility studies on the 377 km long lot 2. Belgian company, Denys has also shown interest.

The pipeline would increase access to petroleum products, reduce state subventions to maintain prices of petroleum products in pumps and create jobs, the minister noted in the statement.