(Business in Cameroon) - Préfarail Managing Director, Joseph Rode, signed a memorandum of understanding with the Cameroonian government on April 25, 2014 in Yaoundé, for the construction of a tramway in the nation’s capital.

According to the document which was signed by the Cameroonian Minister of Economy, Emmanuel Nganou Djoumessi, the said tramway will cover 50 Km and will help to alleviate the major mass-transit problem that Yaoundé, in particular, and other towns and cities have been facing since Société des transports urbains du Cameroun (Sotuc) went bankrupt in the 90s.

The project to build Cameroon’s first tramway will be executed using a BOT model (Build-Operate-Transfer). This means that it will be financed in its entirety by Préfarail, which will then manage it for an undisclosed period of time before handing it over to the State.

Apart from the tramway to be built in the Cameroonian capital, for which construction will begin in 2015, the Belgian company also plans to build the same infrastructure in Douala, Cameroon’s economic capital.