Cameroon: Kribi-Lolabé Highway PPP Revision Faces Financial Strain

• Cameroon's Kribi-Lolabé highway has seen traffic reach only 25% of initial projections since its July 2022 opening, recording 870,598 vehicles against a projected 3.48 million.
• Toll collections stand at CFAF 4.42 billion, which is 60% of the expected CFAF 7.36 billion, severely impacting the project's financial viability.
• Monthly toll revenues average CFAF 90 million, falling significantly short of the CFAF 509.7 million required for monthly operating costs.
• The government has proposed a monthly payment of CFAF 115.8 million to operator Kribi Highway Management, which states this would only cover essential toll-station operations.
• This underperformance adds urgency to an already planned revision of the Public-Private Partnership agreement with China Harbour Engineering Company.

The significant disparity between actual performance and initial forecasts underscores the inherent risks in infrastructure Public-Private Partnerships, particularly regarding revenue projections and the necessity for robust government support mechanisms.

Cameroon's Kribi-Lolabé highway, a critical 38.5-kilometer artery, has experienced significantly lower traffic volumes than initially projected since its opening in July 2022. As of September 15, 2026, the highway, which also includes 4.9 kilometers of connecting roads, had recorded just 870,598 vehicles. This figure represents only a quarter of the 3.48 million vehicles anticipated under the terms of its Public-Private Partnership (PPP) agreement.

This substantial shortfall in usage has directly impacted the financial viability of the project, placing considerable strain on its operational model. The underperformance adds significant pressure to an already scheduled revision of the Cameroon Kribi-Lolabé highway PPP, highlighting potential challenges in infrastructure development and revenue forecasting within the region.

The disparity in traffic has translated into a severe financial deficit for the Kribi-Lolabé highway. A monitoring committee meeting in Yaoundé on September 18, 2026, revealed that toll collections had reached only CFAF 4.42 billion. This amount falls considerably short of the CFAF 7.36 billion that was expected, representing just 60% of the projected revenue.

The operational costs of the highway further exacerbate this financial strain. With average monthly toll revenues hovering around CFAF 90 million, the project faces a significant gap when compared to its monthly operating costs of CFAF 509.7 million. In response to the Kribi-Lolabé highway financial viability issues, the government has proposed providing Kribi Highway Management (KHM), the highway operator, with CFAF 115.8 million per month, excluding tax. However, KHM has indicated that this level of Kribi Highway Management funding would only be sufficient to maintain essential toll-station operations, necessitating a reduction in other services. The PPP framework, involving the government and China Harbour Engineering Company (CHEC) for partial financing, construction, operation, and maintenance, is now under intense scrutiny due to these financial pressures.

The current challenges facing the Kribi-Lolabé highway underscore broader risks inherent in infrastructure Public-Private Partnerships in Cameroon. The significant disparity between actual performance and initial forecasts underscores the inherent risks in infrastructure Public-Private Partnerships, particularly regarding revenue projections and the necessity for robust government support mechanisms. This situation provides a critical case study for Public-Private Partnership renegotiation Cameroon, as stakeholders grapple with underperforming assets and the need to adjust contractual terms.

This development signals potential risks in infrastructure PPPs in Cameroon, particularly concerning revenue forecasting and government support. The ongoing discussions and eventual resolution of the Kribi-Lolabé highway's financial difficulties will set important precedents for future infrastructure projects in the country and across the continent, influencing how risk is allocated and how governments intervene in underperforming ventures.

This development signals potential risks in infrastructure Public-Private Partnerships (PPPs) in Cameroon, particularly concerning revenue forecasting and government support. Lawyers advising on project finance, infrastructure development, or representing investors/contractors in similar African PPPs should monitor this situation for precedents on renegotiation terms, risk allocation, and government intervention in underperforming projects.

Source: Original reporting from industry sources.