At Yaounde conclave: Experts demand key reforms to achieve SONARA’s rehabilitation, modernisation.

This is one of the major recommendations made during the two-day international market sounding held in Yaounde from June 29 to June 30, 2026. 

The project to revive SONARA will be implemented as part of a Public-Private Partnership, PPP, based on an integrated Design–Build–Finance–Maintain, DBFM, contractual framework, ensuring the design, construction, financing, and maintenance of the relevant infrastructure.

The market sounding brought together 167 participants representing the entire value chain of the project, including 27 engineering, procurement, and construction contractors, 23 industrial and operational companies, 21 financial advisers and arrangers, eight oil traders, seven banking institutions, 26 institutional investors, three legal advisers, and 44 other stakeholders. 

The two-day forum was closed by the Minister of Finance, Louis Paul Motaze, alongside the Minister of Water Resources and Energy, Eloundou Essomba. This was in the presence of SONARA’s Board Chairperson, Dr Ndoh Bertha Bakata and General Manager, Harouna Bako. 

The Yaounde consultation, experts said, marks a decisive step in the preparation of the selection process for the private partner to lead the major project which will raise the refining capacity to 3.5 million metric tonnes per year. 

It also subjected the project to market scrutiny in order to assess its relevance, gauge its appeal to contractors, investors and financial institutions, identify key areas for attention, and gather recommendations that strengthens its bankability, prior to the launch of the Call for Tenders. 

Key reforms needed

While the participants considered the rehabilitation and modernisation project of SONARA sound in principle, they stressed that key reforms have to be made to enhance the project's attractiveness and bankability.

In the restitution report of the consultation read out by the Coordinator of the Support Team of the Multisectoral Support Commission, Martial Zang, expressed concerns over the need to strengthen the legal framework for guarantees and adjusting the timetable for finalising the financing of the 36-month project.

According to the stakeholders, the absence of a grace period during the construction phase, which was deemed difficult to reconcile with the requirements of a project of this scale, as interim interest over 36 months is likely to amount to a considerable sum.

They also detailed that the proposed six-month timeframe following the signing of the contract was deemed insufficient taking into account the completion of the environmental and social impact assessment, on which the mobilisation of donors depends. 

The experts estimated the timeframe to be between 12 and 24 months, with a range of 18 months appearing the most likely in the presence of development finance institutions.

The stakeholders also demanded more clarity on the institutional structure of the project company and the need to review the sequencing of the financial structuring, in accordance with international standards.

To enhance the project's attractiveness, government was told to introduce of a grace period, further mitigation of the site's technical risks and the foreign exchange risk hedging arrangements is strengthened.

It was also recommended that government must ensure that the risk matrix is comprehensive and better highlight SONARA's economic and regional strengths.

Becoming regional refining hub

While acknowledging SONARA's strategic importance for Cameroon's energy security and sub-regional supply, the stakeholders noted strong local demand and firm state support. 

Regarding the market guarantee, they clarified that the 80% market reserve applies to current annual domestic demand of 2.1 million metric tonnes and not the refinery's projected 3.5 million metric tonne capacity. 

The remaining production difference, they argued, opens potential export market opportunities, improving repayment prospects for lenders and reinforcing SONARA's ambition to become a regional refining hub.

Gov’t commit to strict compliance

In his closing speech, the Minister of Finance assured the stakeholders that the reflections and recommendations made during the conclave will be thoroughly analysed by the government's technical teams and their advisors.

He cited amongst other key recommendations keen to government; the further strengthening of the project's bankability, improving risk allocation between partners and consolidating mechanisms for securing financial flows.

Minister Motaze also assured that government would look into the issue of clarifying certain contractual provisions and increasing the attractiveness of the structure for investors and lenders.

Noting that government's vision for the rehabilitation and modernisation of SONARA is widely understood and shared by market players, he said their discussions confirmed the relevance of choosing a DBFM public-private partnership as the method for implementing the structuring project.

The minister reaffirmed government's commitment to conducting the SONARA project in strict compliance with the principles of transparency, fairness, competition, and good governance.

“The question is what next? What we have to do now is to take into consideration all the propositions that have been made, to put them in the basket of decisions that we will have to take, and then to continue,” the minister later told to the press at the end of the meeting.

It is important to note that rehabilitation and modernisation of SONARA has been project to cost the state about 700 billion FCFA up from the initial 250 billion FCFA.

Since the May 31, 2019, fire accident, which led to the suspension of refining operations at SONARA, government has embarked on an assessment, planning, and preparation process to ensure the reconstruction and sustainable modernization of the national refining infrastructure.

This article was first published in The Guardian Post Edition No:3835 of Thursday July 02, 2026