Sacrificing for country

Cameroonians sacrifice to save SONARA
By Balemba Steve Macquens in Yaounde

Created in 1981, the lone petroleum refinery in Cameroon, SONARA, was adapted to handle solely light crude. This was because the country’s petroleum production at the time was relatively small and constituted essentially of light crude.
   
    With this situation therefore, SONARA has had to import the light crude which it refines and sells to Cameroonians. Nigeria, Gabon and Angola are the main suppliers of this light crude. Also, the cooking gas that we use in our homes is also totally imported from the international market, with the vicissitudes attendant with such importation.
    Meanwhile, SONARA also envisaged and has embarked upon a vast project of “extension and modernization” with the objective of eventually handling heavy crude in the future. This extension project consisted in technologically adapting the existing equipment of the refinery and constructing new ones that would not only refine heavy crude but do so at a rate sufficient to meet the ever increasing home demand for petroleum products.

    According to official sources, the first phase of SONARA’s extension project was expected to be complete by September 2014. It was estimated to cost FCFA 220 billion. The 2nd phase was projected to begin in 2015 and  estimated to cost Fcfa 350 billion. This gives a total of FCFA 570 billion for the entire extension project.

Difficulties in financing the extension project
    It should however be mentioned that because of the heavy burden on the state budget due to fuel subsidy, it became increasingly difficult for the state to honor its engagements vis-à-vis SONARA. This was all the more because over the years the annual allocations for subvention of petroleum consumption in the state budget have always not been enough and government has always had to manoeuver with the budget to be able to subsidize home consumption of fuel.
    In 2014 for instance, 250 billion was projected in the state budget as subsidy to petroleum. But as at June 2014 government had already spent about 350 billion. It is estimated that at least 450 billion would be spent by the end of the year. This gives an extra, non-budgeted amount of Fcfa 200 billion.
    Understandably, it has not been easy for government  to spend such huge sums to subsidize fuel consumption. On many occasions government has had to sacrifice some important investment projects just to be able to permit Cameroonians to continue buying fuel at affordable prices.
    But this has invited its own share of negative consequences on the execution of the state budget. It has also not helped the country’s economy in any way. If any thing it is instead helping to kill the economy.
    For several years running the government has not been able to pay Sonara’s  subvention dues on time. Often times the money was not sent at all. Presently the government’s accrued debts owed to Sonara is about FCFA 300 billion. For its part, Sonara is also oweing her partners and suppliers about Fcfa 550 billion.
    This only puts SONARA in a precarious and critical situation, and calls for urgent palliative if not, curative measures, if the lone refinery must not be allowed to stop functioning, with the dangers this might invite on the economy.
     Left with hardly any better alternative therefore, the government had to down-size its subsidy on fuel, if only to salvage SONARA from imminent collapse.
    The extra money that would be generated from the  consequent upward readjustment of fuel prices would be diverted to other socio-economic investments that would impact the lives of the poorer segment of the population. Part of the money would also be used to clear SONARA’s debt burden.
    Cameroonians should bear in mind that government has sacrificed enormously to keep fuel prices stagnant since 2008. This might just be the time for Cameroonians to also show a high sense of patriotism by supporting the government to come out of its difficulties, which are truly objective. “We should not only ask what our country has done for us, but what we have done for your country.”

However, with more research and exploration over the years, Cameroon has witnessed appreciable increase in petroleum production, with the bulk of it being heavy crude, which unfortunately Sonara cannot handle.