Chad/Cameroon Oil and Pipeline Project
10/24/97
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Headline: Chad/Cameroon Oil and Pipeline Project
Source: Environmental Defense Fund
Date: 10/24/97
To: NGOs interested in the Chad/Cameroon Oil & Pipeline Project
From: Korinna Horta, Environmental Defense Fund, Washington, D.C.
Tel.: 202 387 3500; Fax 202 234 6049; E-mail: korinna@edf.org
Chad/Cameroon Oil & Pipeline Project
NGO Meeting with World Bank on October 24, 1997 in Washington
NGO Participants:
Heffa Schucking, Urgewald, Germany
Francesco Martone, WB Reform Campaign, Italy
Lisa Jordan, BIC
Bruno Gurtner, Swiss Coalition
Korinna Horta, EDF
World Bank Participants:
Philippe Benoit
Eugene Scanteie
Cynthia Cook
Gus Tilman
Michel Layec
Phillipe Benoit, the World Bank team leader for the project informed us
that the EIA for Chad had just been published, that the EIA for Cameroon would
be published within 2 or 3 weeks and that there would be supplementary
environmental management plans and a resettlement plan for Chad. The World
Bank has been informed by Exxon that no resettlement would be necessary in
Cameroon.
Benoit emphasized that the Bank wants to support the Chad/Cameroon project
with the goal of promoting broad-based economic growth and alleviating
poverty. The Bank's role in the project is to create an "enabling
environment for the private sector".
Mr. Benoit repeated the Bank's previous statement that the oil companies
will not go ahead with the project without World Bank support. At the same time
He stressed that it is because of World Bank involvement that the oil
companies are willing to go a step further (i.e. protect the environment).
The Bank explained that IDA support for the project would function like a
structural adjustment loan, "to keep the economic reforms on track". Mr.
Scanteie explained the Bank's economic strategy for Chad. Initially the
Bank had planned that the oil revenues for Chad should be "sequestered and
earmarked" (for poverty alleviation programs) in a special Development
Fund.
The idea of the Development Fund has now been abandoned and replaced with
the concept of assisting Chad with a "global financial management strategy".
The idea is to create an auditor's office to monitor the country's public
finances. Mr. Scanteie mentioned that "surplus revenue" that cannot be
absorbed in the country, could be invested abroad.
Since the Bank's role in Sub-Saharan Africa has focused on reducing the
role of the state and promoting privatization, NGOs asked why in this case the
Bank was planning on providing the financing for partial state-ownership of the
pipeline. The response was that this type of project could not take place
without the state. But the Bank continues to push for a reduced state role
in Chad in other sectors, i.e. road construction and education.
When asked about a recent Wall Street Journal article in which EXXON
advises developing countries to avoid environmental restrictions, the World
Bank expressed that it was not happy about the article, but that EXXON will
pursue the highest environmental standards in Chad and Cameroon.
Asked about the human rights situation and especially the problems facing
Mr. Yorongar, the Chadian member of Parliment who has been critical of the
project, one Bank staff member responded that during his visits to Chad he
had never seen any human rights abuses.
The Bank emphasized that the project had been debated in the Chadian
Parliament, which seemed to imply that democracy and human rights were well
respected in the country.
NGOs mentioned that Cameroonian NGOs feel that they have not been
consulted. The Bank responded that while consultations were carried out late,
they were carried out extensively. When informed about the big promises being
made to local people in towns along the pipeline by Cameroonian authorities
(many jobs that would be created, etc.), the Bank promised to investigate this
matter.
There was much less discussion on Cameroon. The Bank did say that in the
case of Cameroon, the government is taking a much more active role than in the
case of Chad. At the same time, the project is much less important for the
Cameroonian economy than it is in Chad.
Schedule: Depending on satisfactory appraisal by the Bank, the project is
to go to the Board for approval next summer. The first oil is to flow in the
year 2001.