World Bank sticks with pipeline project

World Bank directors have approved a management action plan suggested by independent experts to support three projects of the Chad Petroleum Development and Pipeline Project. The action plan addressed concerns raised by an independent inspection panel within the Bank on four areas: environmental and social compliance with the Bank's policies and procedures, economic issues, poverty reduction issues, and monitoring and supervision. "The findings of the panel will lead to improvements in the ongoing implementation of this challenging project, which has enormous potential to bring great benefits to the people of Chad and Cameroon," said World Bank President James Wolfensohn. Thursday's approval of the new action plan meant the World Bank was standing by the project to build an oil pipeline between Chad and Cameroon, despite its experts' earlier concern that the project could harm the environment and fail to meet other goals, according to analysts. The new management action plan is a way to "help ensure the project gets back on track" after the issues raised in the inspection panel report, they added. Environmental and human rights groups have suggested that the project - to build a 1,050 km pipeline connecting the Doba oil fields in southern Chad to Cameroon’s Atlantic coast - raises serious concerns about the treatment of local and indigenous people in both countries, as well as its environmental consequences. [see http://www.amnesty-usa.org/justearth/actions/] The World Bank said on Thursday that it hopes to work with the relevant Chadian agencies to prepare regional development and environmental management plans. With regard to economic benefits, it said more than 80 percent of the oil revenues accruing to the Chadian government would be directed to expenditures in the priority sectors of health, education, rural development, infrastructure, environment and water, as by law. Some 10 percent would be saved in a fund for future generations, the Bank added. The oil-producing region is to receive five percent of these resources to be managed locally, in addition to what it will receive through the national budget, according to the Bank's statement on Thursday. It said the Bank placed the highest priority on assisting Chad to achieve its poverty reduction objectives through this project and through other elements of its assistance to Chad. For the complete Inspection Panel Report, and the World Bank Management Report and Recommendations in Response, go to: World Bank Inspection Panel website IAG-GIC website See also, Cameroon Chad Pipeline Monitoring Project