The project would have “enormous potential to bring great benefits to the people of Chad and Cameroon”. Former World Bank president James D. Wolfensohn spoke these words in 2002, reacting to growing criticism regarding the Bank’s pipeline deal with Chad. Numerous human rights groups, parts of the Chadian parliament and even an internal inspection committee of the Bank had voiced concerns that financial support for the oil-extracting sector in Chad was likely to increase corruption, and could worsen the human rights situation and fuel the conflict between Chad and Sudan.



The World Bank’s contribution to the pipeline project has been one of its largest investments in Africa and was thought to be a test case in using oil revenues for development. But the Chadian government repeatedly failed to comply with the agreement and President Deby even made attempts to increase his personal control over the revenues. While the World Bank temporarily abandoned the cooperation, it resumed the project in 2006, confidently claiming that it would be “safe to say that the greatest benefits for the population are not yet realized”.



But critics proved right after all. In September 2008, the World Bank finally pulled the plug and terminated the pipeline deal. By this time President Deby had not only secured himself an income of more than a billion dollars — by keeping a major part of the oil-revenues — he had also used a significant share of the money on military spending. In an already unstable environment, with tensions growing between Chad and its neighbour Sudan, this type of project is likely to have an impact on conflict dynamics — while the much needed development remains a chimera. (Joeran Altenberg)



Information about the World Bank’s engagement in Chad can be found here



The Press Release announcing the termination of the pipeline project is available here

Published in: ECC-Newsletter, October 2008