Published on Friday, June 2, 2000 in the Washington Post
World Bank To Vote Tuesday On 'Nightmare' African Pipeline
by Nora Boustany
 
A controversial $3.7 billion oil and pipeline project in Chad and Cameroon will finally be put to a vote by the World Bank's board of directors on June 6.

The project, the largest construction venture in sub-Saharan Africa, involves the drilling of 300 oil wells in Chad and the construction of a 650-mile pipeline from southern Chad through Cameroon to the Atlantic Ocean. Exxon Mobil Corp. is leading a consortium, which includes Chevron, in charge of the enterprise.

The World Bank's share of the financing--a $365 million loan--has met with stiff resistance from environmental groups concerned about ecology and human rights violations by the government of Chad. These nongovernmental organizations say the project will cut through rain forests in Cameroon and lead to the forced eviction of inhabitants in the area. Board members of the bank have raised concerns about corruption and the fate of the displaced.

Daphne Wysham, a research fellow at the Washington-based Institute for Policy Studies, an environmental advocacy group, said the World Bank is "gambling with the lives of the poorest." Supporters of the project at the bank say it is taking a gamble in the interest of those people.

Two weeks ago, Wysham said, military and administrative officials loyal to Chadian leader Idriss Deby "threatened to kill men, women and children supporting the rebellion in Chad and those who oppose the oil extraction project. We have this from reliable sources and human rights groups in Chad we unfortunately cannot name." Chad has experienced ethnic, regional and political upheaval.

Wysham, citing the example of oil company and government collusion in the Niger Delta at the expense of the local population, said she feared another "nightmare" in which "the poor are made poorer by corrupt officials, constant oil spills and deadly joint military and oil company responses to protests." Human Rights Watch has said Chevron was responsible for a number of serious environmental hazards, including the pollution of the water supply in the Niger Delta. The late Nigerian military leader Sani Abacha misused the country's oil wealth and dealt harshly with his opponents. Now torture victims and their families are suing Chevron in U.S. courts for complicity in human rights abuses by the Nigerian military against unarmed protesters. The protesters, some of whom were killed, were seeking to draw attention to oil spills and and their own neglected economic needs.

Other groups based here, such as the Chadian Association for the Defense and Promotion of Human Rights and the Center for International Environmental Law, issued a news release yesterday discussing the threats against the Chadian opponents of the project. "Under the constant threat of brutal government repression, it is highly unlikely that the citizens of Chad will reap any benefits from the World Bank's proposed oil pipeline if it goes forward now and, clearly, they stand to be harmed if they try to voice their concerns," said Delphine Djiraibe, a spokeswoman for the association.

The nongovernmental organizations involved in the issue have called for a two-year moratorium to allow Chad to develop a proper legal framework, and establish environmental safeguards and human rights protections. The Exxon Mobil-led consortium will not go ahead without the World Bank because of the volatility of the region and the need for adequate management, which they want the World Bank to provide. The project is projected to bring $28 billion to the consortium in the next 20 years and $1 billion to the government of Chad. Affected communities will receive $600,000 in an endowment plan for resettlement.

"This oil will not be developed without private investment. Chad has been waiting since 1969, when oil was discovered there. We think the deal is within international norms, a fair deal," said Robert Calderisi, the World Bank spokesman for Africa.

The bank has created a revenue management plan that has been severely criticized as leaving loopholes for Chad in a study prepared by Peter Rosenblum, a professor at Harvard University involved with human rights work. "Our view is not only is this [plan] adequate, but it sets a precedent and a model for oil revenue management," Calderisi said. The plan calls for setting aside 80 percent of revenue to invest in rural health and needs, 10 percent to be invested overseas for future generations and 5 percent for development of oil production capacity, he said.

"We know we are taking a risk. It is the result of seasoned judgment that likely benefits far outweigh the risks," Calderisi said. Once the project is operational it will add between 45 and 50 percent to Chad's annual revenue and a much smaller 3 percent to Cameroon's public revenue, he added.

© 2000 The Washington Post Company

###