Bottom of the Barrel: Africa's Oil Boom and the Poor

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37

Africa Confidential, “Chad: Digging a Hole,” 30 August 2002. Members of the Inspection Panel visited Yorongar in a Paris hospital in April 2001 and saw scars of previous torture.

38

The Inspection Panel Report and the Management Response can be found at at www.worldbank.org/afr/ccproj.

39

Inspection Panel Investigation Report, July 17, 2002, p. 63.

40

Management Report and Recommendation in Response to the Inspection Panel Investigation Report, Report No. 24667, August 21, 2002.

41

Inspection Panel Report, p. 61.

42

Catholic Bishops of Chad (2000) “The Year 2000, a new era for a new life” Christmas/New Year Appeal. N’djamena: January 2000.

43

The Inspection Panel notes that first oil will flow in June 2003. This was confirmed by several sources in Chad, with first revenues arriving roughly in November 2003.

44

Loi No. 001/PR/99, was promulgated on January 11, 1999; see also Genoveva Hernandez Uriz, “To Lend or Not to Lend: Oil, Human Rights, and the World Bank’s Internal Contradictions,” The Harvard Environmental Law Review, Spring 2001.

45

Loi No. 001/PR/99. Text of the law can be found at www.ccsrp.td

46

African Energy, September 2002.

47

World Bank, “Note on the Use of the Petroleum Bonus,” June 2001, http://www.worldbank.org/afr/ccproj/project/bonus.pdf

48

The IMF insisted on an audit of the bonus and the revenue oversight committee, with the public backing of President Déby, has subsequently played a role in approving the allocation of the remainder. Africa Energy Intelligence, “Fresh Look at Oil Bonus,” November 6, 2002, No. 333. “At the behest of the International Monetary Fund, Chad has been working for over a year on an audit of expenditure flowing from a $25 million front-end bonus paid by ExxonMobil and Petronas for the Doba-Kribi pipeline project which has been partially funded by the World Bank. The IMF disbursed a $7 million loan to Chad in late October. One condition was that Chad complete the audit and publish the findings by the end of the year. Modest compared to other bonuses paid by oil companies, the sum triggered an outcry in late 2000 because part of the money $5 million - was immediately used by the government to buy military equipment. The transaction came despite all the mechanisms set up by the World Bank to control and verify how countries use oil revenue. The reason is simply that such mechanisms don’t cover bonuses.”

49

See project appraisal documents.

50

International Development Association / World Bank, “Program Document for a Proposed Fifth Structural Adjustment Credit (SAC V) to the Republic of Chad,” February 13, 2003, Report No. P7555-CD, page 12.

51

Agence Française de Développement, “Analyses et perspectives macroéconomiques du Tchad,” Paris, September 2002. Also reported in African Energy Intelligence No. 332, October 23, 2002.

52

World Bank, “Chad/Cameroon Petroleum Development and Pipeline Project: Fifth Semi-Annual Report to the Executive Directors,” February 14, 2003, pg. 38.

53

In 1998, an ExxonMobil document said the project was “expected to spur new exploration in little examined, but prospective, areas in central and northern Chad. The strong potential exists for finding added commercial reserves in the Doba, Dosseo and Salamat basins. If proved, oil from new fields in southern Chad could be exported via the Chad-Cameroon pipeline.” ExxonMobil document, “Tapping into a new frontier oil province,” October 1998, www.esso.com/eaff/essochad/news/press_oct98/main.html

54

This is noted in the Inspection Panel report, confirmed in oil industry press and by interviews in September 2002 in N’djamena.

55

Interview with Amb. Goldthwaite, N’djamena, September 30, 2002.

56

The Inspection Panel says that Bank management should have addressed “this serious risk to poverty reduction objectives in a more definite manner.”

57

Chad Inspection Panel Investigation Report, September 17 ,2002. Reports can be found at www.inspectionpanel.org

58

Statement by Mahamat Nasser Hassane, Director of Petrole, Government of Chad, in Tchad et Culture No. 209, September/October 2002, N’djamena, p. 48. Exxon exploration activities confirmed at meeting with International Fianance Corporations staff on April 16, 2003, in Washington. Exxon has drilled exploratory wells along eastern periphery of Doba fields, near Sahr.

59

Triton Energy Press Release, Houston, October 1, 2002. See also World Bank, “Chad/Cameroon Petroleum Development and Pipeline Project: Fifth Semi-Annual Report to the Executive Directors,” February 14, 2003, pg. 37.

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