the chad-cameroon oil and pipeline project: a call ... · at a glance: the chad-cameroon oil and...

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    The Chad/Cameroon projectis not the help we asked for

    or needed. In theabsence of the rule of law

    and respect for humanrights and the

    environment, financing oflarge-scale oil development

    is destroying theenvironment and us.


    Archibishop Desmond Tutu

    We have radically trans-formed the way we do busi-ness. A persistent focus onquality has vastly improved

    the effectiveness of billions ofdollars of Bank lending.

    Mr. James D. WolfensohnPresident of the World Bank

    (The World Bank Annual Report 2001)

    Association Tchadienne pour la Promotion et la Dfense desDroits de lHomme, Chad

    Centre pour lEnvironnement et le Developpement, Cameroon

    Environmental Defense, USA

    June 2002

    The Chad-Cameroon Oil and Pipeline Project:

    A Call for Accountability

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  • At a Glance: The Chad-Cameroon Oil and Pipeline Project

    The single largest investment in Africa today.

    Total Estimated Costs US $ 3.7 billion

    Main Activities: Drilling of 300 oil wells in the Doba fields of southern Chad. Construction of a 650-mile pipeline from Doba through

    Cameroon to the Atlantic. Building of a marine pipeline at Kribi to a floating storage offloading (FSO) vessel. Production of 225,000 barrels of oil per day.

    Expansion of Activities:The built-in capacity of the pipeline is an incentive tospread oil exploration to other areas in the region. Activeexploration is now occurring near Sarh in southern Chadand may move into the Central African Republic andNorthern Cameroon. No comprehensive or regionalenvironmental and social assessments have been carriedout.

    Project Finance (February 2002): Africa Oil and GasDeal of the Year 2001 "The World Bank Group hadalready pledged its commitment, stated as crucial insecuring the other players and allowing the project tomove forward."

    Financial Structure & Role of the World BankPrivate Sector Project Sponsors:ExxonMobil (40%)Petronas- Malaysia (35%)Chevron (25%)

    The Consortium has made World Bank participation apre-condition for the project for reasons of political riskinsurance and to attract financing from other public andprivate sources.

    "an unprecedented frame-work to transform oil wealth

    into direct benefits for the poor" World Bank Press Release

    on Approval of Project

    June 6, 2000

    World Bank Group:IBRD-loans : $93 million IFC - $100 million direct loan and mobiliza-tion of an additonal $300 million in syndicat-ed loans from commercial banks

    World Bank's participation led to:European Investment Bank (EIB) loan ofEuros 144 million

    Export-Credit-Agencies:U.S. Export-Import Bank - $200 millionCOFACE (France) - $200 million

    Commercial lead arranging banks:ABN-AmroCredit Agricole Indosuez

    Official Project Montoring Reports: A two track project in which environmentaland social considerations are left behind?

    International Advisory Group (

    External Compliance Monitoring Group(

  • Korinna Horta, Environmental Defense, U.S.Samuel Nguiffo, Center for Environment and Development, CameroonDelphine Djiraibe, Association Tchadienne pour la Promotion et Defnse des Droits de l'Homme, Chad

    We extend our heartfelt thanks to the contributors to this report. All of them have been active for sev-eral years to promote the inclusion of human rights, social, environmental, public health, labor and legalperspectives in the design and implementation of this project.

    Dobian Assingar, Human Rights representative on the Oversight Committee for the Oil RevenueManagement Law, Chad

    Hlne Ballande, Les Amis de la Terre, FranceSusanne Breitkopf, Urgewald, GermanyMarion Hellmann and Genevive F. Kalina, International Federation of Building and Woodworkers,

    Geneva, SwitzerlandSteve Hilbert, Catholic Relief Services, CameroonMgr. Patrick Lafon, Secretary General, Catholic Conference of CameroonSusan Leubuscher, Jurist, Brussels, BelgiumIrne Mandeau, Amnesty International, GermanyJohn Nelson, Forest Peoples Program, U.K.Flix Devalois Ndi Ongbwa, Center for Environment and Development, Lolodorf, CameroonPeter Rosenblum, Human Rights Program, Harvard Law School, U.S.Emilie Thenard, Center for International Environmental Law, U.S.Raphael Yimga, Center for Environment and Development, CameroonMartin Zint, Erdoel AG, Germany

    Many organizations and individuals in both Chad and Cameroon are working with dedication, compe-tence and courage to help ensure that social justice and environmental protection will not remain emptywords as Africa's largest investment project is transforming their countries for generations to come. Thiswork often involves great personal risks to the individuals involved. They and the organizations around theworld which support them deserve our gratitude.

    Finally we wish to thank Archbishop Desmond Tutu for his repeated expressions of concern about thisproject. Our deep gratitude also goes to Jeanne Noua, the admirable leader of the Bakola people in Ndtouavillage in Cameroon. There are many individuals around the world who are involved in helping to ensurethat environmental and social safeguards will be effective in this project. We thank them all. Amongstthose who know the region well and deeply care about its people are Hans Determeyer, Sharon Courtoux,Martin Petri and Ian Gary. A special thanks to Irne Mandeau, whose dedication, wisdom and energy are aguiding light for many of us.

    Last, but not least, we thank Hlne Ballande and Emily Miller of Friends of the Earth France and KenWalsh and Bruce Rich of Environmental Defense for their support in producing both the English andFrench language versions of this report.

  • Delphine DjiraibeAssociation Tchadienne pour la Promotion etDfense des Droits de l'Homme - ATPDH, Chad Korinna HortaEnvironmental Defense, U.S.Samuel NguiffoCenter for Environment and Development - CED CameroonTaking Stock: Two Years After World Bank Approval of the Project . . . . . . . . . . . . . . . . . . . . .1

    Mgr. Patrick LafonSecretary General, Catholic Conference of CameroonThe Concerns of the Church . . . . . . . . . . . . . . . .8

    Dobian AssingarNGO-Representative on the Oversight Commmitteefor the Revenue Management Law, ChadThe Oversight Committee: A Ghost Institution . . .9

    Peter RosenblumHuman Rights Program, Harvard Law School, U.S.Analysis of Chad's Revenue Management Law . . .9

    Susan LeubuscherJurist, Brussels, BelgiumConventions of Establishment . . . . . . . . . . . . . .13

    Raphael Yimga and Steve HilbertCenter for Environment and Development /Catholic Relief Services, CameroonEnvironmental and Social Questions: Business as Usual? . . . . . . . . . . . . . . . . . . . . . . .13

    Felix Devalois Ndi OngbwaCenter for Environment and Development,Lolodorf, CameroonThe Impact of the Pipeline on People and theEnvironment in Ocean Province . . . . . . . . . . . . .15

    John NelsonForest Peoples Programme, U.K.Impacts on the Bagyeli People in South West Cameroon . . . . . . . . . . . . . . . . . . . .18

    Hlne BallandeFriends of the Earth, FranceA Silenced Public Health Disaster . . . . . . . . . . .18

    Irne MandeauAmnesty International, GermanyThe Human Rights Situation in Chad and Cameroon . . . . . . . . . . . . . . . . . . . . . . . . . .20

    Marion Hellmann and Genevive F. KalinaInternational Federation of Building andWoodworkers, SwitzerlandChronology of a Badly Managed World Bank Project . . . . . . . . . . . . . . . . . . . . . . .20

    Susanne BreitkopfUrgewald Cameroon/GermanyWorld Bank Response: Public Relations Replaces Analysis . . . . . . . . . . .21

    Emily ThenardCenter for International Environmental Law, U.S.Chadians File a Complaint to the World Bank's Inspection Panel . . . . . . . . . . . . . .23

    Martin ZintErdoel A.G., GermanyA Visit to the Oil Fields in February 2002 . . . .24

    Sources of Information . . . . . . . . . . . . . . . . . . . .25


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    Taking Stock: Two Years After World Bank Approval of the ProjectTwo years

    after approval ofAfrica's singlelargest invest-ment, which isoften consideredto be a modelfor public/pri-vate sector part-nership, it istime to takestock. The voic-es of the institu-tions and organ-

    izations represented in this report are sending urgent dis-tress signals from social, environmental, public health,human rights and legal perspectives. Both non-govern-mental-organizations in the field and official projectmonitoring reports agree that we are faced with a two-speed project. While construction activities by the OilConsortium advance on schedule, regional developmentplans, social and environmental protections and capacity-building are seriously lagging behind and may neverbecome effective. The entire rationale of the project asa contribution to development of one of the poorestregions in Africa has now come into question.

    The problems described in this report require imme-diate remedial actions which are primarily the responsi-bility of the World Bank, whose financing made the proj-ect possible. Urgent remedial actions take on additionalweight as the ExxonMobil-led Oil Consortium is expand-ing exploratory activities outside of the Doba Basin, cov-ered by the current project. New oil development willalso use the World Bank-financed pipeline and must besubject to the institution's environmental and social stan-dards and included in the goal of transparent revenuemanagement.

    Furthermore, as this project now threatens to go "offthe rail", we need to draw important lessons con


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