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Central Africa: Pipeline Project Monitoring
Central Africa: Pipeline Project Monitoring
Date distributed (ymd): 010309
Document reposted by APIC
+++++++++++++++++++++Document Profile+++++++++++++++++++++
Region: Central Africa
Issue Areas: +political/rights+ +economy/development+
Summary Contents:
This posting contains an open letter from non-governmental
organizations in Chad and Cameroon to the president of the World
Bank concerning the recently appointed International Advisory Group
on the Chad/Cameroon pipeline project. The groups welcome
appointment of the group, but raise questions about its terms
of reference and capacity to provide adequate monitoring,
particularly of human rights concerns. [In December news media
reported that in violation of the agreement with the World Bank,
Chadian President Idriss Deby had used $4.5 million of the first
receipts from the project to buy weapons instead of for social
projects.] The posting also includes excerpts from the World Bank's
Feb. 21 press release announcing the advisory group, which is
expected to hold its first meeting in Washington this month.
For additional information contact:
Korinna Horta, Environmental Defense, 1875 Connecticut Avenue,NW
Washington, D.C. 20009
E-mail: korinna_horta@environmentaldefense.org
Tel. 202-387 3500 ext. 125; Fax 202-234 6049
http://www.edf.org
+++++++++++++++++end profile++++++++++++++++++++++++++++++
OPEN LETTER TO THE PRESIDENT OF THE WORLD BANK
CONCERNING THE INTERNATIONAL ADVISORY GROUP
Mbalmayo, February 28th 2001
Dear President Wolfensohn,
We, the undersigned, representatives of Human Rights Groups,
Unions, Environmental Protection and Development NGOs and Peasant
Organisations in Chad and Cameroon, have been actively following
the Chad/Cameroon pipeline project since its initiation. Meeting
in Mbalmayo for a planning workshop for the monitoring of the
pipeline project, we wish to bring to your attention our concerns
regarding the publication by the World Bank of the composition
and terms of reference of the International Advisory Group
created to "advise the Bank Group and the two Governments on
overall progress in implementing the project, including the key
objective of reducing poverty in Chad".
The creation of the International Advisory Group was the World
Bank's response to the concerns and criticism of numerous civil
society organisations and donor governments who were all
reluctant to approve the project because of the environmental,
social and political risks, and its potential negative impact on
human rights and corruption in both countries. We appreciate the
international character of the group, and the requirement to
publish their reports. However reading the groups' terms of
reference, raises the following questions and concerns.
Human Rights
The disastrous human rights situation in each country is both
well known and well documented. In Chad, the massacres of
hundreds of civilians carried out by the Chadian army in the
pipeline project area between 1997 and 2000, have never been the
object of an investigation. The population of the Doba area
continue to face intimidation by the army and the political and
administrative authorities, not a climate conducive to free and
open discussions on the project. In this context, NGOs have
requested that the question of human rights forms part of the
mandate of the International Advisory Group. We are thus
surprised to learn that there is absolutely no reference to this
in the document.
Scope of the work
Paragraph 6 of the terms of reference indicate that "the IAG will
have purview over all activities related to the Projects and will
directly observe progress in their implementation". At the same
time, "it is not expected to duplicate the field work on
monitoring to be carried out by the governments, WBG, and the
project sponsors".
We find it difficult to determine the areas to be monitored by
the IAG, that are not already covered by other groups such as the
External Compliance Monitoring Group (ECMG) It seems to us
crucial that the IAG covers also the activities (and also the
monitoring) of the entirety of the other actors (Governments, WBG,
sponsors).
Communication with local populations
Whilst we are very pleased that the IAG will "serve as another
vehicle for the affected populations and citizens to channel
their concerns about the social, environmental and poverty
related impact of the projects in Chad and Cameroon", we must
express our doubts as to the effectiveness of the IAG who will
"visit Chad and Cameroon at least twice a year". Considering the
time necessary for an adequate and effective consultation with
local populations, we wonder what the mechanisms for
communication between the IAG and the population will be, and the
practicality to monitor the day to day impact of the project on
local populations. We are concerned that in its present form, the
IAG will neither be able to "directly examine the progress of the
project" nor to serve the interests of the affected people, but
rather to calm the fears of international public opinion about the
negative impacts of the project.
Independence
The terms of reference state that the IAG independently defines
its work program. It is meanwhile difficult to understand why the
work plan needs be presented to the World Bank Group/WBG and the
governments of Chad and Cameroon, and won't be made public and
carried out until after being reviewed by them. This attitude is
contrary to our understanding of the role of the IAG, which was
created in reaction to the inability of the governments and the
World Bank to guarantee an independent monitoring of the project.
Mandate
The press release annonces that the IAG will "report periodically
to the President and Board of Direstors of the World Bank Group",
and make recommendations on measures to be taken by the WBG and
the Chad and Cameroon governments. We are concerned to know what
leverage the IAG has to enforce its recommendations.
Leverage on the oil companies
Accordng to documents prepared by the WB, the oil companies are
the executing agencies of the project. The three companies
involved have all a very bad reputation concerning environmental
destruction and violations of human rights in their operations
across the planet. The terms of reference of the IAG however,
does not indicate that the group will monitor the activities of
the oil companies in the consortium. Further, there is no mention
of the possibility to held the oil companies accountable for
possible damaged caused by their activities.
These inadequacies in the setting up of the IAG follow on
evidence of the inadequacy of the safeguards put in place by the
WB to assure transparent management of Chad's oil revenues.The
discovery of payments outside the framework of the revenue
management plan and their use to purchase weapons by the Chadian
Government clearly shows, as we predicted, the powerlessness of
the Bank to prevent the project from fostering corruption, human
rights violations, and from failing to finally reduce poverty.
We, the undersigned, representatives of Human Rights Groups,
Unions, Environmental Protection and Development NGOs and Peasant
Organisations in Chad and Cameroon, believe that the issues we
have raised must be resolved to assure that the work of the IAG
is effective, efficient and credible.
Sincerely
signatures
c.c. Members of the Board of Directors
Members of the International Advisory Group
Raphael Yimga Tatchi, Samuel Nguiffo, Centre pour l'Environment et
le Development, Cameroun
Thang Dieudonn‚, Global Village Cameroon, Cameroon
Dupleix Fernand Kuenzob, Service Oecum‚nique pour la Paix, Cameroun
Amougou Adrien Didier, Planet Survey, Cameroun
Ndi Omgbwa Felix Devalois, Correspondant Bubinga Lolodorf, Cameroun
Paul Felix Mimboh, GICAF de Mbango, Lolodorf, Cameroun
Moyombaye Urbain, E.PO.ZO.P., Moundou, Tchad
Laohingamai Golmai, Union des Syndicats du Tchad (UST), Tchad
Laoudoulimadji Lalbe, Comit‚ Permanente Petrol Local (CPPL),
Moundou, Tchad
Djeralar Miank‚ol, Coordinator Comit‚ Permantent Petrol Local,
Moundou, Tchad
Yanyara Elie, Comite Executif du CILONG - Coordinator de la CPP,
Tchad
Edith Abilogo, Bubinga, Cameroun
Henri Bosko Djeuda, ERA Cameroun, Cameroun
Yedjibaye Yeningar, Justice et Paix, CEFOD, Tchad
Delphine K. Djiraibe, Association Tchadienne Pour la Promotion et
la Defense des Droits de l'hommes (ATPDH), Tchad
World Bank
http://www.worldbank.org/afr/ccproj
News Release No: 2001/235/S
Media Contact: Richard Uku (202) 473-3432; Operational Contact:
Robert Calderisi (202) 458-5235 mobile (202) 438-6356
World Bank Appoints International Advisory Group on the
Chad-Cameroon Petroleum Development and Pipeline Project
WASHINGTON, February 21, 2001--The World Bank today appointed the
International Advisory Group (IAG) on the Chad-Cameroon Petroleum
Development and Pipeline Project.
The IAG is one part of the oversight structure that was proposed
by the World Bank Group to assist with successful implementation
of the project when it was approved by the Board of Directors. It
will advise the World Bank Group and the two governments on
overall progress in implementing the project, including the key
objective of reducing poverty in Chad. In particular, the IAG
will identify potential problems in the use of public revenues,
the adequacy of civil society participation, progress in building
institutional capacity, and more generally issues of governance,
environmental management and social impacts. The IAG will
recommend actions to the World Bank Group and the Governments of
Chad and Cameroon to address such problems.
The IAG will be headed by the former Prime Minister of Senegal,
Mamadou Lamine Loum, and consist of Jacques Gerin (former
Canadian Deputy Minister of the Environment); Professor Jane
Guyer (Director of the Program of African Studies at Northwestern
University in the United States); Hilde Frafjord Johnson (former
Norwegian Minister of Development and Human Rights); Abdou El
Mazide Ndiaye (President of the Forum of African Voluntary
Development Organizations, FOVAD, based in Senegal); and Dr. Dick
de Zeeuw (a Dutch agricultural specialist and Convenor of a
similar independent panel on the Nam Theun Project in Laos).
Gerin will serve as the IAG's Executive Secretary.
The work of the IAG is expected to continue for up to ten years.
It will visit Chad and Cameroon at least twice a year and report
periodically to the President and Board of Directors of the World
Bank Group. All IAG reports will be made public the same day they
are submitted to the World Bank Group.
The IAG will independently develop its work program, which is
likely to evolve as project implementation progresses.
Attachment 1 [excerpts: for full text see project web site at
http://www.worldbank.org/afr/ccproj]
International Advisory Group Terms of Reference Background
Purpose of the IAG
4. The WBG, in consultation with the Governments of Chad and
Cameroon, will appoint an International Advisory Group (IAG) to
further strengthen the mechanism for monitoring progress in the
implementation of the Projects. To ensure transparency and
accountability, the IAG will comprise highly respected impartial
individuals, with relevant expertise. These individuals will be
independent of all parties to the Projects and will have freedom
to obtain information from all relevant sources.
5. The purpose of the IAG is to advise the WBG and the
Governments of Chad and Cameroon with respect to its observations
about overall progress in implementation of the Projects and in
achievement of their social, environmental, and poverty
alleviation objectives, as well as with the broader goals of
poverty alleviation and sustainable development in Chad and
Cameroon. The IAG's specific responsibilities are to: (a)
identify potential problems as they arise, concerning issues such
as the misallocation or misuse of public revenues, adequacy of
civil society participation in the implementation of the
Projects, progress in building institutional capacity, and more
generally, issues of governance, environmental management and
social impacts; and (b) recommend actions to the WBG, Government
of Chad and Government of Cameroon to address the problems
identified.
Scope of Work
6. The IAG will visit Chad and Cameroon at least twice a year, or
more often depending on the IAG's assessment. As an advisory
body, the IAG will have purview over all activities related to
the Projects and will directly observe progress in their
implementation, although it is not expected to duplicate the
field work on monitoring to be carried out by the governments,
WBG, and the project sponsors. However, all reports prepared by
these parties or on their behalf, including any other documents
having a bearing on the implementation of the Projects, will be
made available to the IAG for the purpose of undertaking its
responsibilities.
7. The IAG will carry out its work in consultation with the full
range of stakeholders: government staff responsible for
monitoring project progress and planning and managing revenues
for poverty-focused development, affected populations, and civil
society organizations. The IAG is expected to serve as another
vehicle for the affected populations and citizens to channel
their concerns about the social, environmental and poverty
related impact of the Projects in Chad and Cameroon. The IAG will
advise the WBG and the Governments of Chad and Cameroon of these
concerns and suggest actions that need to be taken to ensure that
these concerns are appropriately addressed. ...
10. Following preparation of the work plan, the IAG may, at its
discretion, meet with the WBG President, the Corporate Oversight
Committee (COC) appointed by the President [4/] to coordinate and
oversee the implementation of the Projects, WBG senior
management, and the project team. It will also have regular
meetings with senior representatives of the Governments of Chad
and Cameroon and the oil consortium to collect information and
exchange views. The IAG will meet with nongovernmental
organizations (NGOs) and local communities affected by the
Project, without interference from any government, the oil
consortium [5/] and/or WBG officials. The views and opinions of
all stakeholders will be actively solicited from the beginning of
the IAG process, and the IAG will prepare and make available to
the public its plan and agenda for future meetings.
...
Selection Criteria and Process
15. To ensure the complete independence of the IAG, its members
should:
(a) Not be nationals of Chad or Cameroon;
(b) Not be current or former staff members of WBG;
(c) Not currently be engaged in positions or consultancies with
the project sponsors, or the Governments of Chad and Cameroon;
and
(d) Not accept any position to consult with or work for any of
the parties in (c) during tenure on the IAG.
...
Reporting
17. The IAG will report periodically to the WBG President and WBG
Board of Directors as well as to the Governments of Chad and
Cameroon on its findings and recommendations. The WBG, in turn,
will report to the IAG and the WBG Board on the actions taken to
address the issues identified. All reports of the IAG, without
modifications and/or amendments, will be distributed
simultaneously to the WBG Board and other stakeholders on the
same day they are submitted to the President of the WBG. The
WBG's action plan for addressing the issues identified by the IAG
will also be made public, immediately after these have been
discussed with the WBG Board.
18. The IAG, as a group of experts, may, at its discretion, hold
discussions with civil society about its findings and
recommendations, prior to submitting its reports to the President
of the WBG and the Governments of Chad and Cameroon. The IAG will
also advise on the status of dissemination of its reports and the
implementation of its recommendations.
Attachment 2
Biographies of International Advisory Group Members
[see project web site: http://www.worldbank.org/afr/ccproj]
Attachment 3
The Chad-Cameroon Petroleum Development and Pipeline Project
The project will develop the oil fields at Doba in southern Chad
(at a cost of $1.5 billion) and construct a 1,070 km pipeline to
offshore oil-loading facilities on Cameroon's Atlantic coast
($2.2 billion). The sponsors are ExxonMobil of the U.S. (the
operator, with 40 percent of the private equity), Petronas of
Malaysia (35 percent), and Chevron of the U.S. (25 percent).
Depending on world oil prices, the project could result in nearly
$2 billion in revenues for Chad (averaging $80 million per year)
and $500 million for Cameroon (averaging $20 million per year)
over the 25-year production period.
Almost all the $3.7 billion investment will be private. The World
Bank Group will provide $93 million on IBRD terms ($53.4 million
for Cameroon and $39.5 million for Chad) to finance the
governments' equity share in the project and a $100 million IFC
loan to the joint-venture pipeline companies. In addition, IFC
may mobilize up to $100 million in syndicated loans from
commercial banks. The remaining funding will be provided by the
oil companies themselves, commercial banks, and export credit
agencies. The World Bank Group approved the project on June 6,
2000.
This project is extremely important for Chad. At the moment, the
country is so poor that it cannot afford the minimum public
services necessary for a decent life. In four years' time, the
pipeline could increase Government revenues by 45-50 percent per
year and allow it to use those resources for important
investments in health, education, environment, infrastructure and
rural development, necessary to reduce poverty.
World Bank Group involvement has improved the project in a number
of ways. It has supported the development of a sound revenue
management program, triggered the application of the World Bank
Group's strict environmental and social policies, and ensured
broad public consultations. The Government of Chad has introduced
a far-reaching program for targeting the new revenues to key
sectors at the heart of its poverty alleviation strategy, once
the oil begins to flow in 2004.
A wide range of steps have also been taken to minimize the social
and environmental risks of pipeline construction and operation.
The pipeline route has been altered to protect biodiversity,
human settlements, indigenous peoples, and cultural heritage. The
pipeline will be buried, rather than above-ground, and mainly
follow existing infrastructure. Only a small amount of tropical
forest in Cameroon will be affected. To compensate for this, two
large new national parks have been created in Cameroon. However,
important risks remain and close supervision by the two
Governments and the World Bank will be necessary to ensure
project success. The International Advisory Group will help
ensure that such supervision is objective and complete and will
add its own independent perspective to Government and World Bank
monitoring of the project.
This material is being reposted for wider distribution by the
Africa Policy Information Center (APIC). APIC provides
accessible information and analysis in order to promote U.S.
and international policies toward Africa that advance economic,
political and social justice and the full spectrum of human
rights.
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