World Bank concern over Chad oil revenues

The World Bank has expressed serious concern about the use being made by the government of Chad of oil revenues from a big pipeline project assisted by the bank.

Chad is an important test case for the World Bank in encouraging oil and mineral-rich African countries to improve transparency and tackle corruption.

Ali Khadr, a World Bank director overseeing central African countries including Chad, said it was encouraging that the oversight committee had spotlighted deficiencies early. He said Chad had only started receiving transfers from the earmarked escrow account in mid 2004.

Nevertheless, the oversight committee’s report reflects a wider concern by African development activists that governance in African oil economies may be being sidelined in favour of guaranteeing oil flows. West and central Africa could provide 25-30 per cent of US oil imports by 2015, up from about 15 per cent now.

Financial Times