World Bank worried about Chad plan for oil profits
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WASHINGTON (Reuters) - The World Bank on Tuesday expressed concern about Chad's plan to alter the terms of a revenue transparency law, which ensured that profits from a new World Bank-backed oil pipeline would go to helping the poor.
The changes threaten an agreement that led to the World Bank's financial backing for the $3.7 billion pipeline, its biggest oil investment in Africa.
The highly touted deal, which is meant to be an example of how petro-dollars can benefit the poor, was sealed on condition that the revenues were properly managed and reduced the country's extreme poverty.
The changes to the Petroleum Revenue Management Law would unleash millions of dollars in oil revenues that the government had agreed to set aside in a London-based bank account and that was monitored by an international committee.
"We have expressed our concern to the Chadian authorities," said Ali Khadr, the World Bank's country director for Chad. "We will do everything we can to continue to work with the government and other partners to ensure that oil revenues are managed for the benefit of the poor."
Khadr said the World Bank recognized that Chad faced recurring financial problems but said the government has long faced the challenge of changing the way it manages its finances.
The impoverished country's finances have been squeezed further by the tens of thousands of refugees that had fled into Chad from neighboring Sudan to avoid the fighting in Darfur.
Khadr said the World Bank planned to "to ensure that its concerns are fully understood and addressed" by the government.
"The World Bank is consulting with various partners in order to assess how best to support Chad's poverty reduction efforts," Khadr said.
Chad proposed move has already been denounced by civil rights groups, trade unions and aid agencies that have accused the government of bad financial management.
WASHINGTON (Reuters) - The World Bank on Tuesday expressed concern about Chad's plan to alter the terms of a revenue transparency law, which ensured that profits from a new World Bank-backed oil pipeline would go to helping the poor.
The changes threaten an agreement that led to the World Bank's financial backing for the $3.7 billion pipeline, its biggest oil investment in Africa.
The highly touted deal, which is meant to be an example of how petro-dollars can benefit the poor, was sealed on condition that the revenues were properly managed and reduced the country's extreme poverty.
The changes to the Petroleum Revenue Management Law would unleash millions of dollars in oil revenues that the government had agreed to set aside in a London-based bank account and that was monitored by an international committee.
"We have expressed our concern to the Chadian authorities," said Ali Khadr, the World Bank's country director for Chad. "We will do everything we can to continue to work with the government and other partners to ensure that oil revenues are managed for the benefit of the poor."
Khadr said the World Bank recognized that Chad faced recurring financial problems but said the government has long faced the challenge of changing the way it manages its finances.
The impoverished country's finances have been squeezed further by the tens of thousands of refugees that had fled into Chad from neighboring Sudan to avoid the fighting in Darfur.
Khadr said the World Bank planned to "to ensure that its concerns are fully understood and addressed" by the government.
"The World Bank is consulting with various partners in order to assess how best to support Chad's poverty reduction efforts," Khadr said.
Chad proposed move has already been denounced by civil rights groups, trade unions and aid agencies that have accused the government of bad financial management.
posted by Marcel at 9:36 AM
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