Click here for search results

World Bank Statement on Chad-Cameroon Pipeline

Available in: 中文, Français, Español
Press Release No:2009/073/AFR


In Washington: Carl Hanlon (202) 473-8087;

In Paris: Rachel Winter Jones + 33-1-4069-3052


Washington, September 9, 2008 – In 2001 the World Bank provided financing to Chad to support development of the Chad-Cameroon pipeline with a specific agreement that substantial oil revenues would be directed to poverty reduction.


Over the years, Chad failed to comply with key requirements of this agreement.  A new agreement was signed in 2006, but once again the government did not allocate adequate resources critical for poverty reduction in – education, health, infrastructure, rural development and governance. Regrettably, it became evident that the arrangements that had underpinned the Bank’s involvement in the Chad/Cameroon pipeline project were not working.  The Bank therefore concluded that it could not continue to support this project under these circumstances. 


We conveyed our concerns in discussions with the Government of Chad, including through our development partners, that failure to comply undermines the basis for the World Bank’s involvement in the project. During discussions held with the Government of Chad in N’Djamena the week of August 25, 2008, the Chadian Government agreed to prepay the World Bank for pipeline related financing.


Chad has now fully prepaid both the IBRD and IDA components of the loan, as of September 5, 2008.


While the payment ends the Bank's involvement in the pipeline project, the Bank has explained to the Government of Chad that it recognizes the country's significant development problems, which have been exacerbated by regional instability and the flight of refugees.  If the Government of Chad wishes to focus its energies on a program to support inclusive development to overcome poverty, assist displaced people, and improve governance and effectiveness to achieve results, the World Bank is willing to work with Chad to assist.


To this end, the Bank welcomes the upcoming visit of the Prime Minister of Chad to Washington, planned for the end of September.  We will discuss further the future of the relationship between Chad and the Bank, and the cooperation and support we could provide for rebuilding a development program that supports the poorest people in the country. 

Permanent URL for this page: