Benefits for Cameroon too

The majority of the buried pipeline (890km out of 1070km) is in Cameroon, as are many of the related environmental and social concerns.

Cameroon, by contrast with Chad, is richly endowed with tropical forests, mineral resources (petroleum, natural gas, gold, iron ore, uranium, and bauxite), fertile agricultural land, a largely favorable climate, and a high potential for diversification. Cameroon also has vast water resources. It has a population of 14 million and a yearly per capita GDP that has averaged $655 over the last decade.

Cameroon’s population is relatively well-educated by African standards, with an adult literacy rate of over 60 percent. The development of the oil sector led to rapid economic growth between 1975 and 1985 but this came to an abrupt halt in the mid-eighties, following the decline in world prices of petroleum, coffee and cocoa, the country's major exports and, by 1993, per capita income had fallen by 50 percent.

Cameroons stood to earn about US$500 million in direct revenue and additional amounts in project-related economic activity over the 25-year life of the project. The construction of the buried pipeline was expected to generate over a thousand short-term construction and operational jobs for the local population.   Here the revenues will be used for priority public expenditures to help create an environment conducive to attracting more foreign investment.

But the project entails some potential costs and setbacks. As a result, the World Bank’s involvement in the project triggered the application of the World Bank Group's strict environmental and social safeguard policies, along with broad public consultations.

(see Environment and Social)