World Bank Group President Paul Wolfowitz expressed serious concerns about a proposal from the Government of Chad that would significantly alter the Petroleum Revenue Management Law intended to maximize the benefits of Chad’s new oil wealth for its citizens.  The law was a deciding factor in the World Bank Group’s original support for the Chad-Cameroon Oil Pipeline.  If properly implemented the law could help lift millions of Chadians out of poverty through a sound management of oil revenues.

“The issue is maintaining the focus of this development project on poverty reduction,” said Mr. Wolfowitz after meeting with senior Bank officials. “It’s about ensuring continued accountability and transparency in the management of Chad’s oil revenues for the benefit of its population.  The law in question was the basis for a legal agreement between the Republic of Chad and the World Bank,” said Mr. Wolfowitz.

The proposed changes to the Petroleum Revenue Management Law, which the government has reportedly submitted to the National Assembly, would entail fundamental changes to the current system for managing oil revenues, including abolishing the Fund for Future Generations.  The proposed modifications reportedly grew out of financial pressures recently experienced by the Chadian government.

World Bank Statement On Chad