World Bank Group President Paul Wolfowitz expressed strong opposition to amendments to the Petroleum Revenue Management Law (PRML) passed today by the Chadian National Assembly.   The law provided that the bulk of the revenue from the Chad Cameroon Pipeline Project be applied to development and poverty-reduction priorities, and it set aside ten percent for a Future Generations Fund to ensure there would be some benefits to the population when the oil reserves have been exhausted.  If ratified by Chad’s president, the proposed changes in the law will substantially weaken the poverty reduction agenda mutually agreed to as a condition of lending. 

“If these amendments become law, it will harm the well-being of Chad’s poorest and most vulnerable citizens and represent a material breach of the original agreement,” Mr. Wolfowitz said today.  “I am consulting with other partners and our shareholders on the appropriate next steps.”

World Bank Statement on Changes to Chad Petroleum Law