I can read WB press releases, or close approximations thereof, anytime. Now for the other side of the story - From an environmental website:

"The World Bank loaned $3.6 billion for this controversial project in June 2000. It includes the development of 300 oil wells in Chad and the construction of a 600-mile pipeline to the Atlantic coast of Cameroon. Residents from the project region reported killings by government forces shortly after the World Bank approved the project, and complain about ongoing threats to local organizations.

The government of Chad spent $4.5 million earned from the project to purchase weapons to fight the rebel movement in the northern Tibesti region. Originally, they promised to spend the money on poverty reduction. Revenues from construction activity are not invested back into the country since all the contracts have been granted to French, German and U.S. companies. Also, foreign companies are exempt from paying taxes in Cameroon.

Description of the Project

The Exxon-Shell pipeline project in Chad and Cameroon, West Africa, is the largest construction project in sub-Saharan Africa. When completed it will produce 225,000 barrels of oil per day. The pipeline is expected to operate for 25-30 years. The project consists of three parts:

*Development of oil fields in the Doba region in southern Chad. This will require the use of 565 ha (1400 acres) of land for the boring of 594 oil wells, the construction of a treatment center, a pumping station, a residential area with 2000 houses, a drilling base, an airport, and 58 km (36 miles) of roads.

*Construction of a 1,050 km (650 miles) long, 30 meters (27 yards) wide buried pipeline from the oil fields in Chad to Cameroon's Atlantic coast, construction of related pumping stations and ancillary facilities; 75 percent of the pipeline would run in Cameroon's territory.

*Construction of an offshore marine export terminal facility 15 km off the coast of Cameroon and associated marine pipelines.

Financing of the Project

The consortium of oil companies financing the project is made up of Exxon (40%), Shell (40%) and Elf (20%) and is led by Exxon. The Governments of Chad and Cameroon participate in joint ventures created with the consortium to manage the construction of the pipeline, NOT THE DEVELOPMENT OF THE OIL FIELDS!!!! The estimated cost of the project is $3.5 billion, which is 20 times the budget of Chad.

The Governments of Chad and Cameroon have asked the World Bank for US $115 million loans from IBRD that would cover a 15 percent share in the two joint ventures managing the pipeline construction. The International Finance Corporation (IFC) is considering a $250 million loan to the oil companies and would mobilize an additional $1 billion on the private market in limited recourse debt. Exxon has said that World Bank's financial participation in the project is a prerequisite for going forward. The World Bank's financial backing would enable the companies to attract investors, allow access to lower interest loans and raise the project budget needed."

Hmmmnnn, seems like a familiar pattern to me. I wonder what it is. Bad local Big Man? Check. Suspect Loans? Checks. Foreign control? Check. The real money heading out of the country? Check.

I mean really, what a racket! The oil companies get the WB to front the project and ensure financial backing just in case and they get to keep the real profits off the oil fields. The Countries gets their bribe to "manage" the pipeline and skim whatever they can off the top. The WB gets nice PR (btw, that 70% of the profits from the PIPELINE ONLY...was a nice touch) and a soon to be non-performing loan bargaining chip which will eventually get paid back when the Countries default on the loan and have to sell the pipeline back to Exxon and Co. It's impossible to be cynical enough about this stuff.

The Countries get squat from the development of the oil fields.

They get squat from the actual construction of the pipeline (already given to foreign companies).

They do get some money as "joint venture" partners with the oil companies to help "manage" the pipeline construction.

They do get a new loan to pay off and, in Chad's case, are mandated to spend 80% of the profits from the completed pipeline in accordance with the WB's guidelines.

With all that said, yes Idriss Deby is a bad guy, but if anybody thinks this whole thing is for the good of the people in Chad and Cameroon, they are kidding themselves.

Hey, where is this magical billions of future dollars coming from? They get nothing from developing the oil fields. They get nothing from the actual construction of the pipeline. They were loaned 115MM by the WB for a measely 15% (7.5% per country) of the joint venture to manage the construction of the pipeline. So, they get some of that revenue, but, they have the loan to pay back. So where? I guess playing ball means you get relative pennies for you natural resources with others make out like bandits.

Also, of course the oil companies wouldn't have done it without the WB. Why would they when they can use the WB to back their investment? Between that and the seeming fact that they get to keep most of the profits, what's not to like? From a financial stanpoint, the WB can even handle the locals for you and even if a little bit trickles down to get a hospital built or something, that's okay too because it's a nice photo op.

What's not to like? The only wildcard is the political situation. If that goes too crazy and is not the usual one bad strongman replacing the other, then you pull up stakes, thank the WB for covering you by arranging the financing and move on. Actually, you can probably just wait it out and try the whole thing again when things settle down. The oil's not going anywhere.