World Bank Approves Damaging African Oil And Pipeline Project

The World Bank Board of Executive Directors voted today to provide over $300 million in taxpayer supported loans to build a massive oil and pipeline project in Chad and Cameroon, Africa. The project, which represents large environmental and social risks, is being promoted by a consortium led by ExxonMobil and Chevron. The Board voted in favor of the project despite repeated requests for a funding delay by African groups representing communities the project is supposed to benefit as well as churches in both countries.

The concerns of the Chadian and Cameroonian groups are shared by a broad coalition of international environmental, human rights and religious organizations. In view of the corruption and human rights abuses in both countries, the organizations fear the project lacks adequate environmental protections and that project revenues will fail to reach the impoverished communities affected by it.

“Today’s vote represents a serious challenge to reform efforts initiated by World Bank President James Wolfensohn,” said Korinna Horta, Environmental Defense senior economist. “This project will demonstrate whether the Bank’s commitments to consulting civil society, fighting corruption and promoting sustainable development are serious. The credibility of the institution is clearly on the line.”

The oil companies sought World Bank participation in the project to protect them from the risks of developing in the two countries. The Bank’s funding approval requires an independent monitor to oversee the project and help prevent environmental and human rights abuses. “The requirement for an independent monitoring group is encouraging,” said Horta. “However the World Bank must assure that it can function in a transparent manner and that local people can provide input to its findings without fear of retribution.”