Chad: Following the oil money

A coordinated monitoring and alert system to track the use of oil revenues should be developed by civil society groups in Chad, says a new report on the Chad-Cameroon oil pipeline by Catholic Relief Services.

The report recommends that civil society groups identify existing structures or networks at the regional and local levels that can help disseminate and collect information about project execution to and from the population at large. On an international level, civil society should continue to hold International Financial Institutions, oil companies, and Northern governments to account for their responsibilities with regards the project. The report says the project is "hanging by a thread" and cites "critical loopholes" with regards revenue transparency, accountability and management.

"It is too early to declare Chad's oil project a failure or a success. But, the experience to date confirms the danger of investing in the extractive industries before a country is shown to meet minimum conditions of respect for human rights, fiscal transparency, and demonstrated government capacity to implement pro-poor programs," says the report.

The World Bank financed Chad-Cameroon Petroleum Development and Pipeline Project transports oil from landlocked southern Chad to the Atlantic coast of Cameroon for export. It was billed as the first project to contain significant checks and balances to make sure that oil wealth translated into development.