Washington D.C., September 12, 2002—The
Board of Executive Directors of the World Bank today approved Management’s
response to a report by the institution’s independent Inspection Panel
on three projects in support of the Chad Petroleum Development and Pipeline
Project. During its discussion, the Board commended the work of the
Inspection Panel as well as Management’s action plan, and voiced strong
support for the project and its focus on poverty reduction.
“The Inspection Panel is an important instrument contributing to project
quality. The findings of the Panel will lead to improvements in the
ongoing implementation of this challenging project, which has enormous
potential to bring great benefits to the people of Chad and Cameroon,”
said World Bank President James D. Wolfensohn.
The Management action plan to address the Panel’s findings focused on
four areas: environmental and social compliance with the Bank’s policies
and procedures; economic issues; poverty reduction issues; and monitoring
and supervision. Key elements of the Management response include:
·Environmental and social compliance. The Bank will work with the
relevant Chadian agencies to prepare the Regional Development Plan (RDP)
that will be developed as part of the Environmental Assessment (EA) and
Environmental Management Plans (EMP). The EA and EMPs (English and
French) were developed as part of the project’s preparation. The RDP will
address the concerns about the project’s cumulative regional impacts raised
by the Panel.
·Economic benefits. By law, more than 80 percent of the oil revenues
accruing to the Government will directed to expenditures in the priority
sectors of health, education, rural development, infrastructure, environment,
and water (and 10 percent will be saved in a fund for future generations).
The oil-producing region will receive 5 percent of these resources to be
managed locally, in addition to what it will receive through the national
budget. The action plan will accelerate efforts to strengthen the capacity
of Government to manage these expenditures and to effectively monitor oil
quantities produced and revenues generated.
·Poverty reduction impact. Oil revenues are eventually expected to
more than double government revenues; therefore, the challenge of securing
the maximum poverty reduction impact from these resources is substantial.
Management places the highest priority on assisting Chad to achieve
its poverty reduction objectives through this project and through the other
elements of its assistance to Chad. The action plan provides for
continuing and intensifying supervision of and assistance for the Government’s
capacity-building efforts to account for oil revenues and address environmental
and social aspects over the life of the Project. It also prepares
for Government spending in priority sectors and allocates and commits these
revenues in a publicly-transparent manner.
·Monitoring and supervision. The action plan maintains the Bank’s
commitment to intensify monitoring and supervision of the project. Since
the June 2000 project approval, exceptional resources have been allocated
by the Bank, and IFC in this instance, to monitor and support the project’s
implementation. The Bank Group's reinforced supervision and
monitoring capacity complements the independent monitoring and assessment
conducted by the International Advisory Group (IAG) and Environmental Monitoring
Compliance Group (ECMG), which have been regularly conducted since Board
The Inspection Panel is an independent entity within the World Bank that
reports directly to the Board of Executive Directors. Its mandate
is to ascertain, in response to requests related to specific projects,
whether the Bank has complied with all applicable policies and procedures
with respect to project design, appraisal, and supervision.
For the complete Inspection Panel Report, and the World Bank Management
Report and Recommendations in Response to the Inspection Panel Report,
go to :
World Bank project website : www.worldbank.org/afr/ccproj
Inspection Panel website : www.inspectionpanel.org
IAG-GIC website : www.gic-iag.org