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2004-06-30 Africa: Subsaharan
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Itâs always about oil: Fruits of Chad-Cameroon Pipeline Must Reach All
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THE recent official opening of the Chad-Cameroon oil pipeline, Africaâs largest single private investment, was marked by much back-slapping and mutual congratulations by the presidents who graced the event. However, some of the shine was taken off the occasion by a few of the guests of honour who are among those leaders who have given Africa a bad name. One such person was the host, Chadian President Idriss Deby. He presides over one of the poorest countries in the world. Despite his oft-stated pledges to use oil money to address poverty, Deby, a general who seized power in a coup in 1990, spent $4,5m of his first oil receipts on arms for the national civil war. Another guest of honour was Central African Republic President Francois Bozize, who deposed former president Ange-Felix Patasse in a military coup in March last year. Despite the African Unionâs pledge to deal swiftly with any unconstitutional overthrow of power, Bozize is still in power 15 months later, with promised elections only scheduled for next year.
"Cross our hearts and hope you to die!" |
| Except that Bozize is an improvement over his predecessor... |
Also present were the personal representatives of Denis SassouNguesso, President of the Republic of Congo, who also took power in a coup but who has whitewashed his image by winning elections subsequently; President Obiang Nguema of Equatorial Guinea a dictator who feels no obligation to spend his countryâs riches on uplifting his people and Omar Bongo of Gabon, who has the dubious reputation of being Africaâs second-longest-serving president.
| We're talkin' millenia, here... |
However, the pipeline has the potential to change forever the paths of the two countries through which it passes. The vast sums involved, and underlying mistrust of Debyâs good faith on oil revenue, have led to special scrutiny and oversight of the project by the oil sector, financing institutions such as the World Bank, and development groups. The motives are sound to ensure transparency in the spending of oil revenue. Oil began flowing in August last year and Chad will see its first share of oil royalties this year, to the tune of $100m, and it is expected to receive another $100m from taxes and customs duties. Cameroon, whose President Paul Biya was at the opening along with Burkino Fasoâs President Blaise Compoare, will also benefit handsomely, getting projected revenue of $500m over the 25-year production period in transit fees and taxes. The pipeline is indeed one of Africaâs greatest development projects. It is not only bringing unimaginable wealth to one of the worldâs poorest countries but it is setting important precedents for the spending of oil wealth. It has also had major spin-off benefits in terms of infrastructure â 600km of roads and seven bridges have been built and an optic fibre cable has been laid the length of the pipeline. The private sector in both states has benefited from more business, and individuals and communities affected by the project have been financially compensated. Many jobs have been created and activity at Cameroonâs ports has reached all-time highs. However, despite his noble statements on improving the lot of his country, Deby is unlikely to reform himself into a champion of human rights and good governance.
| Can't expect a leopard to change his spots now, can you? |
He still shows little patience with any criticism of his government and a campaign to alter the constitution to let him to stand for a third term is now under way. Like all oil-producing countries in Africa, Chad presents a high-risk investment. If the oversight experiment fails, Chad may end up as just another cursed oil state. It is in the interests not just of the stakeholders to ensure this does not happen, but for Africans themselves to ensure the success of this high-profile project.
| Ignominious failure for $20, Alex! |
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Posted by Mark Espinola 2004-06-30 12:00:00 AM||
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Posted by Rafael 2004-06-30 12:46:18 AM||
2004-06-30 12:46:18 AM||
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