The government of Chad, Africas newest oil producer, has said it wants to change the terms of a revenue transparency agreement backed by the World Bank so it can access millions of petro-dollars more quickly, reports the World Bank press review Tuesday.
Under the original agreement, touted as a test case in Africa to show that oil revenues can benefit the poor, 10 percent of proceeds from crude production are stored in a special “future generations” bank account overseas.
If the proposed change goes ahead, the government would have immediate access to more than 20 billion CFA francs (37 million US dollar) earmarked for reducing poverty in the longer term.
– In our opinion … people do not feel they have benefited from the oil. During the period of oil production we have been having difficulties paying salaries, paying pensions, paying grants, Oil Minister Mahamat Nasser Hassan said.
– Effectively we today are not able to serve the needs of our current generation. So the aim is to increase the level of cash in the treasury to help the state function, he added.
Prime Minister Pascal Yoadimnadji has invited diplomats to discuss the planned move and was trying to win international support, pro-government newspaper Le Progres said on Monday.
Civil rights groups, trade unions, aid agencies and opposition leaders have denounced the plans, accusing the government of bad financial management. The heavy oil project is expected to earn the government 2 billion US dollar over 25 years – an enormous amount for a poor African country.
Hassan said as well as scrapping the “future generations” fund, the government wanted more money to cover operating costs for the project. It wanted its allowance to rise to 30 percent of net oil revenue from a current 15 percent.
– This government is known for its bad management. There has been a history of embezzlement and corruption, said Gilbert Maoundonodji, head of an independent Chadian group, GRAMP-TC, which is monitoring the oil project.
– Changing the law will not solve anything, he said, adding he believed the World Bank had a responsibility to ensure that the terms of the original agreement were respected.
Kilde: www.worldbank.org
