The World Bank has cancelled an oil pipeline deal with Chad after a dispute with the government over failed pledges to use profits to tackle poverty, BBC online reports.
The bank said the Central African country had failed to use revenues on health and education. It said Chad had paid the outstanding balance of 65,7 million US dollar under a 140 million dollar loan agreement, after talks with the government of President Idriss Deby.
Chad called the decision “practically consensual (enige)” and that relations would continue in non-oil sectors.
The pipeline was seen as a test case for how Africas oil wealth could benefit the poor if spent properly. Chad is expected to earn about 1,4 billion dollar in oil revenues this year. A vast sum for a poor nation such as the former French colony.
– Future cooperation is possible, if the government of Chad wishes to focus its energies on a programme to support inclusive development to overcome poverty, assist displaced people and improve governance, said Michel Wormser, the World Banks director of operations for Africa.
