It was largely funded by multilateral and bilateral credit financing provided by Western governments. Debt based financing came from the International Finance Corporation in the amount of US$100 million, the private sector arm of the World Bank Group and the French export credit agency, COFACE, and the US-Exim Bank which will each provided US$200 million. IFC-coordinated private lenders offered a further US$100 million.
The project has been plagued by persistent charges and fears about corruption and the diversion of revenues--ostensibly intended for poverty reduction--towards arms purchases, particularly by the regime of Chadian President Idriss Déby. Opposition leader and parliamentarian Ngarledjy Yorongar of the Front of Action Forces for the Republic (FAR) accused National Assembly President Wadal Abdelkader Kamougue of taking a bribe from Elf, then a partner in the project, in 1997. Yorongar was stripped of his parliamentary immunity and detained for nine months. In November 2000, the World Bank announced that $4 million of a $25 million signing bonus from the oil companies was spent by the Chadian government on weapons. The World Bank required tight restrictions on oil revenues as a condition of its loans. In January 2006, Chad moved to unilaterally increase the portion of oil revenues going to its general fund from 15 to 30 percent.
Matthew Genasci & Sarah Pray, Extracting Accountability: Implications of the Resource Curse for CSR Theory and Practice
Jan 01, 2008; Matthew Genasci and Sarah Pray argue that the best cure for the "resource curse" in developing nations is increased transparency...
Chad: The Tip of the Spear: A Revolution Is Taking Place in the Dust Bowls of Southern Chad, One That Will Have a Profound Impact on How African Countries Do Business with the Major Oil Companies in the Future. If the Chad 'Experiment' Works, It Could Usher in a New Era in the Use of Africa's Natural Resources
Oct 01, 2003; Chad's annual revenues are about to take a quantum leap upwards. Thanks to the newly discovered oil reserves at the Miandoum oil...