CFR.org | Chad's Oil Troubles

The oil pipeline agreement involving the World Bank, a U.S.-led oil consortium, and the government of Chad was hailed as a model to help developing nations dig their way out of poverty and avoid corruption. Under the deal, spurred by World Bank funding, most of Chad's revenues would go toward development projects. But in December, Chad's parliament voted to modify the agreement, canceling a "future generations" fund for Chad's post-oil future, and diverting funds away from poverty alleviation and toward the purchasing of arms. The World Bank responded by suspending its loans and freezing Chad's assets. A temporary agreement was reached April 27, but experts say potential civil war, cross-border troubles with Sudan, and the weakening of President Idriss Déby's regime may threaten the pipeline deal, casting further doubt on the prospects for transparency in future development projects in the region.

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