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"We Were Promised Development and All We Got Is Misery"

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brief 41 “We were promised development and all we got is misery”— The Influence of Petroleum on Conflict Dynamics in Chad Contents List of Acronyms and Abbreviations 4 5 New oil fields in Chad 55 Executive Summary 7 5.1 Carte blanche for non compliance with Acknowledgments 7 environmental standards 56 Introduction 8 5.2 Opaque information policy 57 5.3 The social dimension 58 1 Conflict Background 10 1.1 A history of conflicts in Chad 11 Conclusion 64 1.2 The current conflict set-up 11 Annex: List of interviews 69 1.3 Peace attempts 17 References 71 2 Managing Oil Wealth 20 2.1 Effects of resource wealth in fragile states 21 2.2 The petro-state 22 2.3 The need for good governance 23 3 The Chad-Cameroon Oil Pipeline Project 24 3.1 Oil exploration and exploitation in southern Chad 25 3.2 The initial flow of oil money 26 3.3 Capacity-building 27 3.4 Oversight institutions 28 3.5 Inherent shortcomings 28 3.6 First changes in the model project 30 4 The Impact of Oil on Conflict Fatal Transactions is funded by the Dynamics 32 European Union. The content of this project is the sole responsibility of Fatal 4.1 The dimension of production site conflict Transactions and can in no way be taken to reflect dynamics 33 the views of the European Union. 4.2 Power stabilization through oil revenues 47 4.3 Oil for arms 53 Title citation: Villager from Béro brief 41 “We were promised development and all we got is misery”— The Influence of Petroleum on Conflict Dynamics in Chad Claudia Frank Lena Guesnet 3 List of Acronyms and Abbreviations AG Tschad Arbeitsgruppe Tschad (German NGO Working Group for Chad) AFJT Association des Femmes Juristes du Tchad/ Association of Women Lawyers in Chad ANT Armée Nationale du Tchad/ Chadian National Army APLFT Association pour la Promotion des Libertés Fondamentales au Tchad/ Association for the Promotion of Fundamental Rights in Chad ATADER Association Tchadienne des Acteurs du Développement Rural/ Chadian Association of Rural Development Actors ATNV Association Tchadienne pour la Non Violence/ Chadian Association for Non-Violence ATPDH Association Tchadienne pour la Promotion des Droits de l’Homme/ Chadian Association for the Promotion of Human Rights BCC Banque Commercial du Chari (a commercial bank in Chad) BEAC Banque des Etats de l’Afrique Centrale (Central Bank of Chad) CADH Collectif des Associations des Droits de l’Homme/ Platform of Human Rights Associations CAR Central African Republic CCSRP Collège de Contrôle et de Surveillance des Ressources Pétrolières/ Committee for the Control and Supervision of Oil Revenues CEFOD Centre d’Etude pour la Formation et le Développement au Tchad/ Center for Development Study and Training CENI Commission Electorale Nationale Indépendante/ Independent National Electoral Commission CNPC China National Petroleum Corporation CNT Concorde Nationale du Tchad (rebel movement) Cotontchad Société Cotonnière du Tchad (parastatal cotton company) CPDC Coordination des Partis Politiques pour la Défense de la Constitution (gathering of opposition parties to defend the constitution) CPPL Commission Permanente Pétrole Locale/ Permanent Local Oil Commission CPPN Commission Permanente Pétrole N’Djaména/ Permanent Oil Commission N’Djaména CRASH Centre de Recherches en Anthropologie et Sciences Humaines (Chadian institute of applied social sciences) CRCP Chad Resettlement and Compensation Plan CREMP/MKO Collectif pour la Réflexion et l’Exploitation des Minérais au Mayo Kebbi Ouest/ Collective for Reflection and Exploitation of Minerals in Western Mayo Kebbi CRO Community Relations Officer CSAPR Comité de suivi de l’appel à la paix et à la réconciliation nationale au Tchad (Chadian civil society network for peace and reconciliation) CSNPD Comité de sursaut national pour la paix et la démocratie/ Committee of National Revival for Peace and Democracy (rebel movement) CSOs Civil Society Organizations CTNSC Comité Technique National de Suivi et Contrôle/ National Technical Committee for Monitoring and Control DDS Direction de la Documentation et de la Sécurité (Chadian Secret Services under President Habré) EC European Commission ECMG External Compliance Monitoring Group EEPCI Esso Exploration and Production Chad Inc. EIA Environmental Impact Assessment EIB European Investment Bank EIR Extractive Industries Review 4 EMP Environmental Management Plan EPOZOP Entente des Populatios de la Zone Pétrolière (Network of community-based organizations) EUFOR European Union Force FARF Forces Armées pour une République Fédérale/ Armed Forces for a Federal Republic (rebel movement) FROLINAT Front de Liberation Nationale du Tchad/ National Liberation Front of Chad (rebel movement) GDP Gross Domestic Product GEEP Projet de Gestion de l’Economie à l’Ere Pétrolière/ Management of the Petroleum Economy Project GRAMP-TC Groupe de Recherches Alternatives et de Monitoring du Projet Pétrole Tchad-Cameroun/ Alternative Research and Monitoring Group of the Oil Project Chad-Cameroon HDI Human Development Index HPI-1 Human Poverty Index IAG International Advisory Group IBRD International Bank for Reconstruction and Development IDPs Internally displaced persons IFC International Finance Corporation (World Bank Group) IMF International Monetary Fund JEM Justice and Equality Movement (Sudanese rebel movement) LCC Local community contacts LUMAP Land Use Mitigation Action Plan MINURCAT United Nations Mission in Central African Republic and Chad MPS Mouvement Patriotique du Salut (ruling party) NGO Non-Governmental Organization NPRS National Poverty Reduction Strategy PILC Public Interest Law Center PSMCBP Petroleum Sector Management Capacity-Building Project RESAP-MC Réseau de Suivi des Activités Pétrolières du Moyen Chari/ Network for Monitoring of Oil Activities in Moyen Chari RFC Rassemblement des Forces pour le Changement/ Assembly of the Forces for Change (rebel movement) SHT Société des Hydrocarbures du Tchad (Chadian National Oil Company) SNER Société Nouvelle d’Etudes et de Réalisation (the former national road maintenance company) STEE Société Tchadienne d’Eau et d’Electricité (water and electricity company) TOTCO Chad Oil Transportation Company S.A. UFDD Union des Forces pour la Démocratie et le Dévéloppement/ Union of Forces for Democracy and Development (rebel movement) UFR Union des Forces de la Résistance/ Union of Resistance Forces (rebel movement) UN United Nations UNAMID United Nations-African Union Mission in Darfur UNDP United Nations Development Programme WMP Water Monitoring Program 5 Extractive Industries in Chad © Axel Müller, AGEH 6 Executive Summary had—before and after the implementation of Cthe Chad-Cameroon Oil Pipeline project—is a poor, undemocratic and conflict-ridden country. The Acknowledgments promise had been that oil exploitation in the Doba he authors extend their gratitude to all individuals basin, in the south of the country, would bring about a who have contributed to the realization of bright future and would finally lift the entire nation out T this brief—first and foremost all interviewees and of poverty. Almost ten years after the official opening organizations in Chad and Germany who offered of the valve of the Doba crude oil, poverty continues their knowledge and ideas, as well as logistical to be rampant. Furthermore, President Déby has support. Particular thanks are due to the reviewers established himself as an authoritarian ruler amidst of drafts of the text for their valuable comments. ongoing violent contestations of his rule by various rebel groups. The study was conducted within the framework of the international campaign ‘Fatal Transactions’ Based on desk studies and field research, this brief (funded by the European Union) and in analyzes the impact of oil revenues on potential collaboration with the German NGO AG Tschad. conflict at the production site, on conflicts around the governance of oil revenues and on conflict-finances. All views expressed in this brief are the authors’ alone. Comments and feedback are welcome The Chad-Cameroon Oil Pipeline Project was a and can be addressed to Claudia Frank at frank@ project supported by the World Bank, which had ag-tschad.org and Lena Guesnet at guesnet@ promised that the development of Chadian oil would bicc.de. lead to poverty alleviation and wanted to make it a model project in the extractive industry sector. As this brief demonstrates, in spite of this intention, revenues Violent crackdowns of previous rebellions in the now from oil exploitation were poorly governed and only oil producing region are still vivid in local memory and insufficiently invested into development sectors, such avert new violent conflict. as health and education. The people living in the oil producing region in southern Chad bear the brunt of This brief addresses the question of how the the negative impacts by the oil activities. Their land development of oil production in Chad has influenced is being taken by the consortium, infrastructures are conflict dynamics at the local and national level, being built for the oil development, but barely for bearing in mind the regional conflict system involving the population, they have to endure worsened living Chad, Sudan and the Central African Republic. conditions (dust, health risks, etc.) and poorly-carried out compensation measures. It further sheds light on the role of the World Bank, as its involvement was crucial for the realization of the Instead of bringing development to the people in the project. It concludes that the Chad-Cameroon Oil Doba oil basin and the whole of Chad, oil revenues Pipeline project should not have taken place within the are being used to fuel a patronage system, which setting of lack of democracy, poor governance and strengthens the power-grip of the current government ongoing violent conflict in Chad. Instead of serving and especially the Head of State, President Déby. Oil as a model project, the example of oil exploitation in revenues can be said to directly contribute to keep Chad can inform future extractive industry projects Déby in power—by financing his fight against rebellions about the pitfalls of such an undertaking and the and the co-optation of armed and unarmed political necessary prerequisites to be in place beforehand.
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