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Article

13 Aug 2007

Author:
Howard French & Lydia Polgren with Fan Wenxin, New York Times

China, Filling a Void, Drills for Riches in Chad

To help [develop Chad's export sector], China plans to build the country’s first oil refinery, lay new roads, provide irrigation and erect a mobile telephone network... To achieve...growth [in its investments in Africa, China] has bypassed multinational institutions...and flouted many of their lending criteria, including minimum standards of transparency...[and] environmental impact studies... [In] 2000,...the World Bank agreed to help finance a...pipeline connecting Chad to Cameroon on the condition that oil revenues be used to fight poverty. Chad’s revenues [from the pipeline]...have not gone into quelling its immense poverty. Mismanagement and fraud have beset the World Bank plan... [Beginning] in 2006,...China bought the rights to several oil exploration zones in the country...and has gone from bit player to center stage in Chad’s affairs... One topic that neither [Chinese nor Chadian officials were] willing to say much about was the World Bank’s foundering efforts to ensure that petroleum revenues were well spent... Thérèse Mekombe, vice chairwoman of the committee that monitors Chad’s oil money...said all of the country’s oil earnings fell under the control of the World Bank arrangement. [refers to China National Petroleum Company (CNPC)]