WRITTEN QUESTION E-3467/03 by John Bowis (PPE-DE) to the Commission. Chad-Cameroon pipeline.
Date: 2003-11-21
Institutions: European Parliament, Provisional data
Subjects: Cameroon, Chad, economic development, environmental impact, environmental protection, impact study, oil pipeline, petroleum production

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8.4.2004

Resolution of this matter is clearly a priority of the Council of Europe Minister’s Deputies, who have been
considering this case frequently in the course of their recent weekly meetings. The Council of Europe has
continued to strongly urge Turkey to pay, without condition, the just satisfaction awarded by the Court.

One of the priorities outlined in the Accession Partnership for Turkey is respect for the judgements of the
European Court of Human Rights. As such, the Commission will continue to closely monitor those
judgements that have not been executed by Turkey, including this case.

(1) COM(2003) 676 final.

(2004/C 88 E/0667)

WRITTEN QUESTION E-3467/03

by John Bowis (PPE-DE) to the Commission

(21 November 2003)

Subject: Chad-Cameroon pipeline

Will the Commission give an update on the Chad-Cameroon pipeline project, including benefits that have
come to local communities and protection that has been assured for the affected environment? What is the
expected programme for oil revenues? What are the health and social impacts on the two countries of
increased economic activity associated with the pipeline?

Answer given by Mr Nielson on behalf of the Commission

(19 December 2003)

Oil production in Chad began in June 2003 and oil started flowing through the new pipeline in July 2003.
On 9 October 2003 the country’s president, Idriss Deby formally inaugurated the 1 000 km. long Chad-
Cameroon pipeline, in the presence of four other heads of state of the region.

The total cost of extracting the oil from Chad and piping it to Cameroon is estimated at USD 3,7 billion,
one of the largest private sector investments in Africa. The European Investment Bank (EIB) participates in
the financing with a sum of EUR 144 million, of which EUR 35,7 million for the Government of
Cameroon and EUR 20,3 million for Chad from European Development Fund (EDF) risk capital. The
project is expected to produce 225 000 barrels of oil a day, and project revenue as a whole will be USD 12
billion. Expected government revenues are USD 1,7 billion for Chad and USD 505 million for Cameroon
over the 28-year operating period.

The development rationale for this project is that the project will generate revenue that will allow the
governments to invest more in poverty reducing programmes, such as health, education and rural
development.

According to the Revenue Management Law, 85 % of the revenues over the first ten years of production
will be invested in priority social sectors, education, health, social services, and agriculture. These will not
substitute the expenditure of the state in these areas, but represent additional resources.

What makes this project an entirely new kind of extractive industry project is in the detail and care with
which the revenue management programme is formulated and set up. In fact, the World Bank involvement
has supported the development of a sound revenue management programme, triggered the application of
the group’s strict environmental and social policies, and ensured broad consultations in the two countries
and around the world.

As a result, the project will have a minor net effect on the natural and human environments. The pipeline
was buried for most of the route,
it follows existing infrastructure and complies with World Bank
including those on environmental assessments, natural habitats, indigenous peoples,
safeguard policies,

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cultural property, resettlement, and forests. Only a small area of tropical forest has been lost as a result of
construction. To compensate for this, two large new national parks have been created in Cameroon. A
general plan has been prepared by the oil consortium to deal with possible oil spills. The plan is consistent
with international good practice.

An action plan for an intensified IEC (information, education and communication) campaign for local
people in the oilfield area has been implemented. Moreover the two governments are implementing
complementary programmes to strengthen the capacity of decentralised health services, which include
acquired immunodeficiency syndrome (AIDS)-related interventions. Qualified non-governmental organi-
sations (NGOs) have been contracted to assist communities along the pipeline route to prepare, submit,
and implement community projects in the health and education sector.

(2004/C 88 E/0668)

WRITTEN QUESTION E-3676/03

by Ilda Figueiredo (GUE/NGL) to the Commission

(9 December 2003)

Subject: Petition by CNASTI (Portugal)

At the World Education Forum held in Dakar, the international community agreed on the basic objectives
of ensuring that all the world’s children have access by 2015 to proper basic education free of charge and
eliminating gender inequality in access to education by 2005. During the same year, the same targets were
included in the UN’s Millennium Development Goals.

In the context of the campaign ‘From exploitation to education’ launched in Portugal by CNASTI (the
National Confederation for Action on Child Labour), as the national coordinating organisation for the
Global March Against Child Labour, a petition was submitted calling on the Commission, inter alia: to
ensure the provision of significantly increased funding for education in the field of
international
development and cooperation; to give its full support to the Fast Track Initiative for education and
expand the programme to all countries offering sound educational programmes; and to exclude education
explicitly from the sectors subject to liberalisation under the GATS (General Agreement on Trade in
Services) agreement within the WTO.

Can the Commission state what practical action it has already taken on the above demands?

Answer given by Mr Nielson on behalf of the Commission

(20 February 2004)

The objectives set in Dakar to achieve ‘Education for All’ (EFA) and the United Nations (UN) Millennium
Development Goals in the field of education form the basis of the Community’s development policy in the
field of education, as laid down in the Commission’s Communication of March 2002 (1) on ‘Education and
training in the context of the fight against poverty in developing countries’. The Communication also
stresses that Community funding for education, in particular primary education, should be increased.

Overall,
the Commission has programmed an estimated EUR 1,3 billion to education in developing
countries over five years. This figure does not represent the total effort as it does not take into account
some EUR 1,7 billion of financing that will go to African, Caribbean and Pacific (ACP) countries under the
9th European Development Fund (EDF) in the form of macro-economic support linked to social outcomes,
in particular education and health.

Since the Community’s development cooperation is based on a multi-annual programming, there is only
limited leeway for increasing funding for education until the next phase of programming. However, some
flexibility exists in ACP States through the recommitment exercise of unspent funds from previous EDFs
and through the 2004 Mid-Term Review. Of course, in line with the principle of ownership, recipient
countries ultimately decide upon the use of the funds allocated to them.