Chad, one of the world's poorest countries, is set to join the elite club of oil-producing nations Tuesday as black gold begins flowing into a pipeline towards a terminal in the Atlantic Ocean off Cameroon. The multi-billion dollar project, co-funded by the World Bank and a consortium of oil companies led by ExxonMobil, is expected to generate up to 250,000 barrels of oil a day when it reaches full operating capacity. But promises of riches for the landlocked desert country of eight million, where per capita income is well under a dollar a day, have met with scepticism among environmental and human rights groups, as well as opposition groups who fear that little of the newfound oil wealth will trickle down to the poor.

The Chad-Cameroon petroleum project was approved by the World Bank in June 2000 after more than three years of intense discussions between oil multinationals, the Bank, Bank member governments and NGOs from the South and the North. In response to the grievances received, the World Bank proposed a framework to impose social and environmental rules on the multinationals, and build the capacity of Cameroonian and Chadian governments to enable them to manage project-related opportunities and risks. The failure to respect promises in the construction phase is a cause for concern for the project's future. There are already talks of expanding the oil exploitation zone to the east of Chad, north of the Central African Republic and north of Cameroon. As the World Bank will have no means to exert pressure on the consortium it is hard to think that the operations will respect people and nature more than in the past three years. The major merit of the project is to have confirmed that under authoritarian regimes there is a fundamental incompatibility between poverty alleviation objectives and oil exploitation activities.