HC Deb 24 February 2003 vol 400 cc270-1W
Mrs. Spelman

To ask the Secretary of State for International Development what external audits have been commissioned for the World bank funded Chad-Cameroon oil pipeline; and whether these audits will be made public. [98272]

Clare Short

Project arrangements provide for regular audits, on the Chad-Cameroon pipeline projects' accounts, plus independent opinions from the International Advisory Group (IAG) and External Compliance and Monitoring Group (ECMG). All IAG and ECMG reports are in the public domain and are available from the project website: http://www.worldbank.org/afr/ccproj/ Financial audits are not made public.

Mrs. Spelman

To ask the Secretary of State for International Development if she will make a statement on the cost of the World Bank funded Chad-Cameroon oil pipeline. [98273]

Clare Short

The cost of the Chad-Cameroon Petroleum Development and Pipeline Project is estimated at US$3.7 billion, which is being funded largely by private industry.

The World Bank Group will provide $93 million in loans—$53.4 million for Cameroon and $39.5 million for Chad to—finance the two governments' equity share in the project, and a $100 million loan from the International Finance Corporation (IFC) to the joint-venture pipeline companies. In addition to investments in the main oilfield development/pipeline project, the World bank is funding two projects aimed at strengthening the capacity of the Chadian and Cameroonian governments in environmental management and effective monitoring of the petroleum sectors. A total of US$29.5 million is being provided by the International Development Association (IDA), the World bank's lending arm for the poorest countries, for this.

Mrs. Spelman

To ask the Secretary of State for International Development what assessment she has made of allegations of fraud concerning the World bank funded Chad-Cameroon oil pipeline. [98274]

Clare Short

We are aware of allegations made by a former employee of Exxon-Mobil, which appear to stem from concerns over specification of equipment being procured for the project. The World Bank Group looked into the concerns raised and we are content with the response given. My Department has confidence that the World Bank's systems for monitoring the implementation of this project, and for investigating any complaints, are appropriate. We are not aware of any other allegations of fraud.