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| Monday, 22 April, 2002, 14:38 GMT 15:38 UK Chad poll worries US investors ![]() The result of Chad's parliamentary elections is expected to leave President Idriss Deby with a tighter grip on power in the central African nation. The outcome of Sunday's poll is of particular interest to the World Bank and ExxonMobil, which are involved in the $3.7bn Chad-Cameroon oil pipeline, the largest US investment project in Africa.
His rule has worried regional allies and foreign investors. The pipeline is expected to earn the government $3bn over 25 years, boosting income by 50%, when it opens in 2003. The election results are expected to be announced later this week. Corruption concerns The 1,050km pipeline from Chad to the port of Kribi on Cameroon's Atlantic coast is a flagship project for the World Bank, which is desperate to ensure the scheme remains free of corruption.
When Mr Deby spent $4.5m of a $25m signature bonus at the end of 2000 on arms to fight against the Movement for Democracy and Justice in Chad (MDJT), the World Bank protested. The project has also developed to the point where ExxonMobil must commit significant funds. The government, after World Bank demands, passed legislation to ensure 72% of revenues are spent on education, health, and infrastructure, while 10% will be held in trust for future generations. Chad is one of the world's poorest countries, with about 64% of the population living below the poverty line, the World Bank estimates. US threat "There is the issue of whether the government of Chad has the institutional capabilities, even if it has the political will, to use oil revenue in the agreed-to manner," the US House of Representatives Subcommittee on Africa said last week. "It will be the role of the World Bank and the US to help Chad's Government honour its commitment, even if it should resist." The Bank will also audit the oil accounts, which in a radical departure from the norm for the developing world, will be made public. Election outlook Mr Deby's ruling Patriotic Salvation Movement (MPS) party is assured of winning 45 unopposed seats in the sparsely populated north, and his allies are sole candidates in another 20 of the 155 posts. The party controlled more than 80 seats going into the election. The main campaign themes were security, employment and the country's poor infrastructure. Last year's presidential vote, which was marred by accusations of irregularities, gave Mr Deby outright control of parliament. | See also: Internet links: The BBC is not responsible for the content of external internet sites Top Business stories now: Links to more Business stories are at the foot of the page. | |||||||||||||||||||||||||
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