Cameroon: Chad-Cameroon Pipeline-02/Cameroon
CARFAD, CED, FOCARFE & RELUFA (Confidential - on behalf of affected communities)
Compensation, loss of livelihoods, waste management, community health & safety, and impacts to Indigenous communities.
$100 million A loan and $100 million B loan
The Chad-Cameroon Petroleum Development and Pipeline Project involved the construction of a 1070 km pipeline to transport crude oil from three fields in southwestern Chad to a floating facility 11 km off the Cameroon coast. The International Finance Corporation’s investment consisted of a $100 million loan for its own account and a $100 million loan syndicated to over 15 commercial banks.
In May 2011, four Cameroonian organizations, filed a complaint with the CAO on behalf of several local community members who believe they have been affected by the project. The complaint voices concerns about the rise in HIV/AIDS after the laying of the pipeline, inadequate compensation packages, loss of livelihoods among fishermen, inappropriate waste management, work-related accidents and compensation, and the displacement of and improper compensation to an indigenous community, among others. The complainants and those they have the authority to represent are located on the Cameroonian side of the project, and their concerns relate to the Cameroonian Sponsor of the project, the Cameroon Oil Transportation Company – COTCO.
CAO found the complaint eligible for further assessment in June 2011. An assessment of the complaint was completed in January 2012 and the relevant stakeholders agreed to seek resolution using a dispute resolution approach. Between 2012 and 2017, CAO has been involved in facilitating dialogue between complainants and the Cameroon Oil Transportation Company (COTCO), the pipeline project operator, focusing first on four individual complaints, and then on three community complaints. Capacity building sessions have been conducted to strengthen the tripartite platform, as well as to benefit representatives of the fishermen group, the Bagyeli indigenous people, and the Ebaka community.
By 2014, agreements had been negotiated and fully implemented in the four individual cases contained in the complaint. In 2016 and 2017, agreements were reached in the three community based cases and CAO stayed engaged to monitor the implementation and offer support for implementation challenges. In June 2019, CAO engaged with the parties for a ceremonial closure of the dispute resolution process and in March 2020, CAO released a Conclusion Report and formally closed the case. The Conclusion Report summarizing the dispute resolution process is available in English and French under "View Documents" below.
This case is now closed.
Status as of March 31, 2020