Wednesday, October 08, 2003

Chad: tracking oil $$

Here is another fascinating story from today's Finacial Times (I love this paper!).

Chad just started a program to track how oil revenue is spent. The World Bank is involved in this project.
Revenues from royalties and dividends will go to a special escrow account in London. After deduction of loan service payments, 10 per cent is earmarked for a "future generations fund", 5 per cent for the producing region and the remainder for priority spending in sectors such as education, healthcare, roads and water supply, all vetted by an oversight committee.

On the original planning assumption of oil at $15 a barrel, well below today's price, the Chad oilfields were expected to generate $13bn over the next 25 years.
The one thought nagging at me is that the program seems a bit patronizing. But considering how badly Africa's wealth has been managed in the past, it would be irresponsible not to look at this project seriously.