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World Bank probes West African pipeline project
The World Bank is investigating possible violations of its funding rules
for the $ 590 mm Chevron-operated West African Gas Pipeline in Nigeria,
it said.
The bank said an investigation panel was looking into allegations that
the project has violated conditions attached to its funding covering the
safety and social and economic impact of the pipeline.
The panel was set up following a complaint filed with the World Bank in
April 2006 by 12 local communities close to the planned route of the
pipeline. The bank said it had found discrepancies in information about
the project provided by Chevron and the local communities. The panel
reported that during a recent visit to Nigeria it had found
"disagreements" between the projects backers and community members about
the source of pollution, alleged damage to fisheries and valuation and
compensation procedures.
In their original complaint, the communities wrote: "We believe that the
West-African Gas Pipeline project, if executed as presently conceived,
would do irreparable damage to the land and, consequently, destroy the
livelihoods of the 12 communities."
World Bank documents showed the communities rose concerns about the
compensation being offered to local landowners, safety measures on the
pipeline and the projects alleged failure to help reduce gas flaring at
local gas production sites.
US supermajor Chevron is the biggest shareholder in the project, which
is intended to supply gas-powered natural gas in the country. Other
partners include the Nigerian National Petroleum Corporation and
Anglo-Dutch supermajor Shell.
Instability is growing in Nigeria's southern oil producing areas, with
almost a quarter of the region's oil production shut in due to violence
directed against oil companies over the last 18 months.
Many locals claim they have seen few benefits from the development of
Nigeria's oil and gas reserves and continue to suffer from poverty,
unemployment and the effects of pollution despite the billions of
dollars of resources extracted from under their land.