N'DJAMÉNA (October 24, 1997) - The government of Chad today submitted to the World Bank its Environmental Assessment (EA) study of a project (Chad/Cameroon Development Project) to develop the oil fields in the Doba basin.

Under the Project, a consortium led by the Exxon subsidiary in Chad and which also includes subsidiaries of Shell and Elf, would develop the oil fields in landlocked Chad. The consortium, the Chad government and the Cameroon government would also construct and operate a 1050-kilometer pipeline to Kribi in Cameroon in order to export the oil to world markets.

The exhaustive report (EA) of more than 300 pages details the results of five years of scientific study conducted according to World Bank guidelines. This report identifies impacts on the environment related to project implementation and describes measures to mitigate these. This report is a key element of Chad's environmental policy and supports its application for a $45 million World Bank loan that will enable the people of Chad to make an equity investment in the two companies which will own and operate the export pipeline.

The consortium has said it plans to finance 97% of the approximately $3 billion cost of the project either directly or through loans at market rate. Investments by Chad and Cameroon in the pipeline would make up the remaining 3% of the project's costs.

Today's submittal of the EA is the first in a series of environmental documents and environmental protection plans that will be delivered to the World Bank in connection with the project over the next several weeks. These include the Cameroon EA, as well as Environmental Management Plans and plans for compensating citizens who are directly affected by the project. These documents are now in the final stages of completion by their respective governments. The Chad government has created and implemented a national technical committee in charge of developing, monitoring and supervising the execution of the Environmental Management Plan of the Oil Project. The main mandate of this committee includes the development of a complete Environmental Management Plan.

The environmental documents identify potential impacts of the project and develop measures to avoid or reduce any significant negative effects. Some of the topics covered in the EA include air quality, compensation for lost crops and land, resettlement, oil spill prevention and response, erosion control, disease and accident prevention and mechanisms to help manage the revenues that the project will bring to Chad.

The Environmental Benefits and Costs Analysis section of the EA demonstrates the benefits the Chadian people can gain through implementation of the project. From this analysis, the Chadian government estimates the project will generate significant economic development value for the country. The money this project will bring to Chad will provide the means to make vital investments in education, health, rural development and infrastructure improvements.

In an official letter accompanying the submission, the Environment and Water Minister Edgar Ngarbaroum pointed out that the environmental study is believed to be "the most thorough Environmental Assessment ever undertaken for an oil project in Africa and that it would meet international petroleum industry standards." (The full text of the submittal letter is attached).

A team of over 30 biologists, botanists, hydrologists, engineers, geologists, sociologists and economists have worked on the Chad EA under the direction of the internationally renowned environmental consulting firm of Dames & Moore. Included on the scientific team were specialists from Chadian universities and national and international research institutions.

In addition to the scientific studies, a widespread effort has been underway since 1993 to inform the people of Chad and gather their input on the project design. This consultation has included nearly every village, town and canton along the proposed pipeline route and throughout the administrative region surrounding the oil field area. It has been conducted in English, French and local languages.

In excess of 10,000 people have had the opportunity to be heard at publicly announced meetings in more than 50 project-area villages. In-depth interviews have been conducted with more than 600 families in the project area in Chad. In addition approximately 18 non-governmental organizations (NGOs) working in Chad and approximately 10 international NGOs with an interest in Chad have been consulted.

"Now that the environmental documents are being finalized and made available for distribution, the consortium and the two host country governments are proceeding to the next stage of the public consultation process," said Dean Guttormson, President of Esso Exploration & Production Chad Inc., the Exxon subsidiary which has been chosen by the consortium as the project operator. "For example, survey teams will be traveling the entire 1050-kilometer length of the proposed pipeline route and the oil fields themselves, holding public information meetings with villages along the way."

In addition, copies of the environmental documentation will be deposited in public locations such as prefecture offices and town administration facilities. The documents are also being made available to local and international NGOs. Summaries of the environmental documentation have been prepared for wider distribution, including posting on a project website ( www.essochad.com). A full copy of all environmental documents will be available for public review at the World Bank Information Center, 1818 H Street, N.W., Washington, D.C. 20433, (202) 458-5454.

All the public comments sent to the Project or gathered during the various consultations will be collected, analyzed and submitted to the World Bank. People requesting more information about the Project, or submitting comments, may do so by writing to the Republic of Chad:

For information or comments regarding environmental matters:

Ministry of Environment and Water, Mr. Ali Ngaram, BP 447, N'Djaména Tchad

Telephone: (235) 52 39 19 or (235) 52 50 26.

For information or comments regarding financial matters and revenue management:

UAP/GEEP, Mrs. Aziza Baroud, BP 144, N'Djaména, Tchad

Telephone: (235)52 38 64 or (235) 52 60 49.