Good Afternoon

• Your Excellency, President Déby (Chad)

• Your Excellency President Biya (Cameroon)

• Vice President Madavo (World Bank)

• Distinguished Ministers from Chad and Cameroon,

• Distinguished Members of the Diplomatic Corp

• World Bank Representatives

• Prefets, Sous-Prefets, Canton and Village Chiefs

Ladies and Gentlemen:

I want to welcome you on behalf of ExxonMobil, Esso Chad and our co-venturers, Petronas, and Chevron.

I am both proud and excited to be here today - a day all of us have long strived for over the past several years.

We are here to celebrate our accomplishments and define our upcoming challenges, as construction begins on a project that is important for the Consortium sponsors, as well as for the countries of Chad and Cameroon and the World Bank Group.

The year 2000 has been a remarkable one for the Chad-Cameroon Oil Development and Pipeline Project.

In April, changes were announced to the Consortium of co-venturers responsible for development of the project. Both Petronas, the National Oil Company of Malaysia, and Chevron Corporation, of the United States, officially joined the Project at that time. They are represented here today and will be joining me at the microphone later. I want to express Esso's sincere appreciation for the dedication they have shown to the project - you have been committed and contributing partners from the outset and we look forward to a long and beneficial relationship in this endeavor.

Also in April, the Consortium expressed our commitment to Chad and Cameroon and to this project. Our objective was to move forward as quickly as possible and we have.

As all of you know, on June 6th, the World Bank Board of Directors overwhelmingly approved their participation in the Project - truly a great day for Chadians and Cameroonians. I echo the words of Bank President Wolfensohn when he stated that this project reflects and unprecedented collaborative effort between the Bank Group, the Consortium and the two governments. On behalf of the Consortium, I wish to express my congratulations and my sincere appreciation to you, President Déby, and to all those who have worked so diligently for so long to make this milestone a reality.

The Bank's decision to approve their participation was important for two reasons. First, it validated the Project's environmental and socioeconomic assessment and mitigation plans. It speaks volumes for the careful planning that has gone into this project over the past eight years. And second, it has opened the door for Chad and Cameroon to move forward in their fight against poverty - providing a foundation for the countries to grow and develop to the benefit of the citizens and for generations yet to come.

The Consortium has long had the objective to conduct the project in accordance with appropriate standards for environmental protection and respect for local citizens. We have been focused on that objective and through a collaborative process with the World Bank, have developed a project plan that is responsible and leading edge. Here in Chad, a Compensation and Resettlement Plan has been developed to support (the limited number of) local farmers required to relocate their homes. This will come through a program of compensation and construction of new compatible replacement housing. These initiatives have benefited from the direct input of local citizens through a consultation effort, unmatched in Africa, and likely, in the world.

The success we have experienced reflects the dedication, perseverance, and cooperation of all of you (the World Bank, and the governments and citizens of Chad and Cameroon). I congratulate Mr. Madavo and the World Bank Organization for their tireless effort to support this project, in the spirit of cooperation between the public and private sector. Certainly, your President, Mr. Wolfensohn, has shown strong conviction and leadership as the Bank assessed it participation, all the time knowing that the Project represents an opportunity to create a brighter future for this country.

I also congratulate Mr. Abderhamen Dadi, who has long represented Chad in Project negotiations and Mr. Adolfe Moudiki, who has done the same for Cameroon. Both gentlemen have been instrumental in moving the project forward with a vision of what this can mean to each country's development. The future for the Project begins today. It's clear the challenges will continue as we move forward with project implementation. Indeed the eyes of the world are on this world-class project and we must be focused and vigilant in the execution of our plans. Make no mistake, I have great confidence in our collective abilities to deliver.

Let me summarize, some of our key near-term activities:

We are now mobilizing project and contractor staff to complete detailed engineering design.

We are restarting previously suspended major contracts;

Line pipe is now being manufactured at mills in Europe; and,

Near year-end, we will commence road and bridge work in Cameroon and Chad following the end of the regional rainy season.

During the construction phase and the subsequent operation phase, we will honor our commitments and pursue the Project with the same degree of transparency and dedication brought to it so far. Ongoing dialogue will be maintained with local populations and the required mitigation will be implemented to help ensure benefits as planned.

The country of Chad will benefit beyond the direct project revenues through many near-term infrastructure upgrades coincident with project construction. Such improvements include many kilometers of road upgrades and construction of the new bridge at the Mbere River - both will improve market accessibility.

In addition, priority will be given to Chadian businesses for contracts involving construction supplies and services when offered at competitive terms. As well, local citizens will receive preference for labor positions.

Next year will see full-scale activity with pipeline installation in Cameroon plus field facilities construction and well drilling here in Chad. There is much to do, but I can assure you we are up to the task. Above all, we will complete our work safely. There will be no higher priority for the Consortium and our contractors.

In conclusion, we know that profound poverty is an unfortunate reality in much of Africa. Its alleviation requires private investment, collaboration and responsible governmental policies. The Chad-Cameroon Project embodies all these elements. It offers great hope to the people of these two countries and we are proud to be involved now and in the future.