Chad has made meaningful progress in implementing the EITI with significant improvements in contract transparency and commodity trading.
The EITI Board decided that Chad has made meaningful progress in implementing the EITI Standard. Validation, which is the quality assurance of the EITI Standard found that Chad’s performance in implementing EITI Requirements has been generally positive but remains uneven.
Breaking new ground in the disclosure of cost oil and repayments of oil-backed loans
The Board recognised Chad’s pioneering effort to disclose specific revenue streams including the cost for extracting oil and for transporting it through the Chad-Cameroon pipeline to the export terminal in Kribi. Significantly, the disclosure by Exxon of so-called “cash-calls” to cover cost by oil field operator provides a fuller picture of the sector’s contribution to the economy. Other field operators could follow Exxon’s lead. Similarly, EITI Chad discloses and monitors oil backed loans and loan repayments to inform citizens about the State’s debt burden and any impact on the national budget.
Chad goes further in transparency in commodity trading
EITI reporting on the sale of in-kind revenues has provided detailed information to stakeholders and set a strong precedent for citizen oversight on how resources are managed.
The disclosure of more detailed data on oil sales by commodity trader Glencore on behalf of the national oil company Société des Hydrocarbures du Tchad (SHT) is a welcome development and a significant achievement, given that oil backed loans linked to oil sales is a matter of intense public interest and scrutiny in Chad.
In addition to volumes sold and revenues received, the Chad EITI has reported volume and value of oil sold, as well as the quality of the oil, official selling price, the date of sale and date of payment for each cargo of crude oil belonging to the state.
EITI Chad has also contributed to the public debate for a clear government policy on contract transparency adopted in April 2018. Since then, EITI Chad has regularly published contracts on its website, which is becoming a repository of all publicly available contracts in Chad, ensuring that policy is followed in practice.
Areas of improvements include improving space for civil society
Validation found that on balance Chad has made progress on ensuring space for civil society but noted growing restrictions of the space for civil society since 2015. While most incidences are not directly linked to the EITI process, the Board expressed concerns on the potential effects of Ordonnance 23, which if implemented in practice could lead to further restrictions of the civil society protocol.
This article was published on the EITI website on 8 May 2019.