The Chad-Cameroon Petroleum Development and Pipeline Project was one that helped finance the pipeline with World Bank funds as well as funds from some other sources and lenders in the world. Chad had a lot of oil but being landlocked had no way to bring the oil to market. And as one of the poorest nations on earth, it didn't have the funds to build a pipeline. The IMF and World Bank got involved to help coalesce efforts towards success. There were $600 million in investments. $100 million from the IFC (private arm of World Bank), $200 million from France's COFACE. The US Import-Export Bank invested $200 million and private lenders coordinated by the IFC invested an additional $100 million. 1
So far as how the project went, initially you could
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"However, President Idris Deby's government announced in 2005 that oil money would go toward the general budget and the purchase of weapons, or else oil companies would be expelled. Now Deby spends the oil money on regime survival and rigged elections." 3
Could this negative impact have been avoided? No. Not without completely replacing the governments of the borrowing nations. Of course if the project were not to have been funded then of course the negative impacts of actions of an unpredictable dictator could be avoided but in this case the project would not have been funded. We must ask for sober answers to the longing question, can good be done with investment money to very poor nations with governments that are unaccountable?
The biggest problem with this disaster is that ultimately the people of Chad and Cameroon must repay the loans, it comes out of the equity share they receive from the oil companies operating the project. Those funds that are paying off the loans could have benefited the people of Chad as intended, but instead they went to pay for weapons of war so that President Idris Deby could stay in power through "rigged elections"
The United Oil Company of California (Unocal) made the decision in the 1990’s to invest in energy projects outside of the United States and chose to invest in the “Yadana field” pipeline. There are many stakeholders involved in the international “Yadana Field” natural gas project. Unocal, Thailand’s PTT Exploration and Production Public Co., Total S.A., and the Burmese government (Myanmar Oil and Gas Enterprise) along with the employees of these companies are all major stakeholders in the project. These were the main participants that would directly benefit as a result of the project. The people who were living in the area that the pipeline was to be
“There is, then, an economic basis for the absence of democracy in the Arab world. But it is structural. It has to do with the ways in which oil distorts the state, the market, the class structure, and the entire incentive structure. Particularly in an era of high global oil prices, the effects of the oil curse are relentless: Not a single one of the 23 countries that derive most of their export earnings from oil and gas is a democracy today.”
The Keystone XL Pipeline Project has many pros and cons just as any project does, but this project has way bigger cons than most projects this country will face today. “The Keystone XL Pipeline is an environmental crime in progress.” “It’s also been called the most destructive project on the planet.” The major issues with the Keystone XL Pipeline are “the dirty tar sands oil, the water waste, indigenous populations, refining tar sands oil and don’t forget the inevitable; pipeline spills.” And these are just some of the environmental issues, not too mention how building this thing from Canada to Texas; 2,100 miles to be exact, is affecting the people and their land, as stated “this isn’t a little tiny pipeline,
With an increasing global population and ever industrializing society 's, environmental concern is rarely given priority over economic incentive. But what people fail to realize is that our environmental failures, and relative apathy about it set up a plethora of problems for future generations to deal with. One of the most important decisions president Obama will face in the next year will be whether or not to approve the building of the Keystone XL pipeline, a massively sized, and massively controversial oil pipeline that would stretch all the way from Alberta Canada, to American oil refineries along the Gulf Of Mexico. Despite the economic incentive present, the building of the Keystone XL pipeline should not happen because of the
What is the keystone pipeline and what does it do? The keystone pipeline is an oil pipeline that was commissioned in 2010. It runs from Alberta, Canada and then into refineries in Illinois and Texas and also to an oil pipeline center in Oklahoma. This pipeline is a critical project for the United States. The Pipeline consists of four phases. The first three phases have already been completed. The fourth phase failed to receive permits from the United States government in 2015. The project proposal for Phase IV from 2012 will be new 36-inch pipeline from Alberta and into Montana and then South Dakota to Nebraska. It will transport 830,000 barrels per day of crude oil to refineries in the Gulf Coast and other areas.
Henry Thoreau is convinced that “unjust laws exist” (Thoreau 07), but it’s the people's choice whether to stand up to them or hide behind the law. The Dakota Access pipeline gave rise to the “Standing rock” (Smith/Medina 09) protest. Camps were set up next to the Cannonball River, and hundreds of Native Americans came and stood by the Standing Rock Sioux to have peaceful protest for their Native rights. All the protesters stood there raising signs, trying to have their voice heard by the government. This protest became widely known that many people around the globe stood out and raised their voices as well. Both, Vince and Medina, stated that “tribal governments have sent letters” (Smith/Medina 09) to Standing Rock, supporting their protest,
Native Americans are being disrespected, harmed, and their homeland is being taken from them. Am I talking about events taken place centuries ago? No, because these unfortunate circumstances yet again are occurring right here, now, in the present. This horrid affair has a name: The Dakota Access Pipeline. This Pipeline is an oil transporting pipeline, which is funded by the U.S Army Corps of Engineers, who have devised a plan for the pipeline to run through the states of North Dakota, South Dakota, Iowa, and Illinois. However, unfortunately, this pipeline will run straight through the reservation of the Standing Rock Sioux Tribe. The Standing Rock Sioux tribe, expressing their distress for the pipeline have said, that the pipeline will be “Destroying our burial sites, prayer sites, and culturally significant artifacts,” Arguments for the pipeline however have tried to counter this claim, trying to emphasize that “The pipeline wouldn 't just be an economic boon, it would also significantly decrease U.S. reliance on foreign oil”, and that the pipeline is estimated to produce “374.3 million gallons of gasoline per day.”, which could help the sinking oil economy. (Yan, 2016) However, despite the economical growth it could achieve, the Dakota Access Pipeline could have damaging environmental effects on the Standing Rock Sioux Tribe and the areas surrounding.
Life insurance is meant to provide funds to replace a breadwinner's to protect and support dependents. Chad and Haley are dependents, not income providers. Therefore, the purchase of life insurance is unnecessary and not recommended. The Dumonts should use the money they would spend on policies for the children to increase their own coverage.
Most corporate financing decisions in practice reduce to a choice between debt and equity. The finance manager wishing to fund a new project, but reluctant to cut dividends or to make a rights issue, which leads to the decision of borrowing options. The issue with regards to shareholder objectives being met by the management in making financing decisions has come to become a major issue of recent times. This relates to understanding the concept of the agency problem. It deals with the separation of ownership and control of an organisation within a financial context. The financial manager can raise long-term funds internally, from the company’s cash flow, or externally, via the capital market, the market for funds
In the early 2000's the World Bank supplied $4.2 billion dollars to a project entitled the "Chad-Cameroon oil pipeline to the Atlantic Ocean." The goal of the project was to provide Chad an opportunity to grow its infrastructure and provide the economy with jobs. The project was done under the agreement that the money would be spent on improving Chad as a country with international supervisions. The negative outcomes of this were a misuse of the money. In 2005 the president of Chad declared the oil money would be used to fund the general budget of the country and to purchase weapons. This was rather unfortunate and unproductive for the country and hindered the overall goal of this project.
The Chad Cameroon Petroleum Development and Pipeline Project is one of the largest investments in the private sector in Africa that costs approximately US$3.7 billion. The project is being funded by the World Bank and the International Financial Corporation. The involvement of these two major financial institutions is a demonstration of the rationale that the project will generate revenue that will enable the Chad and Cameroonian governments to invest more in programs that focus on reducing poverty like rural employment, education, and health. The involvement of the International Financial Corporation will be geared towards accomplishing three major roles. These are long-term financing, stabilizing role, and uplifting the quality and standard of mitigation plans and environmental assessments.
Weight of Equity = 71%; Equity Cost of Capital = 12%; Weight of Debt = 29%; Debt Cost of Capital = 4.55%
One example of a hydroelectric dam funded by the World Bank is the Sardar Sarovar Dam in India. The World Bank funded Sardar Sarovar in 1985, approving $450 million in loans for the development of this dam. (Bosshard, 2008)
Misused Money, Over $500 billion (U.S.) has been sent to African nations in the form of direct aid. The consensus is that the money has had little long term effect. In addition, most African nations have borrowed substantial sums of money. However, a large percentage of the money was either been invested in weapons (money that was spent back in developed nations and
What is the Dakota Access Pipeline? The Dakota Access Pipeline is a 1,172 mile underground state of the art 30” pipeline extending from the Bakken/Three Forks production area in North Dakota to Pakota, Illinois. The pipeline will transfer oil from North Dakota to other refining markets. The pipeline will run underground and has passed federal safety requirements. They claim the pipeline is safer than most modes of transportations and will be very beneficial for Americans.