GOC-WORLD BANK STILL DUKING IT OUT ON OIL LAW

C O N F I D E N T I A L NDJAMENA 001760

SIPDIS


LONDON AND PARIS FOR AFRICA WATCHERS, TREASURY FOR OTA,
ENERGY FOR GPERSON AND CGAY

E.O. 12958: DECL: 12/11/2015
TAGS: CD ECON EFIN ENRG EPET PGOV
SUBJECT: GOC-WORLD BANK STILL DUKING IT OUT ON OIL LAW
REVISIONS, TREASURY ADVISOR'S STATUS STILL UNCLEAR

REF: NDJAMENA 1707 AND PREVIOUS

Classified By: Economic/Consular Officer Jitu Sardar for reasons 1.4 (b
) and (d)


1. (C) SUMMARY: Even though some Chadian ministers remain
optimistic about a compromise with the World Bank, President
Deby reiterated the GOC's right to move forward with revising
its oil revenue management law in a combative speech at
ceremonies in Fada in northern Chad on December 10. Because
the GOC had yet to send an invitation letter to the IMF and
World Bank, the IMF decided to hold off sending its technical
assessment mission to Chad. We continue to pursue the issue
of permitting our Treasury Advisor to begin work at the
College. While GOC ministers maintain it could be resolved
within the next few weeks, other viewpoints indicate that GOC
officials may not be so quick to agree to the advisor's
placement in the College. END SUMMARY.

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GOC OFFICIALS OPTIMISTIC OF COMPROMISE
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2. (SBU) GOC officials stated to us last week that the
Government believes a resolution can be reached with the
World Bank on the revisions of the revenue management law.
Minister of Plan, Economy, and Development Mahamat Hassan
told the Ambassador on December 8 that the GOC is ready and
willing to negotiate with the World Bank. He noted that
President Deby's comments in the RFI interview November 28
reflected the Government's frustration with the World Bank,
and the GOC's view of its sovereign right to make decisions
on its oil revenues.


3. (SBU) Hassan stated that the Chadian delegation that
visited Washington for the September World Bank-IMF meetings
left with a deep sense of frustration that the World Bank had
not acknowledged its concerns. Unmet expectations over
benefits of oil, he argued, were creating deep social
tensions among the population. Hassan noted that a rupture
with the Bank would not be helpful. He pointed out that the
GOC was painfully aware of this fact following the suspension
of its IMF PRGF program in 2004.


4. (SBU) President of the Revenue Management College
Abdoulaye Lamana told the Ambassador December 8 that he was
optimistic about resolving the dispute between the GOC and
the World Bank. Lamana stated that government officials,
including the Prime Minister, told him the GOC would be
prepared to negotiate an agreement on this front. Lamana
noted that direct dialogue needed to take place at higher
political levels in both organizations. While Lamana
understand the reasoning for the World Bank to send a
technical assessment mission to Chad, political dialogue
needed to occur with senior World Bank and GOC officials.

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DEBY REMAINS DEFIANT
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5. (U) President Deby reaffirmed his determination to push
through revisions in the oil law in a speech at a rally in
the northern city of Fada on December 10. He claimed oil
revenues would continue to be managed transparently and with
the goal of reducing poverty. In provocative terms, he
asserted that he would never allow the World Bank or any
other outsider to interfere with his country's sovereignty.


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IMF PULLS ITS ASSESSMENT TEAM FOR THE TIME BEING
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6. (SBU) IMF Representative Wayne Camard told the
Ambassador on December 12 that the IMF had decided to pull
its technical assessment mission, following a failure by the
Prime Minister's office to formally invite a joint World
Bank/IMF team to Chad. Camard stated that his headquarters
could no longer wait for the GOC's response, while a team


that could be used for other assessment missions was put on
stand-by.

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TREASURY ADVISOR STATUS ON HOLD
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7. (SBU) Concerning the status of U.S. Treasury Advisor
Linda Gregory, who has yet to be able to begin work at the
College, GOC ministers told the Ambassador that they would
try to resolve her status as quickly as possible. Minister
of Plan Hassan offered a time frame of ten days for a final
resolution to Gregory's status. He said that the issue did
not have to wait for action in the National Assembly on
revising the oil law. He promised to consult with the
Foreign Ministry and work out an agreement on the terms of
reference of her contract.


8. (SBU) Following their meeting on December 2 (see
reftel),Minister of Finance Abbas Tolli told the Ambassador
on December 9 that a letter with the GOC's proposed revisions
to the terms of reference in the Treasury Advisor's contract
would be sent shortly. College President Lamana added in his
meeting with the Ambassador that we should wait until the
debate concerning the oil revenue laws begins on December 20,
as he felt the GOC would solidify its position on the oil law
revisions, the status of the Revenue Management College, and
the position of the Treasury Advisor.


9. (C) While comments from these senior officials seem
promising, other informal comments reveal that the GOC is
hesitant to allow Gregory to begin her work in the College.
In addition to comments made by the Ministry of Plan's
Director of Plan (see reftel),former Minister of Finance
Nadjiam Djaibe told the Embassy on December 9 that misguided
officials were under the impression that the Treasury advisor
would actually work for the World Bank, and thus were
hesitant to allow her to assume her position. At the same
time, GOC officials feared permitting scrutiny that could
impede the flow of resources for President Deby's immediate
objectives (i.e., elections, preserving security, and paying
salaries). As a result, GOC officials would continue to
stall on Gregory's position, according to the former Finance
Minister.

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COMMENT
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10. (C) If, as the two Ministers suggest, the issue of the
terms of reference of our Treasury Advisor's contract can be
separated from that of the revision in the oil law, we are
hopeful the matter can be resolved soon. Otherwise it could
drag on much longer. Unfortunately, the status of the
position will unavoidably be caught up in the bigger debate
over the oil law and Chad's relations with the World Bank.
We will keep on top of the issue.
WALL


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