Local groups say project will not end gas flaring, could exacerbate conflicts in the Niger Delta
| Location |
Nigeria, Benin, Togo, Ghana
|
| Total Cost |
US$500.00 million
|
| Funding |
US$125 million
|
| Dates |
2004
–2007 |
| Status |
Active
|
The West Africa Gas Pipeline (WAGP) project involves the construction of a 680 kilometer transport system designed to carry natural gas from Nigeria to markets in Benin, Togo and Ghana. In 2004, the World Bank and its private sector insurance arm, the Multilateral Investment Guarantee Agency (MIGA), together provided risk insurance totalling $125 million for WAGP, which is financed by a consortium of private companies led by Chevron. Project sponsors have claimed that the pipeline will improve the environment and promote regional development, but local civil society groups are concerned that promised benefits will not be realized. Completion of pipeline construction is expected in early 2007, having been delayed by instability in the Niger Delta region where the gas is to be extracted, a scenario predicted by local groups even while the project was under preparation. The project has become the subject of a claim to the World Bank Inspection Panel by affected communities in Nigeria, who have cited the inadequacy of the project’s environmental impact assessment and public consultations, and the failure to demonstrate how the project will reduce gas flaring in Nigeria or bring benefits to local communities.
BIC monitors World Bank Group support for WAGP, serving as a resource for environmental groups in Nigeria and Ghana concerned about the continued exploitation of natural resources from the fragile Niger Delta area and the impacts of trans-boundary infrastructure on local communities and the environment. BIC has helped bring these concerns to the attention of the World Bank Group and US government, and continues to advocate for greater transparency and public influence on the project’s design and implementation, as well as project sponsors’ accountability for the delivery of benefits and avoidance of harm to communities and the environment.