THE CRISIS OF ACCOUNTABILITY AND THE WEST AFRICA GASPIPELINE PROJECT (WAGP) By Noble Wadzah At the 7th Annual Bank Conference on Development Economics (ABCDE), Amsterdam, May 23-24, 2005.

Introduction What is accountability? Accountability refers to positive steps and processes towards achieving task performance in a given situation. It necessarily represents the interests and voices of the powerless and vulnerable. Accountability promotes coordination and mutual self-respect.

What is the West African Gas Pipeline? (WAGP) It is a proposed 690 km long pipeline energy infrastructure project. It will transport natural gas from Nigeria to special consumers (industrial) in Benin, Togo and Ghana. It is being driven by a Chevron-led five member consortium and is supported by the World Bank (WB). The WAGP Treaty was created at an ECOWAS Summit in January 2000 by the Presidents of the four participating countries (Nigeria, Benin, Togo and Ghana).

Some reasons for the need for accountability mechanism in WAGP development 1 Moral and ethical considerations. Critical for human-centered development. Socio-economic and environmental integrity. To promote equitable profit and benefit sharing. It also generates confidence and stimulates local interest in development.

Some reasons for the need for accountability mechanism in WAGP development 2 WB and IFI-backed development projects are often associated with negative impacts on local people and environments. Conclusions drawn from the WB’s own studies show a link between the extractive industries and high poverty levels. To achieve the desired result of the WB’s push to accelerate economic growth in Africa. To achieve results from the WB’s stress on the need for ‘improved governance’ and ‘strengthened capacity’. It will fulfill the recommendations of the WB’s extractive industries review.

WAGP and the dispute over accountability 1 Though the WB and the private sector claim WAGP to be of benefit to the participating countries, the Ghana’s Energy Commission suggests the project will not be economically viable for Ghana. The Commission is of the view that there is no transparency because the deal is totally in the hands of Chevron-Texaco. Statements by some Parliamentarians in Ghana show that Ghana has not yet had the opportunity to review the Chevron-led proposed terms.

WAGP and the dispute over accountability 2 WAGP promoters have sidestepped the findings of Ghana’s Energy Commission. The WB representative has described WAGP as ‘a train that has left the station’ suggesting it is now too late to reopen debate on the economic viability of WAGP. The WB and the private sector undermine democratic institutions and weaken institutional mandates and policies.

WAGP and the dispute over accountability 3 The WB’s Project Appraisal Document (PAD) has stated the WAGP is not a significant project, exempting it from the application of transparency requirements. Gas commodity purchase and sales agreements will not be in the public domain. The WB’s response to civil society’s call for an Environmental Impact Assessment of the Escravos-Lagos pipeline area is uncertain.

The myth of WAGP and regional integration Ghana and Nigeria have a long-standing relationship particularly through NEPAD implementation. WAGP will draw resources from a conflict region. Unless the WAGP is committed to dealing with the conflict, there is concern it may undermine the relationship between Ghana and Nigeria. In dealing with this problem, WAGP will be promoting grassroots regional integration which is desirable. Ordinary citizens are the best promoters of regional integration (peasant trading and agriculture etc) and this should be encouraged by regional projects like WAGP rather than jeopardized.

WAGP ownership, regulation and accountability The company driving WAGP is the West African Gas Pipeline Company (WAPCO). WAPCO is registered in Bermuda as an offshore company. This raises serious regulation concerns for the participating countries. In Ghana, WAGP should be considered as a regulatory utility similar to the electricity company and must be subject to the country’s utility regulations and principles. It is uncertain whether the citizens of the four participating countries will be able to hold WAPCO accountable for any damage. The WB and the private sector have said WAGP will not be responsible for indirect impacts. WAGP will provide cheap energy for mining companies who are themselves already guilty of a lack of environmental and social accountability.

Gas flare It is unclear the extent to which WAGP will contribute to reducing gas flaring (of associated gas which is found in association with oil drilling) in Nigeria’s Delta Region. For WAGP to be accountable to its gas flaring commitments, it should collect 100 percent associated gas until this source is exhausted.

Community Resettlement The Community Resettlement Action Plan (RAP) is a crucial component of the EIA mandatory public hearing. The RAP was clearly missing in the EIA public hearing in Ghana and yet it was made available to the WB, resulting in the WB’s endorsement of WAGP. The RAP clearly missed public scrutiny and this raises accountability concerns.

Recommendations The WB and the private sector must further increase the space for public debate and scrutiny over project agreements, contracts and other documents, as well as the project’s economic viability. The community RAP must be redone with full participation of the public, particularly affected communities and the civil society organizations that represent their views. WAGP must provide measurable and detailed gas flare reduction commitments, timetables and targets, and show clearly it will collect 100 percent associated gas. WAGP must identify potential indirect impacts that will be associated with the project and must address those in case of any liability. Thank you for your attention