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In June 2000, the World Bank approved a loan package worth nearly $300 million to the Chad-Cameroon oil project, the largest oil investment in Africa, following several years of considerable controversy. Within the World Bank, Britain's Department for International Development (DFID) was a strong advocate of the project, according to a new report from Friends of the Earth called 'Pumping Poverty', that examines the role of DFID in oil projects.

The Chad/Cameroon oil pipeline subsequently came online in 2003 and its benefit for the poor has been the subject of controversy and debate, with critics pointing to concerns over corruption and how much of the revenues have filtered through to the poor.

The report says DFID does not share the concerns related to the effect of the project on the poor, citing a comment by UK Secretary of State Hilary Benn in 2004: "DFID is confident that the World Bank's systems for the monitoring and implementation of this project, and for the investigation of any warranted complaints are appropriate."

The example of the Chad-Cameroon oil pipeline is provided as a case study in a broader report that investigates the role of British overseas development aid in facilitating oil development. It finds that such aid often serves wealthy corporations, leaving the poor worse off than before and aggravating global climate change.

* Compiled from the report by Pambazuka News.