Chad-Cameroon Petroleum Development and Pipeline Project

completed

The borrowers of the IFC loans will be: (a) TOTCO, a special-purpose company incorporated in Chad as a joint-venture between the private sponsors, and the Government of Chad, which will own and operate the Chad portion of the pipeline export system, and (b) COTCO, a special-purpose company incorporated in Cameroon as a joint-venture between the private sponsors, and the Governments of Cameroon and Chad, which will own and operate the Cameroon portion of the pipeline export system. TOTCO and COTCO will transport crude oil to the export-loading terminal through their respective portions of the pipeline export system.The total project cost is estimated at $3.5 billion: $1.5 billion for the oilfield development, to be funded by equity from the private sponsors; and $2 billion for a related pipeline export system, for which the IFC and the International Bank for Reconstruction and Development (IBRD or the World Bank) financing is proposed. The export system is expected to be financed by $100 million IFC A loans, up to $300 million IFC syndicated B loans, $600 million from export credit agencies and commercial banks, a $400 million bond offering, $112 million equity from Chad and Cameroon, to be funded by IBRD and the European Investment Bank (EIB), and $500 million in equity from the private sponsors.