section_path: Economy/Infrastructure/Energy
section_name: Energy
paragraph_text: Energy
  
  Chad's energy sector has had years of mismanagement by the parastatal Chad Water and Electric Society (STEE), which provides power for 15% of the capital's citizens and covers only 1.5% of the national population. Most Chadians burn biomass fuels such as wood and animal manure for power.
  
  ExxonMobil leads a consortium of Chevron and Petronas that has invested $3.7 billion to develop oil reserves estimated at one billion barrels in southern Chad. Oil production began in 2003 with the completion of a pipeline (financed in part by the World Bank) that links the southern oilfields to terminals on the Atlantic coast of Cameroon. As a condition of its assistance, the World Bank insisted that 80% of oil revenues be spent on development projects. In January 2006 the World Bank suspended its loan programme when the Chadian government passed laws reducing this amount. On 14 July 2006, the World Bank and Chad signed a memorandum of understanding under which the Government of Chad commits 70% of its spending to priority poverty reduction programmes.