Chad+Infrastructure+Projects

Executive Summary:
Chinese companies unlikely to increase the number of infrastructure projects in Chad in the next five years. However, the past infrastructure projects have corresponded with China's PNGSM investment in Chad. The most notable projects that Chinese have granted Chad all occurred in 2007 and later. For instance, in 2006 the China National Petroleum Corp (CNPC) signed an agreement with Chad to create its first oil refinery near N'Djamena. CNPC took a 60% share in the project with the Chad government picking up the remaining section. This project also included the creation of a 193 miles long pipeline to connect the refinery to the oil fields. However, Chad and China have had a rocky relationship with this refinery, operations have occasionally been temporarily suspended in the past due to price disputes over fuel prices, environmental issues, and operational issues. The most recent infrastructure project was in 2009, CNPC began construction of a 185 miles long oil pipeline to the N'Djamena refinery, which has been completed.

Discussion:
In 2006, CNPC signed an agreement with Chad to create its first oil refinery near N'Djamena. CNPC took a 60 percent share in the project and Chad the remaining 40 percent. The refinery, which began operations in July 2011, can refine up to 20,000 barrels per day, principally from the CNPC drilling project located in southern Chad. In 2009, construction of the integrated upstream downstream project between China and Chad started. The infrastructure project is a 193 miles long crude pipeline from Ronier to N'Djamena, and the designed annual deliverability is 1 million metric tons in the first phase. To lay the pipeline, horizontal directional drilling was used to cross the Chari River, which minimized its impact on the river and the valley. This was to help show China's responsible attitude toward the environment since CNPC has previously been suspended for environmental violations. The main part of the crude pipeline from Ronier to N'Djamena was completed by the end of 2010.

China has used infrastructure projects to allow for the pursuit of PNGSM in Chad. For instance, the Koudalwa village near the N'Djamena refinery has complained about the presence of CNPC because of oil prices and the refineries operations. China then constructed the town a school to help its image in the region. " I don't understand how the oil is being extracted on my doorstep, yet by the time it reaches me it's more expensive than before!" says Abangar Basswa, a resident of Koudalwa, reflecting local people's frustration that the cost of bringing refined fuel back to the Bongor region in tankers along rough roads means that any benefit from its original, cheaper price has been lost. Not much has changed since However, Basswa is happy that the village has a new school and several water pumps, thanks to China National Petroleum. "Like everyone, we just want the best future for our kids," he says.

miles nationwide and 10,000 in N'Djamena || Misc. || Guangdong Construction International Construction Co. || Build a road network in N'Djamena || Misc. || (a woman's center) || Misc. ||
 * **Date:** || **Price (USD):** || **Location:** || **Key Chinese Companies Involved:** || **Description:** || **Corresponds To:** ||
 * 2007 || 24 million || n/a || Zhongxing Technologies (ZTE) || Wireless network to cover approximately 19 million
 * 2007 || 30 million || N'Djamena || Beijing Municipal Engineering Design Institute,
 * 2007 || 92 million || Mayo-Kebbi Province || China CAMC Engineering Co, Ltd || Construction of the Baoare Cement Factory || Misc. ||
 * 2012 || 11 million || N'Djamena || n/a || Construction of the House of Chadian Woman

** Analytic Confidence: **
Analytic confidence is medium. Source reliability ranges from medium to high. There is no conflict between sources. The analyst had low expertise on the subject, worked alone while also collaborating with a group, and did not use a structured analytic method. The subject is moderately complex and the deadline was moderately easy to meet.
 * Analyst:** RoseAnna Wright