The pace of construction activity increased sharply this quarter.

- The first 50 oil well sites have been identified and the first elements of a portable drilling work camp have arrived in the oilfield area.

- Pipe and other materiel have started moving in volume to storage yards via rail and truck convoy.

- About one-quarter of the pipe needed for the pipeline has been shipped to the receiving port at Douala, Cameroon.

- Construction has advanced on the upgraded road link from Cameroon to Chad with the start of work on a bridge for the new M'béré River crossing.

A third set of site-specific contractor environmental protection plans has been approved and another is on the verge of approval.

World Bank and European Investment Bank loans to the two host countries have been secured, enabling their financial participation in the Project through equity positions in the pipeline companies.

No serious reportable EMP situations were recorded this quarter.

- However, a number of low level non-compliances took place in February in Chad. Construction by the contractor responsible for the non-compliances was halted while solutions were developed. Work restarted in two weeks.

The Project's worker safety record continues to be good with a Recordable Incident Rate of .32 per 200,000 hours work. In Cameroon, workers have put in 7 million hours on the job without a Lost Time Incident.

Another component of the Project's road safety initiative has been put in place.

- The Road Safety Plan prescribes a village-specific program of safety measures such as speed bumps, signs and other traffic control tools.

- The plan also provides for a village-by-village road safety awareness campaign including village meetings and safety posters in local languages.

The primary consultation effort this quarter was the wrap up of the resolution process for the village road bypass issue. A total of 15 villages will be skirted.

Compensation has nearly been completed in Cameroon for the pipeline and road upgrade right of ways. In Chad, compensation rates have been maintained or increased based on a new market survey.

The EMP monitoring staff was increased to 33 people, a rise of 75% over last quarter. The tracking database has been put into the field and preparations are underway for a second version of the software.

The number of people employed on the Project has reached nearly 3,500 workers, half the projected peak employment for the construction phase.

Workers at two Project work camps (Belel and Dompta) went on strike. The job actions against one of the prime contractors were resolved within a few days.

Spending in the local economy quadrupled to over $20 million during the quarter, driven by the increased pace of construction.

An in-migration situation has taken hold near a work camp in Dompta, Cameroon, the future site of Pump Station #2. Steps have been taken to ensure that the population has good water, adequate food and sanitary conditions. Other measures are under study.

Project workers received more than 5,000 medical consultations. Employees and their immediate families were vaccinated following declaration of a meningitis epidemic in southern Chad.

Two new Project-wide community health initiatives have been announced. The project has agreed to be a partner in the global Roll Back Malaria campaign for Chad and Cameroon. The Project also is partnering in the UNICEF maternal neonatal tetanus campaign.

The Project-endowed Environmental Foundation has been fully appointed and it has been incorporated and registered in the Netherlands.

The External Audit Program has been initiated with appointment of the International Advisory Group (IAG) and the External Compliance Monitoring Group (ECMG). The ECMG made its first visit to Chad and Cameroon during the quarter.

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