The World Bank has announced that it has granted a 40 million dollar loan to Chad targeting the African nation's poverty reduction program. The loan, which matures in 40 years and has a 10-year grace period, was approved by the International Development Association, part of the World Bank Group.

The poverty reduction program seeks to put in place the infrastructure needed to combat poverty, as initial revenues from the start-up of the oil sector become available in 2003. A consortium made up of Esso, Chevron and Petronas oil companies has launched major projects in Chad ahead of exploitation of the Doba basin in the south of the country.

A crude oil transportation pipeline will be run from Doba to neighboring Cameroon's Kribi terminal 1,050 kilometers (650 miles) away.

The loan will also be used in the nation's project to develop the cotton industry.