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Cablegate: Turkish Electricity to Iraq -- Energy Ministry

This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS ANKARA 000315

SIPDIS


SENSITIVE


E.O. 12958: N/A
TAGS: ECIN ENRG ETRD IZ PGOV PREL TU
SUBJECT: TURKISH ELECTRICITY TO IRAQ -- ENERGY MINISTRY
SKEPTICAL OF PRIVATE SECTOR SOLUTION IN NEAR TERM

REF: HQ CPA 466


Sensitive but unclassified -- not for internet distribution.


1. (SBU) Energy Ministry Under Secretary Sami Demirbilek
told us January 16 that Turkey continues to look for ways to
help Iraq meet its electricity deficit, but needs more
information about the amount and duration of Iraq's
electricity shortfall. He said that Turkey will have a
surplus of electricity through 2006 and is therefore able to
help.


2. (SBU) Currently, Turkey's Karadeniz Energy Company sends
about 85 MW to Iraq from generators in the border town of
Silopi. Company President Dogan Karadeniz told us that the
company is replacing damaged transformers in Iraq, allowing
Karadeniz to boost deliveries to 130 MW. He said the company
planned to boost deliveries to 200 MW by June, but further
increases are not possible because of the limited capacity of
the single transmission line connecting Turkey and Iraq.


3. (SBU) Demirbilek said several companies have approached
the Ministry to discuss schemes for selling more power to
Iraq. (Officials from the Washington Group were in Ankara
earlier in the week for preliminary discussions.) He was
skeptical that private companies would be able to help with
Iraq's electricity shortfall -- at least in the near term.
Karadeniz is using the only available transmission line to
Iraq; therefore, a further increase in electricity to Iraq
will require the construction of new transmission lines.
Company officials told Demirbilek that recovering the
investment for a new transmission line would require a
guaranteed contract for at least four years, which they
understand CPA cannot agree to.


4. (SBU) An agreement between Iraqi officials and Turkey's
Energy Ministry might be the best alternative for moving
ahead quickly, Demirbilek suggested, because the Ministry
wants to help for political reasons and need not be as
concerned as private companies about price and revenues.
Moreover, the Ministry could more quickly coordinate among
the various state institutions that must be involved.


5. (SBU) Demirbilek said Turkey does not have good
information about Iraq's power needs and would like to learn
more about CPA's short and medium term plans to fill the gap.
He said Turkey would appreciate a visit by Iraqi officials
to explain the electricity requirements in Iraq and consult
on how Turkey can be helpful.


Baghdad minimize considered.
EDELMAN

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