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Cablegate: Embassy Comments On No.1 Contracting Opic

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

UNCLAS KINSHASA 001506

SIPDIS

SENSITIVE

AF/C FOR THOMAS GALLAGHER, DEPT FOR OPIC - CONAL DUFFY AND
JIM WILLIAMS

E.O. 12958: N/A
TAGS: ECON EINV ELTN CG OPIC
SUBJECT: EMBASSY COMMENTS ON NO.1 CONTRACTING OPIC
APPLICATIONS

REF: DUFFY-NEWMAN EMAIL 07/19/04

1. (U) Sensitive but Unclassified, Privileged Business
Information. Not for internet distribution.

2. (SBU) Embassy Kinshasa has reviewed the two applications
for political risk insurance that No.1 Contracting
Corporation of Ashley, PA has submitted to OPIC. Post opines
that there are no current political or economic difficulties
associated with either the company or the two projects. Both
bids that No.1 Contracting submitted are for World Bank
funded infrastructure rehabilitation and reconstruction
projects. Hence, the source of funding is guaranteed. DRC
treatment of foreign contractors varies, however, the bid
process for such projects is carried out according to World
Bank norms. Once commencing the project, the contractor will
likely encounter some bureaucratic delays possibly related to
licensing and authorization, taxes, and/or relationships with
local chieftains. Logistical difficulties (e.g. consistent
supply of gasoline, cement, etc) will further complicate
project success.

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3. (SBU) The following reesponds to the specific questions
listed in the referenced email:

a. Post does not foresee any negative public or host
government sentiment toward the projects.

b. The projects are unlikely to have negative impacts on U.S.
policy and interests in the DRC.

c. Post has no knowledge of accusations of improprieties on
the part of No.1 Contracting.

d. Post does not believe that the projects could potentially
result in serious adverse environmental effects beyond those
normally encountered in heavy construction projects.

e. These projects fall under the World Bank's Emergency
Multisectoral Reconstruction and Rehabilitation Plan. Hence,
they are not in conflict with the DRC's economic objectives
and welfare.

f. Post is unaware of potential uneconomic use of raw
materials or labor.

g. These projects will not have an adverse affect on the
DRC's balance of payments. The whole of funding is provided
by the World Bank.

4. (U) Please direct questions regarding OPIC applications
that need Embassy Kinshasa assistance to Peter Newman. IVG:
934-2234, Cell: (243) 81-700-4428, Email: NewmanPD@state.gov
MEECE

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