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 002021

SIPDIS

SENSITIVE

DEPT FOR OPIC/CDUFFY

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

1. (U) Sensitive but Unclassified. Privileged business
information.

2. (SBU) Embassy Kinshasa has reviewed the application that
No.1 Contracting and Franoza Trucking have submitted to OPIC
for political risk investment insurance on a performance
bond. Post believes that there are no current political or
economic difficulties associated with either the company or
the project. No.1 Contracting will be providing construction
services for two World Bank funded infrastructure repair and
development projects. Funding is guaranteed. DRC treatment of
foreign contractors varies, however, the bid and contracting
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 officials. Logistical difficulties (e.g. consistent
supply of gasoline, cement, etc.) will further complicate
project success.

3. (SBU) The following responds to specific questions in
OPIC's memo to Post:

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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