Cablegate: Status of Abu Dhabi Generator Donation to Iraq

VZCZCXRO9180
PP RUEHBC RUEHDA RUEHDE RUEHIHL RUEHKUK
DE RUEHAD #4360 3311514
ZNR UUUUU ZZH
P 271514Z NOV 06
FM AMEMBASSY ABU DHABI
TO RUEHC/SECSTATE WASHDC PRIORITY 7757
INFO RHEHNSC/NSC WASHDC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUCNRAQ/IRAQ COLLECTIVE

UNCLAS ABU DHABI 004360

SIPDIS

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: EAID ECON EINV IZ AE
SUBJECT: STATUS OF ABU DHABI GENERATOR DONATION TO IRAQ

Ref A) Abu Dhabi 2855, B) Abu Dhabi 2781, B) 05 ABU DHABI 4579

1. (U) Contains business proprietary information. Not for internet
distribution.

2. (SBU) On November 16, Econchief met with Abu Dhabi Water and
Electricity Authority (ADWEA) Director of Planning and Development
Ahmed Saif Al-Darmaki to discuss the status of the two power stations
that Abu Dhabi had pledged to provide to Iraq. Al-Darmaki said that
ADWEA had identified the contractor and was ready to ship the
stations (i.e., generators and all associated equipment) to Iraq as
soon as the Government of the Emirate of Abu Dhabi authorized the
transfer and the funding. He said that the decision was with the
Office of Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed Al-Nahyan.
Al-Darmaki also noted that he had the sense that the Iraqi Minister
of Electricity was not interested in the generators. At the
Electricity Minister's July meeting with ADWEA Chairman Sheikh Dhiyab
bin Zayed Al-Nahyan, the Minister reportedly said that for just a
little more money Iraq could get new generators. Al-Darmaki added
that the previous government had identified a location within Iraq
for the generators. Should the new government still want the
generators, it would likely identify a new location.

3. (SBU) Al-Darmaki told econchief that ADWEA was a member of the
board of the current effort to link the GCC electricity grid. He
explained that Iraq had proposed connecting to the grid, but that
Kuwait had objected. He noted that the Iraqis would have needed to
connect through Kuwait and that the Kuwaitis already had major power
problems. ADWEA had proposed having the UAE firm Taqa (75% owned by
the government of the Emirate of Abu Dhabi) invest in a large 2,000
Mw power plant in Basra, which could connect to both Kuwait and Iraq.
He said that ADWEA had secured GCC agreement in principle and was
now looking for an investment partner and access to the gas in South
Iraq.

4. (SBU) Finally Al-Darmaki said that Taqa was in talks with a U.S.
company about "buying substantial shares" in it. He explained that
Taqa was looking for overseas investment opportunities.

QUINN

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