Cablegate: Opic Support for Green Emergy Markets Fund - Due

VZCZCXRO9230
RR RUEHAG RUEHAST RUEHDA RUEHDF RUEHFL RUEHHM RUEHIK RUEHKW RUEHLA
RUEHLN RUEHLZ RUEHMA RUEHPB RUEHPOD RUEHROV RUEHSR RUEHTM RUEHVK
RUEHYG
DE RUEHWR #1171 2801151
ZNR UUUUU ZZH
R 061151Z OCT 08
FM AMEMBASSY WARSAW
TO RUEHC/SECSTATE WASHDC 7124
INFO RUEHZN/ENVIRONMENT SCIENCE AND TECHNOLOGY COLLECTIVE
RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC

UNCLAS WARSAW 001171

SIPDIS

OPIC FOR WILLIAM PEARCE AND JAMES HANSLEY

E.O. 12958: N/A
TAGS: EFIN EINV ECON PL
SUBJECT: OPIC SUPPORT FOR GREEN EMERGY MARKETS FUND - DUE
DILLIGENCE

REF: SECSTATE 103210

Post supports the goals of OPIC's proposed relationship with
the Virgin Green Emerging Markets Fund (the Fund) and is not
aware of any substantial political or public relations
downside to the project. Improving energy efficiency and
expanding use of renewables are increasingly important
priorities for both the Polish government and USG throughout
the region. Poland will likely soon face costly EU-related
emissions caps, which will place a huge burden on its largely
coal-dependent energy sector. The project's proposed focus
on supporting private sector activity in renewables,
efficiency and water would be well received given these
factors. Capital markets in Poland are fairly well
developed. However, the energy sector is dominated by state
controlled entities and it remains difficult to get financing
for startup projects and long-term investments in the Fund's
proposed areas. Post does not know of any negative
information regarding the prospective Fund manager's
reputation in Poland.
ASHE

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