BOOSTING TURKISH ELECTRICITY EXPORTS TO IRAQ

UNCLAS ANKARA 007308

SIPDIS


SENSITIVE


E.O. 12958: N/A
TAGS: ECON ENRG ETRD IZ PREL TU
SUBJECT: BOOSTING TURKISH ELECTRICITY EXPORTS TO IRAQ

Sensitive But Unclassified -- Not For Internet Distribution



1. (SBU) In response to Secretary Powell's request that
Turkey look for ways to assist Iraq's reconstruction,
beginning last September, a Turkish company began exporting a
small amount (50MW) of electricity to Iraq. The operator,
Karadeniz Energy, has rehabilitated existing transmission
lines at the Turkey/Iraq border and expects soon to increase
the deliveries to 180 MW. According to Turkish officials,
Turkey has considerable excess capacity and is very
interested in boosting electricity sales to Iraq. However,
further increases are not possible in the near term because
there are not adequate transmission lines.



2. (SBU) Embassy has learned that AIG and the Washington
Group are separately interested in projects to build and/or
upgrade transmission lines and substations to Iraq. The
Washington Group has consulted with Iraqi and Turkish
officials and a group of Turkish power companies to
build/upgrade transmission lines to export as much as 1,400
MW of additional power to Iraq.



3. (SBU) Embassy believes this idea is worth exploring. We
recommend that appropriate Washington agencies invite the
companies to brief on their plans and determine whether
further discussion would be appropriate at the bilateral EPC
in Washington, December 2-3, 2003.
EDELMAN