1. (SBU) SUMMARY: Progress continues on schedule at the
Doraleh port with the completion of the causeway and 70
percent completion of the medians. THE U.S. Navy recently
contracted two additional storage tanks, two outbuildings for
storage of drums and diving equipment and a facility for
security dogs. END SUMMARY

2.(U) The Ambassador, accompanied by the acting Poloff and
the Economic Assistant, paid a follow-up visit to Doraleh
port on July 28. Host for the visit was K.K. Menon, site
manager of the project for Emirates National Oil Company
(ENOC).



3. (SBU) The port showed marked progress in completion of the
1080-meter causeway, the outer walls and the storage tank
areas. Menon is confident that the U.S. Navy's four fuel
storage tanks, edible oil tank, deblasting tank and asphalt
tank will be ready on or before the contractual deadline of
June 2005. Accord to Menon, the U.S. Navy has also contracted
with ENOC to build two outbuildings for drum storage and
diving equipment and a facility for security dogs. The
350-meter ship jetty and the oil terminal will also open in
June 2005, with the container portion of the port to follow.



4. (U) Construction at the port site recently moved to
round-the-clock and an additional 200 employees will arrive
at the site next month, bringing the total of ENOC
contractors to 450. About 90 percent of the materials
necessary for the oil terminal have also arrived. The
exception is an integral generator part from U.S.-based
Caterpillar, Inc. for which delivery will take up to a year.
Menon expressed dissatisfaction with the delay but has made
provisions to put in place a temporary part for the generator
in order not to affect the terminal's opening.



5. (SBU) Although the U.S. Navy remains the only contracted
storage tank lessee at the port thus far, Menon told the
Ambassador that ENOC has been contacted by Shell Oil about
erecting tanks that will stand separate from the rest of the
oil terminal. Total, according to Menon, would use tanks
currently under construction in a shared area. He said he was
not been contacted by Mobil.
RAGSDALE