CABINET DIRECTOR TANI SAYS DORALEH IS A DJIBOUTI

C O N F I D E N T I A L DJIBOUTI 000960

SIPDIS

STATE FOR AF AND AF/E

E.O. 12958: DECL: 07/13/2014
TAGS: PREL PGOV ECON ETRD MARR DJ TC
SUBJECT: CABINET DIRECTOR TANI SAYS DORALEH IS A DJIBOUTI
-- NOT DUBAI -- PROJECT

REF: DJIBOUTI 846 (NOTAL)

Classified By: AMBASSADOR MARGUERITA D. RAGSDALE.
REASONS 1.4 (B) AND (D).


1. (C) During Ambassador's call on Ismail Hussein Tani,
President Guelleh's Cabinet Director, to discuss the Common
Market of Eastern and Southern Africa (COMESA) (see septel),
Tani -- who describes his job as "translating and explaining
the agenda and vision of President Guelleh to Djiboutians" --
commented on the huge Doraleh port project that is generating
much debate in Djibouti. The Government's critics call the
project an example of Djibouti's subjugation to "Dubai,
Incorporated."


2. (C) Tani preferred to describe Djibouti's Doraleh port
project as a "partnership" between Dubai and Djibouti. "It
is a win-win situation which we welcome because the
relationship will boost Djibouti's economy," he told
Ambassador. It should be clear, though, he added, that the
Doraleh port project belongs to Djibouti. Emirates National
Oil Company (ENOC) simply "owns" (his term) the oil terminal.
Dubai Ports International (DPI),(an ENOC affiliate) which
manages the airport and existing seaport in Djibouti, has
been authorized to manage Doraleh's construction and to
search for sources of financing, Tani continued. The
authority of the Government of Djibouti, he remarked, is
represented by Abdurahman Boreh (a prominent Djiboutian
businessman and Doraleh port investor),and is very trusted
by the Government. Asked about Boreh's share in the project,
Tani responded "of course, Boreh has his personal interest in
the port and owns some shares." Yet our biggest partner for
use of Doraleh, he told Ambassador, will be Ethiopia. He
clarified that Ethiopia will not be given any decision-making
authority over the port because the port is intended to
benefit "all interested parties" and not solely Ethiopia.


3. (C) Tani stated that the Government of Djibouti is
grateful for the U.S. Navy's (NAVCENT's) contract (via DESC)
for four fuel storage tanks at Doraleh "because the contract
promotes the good reputation and viability of Doraleh port."
RAGSDALE