HOT TIME, SUMMER IN THE CITY: BAHRAIN COPES WITH

C O N F I D E N T I A L SECTION 01 OF 03 MANAMA 001319

SIPDIS

STATE FOR NEA/ARPI
STATE PASS USTR/JASON BUNTIN
LONDON FOR ETHAN GOLDRICH

E.O. 12958: DECL: 08/24/2014
TAGS: ENRG ECON PGOV ASEC BA
SUBJECT: HOT TIME, SUMMER IN THE CITY: BAHRAIN COPES WITH
NATIONWIDE BLACKOUT

REF: A. MANAMA 1206


B. MANAMA 496

Classified By: Charge d'Affaires Susan L. Ziadeh for reasons
1.4 (b) and (d)

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Summary
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1. (C) Bahrain experienced a nationwide blackout that lasted
up to 15 hours in some neighborhoods. Minister of
Electricity and Water (MEW) Shaikh Abdullah bin Salman Khalid
Al Khalifa attributed the blackout to an unexpected massive
power surge from the nation's aluminum manufacturer ALBA.
Prime Minister Khalifa bin Salman Al Khalifa publicly called
for an immediate investigation, and angry parliamentarians
demanded a special session to discuss the issue. Security
forces dispersed throughout populated areas to maintain
public security and direct traffic. Despite intense heat and
humidity, there were no reports of any blackout-related crime
or disturbances. Hospitals reported that they were able to
operate intensive and critical care units and emergency
departments. The press reports an estimate of BD 10 million
($27 million) in economic losses from the one day
interruption to normal work schedules. Senior government
officials in the past have noted to us the increasing strain
on the power system, and the GOB will have to deal with
inevitable questions from potential investors about the
infrastructure capacity as it seeks to promote Bahrain as an
investment destination. End Summary.

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Power Surge Causes Blackout
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2. (U) On August 23rd, Bahrain experienced a nationwide
blackout that started at 8 AM and lasted up to 15 hours in
some neighborhoods. Most businesses and government agencies
shut down by 10 AM. On a day that reached nearly 50 degrees
Centigrade and 90 percent humidity, many Bahrainis sought
refuge from the heat by driving over the causeway to eastern
Saudi Arabia while others flew to Dubai. A few retail outlets
known to have back-up generators experienced a huge surge in
business as Bahrainis piled into establishments like
McDonalds and the Jawad and Al Osra supermarkets. At Jawad,
families with overheated babies lingered in the frozen foods
section. Other Bahrainis clogged roadways by driving around
the island in their air-conditioned cars. Some citizens ran
out of gas while trying to keep cool because only four gas
stations were operational. Traffic lights were out and there
were reports of minor car accidents, including an unfortunate
collision involving a truck carrying a large delivery of
fresh eggs. Domestic telephone landlines remained
operational but cellular networks were jammed. Two-thirds of
Bahrain's water supply was cut off because there was no
electricity to power the country's desalination plants.


3. (SBU) A MEW official told FSN on August 24 that the
blackout was due to a 400MW power surge from the ALBA
aluminum smelter during routine maintenance of a production
line. The official refuted widespread rumors that the
blackout came as a result of maintenance problems at the Hidd
power plant or due to a fire at the Manama power station. In
a July 27 explanation about recent rolling brownouts (Ref A),
the Electricity Minister explained to Charge that the power
distribution network, designed to accommodate a 20 percent
load increase, has had to service an 80 percent growth in
demand over the past three years.

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Police Report No Blackout-Related Incidents
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4. (SBU) The Bahrain Defense Force, Coast Guard, and police
stepped up the pace of their operations, and 100 public
security personnel immediately mobilized to support the
traffic directorate in controlling the flow of vehicles in
the absence of traffic lights. Security contacts report that
as the day went on, police had reduced communications ability
because the batteries on their radios wore down. Airport
contacts confirmed on August 24 that the Bahrain
International Airport remained fully operational during the
blackout. Some flights were delayed but none were canceled.
The intensive and critical care units and emergency rooms at
all major hospitals remained open, though they had to turn
away non-emergency cases. Hospitals did experience problems
with crowd control because an overwhelming number of people
without medical emergencies showed up to sit in
air-conditioned ER waiting rooms. The Saudis ran electrical
wires to the Bahraini side of the causeway to ensure that
immigration, customs and security operations were not
interrupted. There were no reports of blackout-related
crimes or disturbances.
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MPs Promote Special Session to Investigate
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5. (C) In response to the blackout, the Prime Minister
convened an emergency Cabinet meeting on August 23 and
ordered an immediate inquiry into the blackout and formed an
investigative committee. Council of Representatives (COR)
First Vice Chairman Abdulhadi Marhoon called for convening a
special session of Parliament to discuss electricity and
water cuts, which have become more frequent in recent years.
Over 15 members of Parliament met and agreed to form an
investigative committee. Shura Council First Vice Chairman
Abdulrahman Jamsheer told FSN and PolOFF on August 23 that he
expects the Minister of Electricity and Water to be fired.
Al Minbar (Sunni) member MP Shaikh Mohammed Khalid Mohammed
accused the GOB of not planning for emergencies and warned
that this lack of planning affects critical sectors of the
economy. Islamic Bloc (Shi'a) President and MP Ali Samaheeji
told PolOFF on August 24 that these power outages affect all
Bahrainis, but Shi'a even more so. He noted that Sunni
areas, particularly the central Rifaa district that houses
the royal family and a number of government ministries, had
its power restored within a few hours while predominantly
Shi'a areas in the north and west had to wait until 10 PM or
later until the electricity flowed again. Others noted that
following the blackout, Sunni and Shi'a were united in their
misery because previously, during the rolling brownouts, only
the poor Shi'a areas were affected.


6. (U) In contrast with the anodyne official news reports,
Radio Bahrain disc jockeys kept the English speaking public
informed of developments by passing on reports from listeners
about when the power was restored to parts of the country.
Embassy local staff reported that the Electricity Ministry
complaints and information hotline was constantly busy. Only
after power was fully restored to all areas did the MEW
Minister hold a late night press conference to explain to
journalists the cause of the blackout. In his August 24
press release, the Prime Minister expressed the GOB's regrets
for any inconvenience caused by the blackout.

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Economic Losses, and Damaged Reputation
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7. (SBU) The press reported that the blackout caused BD 10
million ($27 million) in economic losses. A front-page
article stated that Bahrain,s banks, a source of economic
growth and national pride, faced delays of up to four hours
in their international operations. A source at the Ministry
of Finance and National Economy told us that at this point it
was impossible to quantify accurately the economic losses,
but the GOB would conduct investigations to arrive at an
estimate. The press noted that the business community
supports the investigations. One banking contact told us
that his office had to close by noon, leading to financial
losses and lost opportunities in a sector characterized by
activity 24/7. Others were too busy to comment, saying that
the loss of a workday caused an extraordinary queue of
transactions the following day, August 24.


8. (SBU) The blackout highlighted a gap between Bahrain,s
aspirations to become a regional center for finance,
insurance, education, health care, and other services, and
the necessary infrastructure to support such development.
Bahrain seeks to leverage a Free Trade Agreement with the
U.S. to attract more foreign direct investment and to promote
its reputation as a regional services center. The blackout
could lead to embarrassing questions regarding the country's
ability to support more investment. Representatives of
American firms in country had mixed assessments of the impact
of the blackout. One said the net result was just "disrupted
business and an unproductive day," while another said that
the incident was the "harvest of years of poor planning" and
would cause "big firms to ask questions" about Bahrain as an
investment destination. Minister of Finance and National
Economy Abdullah Saif told the Shura Council in April the
growth in demand for power requires the state to invest in
new power facilities every two to three years, and the GOB
has to prepare itself for this.

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Comment
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9. (C) Though the blackout harmed Bahrain and its
government's reputation politically and economically, what is
perhaps most noteworthy is what did not happen. Despite the
heat, humidity, heavy traffic, and crowds, there was no
breakdown in public order or blackout-related incidents.
Possibly reflecting consensus that "we're all in this
together," family groups waiting out the day inside the food
court next to the Jawad supermarket reconfigured the tables
into impromptu "majleses," where citizens expressed their
views. Perhaps the blackout may result in greater government
responsiveness to repeated Shi'a complaints about the impact
of rolling brownouts on their lives. It would seem that
Bahrain's Sunni and Shi'a alike, will not accept another
iteration of the lack of planning that they believe led to
yesterday's power failure. Already calls have begun for
greater government accountability and action. End Comment.
ZIADEH