STATUS OF ABU DHABI GENERATOR DONATION TO IRAQ

UNCLAS ABU DHABI 004579 SIPDIS SENSITIVE STATE FOR NEA/ARP AND EB/IFD/ODF DMARCELLUS E.O. 12958: N/A TAGS: EAID ECON EFIN IZ AE SUBJECT: STATUS OF ABU DHABI GENERATOR DONATION TO IRAQ REF: ABU DHABI 1706 (2004) ¶1. (SBU) Summary. As part of the its promised assistance to Iraq, the UAE intends to donate 2 ABB 200 megawatt/day power stations to Iraq. Although the UAE pledged to send the generators over a year ago, they have not yet been sent. The UAE Minister of State for Foreign Affairs indicated last year that the UAE was looking for other countries to cover the cost of transporting and installing the generators. However, according to an official at the Abu Dhabi Water and Electricity Authority (ADWEA),the Abu Dhabi Government has decided it will cover these costs. ADWEA is hopeful the generators will be up and running in Iraq before next summer. End Summary. ¶2. (SBU) In May of 2004, UAE Minister of State for Foreign Affairs Sheikh Hamdan bin Zayed told Ambassador that Abu Dhabi had two used power generators in storage that were to be donated to Iraq (reftel). However, he indicated the UAE would not be able to cover the cost of shipping and installing them and that the UAE was hoping another donor country could cover these costs. Since that time, the generators have not been transferred to Iraq. In response to Embassy questions, MFA officials referred econoff to the Abu Dhabi Water and Electricity Authority (ADWEA),noting that the generators are in ADWEA's possession. On November 8th, econoff met with Ahmed Saif al-Darmaki, ADWEA Director of Planning and Development to discuss the status of the generators. ¶3. (SBU) Al-Darmaki said the two generators are 10-year old 200 megawatt/day ABB power stations (ie: the generators and all associated equipment) that were previously used in Abu Dhabi. According to al-Darmaki, the generators can be powered by natural gas, crude, or diesel fuel. Last year, al-Darmaki suggested to Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed (MbZ) that Abu Dhabi donate the generators to Iraq. Al-Darmaki told econoff that ABB Corporation had quoted a very high price to ADWEA for transporting and installing the generators, and MbZ asked ADWEA to solicit bids from other companies. As of this month, ADWEA has received three bids for this contract. Al-Darmaki said he will be forwarding the proposals to MbZ's office this week, and he is hopeful MbZ will select a company by December. According to al-Darmaki, once a company is awarded the contract, it will take less than six months to transport and install the generators, and he said he is confident the generators will be operating in Iraq before the summer of ¶2006. ¶4. (U) Baghdad Minimize considered. SISON