IRAQ NATIONAL ENERGY COUNCIL REVIEWS ENERGY

C O N F I D E N T I A L SECTION 01 OF 03 BAGHDAD 003427

SIPDIS

ANKRA PLEASE PASS TO ADANA

E.O. 12958: DECL: 08/31/2015
TAGS: EFIN ENRG EPET IZ MASS MOPS PGOV PREL
SUBJECT: IRAQ NATIONAL ENERGY COUNCIL REVIEWS ENERGY
INFRASTRUCTURE AND SECURITY

REF: BAGHDAD 3324 AND PREVIOUS

Classified By: ACTING ECONOMIC COUNSELOR HARRY O'HARA FOR REASONS 1.4 B
AND D.


1. SUMMARY: (SBU) On August 16, the National Energy Council
met to update DPM Chalabi on energy production and
infrastructure security actions in Iraq. Ministry of
Electricity reported an average electric power production
rate of 4300 MW/hr with a high total of 4760 MW/hr, and a
daily total of 103,000 MWH. The MOE goal remained at 130,000
MWH. The DPM instructed an improvement of the hydroelectric
production from Hadithah Dam. The ministers discussed and
requested a plan from the MOE to meet an electricity demand
of 10,500 MW for the summer of 2006. BG Kamal reported
improvements in the security of pipelines and electrical
lines across Iraq, however the DPM was not satisfied with the
progress on infrastructure security. DPM prioritized the
security goals to include the provision of essential services
to the people of Baghdad. END SUMMARY.


2. (SBU) DPM Ahmed Chalabi convened the meeting of the ITG
National Energy Council (NEC) on August 15, 2005. The
purpose of the meeting was to review the status of energy
infrastructure security actions across Iraq. Those attending
included the Ministers of Water Resources (MOWR),Finance
(MOF),Interior (MOI),Trade (MOT),Deputy Minister of
Electricity (ME),Deputy Minister of Industry and Minerals
(MIM),Deputy Minister of Transportation (MOTRANS),Deputy
National Security Advisor (NSC),BG Kamal of the Iraqi Armed
Forces, Governor of the Central Bank of Iraq (CBI),
Infrastructure Coordination Center Chief (ICC),POLMILCOUNS,
IRMO Deputy Director, and ECONOFF.

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REPORT OF THE MINISTRY OF ELECTRICITY
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3. (SBU) The Deputy Minister of Electricity (MOE) began the
meeting with a review of the electricity generation capacity
in Iraq. The MOE stated Iraq was producing 103,000 MWH per
day, with an average of 4300 MW/hr, and a high generation
rate of 4760 MW/hr. The MOE said the daily goal for
electricity remained at 130,000 MWH. He explained the
Musayyib power plant had three units working and generating
250 MW, however there was a need for Russian technicians to
arrive in country and fix the turbines at the other unit at
Musayyib. The MOE had arranged for their visit, and they
were waiting for the visa approvals--the DPM told them to go
to the airport and meet them and not worry about visas. The
MOE reported that the electrical generation in the North was
at 85 per cent of capacity, with the reductions coming from
the 50 MW plants at Bayji, where there were problems with the
gas generators. The DPM requested a report at the next NEC
meeting on the gas generators. Specifically, the DPM wanted
to know why the plants were not generating electricity since
they had good security, available gas, and no reason for not
producing electricity. The MOE reported one of the LM 6000 at
Qudas was not producing power because of equipment problems.
MOE explained that the Musayyib power plant was not running
at capacity due to breakdowns of equipment. The DPM demanded
a report at the next meeting to "tell me how and what we need
to do to get the additional 800 MW of power generation
capacity that is currently not working on-line and producing
electricity. Provide that report at the next meeting."


4. (SBU) The MOE and Minister of Water Resources (MOWR) then
complained to the DPM that the Hadithah Dam was not
generating sufficient hydroelectricity due to equipment
problems at the dam. The MOWR said the technicians could not
get to the power plant in the dam because the US forces
guarded it. The MNF-I representative, COL Parker, explained
that the repair crews could go to the dam power station, but
they required continuous escort by the U.S. forces guarding
the dam. Parker explained the USMC elements present would
provide escorts for the repair crews, and that in the past,
the technicians had demanded to go without escorts. The DPM
requested that MNF-I coordinate the escorts, and make sure
that no one came in and destroyed the dam and power
generators. DPM concluded saying, "We would prefer to have
escorts because of all the inside sabotage which has occurred
across Iraq."

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ENERGY WAR ROOM?
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5. (SBU) The DPM then requested to know what other problems
were of concern to the group. The Ministry of Industry and
Minerals (MIM) said the industries of MIM were short of fuel.
The DPM noted the gas line had just been cut between the
plants and Bayji. The DPM then said, "We need an Energy War
Room!" The DPM directed the MIM draft a plan for an Energy
Coordination Center.

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Future Electricity Requirements
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6. (SBU) The DPM discussed the requirements for the next 9
months in Iraq to meet the summer electricity demand for

2006. He said the current demand for electricity was 8500
MW, but would probably be 10,500 MW by mid-summer 2006. He
instructed the MOE to tell him how the MOE would meet these
requirements by 2006.

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PIPELINE SECURITY
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7. (SBU) BG Kamal reported a pipeline in the 9th Brigade
area had been interdicted on August 15, and the units, which
noticed the interdiction, had no communications to report the
incident. Kamal said these units needed radios, vehicles,
and better command and control to handle interdictions and
reporting. Kamal told the DPM that the trees along the
pipeline needed to be cut, and requested permission to do so.
The DPM told Kamal he could not cut the trees, because they
were in the process of trying to plant trees in Iraq, not
destroy them. Kamal reported IEDS in the 2nd and 3rd Brigade
areas, and a firefight with 10-12 fighters. The 3rd Brigade
had won the firefight and saved an attack on the pipeline.
The DPM told Kamal to reward the Army personnel who were
involved. Kamal reported the 2nd and 3rd Brigades had also
found 2 IEDs, one under a pipeline, and the other by an
electrical tower. Kamal reported an attack on infrastructure
at Al Nasiriyah. The DPM told the ministers to expect more
attacks in the south, now that the northern security was
improving, suggesting that the sabatours will change their
tactics and locations of future attacks.


8. (SBU) The DPM informed the ministers that oil production
in the north was now at 600 mbpd and exports would be 350
mbpd (NOTE: MOO is reporting 400 mbpd from Kirkuk oil
fields. END NOTE). He requested an update from MNF-I on the
security operations in the north. COL Parker from MNF-I
informed the DPM that the 42nd ID had invested in hardening
the pipeline and key nodes in the north, particularly in the
vicinity of Al Fathah. Parker informed the DPM there had
been no incidents at Al Fathah for over two months, since
early June. The DPM requested that the MNF-I "inform MG
Taluto that he was very pleased with the support from the
42nd ID and to personally thank him for the work of his
soldiers in securing the northern pipeline and Al Fathah."

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INTELLIGENCE SUPPORT
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9. (C) BG Kamal informed the ministers that the intelligence
coordination system is working. For example, Kamal said,
"The contractors who built the electrical towers near
Samarra, came back 24 hours later and blew them down. We
know the man who did it, Mohammad Dakhl, and that is an
example of how intelligence is working well." Kamal
explained that intelligence from MOO was also working well,
and they had found information leading to the discovery of
IEDs on the Naft Khaneh pipeline. Kamal said, "We need a
bigger space for the intelligence cell, where do you want to
put the cell? At Camp Victory or at the MOD?" (NOTE: No
decision was provided on where to host the intelligence cell.
END NOTE) The DPM said, "Make sure each ministry is to have
a representative at the intelligence coordination cell", and
the MNF-I representative told the DPM that each ministry had
representation there. The DPM told BG Kamal "we need a
better strategic plan for geo-spatial mapping, so we know
where our key facilities are located, and so we can respond
to attacks on them."

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PROTECTION PRIORITIES
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10. (C) The DPM said, "We need to sort out the priority for
security for the electrical infrastructure and fuel supplies.
The goal of the insurgents is to cause maximum discomfort
for the people of Baghdad, thus we need to protect the supply
of essential services to Baghdad." The ministers discussed
the available forces and the training readiness levels of the
Iraqi forces and determined, in Kamal's assessment, that the
Iraqi forces cannot protect even 50 per cent of the key
linear infrastructure. This was unsatisfactory to the DPM,
and he demanded that the MOD develop plans and forces to
protect the key infrastructure in Iraq. The DPM asked if he
should direct the Iraqi Army to secure the pipelines.

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NEXT MEETING AGENDA
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11. (SBU) The DPM set the agenda for the next meeting as
follows: 1) The MOO is to present the status of exports of
oil, and 2) The MOE is to provide a full report on the
repairs at Hadithah Dam, Qudas, and Musayyib power plants.

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COMMENT
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12. (SBU) COMMENT: The NEC, particularly DPM Chalabi,
continues to be dissatisfied by the progress of
infrastructure protection for the provision of essential
services across Iraq, particularly in the support of Baghdad.
The emphasis on completing the security force deployments in
the North continues, and there appears to be the start of an
increased emphasis for infrastructure security in the South.
END COMMENT.
Khalilzad