C O N F I D E N T I A L SECTION 01 OF 02 BAGHDAD 003584

SIPDIS

E.O. 12958: DECL: 09/01/2015
TAGS: EPET ENRG EFIN MOPS MARR PGOV PTER IZ BAGHDAD
SUBJECT: GOI RECOMMENDS BAGHDAD FUEL RATIONING,
STRENGTHENING INFRASTRUCTURE SECURITY

REF: A. BAGHDAD 3427

B. ANKARA 4880

Classified By: A/DCM David C. Litt for reasons 1.4 (b) and (d)


1. (C) Summary: An August 28 emergency session of the
National Energy Council (NEC) addressed the critical fuel
shortage in Iraq. The NEC recommended fuel rationing in
Baghdad and, to increase security for critical oil and
Electric power infrastructure, augmenting the Strategic
Infrastructure Battalions (SIBs) with regular Iraqi Army
and Ministry of Interior units. Chalabi criticized the
performance of SIBs that have yet to receive training from
MNSTC-I. End Summary.


2. (C) Deputy Prime Minister Chalabi chaired an emergency
meeting of the NEC August 28, which was attended by Minister
of Finance Ali Allawi, Minister of Oil Ibrahim Bahr al-Ulum,
Minister of Electricity Muhsin Shallash, Minister of Defense
Sa'dun al-Dulime, Minister of Interior Bayan Jabr, Iraqi Army
(IA) Chief of Staff LTG Abadi, and Infrastructure
Coordination Cell Director BG Kamal. IRMO Deputy Director for
Operations MG Robert Heine and Embassy Econ and Pol/Miloffs
also attended the meeting.


3. (C) DPM Chalabi opened the meeting by declaring,
"Baghdad is under siege." DPM Chalabi told the group that
"the city is isolated and the energy crisis in the country
is catastrophic." The Ministry of Oil is unable to move
oil to the refineries, he said, because of pipeline
interdictions caused by insurgent attacks and routine
breakage. Furthermore, said Chalabi, Iraq has not received
any fuel from Turkey since August 24, referring to the GOT
decision to halt exports to Iraq due to unpaid arrears of
$750 million, according to Chalabi. (Eleventh hour action by
the Iraqis to pay the arrears seems to have prompted oil
imports from Turkey (septel).)

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Increased Security the Priority
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4. (C) After reviewing the recent increase in attacks on
the oil pipelines and power lines, DPM Chalabi turned the
discussion toward action the NEC could recommend to
improve infrastructure security. (There was no discussion of
the payment issue with Turkey.) Acknowledging the poor
performance of the Strategic Infrastructure Battalions (SIBs)
along the key Bayji to Baghdad corridor, Chalabi pressured
LTG Abadi to move Iraqi Army (IA) forces and the MinInt to
identify forces to assist. Chalabi placed a series of
calls to Ambassador Khalilzad, Prime Minister al-Ja'fari,
MNF-I LTG Brim, and MNSTC-I LTG Petraeus, enlisting U.S.
support to move the necessary IA battalions.

5 (C) DefMin al-Dulime and MinInt Jabr also worked the
phones, eventually determining that, within the next 72
hours, the IA 2nd Division could move one battalion (TBD),
the IA 5th Division could move its 3rd Battalion of the 3rd
Brigade, and that MoI could move one brigade to guard the
Baghdad Product Ring. BG Kamal suggested that he could
move the 20th or 18th SIB (with MNF-I assistance) to augment
protection along the Baghdad to Bayji corridor.

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Chalabi Critical of SIB Performance
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6. (C) LTG Abadi informed the Council on August 29 that the
20th SIB would move into the 9th SIB sector, south of
Samarra, as soon as possible, and that MoD and the IA will
need logistical assistance to move these and two or three IA
battalions that could be moved to the Baghdad to Bayji
Corridor. Clearly frustrated, Chalabi told LTG Abadi, "I
have made a decision. I don't want the 9th and 10th SIBs
guarding the pipelines anymore. Send them home, do
anything...but don't let them guard the pipeline." Chalabi
insisted that these SIB units should be "sent home" and "not
allowed to guard anything," and directed IA Col. Hussein
Shaya Dalimie to "take control" of the 16th SIB, given the
unit's particularly poor performance in providing security
for repair crews. MNF-I liaison noted that Chalabi would be
reviewing plans September 1 to train and equip these SIB's as
a part of the Phase II SIB plan.

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Rationing For Baghdad Governorate
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7. (C) The Council also noted the necessity to reduce
gasoline consumption in Baghdad Governorate (which accounts
for 70 percent of all automobiles in Iraq) and agreed to
recommend a plan to limit the number of cars on the road by
allowing even-number-plated autos to travel on even-number
calendar days, and odd-number-plated vehicles to travel on
odd-number calendar days. Assuming 700,000 POVs in Baghdad,
Ministry of Finance representatives said this plan could lead
to a significant drop in fuel consumption.

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Priorities For Repair
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8. (C) In a follow-up meeting August 29, Minister al-Ulum
said the Oil Ministry's repair priorities are the 22 inch
product line from Bayji to Baghdad, and the 12/16 inch line
from Bayji to Baghdad; the three interdictions along the 18
inch line between Karbala, Latifiyah and Doura; and the two
interdictions on the West side of the 10/12 inch Baghdad
"product ring." Minister of Electricity Shallash said the
ME's repair priorities as the Baghdad West number 2 line; the
Bayji to Baghdad West number 1 line; and the interdiction
between Kirkuk to Diyala (repaired August 29).
Khalilzad