DISPOSITION OF EXISTING CMR AND

UNCLAS DJIBOUTI 001111

SIPDIS

For OBO/PD/PDD Mahfuzur Rahman
OBO/AM Franklin White
AF/EX Virginia Milhous
AF/E Nole Garey
DS/IP/AF George Frederick

E.O. 12958: N/A
TAGS: AMGT ABLD ASEC DJ
SUBJECT: DISPOSITION OF EXISTING CMR AND
COMPOUND IN DJIBOUTI

REF A) STATE 197023; B) DJIBOUTI 627


1. (U) Post appreciates OBO's advance planning for disposition
of the existing CMR and mission compound in Djibouti in
conjunction with construction of the New Embassy Compound.
While the current location offers many benefits for maintaining
the CMR where it is, the design and size of the residence are
incompatible with minimum Ambassadorial representation and
housing requirements. Moreover, its co-location with all other
mission functional buildings, except the warehouse, affects
maximum use of the existing site.


2. (U) OBO might consider constructing a new CMR on the
existing compound after the functions of the chancery and
related buildings move to the new site, even though this would
result in some inconvenience and the need for temporary CMR
relocation. The current compound is one of the rare sites in this
nation with many mature trees. That is a significant concern in
the statistically hottest nation on earth, and a very much barren
nation as well. Also the existing compound is much closer to
other CMRs, government offices and diplomatic missions than
would be the case if a new CMR were constructed near the
NEC. Continued use of the existing site would encourage
acceptance of representation invitations and thus better enable
the mission to fulfill that requirement, compared to site
selection proximate to the NEC.


3. (U) Nevertheless, should the Department be required to sell
the existing property, post advises that the Kingdom of Saudi
Arabia (KSA) is a potential buyer. The KSA already owns a
vacant lot next to the existing compound and has expressed
interest in acquiring the U.S. compound if it is to be sold. The
EU, the Government of Djibouti, and possibly the French
military, might also be potential buyers.


4. (U) If the existing compound will be sold, post suggests that
one option for a new CMR would be to work with local
developers on a build-to-lease CMR arrangement, using
American designs to enhance property usefulness. Post
believes property owners in Djibouti would be interested in
developing/constructing a CMR but that they would need to be
guided to construct a property to American standards. If this
method is selected, work should coincide with construction of
the NEC to permit the entire existing compound to be totally
vacated when the NEC is occupied.


5. (U) Post asks OBO to consider carefully the long-term
benefit of retaining ownership of existing property versus
leasing. Post estimates that leasing a property would cost a
minimum of USD 85,000 per year, and likely more. The
current compound was recently appraised at USD 1,863,000.
In just a few years lease payments would equal current value
and thereafter would require the Department to "dip into its
pockets" for subsequent funding. Construction of a new
residence on the existing compound should cost much less than
the expense of lease arrangements where the USG would be
permanently paying someone else. Consider also that the
existing compound, as a potential CMR site, already has in
place many security enhancements that would have to be
duplicated elsewhere at additional, substantial cost - nine-foot
walls, cameras, vehicular controls, for example.


6. (U) Post will work closely with OBO, DS, AF/EX and
others on whatever eventual process occurs.


RAGSDALE