Red-Dead Project Feasibility Study Moving Towards Start-Up

UNCLAS AMMAN 004654

SIPDIS

SIPDIS

SENSITIVE

USDA/FAS for Dr. Sylvana Li

E.O. 12958: N/A
TAGS: SENV PREL JO XF
SUBJECT: Red-Dead Project Feasibility Study Moving Towards Start-Up



1. (SBU) Summary: The feasibility study for the Red Sea to Dead Sea
water conveyance project ("Red-Dead"),strongly supported by Jordan
as a source of fresh water, is gradually moving towards starting up,
perhaps as early as fall 2006. The World Bank is planning a donors
meeting for the feasibility study, and is working with confirmed
donors to finalize the paperwork for contributions. Palestinian
participation in the Red-Dead Steering Committee will have to be
structured to avoid contact with Hamas and the Palestinian
Authority. End summary.

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Study Will Determine Feasibility of Desalinating Red Sea Water and
Putting Byproduct into the Dead Sea
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2. (U) BACKGROUND: The "Red-Dead" project, conceptual only at this
stage, proposes to pump and channel nearly 2 billion cubic meters of
seawater annually from the Gulf of Aqaba north 110 miles through
Wadi Araba/Arava to hydropower and desalination plants 300 meters
below sea level near the Dead Sea. The fresh water would go to
domestic users in Jordan, and the briny byproduct would be dumped
into the Dead Sea. The "beneficiary parties" of Jordan, Israel and
the Palestinian Authority agreed on April 19, 2005 to Terms of
Reference for a 2-year, $15.5 million feasibility study to be
administered by the World Bank. USAID/Jordan is contributing $1.5
million to the study. The level of the Dead Sea is falling at more
than a yard per year because its feed water is taken off upstream by
Israel, Jordan and Syria for irrigation and domestic use, and
because of industrial use by chemical factories on both sides of the
Dead Sea itself.

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Jordan Views Red-Dead as Critical
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3. (U) On June 8, NEA Senior Advisor for Science and Technology Dr.
Chuck Lawson and emboffs discussed Red-Dead with Minister of Water
and Irrigation Zafer Alem. (Other water issues are reported
septel.) Alem told Lawson that Red-Dead is critical for Jordan not
only as a source of water, but also as a concrete sign of regional
cooperation and as a way to protect the ecology of the Dead Sea
area.

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Palestinian Representative on Steering Committee
is Obstacle
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4. (SBU) Lawson told Minister Alem that because no USG funds will
go to any governmental party - and because there is no contact
between U.S. officials and the Palestinian Authority - there are no
obstacles to USG support for the feasibility study. Note: USG
funding for the feasibility study will go to a World Bank Trust Fund
and be disbursed directly to consulting companies. Palestinian
representation on the Steering Committee, however, is problematic
for both Israel and the World Bank, which leads the Steering
Committee. The World Bank had asked Jordan to take the lead in
finding a solution.

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World Bank Intends to Hold Donors Conference
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5. (U) Lawson told Minister Alem that the U.S., France, Holland and
Japan are confirmed donors to the feasibility trust fund, and that
Canada, Spain and Sweden have expressed interest. World Bank
representative Vahid Alavian previously told Lawson that the World
Bank has firm commitments for roughly $10 million of the total $15.5
million cost of the study. The World Bank wants to finalize
paperwork for transfers to the trust fund, beginning with the United
States. AID/Amman is working on draft language for the USG's Trust
Fund Agreement. The World Bank will also start the process for
tendering the contracts for the study, and to get wavering donors to
fish or cut bait. The World Bank is planning a donors meeting,
probably in Paris and perhaps during the summer, to move
arrangements forward.


6. (U) Dr. Lawson has cleared this cable.

RUBINSTEIN