Identifier
Created
Classification
Origin
06AMMAN8959
2006-12-18 14:12:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Amman
Cable title:
Red-Dead Feasibility Study Launch - Hopeful Start
how-toVZCZCXRO0882 RR RUEHROV DE RUEHAM #8959/01 3521412 ZNR UUUUU ZZH R 181412Z DEC 06 ZDK FM AMEMBASSY AMMAN TO RUEHC/SECSTATE WASHDC 6205 INFO RUEHXK/ARAB ISRAELI COLLECTIVE RUEHDOI/DEPT OF INTERIOR WASHDC RUCPDOC/DEPT OF COMMERCE WASHDC RUEHRC/USDA FAS WASHDC
UNCLAS SECTION 01 OF 02 AMMAN 008959
SIPDIS
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: SENV ECON PREL XF JO
SUBJECT: Red-Dead Feasibility Study Launch - Hopeful Start
AMMAN 00008959 001.4 OF 002
UNCLAS SECTION 01 OF 02 AMMAN 008959
SIPDIS
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: SENV ECON PREL XF JO
SUBJECT: Red-Dead Feasibility Study Launch - Hopeful Start
AMMAN 00008959 001.4 OF 002
1. (U) Summary: The World Bank and regional beneficiaries Jordan,
Israel, and the Palestinian Authority launched the $15.5 million
feasibility study and environmental and social assessment for the
Red Sea to Dead Sea Water Conveyance project on December 10. With
only $8.8 million in contributions so far, the first order of
business is to find another $6.7 million to fully fund the study.
End summary.
--------------
Financing the Study Itself is a Challenge
--------------
2. (U) BACKGROUND: The two-year World Bank-led feasibility study
will examine the technical, economic, environmental, and financial
feasibility of a multi-billion dollar project to pump 1,900 million
cubic meters (MCM) a year of seawater from the Gulf of Aqaba through
massive pipes to the Dead Sea to arrest declining water levels, and
to return the Dead Sea's water level to the historical mean of 395
meters below sea level. In addition, the project aims to generate
electricity, and desalinate 850 MCM of water per year for drinking.
The residual brine from the desalination process would go into the
Dead Sea.
3. (U) In April 2005, after protracted negotiations, the
beneficiary parties -- Israel, Jordan and the Palestinians -- agreed
on terms of reference for Red-Dead, and asked the World Bank to help
raise the funds and manage the study. Between April 2005 and
December 2006, the World Bank managed to raise $8.8 million dollars,
including support from the Netherlands, France, Japan, and a $1.5
million contribution out of the budget of USAID/Jordan's water
portfolio. END BACKGROUND.
4. (SBU) World Bank Director of Water, Environment, Social and
Rural Development for the Middle East and North Africa Inger
Andersen told the meeting participants that there are two components
of the overall study. One component is an environmental and social
assessment. The other is a feasibility study of the technical and
financial aspects. Both the feasibility study and the environmental
and social assessment will consist of four sub-studies examining: 1)
the intake area in Aqaba, 2) the conveyance through Wadi Araba, 3)
the Dead Sea area, and 4) around the hydropower and desalination
facilities. The procurement process
(www.worldbank.org/rds-procurement) will move forward while the
World Bank and the beneficiary parties try to find the remaining
financing. The contracts will not be let though, said Andersen,
unless all of the money is in place. With the procurement process
expected to be completed by summer 2007, the race to find the
remaining money is on.
--------------
Same Bed, Different Dreams
--------------
5. (U) Ambassador, AID Mission Director and NEA Senior S&T Advisor
Chuck Lawson attended the December 10 launch for the U.S. Eleven
other countries attended, including the UK, Italy, Spain, the
Netherlands, the European Commission, Norway, Japan, China, Egypt,
France and Germany. The beneficiary parties were represented by
Jordan's Minister of Water and Irrigation Zafer Alem, Israel's
Minister of National Infrastructure Binyamin Ben-Eliezer, and
Economic Advisor to the President of the Palestinian Authority
Mohammed Mustafa.
6. (U) During their respective remarks, the representatives of the
beneficiary parties all mentioned the importance of political
cooperation and economic development among the parties; the
cultural, environmental, and touristic importance of arresting the
meter-per-year drop in the level of the Dead Sea; and the 850
million cubic meters of desalinated water that would eventually come
from Red-Dead. Jordanian Minister of Planning and International
Cooperation Suhair al-Ali, noting the value of tourism, called the
Dead Sea the world's largest spa as well as a global cultural
treasure.
-------------- --------------
Donors Raise Public Participation, Water Conservation
-------------- --------------
7. (U) Several issues were brought up by the U.S. and other
delegations. There was general appreciation expressed towards the
beneficiary parties' cooperative efforts on Red-Dead. Concerns were
voiced, however, over ensuring adequate public participation in the
study. Donors also want to see that management of water resources
is discussed as part of Red-Dead. The mega-project, donors said,
should explore conserving scarce water resources, not just look at
new options for supply. The World Bank assured donors that Red-Dead
has opportunities throughout for public comment and interaction, and
that the causal factors of water decline in the Dead Sea would also
be examined. Beneficiary parties will be required to submit a water
AMMAN 00008959 002.3 OF 002
management plan on water conservation and efficiency as part of the
study.
--------------
Outcome Not Pre-Determined
--------------
8. (SBU) The outcome of the feasibility study is not pre-cooked.
The World Bank and donors, including the USG, have emphasized the
need for a thorough, credible, and professional study that will
answer serious questions about the technical aspects, the financial
ramifications and environmental impacts of Red-Dead. The study,
says the World Bank, will also compare Red-Dead with other options,
including the status quo with no additional interventions, and will
draw heavily on earlier and ongoing studies. At this time, the USG
has no financial commitments in place or currently contemplated
beyond the one-time, $1.5 million contribution for the feasibility
study.
--------------
Engineering Firms Eager
--------------
9. (SBU) Consulting engineering firms from around the world are
already eagerly expressing interest in the feasibility study. The
World Bank is adamant that the Red-Dead study be credible, and
therefore, has separated the activity into two separate, but
interrelated actions: the water conveyance feasibility study, and
the environmental and social assessment. The same firm will not be
able to do both the feasibility study and the environmental and
social assessment. At this time, the Bank has not determined
whether a firm that implements the study or assessment can also
implement the project itself.
--------------
Some Press Reports Are Off-Base
--------------
10. (SBU) During her remarks, the World Bank's Inger Andersen
stressed the importance of transparency, public participation, and
getting information to the media and to the community. This will be
a significant challenge. Some off-base media reports have already
appeared in Egyptian and Jordanian newspapers expressing concerns
over the use of Red-Dead as a stealth vehicle for Israeli
construction in the Negev, and as a potential challenger to the Suez
Canal. The World Bank urged the use of the term "conveyance" rather
than "canal" to debunk the latter concern.
--------------
Layers of Management and Advice
--------------
11. (U) The management of the project will be handled by a four-way
(World Bank, Israel, Jordan, Palestinian) Technical Steering
Committee and a working level Study Management Unit -- with the same
four parties but different individuals -- to manage day-to-day
decision-making. The World Bank is also creating an independent
advisory panel of experts. The composition and selection procedures
for the expert panel are not firm, but World Bank Water and
Sanitation Specialist Alex McPhail, who will manage Red-Dead for the
Bank, said that these would be individuals who have the judgment and
experience to look at Red-Dead from both qualitative and
quantitative aspects.
12. (SBU) Comment: No one disputes that the Dead Sea is in trouble
and needs help. Its water level is falling, and its surface area is
now half of what it was. With fresh water inflows estimated at less
than 10% of what they were forty years ago, it's no wonder. Much of
that water is taken off upstream in the Jordan and Yarmouk Rivers
for agriculture and municipal use by Israel, Jordan and Syria. The
potash factories at the southern end of the Dead Sea are also
significant users. By the end of 2009, the study should inform us
on whether the Red-Dead project is economically and environmentally
feasible or not.
RUBINSTEIN
SIPDIS
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: SENV ECON PREL XF JO
SUBJECT: Red-Dead Feasibility Study Launch - Hopeful Start
AMMAN 00008959 001.4 OF 002
1. (U) Summary: The World Bank and regional beneficiaries Jordan,
Israel, and the Palestinian Authority launched the $15.5 million
feasibility study and environmental and social assessment for the
Red Sea to Dead Sea Water Conveyance project on December 10. With
only $8.8 million in contributions so far, the first order of
business is to find another $6.7 million to fully fund the study.
End summary.
--------------
Financing the Study Itself is a Challenge
--------------
2. (U) BACKGROUND: The two-year World Bank-led feasibility study
will examine the technical, economic, environmental, and financial
feasibility of a multi-billion dollar project to pump 1,900 million
cubic meters (MCM) a year of seawater from the Gulf of Aqaba through
massive pipes to the Dead Sea to arrest declining water levels, and
to return the Dead Sea's water level to the historical mean of 395
meters below sea level. In addition, the project aims to generate
electricity, and desalinate 850 MCM of water per year for drinking.
The residual brine from the desalination process would go into the
Dead Sea.
3. (U) In April 2005, after protracted negotiations, the
beneficiary parties -- Israel, Jordan and the Palestinians -- agreed
on terms of reference for Red-Dead, and asked the World Bank to help
raise the funds and manage the study. Between April 2005 and
December 2006, the World Bank managed to raise $8.8 million dollars,
including support from the Netherlands, France, Japan, and a $1.5
million contribution out of the budget of USAID/Jordan's water
portfolio. END BACKGROUND.
4. (SBU) World Bank Director of Water, Environment, Social and
Rural Development for the Middle East and North Africa Inger
Andersen told the meeting participants that there are two components
of the overall study. One component is an environmental and social
assessment. The other is a feasibility study of the technical and
financial aspects. Both the feasibility study and the environmental
and social assessment will consist of four sub-studies examining: 1)
the intake area in Aqaba, 2) the conveyance through Wadi Araba, 3)
the Dead Sea area, and 4) around the hydropower and desalination
facilities. The procurement process
(www.worldbank.org/rds-procurement) will move forward while the
World Bank and the beneficiary parties try to find the remaining
financing. The contracts will not be let though, said Andersen,
unless all of the money is in place. With the procurement process
expected to be completed by summer 2007, the race to find the
remaining money is on.
--------------
Same Bed, Different Dreams
--------------
5. (U) Ambassador, AID Mission Director and NEA Senior S&T Advisor
Chuck Lawson attended the December 10 launch for the U.S. Eleven
other countries attended, including the UK, Italy, Spain, the
Netherlands, the European Commission, Norway, Japan, China, Egypt,
France and Germany. The beneficiary parties were represented by
Jordan's Minister of Water and Irrigation Zafer Alem, Israel's
Minister of National Infrastructure Binyamin Ben-Eliezer, and
Economic Advisor to the President of the Palestinian Authority
Mohammed Mustafa.
6. (U) During their respective remarks, the representatives of the
beneficiary parties all mentioned the importance of political
cooperation and economic development among the parties; the
cultural, environmental, and touristic importance of arresting the
meter-per-year drop in the level of the Dead Sea; and the 850
million cubic meters of desalinated water that would eventually come
from Red-Dead. Jordanian Minister of Planning and International
Cooperation Suhair al-Ali, noting the value of tourism, called the
Dead Sea the world's largest spa as well as a global cultural
treasure.
-------------- --------------
Donors Raise Public Participation, Water Conservation
-------------- --------------
7. (U) Several issues were brought up by the U.S. and other
delegations. There was general appreciation expressed towards the
beneficiary parties' cooperative efforts on Red-Dead. Concerns were
voiced, however, over ensuring adequate public participation in the
study. Donors also want to see that management of water resources
is discussed as part of Red-Dead. The mega-project, donors said,
should explore conserving scarce water resources, not just look at
new options for supply. The World Bank assured donors that Red-Dead
has opportunities throughout for public comment and interaction, and
that the causal factors of water decline in the Dead Sea would also
be examined. Beneficiary parties will be required to submit a water
AMMAN 00008959 002.3 OF 002
management plan on water conservation and efficiency as part of the
study.
--------------
Outcome Not Pre-Determined
--------------
8. (SBU) The outcome of the feasibility study is not pre-cooked.
The World Bank and donors, including the USG, have emphasized the
need for a thorough, credible, and professional study that will
answer serious questions about the technical aspects, the financial
ramifications and environmental impacts of Red-Dead. The study,
says the World Bank, will also compare Red-Dead with other options,
including the status quo with no additional interventions, and will
draw heavily on earlier and ongoing studies. At this time, the USG
has no financial commitments in place or currently contemplated
beyond the one-time, $1.5 million contribution for the feasibility
study.
--------------
Engineering Firms Eager
--------------
9. (SBU) Consulting engineering firms from around the world are
already eagerly expressing interest in the feasibility study. The
World Bank is adamant that the Red-Dead study be credible, and
therefore, has separated the activity into two separate, but
interrelated actions: the water conveyance feasibility study, and
the environmental and social assessment. The same firm will not be
able to do both the feasibility study and the environmental and
social assessment. At this time, the Bank has not determined
whether a firm that implements the study or assessment can also
implement the project itself.
--------------
Some Press Reports Are Off-Base
--------------
10. (SBU) During her remarks, the World Bank's Inger Andersen
stressed the importance of transparency, public participation, and
getting information to the media and to the community. This will be
a significant challenge. Some off-base media reports have already
appeared in Egyptian and Jordanian newspapers expressing concerns
over the use of Red-Dead as a stealth vehicle for Israeli
construction in the Negev, and as a potential challenger to the Suez
Canal. The World Bank urged the use of the term "conveyance" rather
than "canal" to debunk the latter concern.
--------------
Layers of Management and Advice
--------------
11. (U) The management of the project will be handled by a four-way
(World Bank, Israel, Jordan, Palestinian) Technical Steering
Committee and a working level Study Management Unit -- with the same
four parties but different individuals -- to manage day-to-day
decision-making. The World Bank is also creating an independent
advisory panel of experts. The composition and selection procedures
for the expert panel are not firm, but World Bank Water and
Sanitation Specialist Alex McPhail, who will manage Red-Dead for the
Bank, said that these would be individuals who have the judgment and
experience to look at Red-Dead from both qualitative and
quantitative aspects.
12. (SBU) Comment: No one disputes that the Dead Sea is in trouble
and needs help. Its water level is falling, and its surface area is
now half of what it was. With fresh water inflows estimated at less
than 10% of what they were forty years ago, it's no wonder. Much of
that water is taken off upstream in the Jordan and Yarmouk Rivers
for agriculture and municipal use by Israel, Jordan and Syria. The
potash factories at the southern end of the Dead Sea are also
significant users. By the end of 2009, the study should inform us
on whether the Red-Dead project is economically and environmentally
feasible or not.
RUBINSTEIN