AMBASSADOR RETZER AND PRESIDENT KIKWETE DISCUSS

C O N F I D E N T I A L SECTION 01 OF 03 DAR ES SALAAM 001740 SIPDIS SIPDIS DEPT FOR AF/E B YODER PLEASE PASS TO MCC FOR G BREVNOV E.O. 12958: DECL: 10/25/2011 TAGS: PREL PGOV ENRG EAID ECON PHUM TZ SUBJECT: AMBASSADOR RETZER AND PRESIDENT KIKWETE DISCUSS HIV, MCC, AND MIL-TO-MIL RELATIONS REF: DAR ES 01090 Classified By: Ambassador Retzer, Chief of Mission, for reason 1.4(d). ¶1. (SBU) SUMMARY. During his meeting with Ambassador Retzer on October 23, President Kikwete stressed his desire to launch an HIV/AIDS campaign targeting teachers and leveraging his wife's work with teacher's associations. The Ambassador expressed his support and designated post's PEPFAR coordinator to liaise with the First Lady and her staff. From the U.S. side, the Ambassador raised his concern over the energy crisis and told Kikwete that, without a clear plan for reform, the Millennium Challenge Corporation (MCC) had reservations about investing in power projects proposed for the compact. While acknowledging the Richmond debacle, and the severity of the crisis with the closure of Kidatu and Mtera dams, Kikwete has yet to reveal his long-term vision for reforming the sector. With respect to the increasingly warm U.S.-Tanzanian military-to-military relationship, momentum continues to build. President Kikwete promised to personally address pending issues with the Chief of Defense Forces, expressed his delight about the opportunity to send candidates to U.S. military academies, and specifically inquired about General Ward's visit to Tanzania. END SUMMARY. HIV/AIDS Campaign for Tanzania's Teachers -------------- ¶2. (U) President Kikwete told the Ambassador that he wanted to launch an HIV/AIDS testing and treatment campaign specifically for teachers. "Every month in Tanzania between 50 to 100 teachers die from AIDS," Kikwete said and explained that his wife, First Lady Salma Kikwete, could leverage her work with the teachers associations to have a far-reaching and measurable impact on this heavily affected group. Teacher associations, Kikwete emphasized, have representatives in every region, in every district and every school. "Through the associations, we can move fast to prevent infections among and provide treatment for teachers. Then we can focus on additional groups like the civil service, the military, the police etc.," Kikwete said. ¶3. (U) President Kikwete outlined the three main goals of the campaign: (i) to test all teachers; (ii) to treat those teachers who test positive; and (iii) to counsel those who are negative "to take care" and stay negative. The key, Kikwete stressed, would be to ensure that anti-retro viral drugs (ARVs) were accessible so that teachers had an incentive to "know their status." While the campaign would be led by the First Lady, the Ministries of Health, Education, Local Governance and Public Service would also have to be involved, Kikwete noted. Ambassador Retzer responded that under the Presidential Emergency Plan for AIDS Relief (PEPFAR),ARVs were available and that Tanzania's PEPFAR coordinator, Tracy Carson, would coordinate with the First Lady's office. National HIV/AIDS Testing Day -------------- ¶4. (U) In the discussion on HIV/AIDS, Ambassador Retzer emphasized the importance of the "know your status" component of the campaign. He raised the idea of a National HIV Testing Day where key government officials, sports stars and other celebrities could participate, getting tested in the public eye. President Kikwete said that he was committed to this and would announce a National HIV Testing Day on December 1 (World AIDS Day). The Ambassador also raised the issue of progress on the HIV testing algorithm or the "pin-prick" test kits, explaining that testing could far more accessible if "pin-prick" tests were used as opposed to testing methodologies which required drawing blood from a vein (reftel). President Kikwete agreed and promised to follow-up with the Ministry of Health on the progress of approving such testing kits. Concern Over Energy Crisis,... -------------- ¶5. (C) Ambassador Retzer expressed his concern about the energy sector, noting that the Millennium Challenge Corporation (MCC) had increasing reservations about investing in the GOT's proposed power projects. In particular, the Ambassador highlighted the lack of transparency in procurement processes as evidenced by the current deal with DAR ES SAL 00001740 002 OF 003 Richmond Development Company (a little known U.S. based company contracted to install a 100 MW power plant for USD 172 million). Although the Ambassador suggested a high-level stakeholders meeting with the MCC, World Bank, donors and high-level GOT representatives, he emphasized that the commitment to transform the energy sector would ultimately need to come from the GOT. ¶6. (C) Regarding Richmond Development Company, President Kikwete suggested that the GOT had been duped. "It seems we were misled by the beauty of the letters. Richmond must have had a good consultant to write their proposal. Over time, however, we started to realize Richmond might be a phantom company," Kikwete said. He added that he had personally warned the Minister of Energy, Ibrahim Msabaha, not to give Richmond a down payment because if Richmond disappeared with the money, the Minister would want to commit suicide rather than face the Tanzanian people. ...And Precarious Procurement Process -------------- ¶7. (C) The Ambassador noted that part of the problem was selecting "brokers" or "middle-men" rather than dealing directly with principals. Kikwete agreed with the Ambassador's advice. He said that unfortunately, with the closure of Kidatu dam, there was no time to start afresh in the procuring power generation. Instead, Kikwete explained that the GOT strategy would be to put pressure on Richmond to deliver while trying to accelerate timelines on other power generation projects. (Note: Wartsila, a Finnish Company, is installing a 100 MW power plant and Aggreko, a UAE based company, is installing a 40 MW power plant). GOT Support for Guatemala, TIFA Signing -------------- ¶8. (C) Ambassador Retzer thanked Kikwete for his support of Guatemala as the Latin American candidate for the United Nations Security Council (UNSC) seat. President Kikwete reiterated his support for Guatemala and called Hugo Chavez, "a bull in a china shop." Kikwete added that Venezuela had opposed several initiatives which Tanzania had labored over including the Peacekeeping Commission, the Human Rights Commission and the International Labor Organization Report. The Ambassador also highlighted the upcoming opportunity at the African Union Trade Ministerial for the East African Community countries, Kenya, Tanzania and Uganda, to sign a Trade and Investment Framework Agreement (TIFA) with the U.S. President Kikwete nodded in approval at the mention of the TIFA and expressed his support but he did not say whether or not Tanzania had formally2`pPgd@fi;Gd QQQHPiD*dj1~(Q" !. military academies in FY 2007. Kikwete was delighted and said he would ensure the TPDF took advantage of this "great opportunity." The Ambassador also shared the possibility of positioning a Civil Affairs team in Tanzania to work on community projects such as the Msata Clinic which was renovated together by U.S. and TPDF forces. Finally, the Ambassador raised two issues, still pending with the Chief of Defense Forces, General Waitara: (i) the need for an HIV/AIDS coordinator within the TPDF; and (ii) a suitable timeframe for the peacekeeping ACOTA conference. President Kikwete explained that some of his colleagues (i.e. General Waitara) might still have a Cold War mentality and assured the Ambassador that he would personally "take up" these issues. ¶10. (C) After the meeting had ended and as the Ambassador was walking out the State House, President Kikwete walked back into the State House lobby. "Balozi (Swahili for Ambassador),one more thing," Kikwete said, "what about General Ward's visit?" The Ambassador explained that General Ward's visit had been delayed unexpectedly but that that his Defense Attach was working to re-schedule the visit. Comment: -------------- ¶11. (C) The fact that General Ward was on President Kikwete's radar signifies that the GOT places great importance on such a high-level, U.S. military official's visit. Kikwete's DAR ES SAL 00001740 003 OF 003 inquiry into General Ward's visit also signifies his personal interest in issues pertaining to U.S.-Tanzanian military relations. In terms of President Kikwete's teacher focused HIV/AIDS campaign, one critical message must be that teachers will be able to retain their jobs regardless of their HIV status. Post's PEPFAR coordinator believes this assurance will be crucial, in addition to the availability of ARVs, to convince teachers to get tested. While Kikwete shared his personal, pro-active plan to tackle the HIV/AIDS crisis, he appeared less open and enthusiastic about his plans to tackle the energy crisis. Clearly, Kikwete understands the damaging impact of the crisis on the economy, however, his long-term plan to reform the sector remains to be seen. END COMMENT. RETZER