HAITI: FIRST PETROCARIBE SHIP STALLED AT VARREUX

UNCLAS PORT AU PRINCE 000971 SIPDIS SIPDIS STATE FOR WHA/CAR WHA/EPSC FOR FAITH CORNEILLE, ED MARTINEZ EB/IFD STATE PASS TO USAID FOR LAC/CAR TREASURY FOR JEFFERY LEVINE COMMERCE FOR SCOTT SMITH E.O. 12958: N/A TAGS: ENRG EPET ECON EAID HA SUBJECT: HAITI: FIRST PETROCARIBE SHIP STALLED AT VARREUX PORT REF: A. PAP 846 ¶B. PAP 891 ¶1. Shooting stalled the unloading and delivery of oil May 17 from the first PetroCaribe ship, which arrived in Haiti on May 13 (reftel A). The ship was docked at Varreux, a port located near one of Port-au-Prince's most violent slums, Cite Soleil. The captain of the ship reported bullets flying over the deck and stopped unloading the ship. According to Minustah, gun shots were heard in nearby Cite Soleil but were not directed toward the terminal. The port received no incoming fire. Minustah considers the Captain's report impossible given the distance of the shots fired. This caused only a minor delay, of less than one day. ¶2. Chevron (operating as Texaco in Haiti) security officials will be in Haiti June 1 to assess the situation and determine whether the next tanker, due to arrive as early as June 2, should offload at Varreux or not. Minustah's message to Chevron is that Chevron should continue sending their tankers to Varreux as nothing has changed in recent months. If anything, the situation has improved since the Brazilians replaced the Jordanian contingent in Cite Soleil. Chevron officials told us they agree with this assessment but have for some time been wary of the security of Varreux due to its proximity to Cite Soleil and the possibility of stray gunfire. ¶3. Comment: This incident, and any others regarding PetroCaribe since President Rene Preval signed the agreement May 14, has received no attention from the media. Haitians have noted, however, that electricity in Port-au-Prince has improved since Preval's inauguration with 6 to 8 hours a day, usually late at night until morning in residential areas. SANDERSON =======================CABLE ENDS============================