MALDIVES: AMBASSADOR ADVOCATES BOEING AND WINDPOWER SALES

UNCLAS COLOMBO 000227

SIPDIS

SENSITIVE

SIPDIS

STATE FOR SCA/INS, EB/CBA, AND EEB/TRA/OTP

STATE PASS TO USTR FOR AUSTR HARTWICK

SINGAPORE FOR FAA

E.O 12958: N/A
TAGS: ECON EINV ENRG EAIR ETRD MV
SUBJECT: MALDIVES: AMBASSADOR ADVOCATES BOEING AND WINDPOWER SALES

REF: A) COLOMBO 135 B) 2006 COLOMBO 1609


1. (U) SUMMARY: Ambassador Blake advocated for the purchase of
Boeing aircraft by a Maldivian airline and the expansion of an
upcoming wind power pilot project utilizing US-made wind turbines
during his January 16 visit to the Maldives. Either of these sales
could significantly boost US exports to the Maldives. End Summary.

A 737 Could Lead to More Boeing Sales
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2. (U) During his January 16 visit to Male' (Ref A),Ambassador met
with Abdul Haris, a representative of the Maldives government-owned
air carrier Island Aviation Services (IAS),which is considering
purchasing new aircraft. Haris said that IAS, currently the sole
domestic airline and ground handling and cargo agent for Male'
airport, is planning to begin flying international routes to
Trivandrum, India; Colombo, Sri Lanka; and Dhaka, Bangladesh. IAS
is considering purchasing a used 737 or a comparable Airbus. The
Ambassador urged Haris to buy Boeing planes, noting Boeing is
opening a large service center in India that IAS can utilize. Haris
replied that cost was likely the deciding factor between a Boeing
and an Airbus. Haris had previously told EconOff that he personally
leaned toward Boeing, because he had visited Boeing in Seattle
during a 2005 International Visitor Program and believed Boeing
planes were cheaper to maintain. Haris also mentioned Maldives'
need for training in aviation-related fields. The Ambassador
encouraged Haris to contact the Federal Aviation Agency to learn
more about its capacity-building programs.


3. (U) Note: Island Aviation may be in the market for more airplanes
in the future, as it begins to compete with the foreign carriers
currently bringing in the 600,000 tourists who visit Maldives
resorts annually. End note.

SouthWest Windpower Project Could Reach USD85 Million
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4. (SBU) The Ambassador also met with Ahmed Abdullah, the Minister
of Energy, Environment and Water, who was gravely concerned about
the effects of climate change on Maldives. The Ambassador noted
that Maldives had the opportunity to set an example in the field of
clean, renewable energy, adding that he had noticed solar panels in
some areas already. The Ambassador noted that American firm
SouthWest Windpower was currently finalizing a pilot windpower
project in the Maldives. Ambassador urged Abdullah to consider a
joint venture with SouthWest to expand the project if the pilot went
well. Abdullah agreed that it would be beneficial and said he would
follow up on the project. Minister Abdullah also said his ministry
had a strong need for trained staff and sought educational
opportunities for Maldivians in the U.S., which the Ambassador
promised to promote.


5. (U) Note: SouthWest Windpower was an exhibitor at the latest US
Pavilion at the Maldives Hotel and Trade Show (Ref B),funded in
part through BFIF funding. SouthWest's USD2.5 million pilot project
on three islands includes a feasibility study and detailed scoping
study. If the project proves viable, SouthWest seeks to expand it
to 100 islands, involving a USD85 million investment, with Ex-Im
already committed to provide a loan guarantee. End note.

Comment
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6. (U) Either of these sales would exceed the usual USD10-20 million
level of annual US exports to the Maldives. Post will continue to
pursue these commercial opportunities and seek other good
opportunities for US exports. Additionally, in response to Maldives
government officials' frequent requests for more university and
professional training opportunities in the US, Post is developing
several programs to improve US education links with Maldives.

BLAKE