ANGOLA - AUGUST POLITICAL ROUNDUP

C O N F I D E N T I A L SECTION 01 OF 02 LUANDA 000908 SIPDIS SIPDIS E.O. 12958: DECL: 09/03/2017 TAGS: PGOV PREL ENRG SENV KOLY AO SUBJECT: ANGOLA - AUGUST POLITICAL ROUNDUP REF: LUANDA 847 Classified By: CDA FRANCISCO FERNANDEZ FOR REASONS 1.4 (B) AND (D) ¶1. (U) SUMMARY -------------- - OPEC Secretary General Visits Angola - Energy and Economic Development Conference Held in Luanda - Angola Welcomes Vietnamese Doctors and Teachers - Angola Hosts and Wins African Basketball Championship OPEC Secretary General Visits Angola -------------- ¶2. (U) OPEC Secretary General Abdalla El-Hadri arrived in Luanda on August 25, 2007 for a four-day working visit. Mr. El-Hadri told journalists he was not in Luanda to talk about Angola's production ceiling, which he said will be discussed and set in December, but to talk about crude oil pricing. The OPEC Secretary General met with President Dos Santos, Petroleum Minister Da Costa and the Vice Minister of Foreign Relations Jorge Chicoti. ¶3. (C) COMMENT: Presidential insiders insinuated that the trip's purpose was to discuss Angola's habit of making side deals to sell crude oil below market - or even below production - value. These opaque deals, often made under the auspices of assistance to impoverished African nations, have increasingly been used to reward cooperation with the GRA (reftel). Despite the threat "rouge pricing" and lack of production quotas pose to OPEC market share, the organization is using kid gloves as it brings its newest member into the fold. END COMMENT Energy and Economic Development Conference Held in Luanda -------------- -------------- ¶4. (U) The Eduardo dos Santos Foundation (FESA) held an Energy and Economic Development Conference in Luanda on August 27, 2007. During the conference, Energy Minister Botelho de Vasconcelos stated the majority of Angola's electric production comes from its large reserves of non-renewable crude oil, which represents 80 percent of Angola's total electric energy production. Three percent is hydro-energy and 17 percent is bio-energy, or wood and charcoal. Overall, only 25 percent of Angolans have access to electricity; the remaining 65 percent rely on wood and charcoal. ¶5. (U) Vasconcelos confirmed that Angola's energy production is far from adequate, especially production from renewable energy sources. Despite Angola extensive waterways, it produces only 4 percent (790 megawatts) of its potential 18,000 megawatts of hydro-power. He stated that the electrical energy sector is open to private investment at all levels - production, transport and sale. Angola Welcomes Vietnamese Doctors and Teachers -------------- -- ¶6. (U) The Vietnamese Ambassador to Luanda, Nguyen Dinh, told journalists that there are 250 Vietnamese doctors and nurses working in Angola's healthcare system as well as 80 teachers working in Angolan schools. Vietnam has sent 500 professionals to Angola since a technical assistance accord was signed by the two governments in 1986. Ambassador Dinh said Vietnam is considering new partnerships with the GRA in the petroleum, agriculture, fishing and commercial sectors. ¶7. (U) In press interviews the Ambassador announced Vietnam's intention to run for a seat on the UN Security Council and asked for the GRA's support of their candidacy. Angola and Vietnam established diplomatic relations in November 1975, and 60 million USD worth of goods were imported from Vietnam in 2006. Angola Hosts and Wins African Basketball Championship -------------- -------------- ¶8. (U) On August 26, 2007 Angola secured a place at the 2008 Beijing Olympics as its national basketball team won the 24th African Basketball Championship tournament, "Afrobasket". Sixteen African nations competed in this Olympic-qualifying event, sponsored by the African Basketball Federation (FIBA-Africa). Over 500 journalists, scouts from around the world, and rabid sports fans watched the heavily favored Angolan national team win its 5th consecutive victory and its 9th title in the past 10 tournaments. The players each received houses in a government- financed housing development (market value 350,000 USD),new Volkswagen cars donated by a local dealership, and 10,000 USD in cash from the Ministry of Youth and Sports. This is the first time that Afrobasket LUANDA 00000908 002 OF 002 players received such substantial awards, but the bar was raised by the prizes awarded for the Angolan soccer team's World Cup run in 2006. ¶9. (SBU) Angola hosted the tournament in five Angolan cities. The organizing committee's budget of 70 million USD was used to build 4 new multipurpose sports centers in the provincial capitals of Cabinda, Benguela, Huambo and Huila, and to refurbish the Luanda Basketball center. Delays plagued Chinese contractors' work on these facilities, and contacts expressed concern over shoddy workmanship to Emboffs. Final touches were completed on several facilities only days before teams began arriving in Angola. FERNANDEZ