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
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- 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
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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
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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
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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
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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

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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