REQUEST FROM E-UNDER SECRETARY JEFFERY: DUE DILIGENCE FOR

UNCLAS MANILA 002729 SIPDIS SIPDIS STATE FOR EAP/EP STATE FOR EEB/EPPD NSMITH-NISSLEY STATE ALSO PASS EXIM, OPIC AND USTR TREASURY FOR OASIA E.O. 12958: N/A TAGS: BEXP EINV ELAB ETRD KSEP SENV RP SUBJECT: REQUEST FROM E-UNDER SECRETARY JEFFERY: DUE DILIGENCE FOR THE SECRETARY OF STATE'S 2007 AWARD CORPORATE EXCELLENCE REF: A) STATE 71180, B) Manila 1999, C) STATE 47222 ¶1. Post appreciates that CalEnergy Manila is one of the companies under further consideration for the Secretary of State's 2007 Award for Corporate Excellence (ACE). In response to ref A request, Post reaffirms that the company's conduct in the country has been exemplary, specifically responding to: A) Post knows of no issue or situation that could cause a downside or embarrassment. B) CalEnergy imports U.S. technology and technical expertise. It is difficult to estimate the number of jobs created in the U.S., but they would include jobs in high value added knowledge industries. C) Technology and services exports are a rapidly growing segment of the U.S. economy. D) CalEnergy is strongly committed to employees' safety and health at all sites. Safety programs have been developed in order to further reduce and eliminate safety incidents. CalEnergy Philippines' STOP (Safety Training Observation Program) system, operating on a peer-to-peer basis, involves employees in auditing safe and unsafe behaviors at the workplace. The objective of the STOP program is to continuously train and encourage all employees and contractors to eliminate incidents and injuries by observing and discussing the safe and unsafe behaviors of their colleagues in the workplace as they work. Significant unsafe acts identified by employees are also being discussed through weekly meeting with the entire staff. CalEnergy is not unionized. There is a monthly communication briefing where employees can express their needs to the company. E) We know of no current litigation involving this firm (an arbitration with a previous contractor has now been settled). F) Post has confirmed that the Chief of Mission and others involved in the nominating process do not have any financial interest in the company. JONES