Identifier
Created
Classification
Origin
08BRUSSELS165
2008-02-01 14:34:00
CONFIDENTIAL
USEU Brussels
Cable title:
SCA ADVISOR DEUTSCH SEEKS SUPPORT FROM EC AND EIB
how-toVZCZCXRO7313 OO RUEHFL RUEHKW RUEHLA RUEHROV RUEHSR DE RUEHBS #0165 0321434 ZNY CCCCC ZZH O 011434Z FEB 08 FM USEU BRUSSELS TO RUEHC/SECSTATE WASHDC IMMEDIATE INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY RUEHAH/AMEMBASSY ASHGABAT PRIORITY RUEHTA/AMEMBASSY ASTANA PRIORITY RUEHEK/AMEMBASSY BISHKEK PRIORITY RUEHDBU/AMEMBASSY DUSHANBE PRIORITY RUEHIL/AMEMBASSY ISLAMABAD PRIORITY RUEHNT/AMEMBASSY TASHKENT PRIORITY RUEHKO/AMEMBASSY TOKYO PRIORITY
C O N F I D E N T I A L BRUSSELS 000165
SIPDIS
SIPDIS
STATE FOR SCA/FO, SCA/A, SCA/PB, SCA/CEN, EUR/ERA
USAID FOR WARD
E.O. 12958: DECL: 02/01/2018
TAGS: PREL PGOV EU EAID OSCE AF TI TX UZ XG ZK PK
SUBJECT: SCA ADVISOR DEUTSCH SEEKS SUPPORT FROM EC AND EIB
ON CASAREM
Classified By: USEU POLMINCOUNS LARRY WOHLERS, FOR REASONS 1.4 (b) and
(d)
C O N F I D E N T I A L BRUSSELS 000165
SIPDIS
SIPDIS
STATE FOR SCA/FO, SCA/A, SCA/PB, SCA/CEN, EUR/ERA
USAID FOR WARD
E.O. 12958: DECL: 02/01/2018
TAGS: PREL PGOV EU EAID OSCE AF TI TX UZ XG ZK PK
SUBJECT: SCA ADVISOR DEUTSCH SEEKS SUPPORT FROM EC AND EIB
ON CASAREM
Classified By: USEU POLMINCOUNS LARRY WOHLERS, FOR REASONS 1.4 (b) and
(d)
1. (C) Senior Economic Advisor for South and Central Asian
Affairs Robert Deutsch met with European Commission, European
Investment Bank, and KfW Bank officials January 23 - 24 in
Brussels to discuss the Central to South Asia Regional
Electricity Market (CASAREM). European Commission (EC) Head
of Unit for Central Asia Victor Maldonado explained that the
Commission itself could not provide funding for CASAREM due
to restrictions the European Parliament placed on how it
could spend its five-year 750 million Euro assistance package
for Central Asia. He said that the restrictions required the
assistance to be directly related to poverty reduction, and
thus Commission projects mainly targeted health, education,
and governance (capacity building). However, Maldonado was
optimistic that the European Investment Bank (EIB) could
participate in CASAREM, assuming the EIB received from the
European Council a mandate to do work in Central Asia, as
Maldonado hoped it would under the EU Slovenian presidency.
Maldonado explained that the EC would meet with EU member
states, EIB, and EBRD officials on March 4 in Brussels and
said the EC would push the EIB and EBRD to make loans and
guarantees to projects like CASAREM. He added that the EC
could potentially help finance the interest on a project like
CASAREM.
2. (C) Mr. Deutsch met separately with European Investment
Bank Senior Adviser for Operational Lending Policies Guido
Prudhomme at the EIB liaison office in Brussels. Mr.
Prudhomme explained that approximately ten percent of EIB
money (equivalent to five billion euros per year) is spent
outside the EU and that the EIB works on the basis of
mandates from the EU so that they can cover political risk.
He said that the 27 EU Finance Ministers would have to
approve a mandate for the EIB to operate in Central Asia.
Prudhomme added that if the EIB received approval from
Finance Ministers to operate in Central Asia, energy -- but
mostly oil and gas -- would be their priority but that they
would want to coordinate anything they did on Central Asia
with the EBRD. He noted that there may be a problem in
guaranteeing commercial investment, especially if it were
short term. Mr. Deutsch replied that it may be possible to
structure the investment differently if there were interest
in doing so.
3. (C) European Commission Head of Unit for South Asia Helen
Campbell told Mr. Deutsch the EC would be interested in using
an upcoming regional coordination conference, such as the
Regional Economic Conference on Cooperation with Afghanistan,
to promote a coordinated U.S. - EU project on regional border
management and trade facilitation. Mr. Deutsch responded
that the USG would be interested in hearing the ideas of the
EC about this, including on the Pakistan - India and Afghan -
Pakistan borders.
4. (U) This message has been cleared by SCA Senior Economic
Advisor Robert Deutsch.
MURRAY
SIPDIS
SIPDIS
STATE FOR SCA/FO, SCA/A, SCA/PB, SCA/CEN, EUR/ERA
USAID FOR WARD
E.O. 12958: DECL: 02/01/2018
TAGS: PREL PGOV EU EAID OSCE AF TI TX UZ XG ZK PK
SUBJECT: SCA ADVISOR DEUTSCH SEEKS SUPPORT FROM EC AND EIB
ON CASAREM
Classified By: USEU POLMINCOUNS LARRY WOHLERS, FOR REASONS 1.4 (b) and
(d)
1. (C) Senior Economic Advisor for South and Central Asian
Affairs Robert Deutsch met with European Commission, European
Investment Bank, and KfW Bank officials January 23 - 24 in
Brussels to discuss the Central to South Asia Regional
Electricity Market (CASAREM). European Commission (EC) Head
of Unit for Central Asia Victor Maldonado explained that the
Commission itself could not provide funding for CASAREM due
to restrictions the European Parliament placed on how it
could spend its five-year 750 million Euro assistance package
for Central Asia. He said that the restrictions required the
assistance to be directly related to poverty reduction, and
thus Commission projects mainly targeted health, education,
and governance (capacity building). However, Maldonado was
optimistic that the European Investment Bank (EIB) could
participate in CASAREM, assuming the EIB received from the
European Council a mandate to do work in Central Asia, as
Maldonado hoped it would under the EU Slovenian presidency.
Maldonado explained that the EC would meet with EU member
states, EIB, and EBRD officials on March 4 in Brussels and
said the EC would push the EIB and EBRD to make loans and
guarantees to projects like CASAREM. He added that the EC
could potentially help finance the interest on a project like
CASAREM.
2. (C) Mr. Deutsch met separately with European Investment
Bank Senior Adviser for Operational Lending Policies Guido
Prudhomme at the EIB liaison office in Brussels. Mr.
Prudhomme explained that approximately ten percent of EIB
money (equivalent to five billion euros per year) is spent
outside the EU and that the EIB works on the basis of
mandates from the EU so that they can cover political risk.
He said that the 27 EU Finance Ministers would have to
approve a mandate for the EIB to operate in Central Asia.
Prudhomme added that if the EIB received approval from
Finance Ministers to operate in Central Asia, energy -- but
mostly oil and gas -- would be their priority but that they
would want to coordinate anything they did on Central Asia
with the EBRD. He noted that there may be a problem in
guaranteeing commercial investment, especially if it were
short term. Mr. Deutsch replied that it may be possible to
structure the investment differently if there were interest
in doing so.
3. (C) European Commission Head of Unit for South Asia Helen
Campbell told Mr. Deutsch the EC would be interested in using
an upcoming regional coordination conference, such as the
Regional Economic Conference on Cooperation with Afghanistan,
to promote a coordinated U.S. - EU project on regional border
management and trade facilitation. Mr. Deutsch responded
that the USG would be interested in hearing the ideas of the
EC about this, including on the Pakistan - India and Afghan -
Pakistan borders.
4. (U) This message has been cleared by SCA Senior Economic
Advisor Robert Deutsch.
MURRAY