INPUT FOR NEW REQUIRED REPORTS TO CONGRESS ON ENERGY

UNCLAS COLOMBO 000180 SIPDIS SIPDIS EEB/ESC/IEC FOR B. GLENN GRIFFIN E.O. 12958: N/A TAGS: ENRG SENV APER ABUD CE SUBJECT: INPUT FOR NEW REQUIRED REPORTS TO CONGRESS ON ENERGY REF: SECSTATE 10743 The following are Embassy Colombo's replies to the questions in reftel para 4: -- A. The economic section and USAID handle energy matters. The economic section has three officers and three foreign service nationals (FSNs). The USAID section that handles energy has one FSN dedicated to energy issues. -- B. State: Ambassador: 1% of time. 1 economic officer: 10% of time. 1 economic FSN: 10% of time. USAID: 1 FSN 100% of time. -- C. In the economic section, the section chief and one FSN handle energy-related issues. For Sri Lanka, most of our engagement relates to two issues: Sri Lanka's offshore oil exploration potential and its plans to build a new oil refinery. On the oil exploration issue, we report on the exploration tender process, and have tried to ensure that the process is competitive and transparent. To this end, we have worked with the US Trade and Development Agency (USTDA) and other USG agencies to organize technical assistance for Sri Lanka's Petroleum Resources Development Secretariat. On the refinery issue, we report on the government's SIPDIS plans for the new refinery and we advocate for the U.S. companies that are interested in building it or doing related work. We also periodically report on issues involving renewable energy, and assist U.S. companies that may invest in that area. Economic section staff have no specialized background related to energy issues. For Maldives, the Embassy economic section has reported on and assisted a newly-incorporated U.S. company using U.S. technology in a $3 million pilot renewable energy project that it hopes to expand to a $90 million investment throughout the country. We also manage an $8.7 million tsunami reconstruction grant, which includes a $1.5 million component to repair and upgrade electrical power systems on six islands. Under the USAID SARI/Energy regional program, we have promoted a dialog between the governments of Sri Lanka and India. They agreed that an electrical inter-connection via submarine cable would benefit their nations over the long-term. A steering committee jointly chaired by the Ministry of Power, India, and the Ministry of Power and Energy, Sri Lanka, and a Technical Coordination Sub-Committee, were established to provide political support and to address technical, commercial, legal and regulatory aspects of transmission and exchange of power between two countries. The Asian Development Bank (ADB) has offered to conduct a detailed feasibility study on the India-Sri Lanka interconnection. Concerning wind power development, the Ceylon Electricity Board (CEB),the electricity utility of Sri Lanka, has signed Letters of Intent (LOIs) with four commercial developers to build 34 MWs of wind power on the island's west coast. This positive policy shift, with CEB now allowing the private sector involvement in wind power development, was achieved as a result of a well planned series of USAID SARI/Energy initiatives, including: developing a wind atlas for Sri Lanka; conducting technical studies and training CEB engineers on issues related to grid stability; and developing confidence among the CEB planning and operations engineers to consider broader aspects of grid connected wind energy projects. -- D. State Department funds spent by Embassy Colombo in FY 2007 on energy-related activities are as follows: -Personnel: Estimated $13,500 -Programs: Estimated $5,000 USAID funds spent in FY 2007 on energy-related activities are as follows: -Personnel: Estimated $ 57,000 -Programs: Estimated $ 800,000 (Funded through SARI/Energy regional program) BLAKE