MASS TRANSIT FOR GUINEA ON THE HORIZON

UNCLAS CONAKRY 000070

SIPDIS

DEPT FOR AF/W
DEPT FOR EB/IFD/OMA
DEPT FOR EB/ESC/IEC FOR PHAYMOND
DEPT PLEASE PASS TO USTR FOR LAURIE ANN AGAMA
DEPT PLEASE PASS TO COMMERCE FOR SALIHA LOUCIF
TREASURY FOR OFFICE OF AFRICAN NATIONS

SIPDIS

E.O. 12598: N/A
TAGS: ECON EPET PGOV GV
SUBJECT: MASS TRANSIT FOR GUINEA ON THE HORIZON

REF: CONAKRY 185


1. SUMMARY. According to a government contact at the Ministry of
Transport, mass transit for Conakry is reportedly coming within two
months. END SUMMARY.


2. On March 26, Econoff met with the Director General at the
Ministry of Transport, Mamoudou Diallo, to discuss the long awaited
arrival of donated buses for Guinea from India. Mr. Diallo
confirmed that the 100 Ashok-Leyland buses will arrive by the end of
April.


3. The Director General explained that the ECOWAS bank loaned
Guinea eight million USD, but included a restriction requiring that
the money be used to purchase goods from India. The money for the
loan was provided by India to ECOWAS Bank. According to Diallo,
Guinea bought 100 buses, with 70 to be used in Conakry, and 30 in
the interior. He added that the GoG has consulted with an Ivoirian
company regarding training, bus scheduling, fares, etc. The
Director General said that a private operator will run the
operation. He was emphatic that the private operator will not
receive any gasoline subsidy, even though it may be difficult for
the company to make money due to fare restrictions. For example,
Diallo said that soldiers will likely not pay a fare, while students
will likely pay a reduced fare.


4. However, Mr. Diallo said that the Ministry is hoping that the
bus service will be profitable so that the operating company can
contribute to the repayment of the loan. He did not specify how
this would work. When asked about maintenance for the buses, Mr.
Diallo said that the private company would be completely responsible
for maintaining the fleet.


5. Mr. Diallo also revealed that the GoG plans to introduce
maritime transport along Conakry's coast with small ferries, and
rail service from Kaloum (city center) to Kagbelen (KM 36). He did
not provide a time frame for these services, nor an indication of
how they would be funded.


6. COMMENT: Once put into operation, the new buses will effectively
be the first public transportation system in Conakry in years, aside
from public taxis. Various government contacts have repeatedly said
that providing bus service should provide some relief for the
average Guinean with the end of the gasoline subsidy program. Once
the buses are in service, long-term maintenance will be a challenge.
In addition, Conakry's road infrastructure is not built to
accommodate numerous large buses. There are only two main roads
running the length of the city and traffic is already heavy.
Finally, putting 70 buses into service could put numerous taxi
drivers out of business, whose union is one of the more active and
vocal in the city. END COMMENT.

CARTER