MALI STRENGTHENS ECONOMIC TIES WITH IRAN

UNCLAS SECTION 01 OF 02 BAMAKO 000200

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: EAID PGOV PREL ML IR
SUBJECT: MALI STRENGTHENS ECONOMIC TIES WITH IRAN

1.(U) Summary. In an effort to strengthen bilateral ties,
Iranian Foreign Minister Manouchehr Mottaki visited Mali on
March 24. Here on what was billed as a working visit ahead
of a possible trip by Iranian President Mahmoud Amadinejad
later this year, Mottaki met with Malian President Ahmadou
Toumani Toure, Foreign Minister Moctar Ouane, the Minister of
Agriculture, and the Minister of Economy, Industry, and
Trade. Mottaki and Ouane discussed a number of sectors, with
a particular focus on re-starting a stalled hydroelectric dam
project financed by the Iranian Export and Development Bank.
Mottaki and Ouane pledged to facilitate tourist and business
travel between the two countries and to increase business
ties via the establishment of a liaison office in Bamako.
Ouane also expressed support for an Iranian proposal to host
an Africa-Iran summit in 2009. Local media portrayed the
visit as indicative of improved Mali-Iran relations following
a falling out several years ago over another stalled
development project - a USD 10 million bridge for the
northern city of Gao - that Iran promised to fund but never
delivered. End Summary.

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An Ambitious Agenda for a Brief Visit
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2.(U) Iranian Foreign Minister Manouchehr Mottaki marked his
first official visit to Mali on March 24. Mottaki praised
the Malian government's efforts toward economic growth and
development, and pledged support for increased bilateral
cooperation. Mottaki met with Malian President Amadou
Toumani Toure, Foreign Minister Moctar Ouane, and Mali's
Economic and Agricultural Ministers to discuss cooperation on
a wide range of issues, including energy, agriculture,
mining, manufacturing, housing, trade, and science and
technology. One Malian newspaper interpreted the visit as a
sign of the "warming" of relations between Mali and Iran,
while other newspapers celebrated the "excellent" relations
between the two countries. The Malian government's news
outlet, l'Essor, adopted a more measured stance, sticking
primarily to details as opposed to adjectives. According to
l'Essor, Mottaki praised the "convergence of view points"
between Mali and Iran and noted that both countries are
Muslim non-aligned nations belonging to the Organization of
the Islamic Conference and the UN.

3.(U) Chief among the issues discussed was the construction
of a hydroelectric dam, which would give a much needed boost
to Mali's energy sector. The project has been stalled since
2005 when Mali and Iran first agreed to build a hydroelectric
dam in Kenie, 35 kilometers outside of Bamako. An Iranian
company, Pars Hydro Kenie, was supposed to build the dam with
financing from the Iranian Export and Development Bank in a
build-operate-transfer agreement to be completed over the
course of 14 years. However, the project is still awaiting
financing to the tune of an estimated CFA 65.5 billion (USD
131 million) from the Iranian government. Malian newspapers
reported that Iranian President Mahmoud Amadinejad hoped to
inaugurate the project personally during a bricklaying
ceremony sometime later this year.

4.(U) In a bid to further strengthen bilateral relations,
Mottaki and Ouane reiterated their support for another 2005
agreement to facilitate tourist and business travel between
the two countries. They discussed the possibility of the
opening of a liaison office in Bamako to assist in
facilitating travel and investment. In the area of
agricultural development, Mottaki agreed to a Malian request
to supply 300 motorized pumps for irrigation systems.
Finally, Ouane expressed support for an Iranian proposal to
host an Africa-Iran summit later this year.

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Comment: Taking the Temperature of Mali-Iran Relations
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5.(SBU) Mali and Iran established diplomatic relations in
1988 with the opening of an Iranian Embassy in Bamako. Mali
has had diplomatic representation in Tehran since the late
1990s. Former Iranian President Seyedd Muhammad Khatami
visited in January 2005 and the Iranian Minister of Energy,
Habiballah Bitaraf, traveled to Mali a few months later.
President Toure returned the courtesy by visiting Iran in
late 2005. In October 2007, Iran provided the Malian
government with fifty 4x4 vehicles reportedly assembled in
Iran.

6.(SBU) Although Malian media portrayed Mottaki's visit as a
success for bilateral relations, several papers including
Mali's government run newspaper l'Essor sounded some sour
notes by alluding to the contentious issue of a USD 10
million line of credit promised by Iran earlier this decade
for the construction of a bridge over the Niger river in Gao

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and the paving of the road from Koulikoro to Banamba, just
north of Bamako. The line of credit never materialized,
forcing Mali to scramble for other means of financing the
bridge, which was eventually completed in late 2006 with
support from the Islamic Development Bank in time to serve as
a key plank in President Amadou Toumani Toure's 2007
presidential re-election campaign. The l'Essor hinted at the
bitterness of Mali's experience with Iran over the bridge
issue. According to l'Essor Foreign Minister Moctar Ouane
observed that Mottaki's presence in Bamako indicated a
willingness to "begin normalizing" relations between the two
countries - an indication that ties between the two countries
had been somewhat less than normal since the Gao bridge
debacle.

7.(SBU) While Iran's failure to follow through with its
promised credit offer is clearly not forgotten, Mali seems
poised to look forward, giving Iran a second chance to make
good on its financial commitments by restarting another
stalled development project. It is somewhat more difficult
to know whether this visit truly signifies a "warming" of
relations as one local newspaper suggested, or if this was
just the latest example of the political calculations an
impoverished, landlocked country like Mali makes to secure an
eclectic assortment of allies capable of delivering
development aid.
MILOVANOVIC