TRADE DEVELOPMENT AGENCY FOCUSES ON INFORMATION

UNCLAS JERUSALEM 002072 SENSITIVE SIPDIS STATE PASS USAID FOR BORODIN, TDA FOR KRESS/BASTANI, OPIC FOR DRUMHELLER/GORAVANCHI, NSC FOR KUMAR, JOINT STAFF FOR LT GEN SELVA E.O. 12958: N/A TAGS: EAID ECON EINV ETRD KPAL KWBG IS SUBJECT: TRADE DEVELOPMENT AGENCY FOCUSES ON INFORMATION TECHNOLOGY, ENERGY SECTOR PROJECTS REF: JERUSALEM 1463 ¶1. (U) Summary. Trade Development Agency (TDA) Regional Director Carl Kress visited Jerusalem and the West Bank November 10-12 to follow up on pending grants for the MENA Geothermal and Rawabi (reftel) projects, generate interest in the TDA-sponsored May 2010 MENA Energy Conference in Cairo, and explore potential projects in the energy and IT sectors. End Summary. Geothermal and Rawabi IT Projects On Track -------------- ¶2. (SBU) TDA and MENA Geothermal are planning an early December signing ceremony for a nearly $440,000 TDA grant (pending congressional notification) for a feasibility study for a geothermal heating and cooling system. The resulting system design will be replicable in similar projects in the West Bank and elsewhere in the Middle East, and is expected to generate exports of US equipment. ¶3. (U) Work is also proceeding on schedule for two potential projects at the Rawabi housing project, north of Ramallah. TDA contractors started work in November on proposals for an information technology network feasibility study and a wastewater treatment study. Rawabi developer Bashar Masri called TDA assistance the first tangible USG assistance project at Rawabi. Energy Sector Seeks U.S. Private Sector Investment -------------- -------------- ¶4. (SBU) Contacts from the Jerusalem District Electric Company (JDECO) and the Palestinian Energy and Natural Resources Authority noted the absence of U.S. commercial involvement and USG assistance in the Palestinian energy sector, and urged TDA to help encourage U.S. investment. JDECO Chairman Youssef Dajani said that his priorities include a solar plant in Jericho, "smart grid" technology, energy efficiency through standardization of equipment, and fraud detection. He estimated that JDECO, which distributes electricity to the central West Bank, including Ramallah and Jericho, loses USD 20 million annually due to fraud. The problem, he said, is particularly acute in the 12 refugee camps to which JDECO provides services. Dajani agreed to work with TDA to develop proposals for presentation to U.S. and regional companies at the TDA-sponsored May energy conference in Cairo. He suggested including interconnection with neighboring countries, power control at future industrial zones, and methane gas generation. GPC Reviewing Proposal for TDA Assistance -------------- ¶5. (SBU) General Petroleum Corporation (GPC),a subsidiary of the Palestinian Authority (PA) Ministry of Finance, is reviewing the proposal for TDA-funded technical assistance and an infrastructure study to upgrade its storage facilities and distribution network. GPC Director General Amin Bashir said he had briefed Prime Minister Fayyad (who, as Minister of Finance, is responsible for GPC) on the assistance proposal and received his support to proceed. He noted that Fayyad has asked that the GPC submit its two-year plan in a month's time, and he hoped to include the TDA proposal as a component. ¶6. (U) Comment: Post is deeply appreciative of TDA's efforts to support broader West Bank economic development initiatives, and to generate concepts that complement ongoing USAID, OPIC, and other USG programming. TDA's projects continue to be well received by the PA and the local business community. MARCHESE