Identifier
Created
Classification
Origin
09MONROVIA262
2009-04-14 13:18:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Monrovia
Cable title:
LIBERIA: POWER PROJECT AND MINING CONCESSION RECEIVE
how-toVZCZCXRO9315 RR RUEHMA RUEHPA DE RUEHMV #0262 1041318 ZNR UUUUU ZZH R 141318Z APR 09 FM AMEMBASSY MONROVIA TO RUEHC/SECSTATE WASHDC 0936 INFO RUEHZK/ECOWAS COLLECTIVE RUEATRA/DEPT OF TREASURY WASHDC RUCPDOC/DEPT OF COMMERCE WASHDC RHEHAAA/NSC WASHDC
UNCLAS MONROVIA 000262
SENSITIVE
SIPDIS
E.O.12958: N/A
TAGS: PGOV ECON EFIN LI
SUBJECT: LIBERIA: POWER PROJECT AND MINING CONCESSION RECEIVE
RATIFICATION
REFS: A) MONROVIA 82; B) MONROVIA 73
UNCLAS MONROVIA 000262
SENSITIVE
SIPDIS
E.O.12958: N/A
TAGS: PGOV ECON EFIN LI
SUBJECT: LIBERIA: POWER PROJECT AND MINING CONCESSION RECEIVE
RATIFICATION
REFS: A) MONROVIA 82; B) MONROVIA 73
1. (U) The Liberian Legislature ratified two major concessions April
1: the $150 million Buchanan Renewable Power (BRP) plant to produce
electricity by burning chipped rubber wood (Ref A),and the $2.6
billion China Union Mineral Development Agreement (MDA) to mine iron
ore (Ref B). The two concessions are the most significant
investment agreements concluded to date by the Sirleaf
administration.
2. (SBU) Both agreements, signed by President Johnson Sirleaf in
January, were ratified by the House and Senate in a swift, closed
door vote on March 31 so that President Sirleaf could sign the
ratification prior to her departure to the U.S. on April 1. The
concessions were languishing in the Legislature until Sirleaf put
pressure on the leadership to push the concessions through before
her departure. The Senate had already closed its session on March
31 when the Senators were "recalled" for the vote after the House
vote. In fact, it was unlikely a quorum was reached, but that fact
was ignored. Newly-elected Senate Pro-Temp Cletus Wotorson
confirmed to Ambassador April 3 that the Legislature ratified the
agreements at the personal request of President Sirleaf.
3. (SBU) Comment: Both concessions are extremely high profile, and
there was concern that traditional legislative wrangling and
rent-seeking would delay passage. Officials from Buchanan
Renewable, a Canadian investment with OPIC participation, have made
it very clear that if the concession were not ratified by the end of
March it would jeopardize the timeline for electricity production by
the end of 2010. Ambassador and EmbOffs also warned legislators
that BRE was subject to the Foreign Corrupt Practices Act, and any
"deals" with BRE would be out of the question. The GOL is extremely
eager to have electricity as a deliverable before the 2011
elections. In addition, word of recent downsizing by current
investors has increased the pressure to increase employment.
ROBINSON
SENSITIVE
SIPDIS
E.O.12958: N/A
TAGS: PGOV ECON EFIN LI
SUBJECT: LIBERIA: POWER PROJECT AND MINING CONCESSION RECEIVE
RATIFICATION
REFS: A) MONROVIA 82; B) MONROVIA 73
1. (U) The Liberian Legislature ratified two major concessions April
1: the $150 million Buchanan Renewable Power (BRP) plant to produce
electricity by burning chipped rubber wood (Ref A),and the $2.6
billion China Union Mineral Development Agreement (MDA) to mine iron
ore (Ref B). The two concessions are the most significant
investment agreements concluded to date by the Sirleaf
administration.
2. (SBU) Both agreements, signed by President Johnson Sirleaf in
January, were ratified by the House and Senate in a swift, closed
door vote on March 31 so that President Sirleaf could sign the
ratification prior to her departure to the U.S. on April 1. The
concessions were languishing in the Legislature until Sirleaf put
pressure on the leadership to push the concessions through before
her departure. The Senate had already closed its session on March
31 when the Senators were "recalled" for the vote after the House
vote. In fact, it was unlikely a quorum was reached, but that fact
was ignored. Newly-elected Senate Pro-Temp Cletus Wotorson
confirmed to Ambassador April 3 that the Legislature ratified the
agreements at the personal request of President Sirleaf.
3. (SBU) Comment: Both concessions are extremely high profile, and
there was concern that traditional legislative wrangling and
rent-seeking would delay passage. Officials from Buchanan
Renewable, a Canadian investment with OPIC participation, have made
it very clear that if the concession were not ratified by the end of
March it would jeopardize the timeline for electricity production by
the end of 2010. Ambassador and EmbOffs also warned legislators
that BRE was subject to the Foreign Corrupt Practices Act, and any
"deals" with BRE would be out of the question. The GOL is extremely
eager to have electricity as a deliverable before the 2011
elections. In addition, word of recent downsizing by current
investors has increased the pressure to increase employment.
ROBINSON