Identifier
Created
Classification
Origin
09RIODEJANEIRO285
2009-08-24 09:58:00
UNCLASSIFIED
Consulate Rio De Janeiro
Cable title:
Rio Radar - August 21, 2009
how-toVZCZCXRO9536 RR RUEHRG DE RUEHRI #0285/01 2360958 ZNR UUUUU ZZH R 240958Z AUG 09 FM AMCONSUL RIO DE JANEIRO TO RUEHC/SECSTATE WASHDC 5058 INFO RUEHBR/AMEMBASSY BRASILIA 1351 RUEHSO/AMCONSUL SAO PAULO 5277 RUEHRG/AMCONSUL RECIFE 3517
UNCLAS SECTION 01 OF 02 RIO DE JANEIRO 000285
SIPDIS
E.O. 12958: N/A
TAGS: ECON ENRG EINV EIND EPET EWWT PHUM PINS SOCI BR
SUBJECT: Rio Radar - August 21, 2009
UNCLAS SECTION 01 OF 02 RIO DE JANEIRO 000285
SIPDIS
E.O. 12958: N/A
TAGS: ECON ENRG EINV EIND EPET EWWT PHUM PINS SOCI BR
SUBJECT: Rio Radar - August 21, 2009
1. (U) Rio Radar is a weekly compilation of key economic, political,
commercial, and other developments in the states of Rio de Janeiro,
Bahia, Minas Gerais, Espirito Santo, and Sergipe. This week's
subjects:
CLEANING UP THE FAVELAS: ECONOMIC BENEFIT TRUMPS COSTS
-------------- --------------
2. (U) Since May 2009, the Military Police of Rio de Janeiro have
systematically established a presence in five of the most violent
favelas (shanty towns) within the Rio municipality. Encouraged by
successful results thus far, the Rio de Janeiro State Government is
considering occupying and maintaining a police presence in all 1,000
favelas within the city limits. According to data provided by the
Secretary of Security, these operations would cost the state between
90 million to 340 million BR (48 million to 183 million USD). Yet
such activities could increase the city's Gross Domestic Product by
30 percent to 38 billion BR (21 billion USD) through increased
commerce and new jobs, according to analysts such as Jose Luiz
Alqueres, president of the Commercial Association of Rio and Light.
MILITIA GROUPS MOVE TO THE NORTH OF RIO
--------------
3. (U) Militia groups, i.e. vigilante anti-narcotrafficker forces
often associated with local political leaders and involved in
racketeering and piracy, are rapidly moving from the west to the
north area of the city (Baixada Fluminense),according to a
researcher from NGO Global Justice, Rafael Dias. This migration is
due to coordinated action between the Rio de Janeiro Governor,
Sergio Cabral, and Rio Mayor Eduardo Paes, to undermine militias'
business activities. The plan consists of military police
incursions into Rio de Janeiro's most visible favelas and tighter
enforcement over public transportation, especially unlicensed
mini-vans, which serve as a multi-million dollar source of revenue
for militias.
INCREASED INVESTMENT IN RIO PORT AREA, AND...
--------------
4. (U) Petrobras and the two Brazilian steel companies, Gerdau and
CSN, signed an MOU on July 7 to increase investment in the port area
of Baia de Sepetiba in Rio de Janeiro state. The three companies
expect to invest 3 billion USD in streamlining infrastructure
projects. Petrobras, Gerdau and CSN had previously been developing
the area separately, but will now work together with the goal of
facilitating off shore pre-salt exploration and other initiatives.
...INCREASED FOREIGN DIRECT INVESTMENT
--------------
5. (U) According to the Rio de Janeiro Federation of Industry,
investment in the state of Rio de Janeiro will increase by 126.3
billion BR (68 billion USD),the majority of which will come from
foreign investors. The Federation estimates such investment would
create 360,000 new jobs throughout the state, which already accounts
for 13 percent of the Brazilian Gross Domestic Product. Analysts at
the Federation argue that its forecasted increased investment could
bring Rio's share of the national economy up to 20 percent.
LACK OF SKILLED LABOR FOR PRE-SALT OIL DEVELOPMENT
-------------- --------------
6. (U) According to the Mobilization Program of the National Oil and
Gas Industry (PROMINP),an estimated 285,000 skilled laborers - from
painters to civil engineers - are needed to construct and maintain
facilities for exploration and production of pre-salt oil reserves
over the next five years. According to the Ministry of Social
Development, this lack of skilled labor is a result of the poor
curriculum in Brazilian public schools. Rio de Janeiro State is in
the most need of skilled labor, with current estimates at 5,920
workers for next year alone. Petrobras and the Ministry of Mines
and Energy are now offering free qualification courses in areas such
as mechanics and engineering.
RIO BIOFUELS CONFERENCE HAILS BRAZILIAN ENERGY MATRIX
-------------- --------------
7. (U) In an August 13 conference entitled "Environment Education
and the Future of Biofuels in Brazil" speakers hailed Brazil's
energy matrix as an "example to the world." The CEO of Petrobras
Biofuels pointed out that 80% of global energy consumption is
produced from coal, petroleum and derivatives. In Brazil, however,
coal constitutes only 6.2 percent of the energy matrix, while
renewable energy makes up 46 percent. In response to criticism that
biofuels consumption leads to deforestation due to increased sugar
cane and soy crops, a representative from the National Petroleum
Regulatory Agency (ANP) argued that Brazil uses less than 5 percent
of its arable land to produce biofuels. He further stated the 19.6
billions of liters of ethanol consumed in Brazil in 2008 prevented
37.6 million tons of carbon dioxide emissions.
RIO DE JAN 00000285 002 OF 002
HEARNE
SIPDIS
E.O. 12958: N/A
TAGS: ECON ENRG EINV EIND EPET EWWT PHUM PINS SOCI BR
SUBJECT: Rio Radar - August 21, 2009
1. (U) Rio Radar is a weekly compilation of key economic, political,
commercial, and other developments in the states of Rio de Janeiro,
Bahia, Minas Gerais, Espirito Santo, and Sergipe. This week's
subjects:
CLEANING UP THE FAVELAS: ECONOMIC BENEFIT TRUMPS COSTS
-------------- --------------
2. (U) Since May 2009, the Military Police of Rio de Janeiro have
systematically established a presence in five of the most violent
favelas (shanty towns) within the Rio municipality. Encouraged by
successful results thus far, the Rio de Janeiro State Government is
considering occupying and maintaining a police presence in all 1,000
favelas within the city limits. According to data provided by the
Secretary of Security, these operations would cost the state between
90 million to 340 million BR (48 million to 183 million USD). Yet
such activities could increase the city's Gross Domestic Product by
30 percent to 38 billion BR (21 billion USD) through increased
commerce and new jobs, according to analysts such as Jose Luiz
Alqueres, president of the Commercial Association of Rio and Light.
MILITIA GROUPS MOVE TO THE NORTH OF RIO
--------------
3. (U) Militia groups, i.e. vigilante anti-narcotrafficker forces
often associated with local political leaders and involved in
racketeering and piracy, are rapidly moving from the west to the
north area of the city (Baixada Fluminense),according to a
researcher from NGO Global Justice, Rafael Dias. This migration is
due to coordinated action between the Rio de Janeiro Governor,
Sergio Cabral, and Rio Mayor Eduardo Paes, to undermine militias'
business activities. The plan consists of military police
incursions into Rio de Janeiro's most visible favelas and tighter
enforcement over public transportation, especially unlicensed
mini-vans, which serve as a multi-million dollar source of revenue
for militias.
INCREASED INVESTMENT IN RIO PORT AREA, AND...
--------------
4. (U) Petrobras and the two Brazilian steel companies, Gerdau and
CSN, signed an MOU on July 7 to increase investment in the port area
of Baia de Sepetiba in Rio de Janeiro state. The three companies
expect to invest 3 billion USD in streamlining infrastructure
projects. Petrobras, Gerdau and CSN had previously been developing
the area separately, but will now work together with the goal of
facilitating off shore pre-salt exploration and other initiatives.
...INCREASED FOREIGN DIRECT INVESTMENT
--------------
5. (U) According to the Rio de Janeiro Federation of Industry,
investment in the state of Rio de Janeiro will increase by 126.3
billion BR (68 billion USD),the majority of which will come from
foreign investors. The Federation estimates such investment would
create 360,000 new jobs throughout the state, which already accounts
for 13 percent of the Brazilian Gross Domestic Product. Analysts at
the Federation argue that its forecasted increased investment could
bring Rio's share of the national economy up to 20 percent.
LACK OF SKILLED LABOR FOR PRE-SALT OIL DEVELOPMENT
-------------- --------------
6. (U) According to the Mobilization Program of the National Oil and
Gas Industry (PROMINP),an estimated 285,000 skilled laborers - from
painters to civil engineers - are needed to construct and maintain
facilities for exploration and production of pre-salt oil reserves
over the next five years. According to the Ministry of Social
Development, this lack of skilled labor is a result of the poor
curriculum in Brazilian public schools. Rio de Janeiro State is in
the most need of skilled labor, with current estimates at 5,920
workers for next year alone. Petrobras and the Ministry of Mines
and Energy are now offering free qualification courses in areas such
as mechanics and engineering.
RIO BIOFUELS CONFERENCE HAILS BRAZILIAN ENERGY MATRIX
-------------- --------------
7. (U) In an August 13 conference entitled "Environment Education
and the Future of Biofuels in Brazil" speakers hailed Brazil's
energy matrix as an "example to the world." The CEO of Petrobras
Biofuels pointed out that 80% of global energy consumption is
produced from coal, petroleum and derivatives. In Brazil, however,
coal constitutes only 6.2 percent of the energy matrix, while
renewable energy makes up 46 percent. In response to criticism that
biofuels consumption leads to deforestation due to increased sugar
cane and soy crops, a representative from the National Petroleum
Regulatory Agency (ANP) argued that Brazil uses less than 5 percent
of its arable land to produce biofuels. He further stated the 19.6
billions of liters of ethanol consumed in Brazil in 2008 prevented
37.6 million tons of carbon dioxide emissions.
RIO DE JAN 00000285 002 OF 002
HEARNE