Identifier
Created
Classification
Origin
09SANSALVADOR686
2009-07-20 22:26:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy San Salvador
Cable title:
NEW GOES UNDECIDED ON FUTURE OF BIOFUELS
how-toVZCZCXYZ0002 PP RUEHWEB DE RUEHSN #0686 2012226 ZNR UUUAA ZZH P 202226Z JUL 09 FM AMEMBASSY SAN SALVADOR TO RUEHC/SECSTATE WASHDC PRIORITY 1411 INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE RUEHBO/AMEMBASSY BOGOTA 2550 RUEHBR/AMEMBASSY BRASILIA 0172 RUEHWN/AMEMBASSY BRIDGETOWN 0536 RUEHPU/AMEMBASSY PORT AU PRINCE 0261 RUEHDG/AMEMBASSY SANTO DOMINGO 0799 RUEHRC/DEPT OF AGRICULTURE WASHDC RUCPDOC/DEPT OF COMMERCE WASHINGTON DC RHEBAAA/DEPT OF ENERGY WASHINGTON DC
UNCLAS SAN SALVADOR 000686
SIPDIS
SENSITIVE
E.O. 12958: N/A
TAGS: ENRG EAGR PREL EAID ES
SUBJECT: NEW GOES UNDECIDED ON FUTURE OF BIOFUELS
REF: 07SANSALVADOR1168 NOTAL
UNCLAS SAN SALVADOR 000686
SIPDIS
SENSITIVE
E.O. 12958: N/A
TAGS: ENRG EAGR PREL EAID ES
SUBJECT: NEW GOES UNDECIDED ON FUTURE OF BIOFUELS
REF: 07SANSALVADOR1168 NOTAL
1. (SBU) SUMMARY: According to new Minister of Economy Hector Dada,
the Government of El Salvador (GOES) is undecided about its biofuels
policy but appreciates the assistance provided under the U.S. -
Brazil Biofuels Initiative. The National Energy Council (CNE) will
be developing an overall energy policy, including a biofuels policy.
Initiative consultants publicy presented new feasibility studies
July 14 highlighting El Salvador's potential to be a leader in
biofuels. Moving the decision for biofuels to the CNE suggests the
new GOES will not introduce an ethanol law in the near term, and the
private sector is unlikely to move forward without government action
first. END SUMMARY.
2. (SBU) During a July 13 meeting, new Minister of Economy (MINEC)
Hector Dada informed Charge, Econoffs, and OAS representatives that
the Funes Administration did not yet have a biofuels policy. Dada
praised the assistance provided under the U.S. - Brazil initiative
and indicated that the GOES would like to continue cooperation.
Dada noted that the GOES would like to diversify the country's
energy matrix and reduce dependence on foreign oil, and ethanol
could be very useful in this respect. According to Dada, the
National Energy Council (CNE) will be responsible for formulating an
overall energy policy, including biofuels. The Charge advised Dada
that the U.S. is committed to continuing the biofuels initiative,
but next steps in El Salvador depend on the GOES.
3. (U) Created in 2007, the CNE is headed by the Minister of
Economy and includes the Ministers of Environment, Finance, and
Public Works, the Technical Secretary (Presidency Chief of Cabinet)
and the Director of the Consumer Protection Agency. MINEC Director
of Energy Policy Luis Reyes will represent the Minister of Economy
on the CNE.
4. (U) In a July 14 public event including the Charge, Dada, and
OAS representatives, consultants from Energy and Security Group,
Hart Energy Consulting, Arkel Sugar and Delta-T presented
preliminary results of two recently completed feasibility studies.
(NOTE. The Brazilian Charge didn't participate because he was ill.
END NOTE.) Local press coverage focused on findings that El
Salvador has the potential to be a regional leader in biofuels. The
consultant groups also provided technical training on biofuels
production June 13 to industry groups.
5. (SBU) Julio Arroyo, Director of the Sugar Association of El
Salvador, told Econoff July 14 that sugar producers will not make
the necessary investments for ethanol production without the GOES
first mandating an e10 blend and/or providing financial incentives.
6. (SBU) COMMENT: So far, the CNE has been more conceptual than
functional and has not convened a meeting since it was created.
Moving the decision for biofuels to the CNE as part of an overall
energy policy suggests a slow process, and the new GOES is unlikely
to introduce an ethanol law in the near term. With high
international sugar prices and relatively low gasoline prices now
prevailing, the private sector does not have the incentive to move
forward on ethanol production without the support of the GOES. END
COMMENT.
BLAU
SIPDIS
SENSITIVE
E.O. 12958: N/A
TAGS: ENRG EAGR PREL EAID ES
SUBJECT: NEW GOES UNDECIDED ON FUTURE OF BIOFUELS
REF: 07SANSALVADOR1168 NOTAL
1. (SBU) SUMMARY: According to new Minister of Economy Hector Dada,
the Government of El Salvador (GOES) is undecided about its biofuels
policy but appreciates the assistance provided under the U.S. -
Brazil Biofuels Initiative. The National Energy Council (CNE) will
be developing an overall energy policy, including a biofuels policy.
Initiative consultants publicy presented new feasibility studies
July 14 highlighting El Salvador's potential to be a leader in
biofuels. Moving the decision for biofuels to the CNE suggests the
new GOES will not introduce an ethanol law in the near term, and the
private sector is unlikely to move forward without government action
first. END SUMMARY.
2. (SBU) During a July 13 meeting, new Minister of Economy (MINEC)
Hector Dada informed Charge, Econoffs, and OAS representatives that
the Funes Administration did not yet have a biofuels policy. Dada
praised the assistance provided under the U.S. - Brazil initiative
and indicated that the GOES would like to continue cooperation.
Dada noted that the GOES would like to diversify the country's
energy matrix and reduce dependence on foreign oil, and ethanol
could be very useful in this respect. According to Dada, the
National Energy Council (CNE) will be responsible for formulating an
overall energy policy, including biofuels. The Charge advised Dada
that the U.S. is committed to continuing the biofuels initiative,
but next steps in El Salvador depend on the GOES.
3. (U) Created in 2007, the CNE is headed by the Minister of
Economy and includes the Ministers of Environment, Finance, and
Public Works, the Technical Secretary (Presidency Chief of Cabinet)
and the Director of the Consumer Protection Agency. MINEC Director
of Energy Policy Luis Reyes will represent the Minister of Economy
on the CNE.
4. (U) In a July 14 public event including the Charge, Dada, and
OAS representatives, consultants from Energy and Security Group,
Hart Energy Consulting, Arkel Sugar and Delta-T presented
preliminary results of two recently completed feasibility studies.
(NOTE. The Brazilian Charge didn't participate because he was ill.
END NOTE.) Local press coverage focused on findings that El
Salvador has the potential to be a regional leader in biofuels. The
consultant groups also provided technical training on biofuels
production June 13 to industry groups.
5. (SBU) Julio Arroyo, Director of the Sugar Association of El
Salvador, told Econoff July 14 that sugar producers will not make
the necessary investments for ethanol production without the GOES
first mandating an e10 blend and/or providing financial incentives.
6. (SBU) COMMENT: So far, the CNE has been more conceptual than
functional and has not convened a meeting since it was created.
Moving the decision for biofuels to the CNE as part of an overall
energy policy suggests a slow process, and the new GOES is unlikely
to introduce an ethanol law in the near term. With high
international sugar prices and relatively low gasoline prices now
prevailing, the private sector does not have the incentive to move
forward on ethanol production without the support of the GOES. END
COMMENT.
BLAU