SALVADORAN MINISTER OF THE ENVIRONMENT'S VISIT TO THE U.S.

UNCLAS SAN SALVADOR 000864

DEPT FOR OES ROBERT WING
STATE PASS USAID/LAC

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: ECON SENV EAGR ETRD ES
SUBJECT: SALVADORAN MINISTER OF THE ENVIRONMENT'S VISIT TO THE U.S.


1. (SBU) SUMMARY. The newly appointed Salvadoran Minister of the
Environment, Herman Rosa Chavez, will be in Washington on September
21 to meet with OES A/S Jones and EPA officials. USAID is
sponsoring this trip to discuss El Salvador's interest in pollution
control and prevention and to further solidify environmental
cooperation under CAFTA-DR. Under the leadership of Rosa Chavez,
the Minsistry of Environment (MARN) has adopted an anti-development
posture that could disrupt the promotion of biofuels, the approval
of future energy projects, and the use of genetically modified
organisms (GMOs). END SUMMARY.

PROMOTING THE USE OF BIOFUELS
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2. (SBU) In 2007, El Salvador was selected as one of four countries
to receive assistance from the U.S. - Brazil Biofuels Partnership.
While the new GOES has signaled interest in promoting the use of
biofuels in El Salvador, to date there has been no action taken
despite several feasibility studies sponsored by U.S. - Brazil
Biofuels MOU partners. According to the Executive Director of the
Salvadoran Sugar Association, sugar producers believe ethanol can be
profitable in the long-term, however, they are unwilling to make the
required capital investments for production without the government
first approving legislation mandating the use of an ethanol blend
and/or providing tax incentives. Rosa Chavez can be influential in
advancing biofuels legislation in his position as one of six
cabinet-level officials to sit on the newly formed National Energy
Council, which has the responsibility to create a national energy
policy.

APPROVAL OF FUTURE ENERGY PROJECTS
--------------


3. (SBU) El Salvador continues to face serious problems in the
electrical energy sector, such as unstable prices and uncertain
supplies. The forecasted growth in the demand by 2020 will require
El Salvador to increase its current energy supply by 40 to 180
percent. In order to meet future demand, the GOES will need to
facilitate the development of new sources, support regional
integration efforts, and create an attractive climate for private
investment. Through the environmental permit process, MARN will
exert a great deal of control over the approval of future energy
projects.

APPROVAL OF GENETICALLY MODIFIED ORGANISMS
--------------


4. (SBU) During the previous government, El Salvador began drafting
a national policy for biotechnology, including a national policy for
bio-safety, an administrative and regulatory system for the
importation of GMOs, and a mechanism for social participation and
consultation. Prior to the completion of the national policy, an
administrative review of the "special ruling for the safe handling
of GMOs" was mandated to ensure that government stakeholders
concurred with the new policy. The MARN has not yet concurred with
the review. During a recent meeting with ECONCOUNS, the Minister of
Agriculture said support for MARN is key to opening the Salvadoran
market to GMO products. The Minister added he is skeptical that the
MARN would allow the use of GMO seeds in El Salvador.


5. (SBU) COMMENT: In addition to further solidifying environmental
cooperation under CAFTA-DR, Post believes Minister Rosa Chavez's
meeting with A/S Jones will provide an opportunity to convince him
to take a more pragmatic approach to the matters discussed above.
END COMMENT.

Blau