MAKING UP FOR LOST TIME: HOUSING AND INFRASTRUCTURE BOARD CHAIRMAN WELCOMES U.S. COMPANIES

C O N F I D E N T I A L SECTION 01 OF 02 TRIPOLI 000242

SIPDIS

DEPT FOR NEA/MAG; LONDON AND PARIS FOR NEA WATCHERS; ENERGY FOR
GINA ERICKSON; COMMERCE FOR NATE MASON; CAIRO FOR TREASURY
LIAISON ALEX SEVERENS

E.O. 12958: DECL: 3/18/2019
TAGS: PREL, ECON, EFIN, ETRD, EPET, ASEC, CVIS, LY
SUBJECT: MAKING UP FOR LOST TIME: HOUSING AND INFRASTRUCTURE BOARD
CHAIRMAN WELCOMES U.S. COMPANIES

REF: A) 08 TRIPOLI 942, B) TRIPOLI 212, C) TRIPOLI 63

TRIPOLI 00000242 001.2 OF 002


CLASSIFIED BY: Gene Cretz, Ambassador, U.S. Embassy Tripoli,
U.S. Department of State.
REASON: 1.4 (b),(d)
1. (C) Summary: In a recent meeting between Ambassador and
Abouzeid Dorda, Chairman of the Libyan Housing and
Infrastructure (HIB),Dorda discussed his role in encouraging
American companies to work in Libya and his plans to privatize
the HIB. He also offered his thoughts on the newly-reorganized
government cabinet and ministries. As for U.S.-Libyan military
relations, he urged the United States to move quickly in this
area, noting the Russians and Europeans are already helping
Libya with military matters, including sales of equipment. He
reiterated his previous invitation to U.S. companies to help
rebuild Libya's housing and infrastructure but pointed out that
only 10 percent of HIB's projects remain available for
contractors. End summary.

LIBYA AND THE U.S. MAKING UP FOR LOST TIME

2. (C) On March 15, Ambassador paid a courtesy call on
Abouzeid Dorda, Chairman of the Libyan Housing and
Infrastructure (HIB). Dorda welcomed the Ambassador and said he
was taking on an "historic responsibility" as the first U.S.
Ambassador to Libya in over three decades. He said he imagined
Americans did not have a positive image of Libya following
thirty years of separation and sanctions. Dorda said he had
tried to bring the two countries together even during difficult
times. As Libya's UN PermRep (1997-2003),he had encouraged
American companies and universities to come and work in Libya.
He said he tried to "push" Libyan politicians towards the
Americans but that this did not work. Instead, he turned to
American businessmen who were interested in working in Libya in
order to "pull" the politicians along towards rapprochement.
Noting Libya and the UK renewed diplomatic relations in 1999,
Dorda said that at least seven years of U.S.-Libyan cooperation
were "lost for nothing." He urged the Ambassador to therefore
"speed up" our cooperation to make up for the lost time.

3. (C) The Ambassador outlined progress in U.S.-Libyan
relations (conclusion of the compensation claims agreement,
visit of former Secretary Rice, swift presentation of the
Ambassador's credentials, and last week's high-level AFRICOM
visit). He previewed upcoming high-level Libyan official visits
to the U.S. and congressional interest in coming to Libya. In
short, he said the U.S. was doing exactly what Dorda suggested.
On the commercial side, a whole range of companies would like to
come to Libya, to which Dorda replied they would be welcome. He
noted, however, that Libyans were not going to wait as "our
people need houses, ports, and airports right now."

RUSSIAN MILITARY "ALREADY HERE" AND NOT WAITING

4. (C) As for military cooperation and sales, Dorda stressed
the United States faces competition from Russia and many
European countries. He said these countries are already working
in Libya and are "not going to wait." He said the Americans
were welcome and Libya would issue visas.

CABINET CHANGES AND GOVERNMENT REFORMS: IT'S THE "PEOPLE'S
VISION"

5. (C) On the recent cabinet changes and government
restructuring (ref B),Dorda pointed out "there is no cabinet in
Libya; all decisions are the vision of the people." Any further
government restructuring would depend on the economic situation
and follow the trend in Libya towards privatization. Dorda
assured the Ambassador that HIB -- which has billions of dollars
at its disposal to invest in national infrastructure development
-- would remain in tact with himself at the helm. (Dorda denied
rumor that he was headed for Paris).

IT'S LATE BUT U.S. COMPANIES SHOULD STILL PARTNER WITH HIB

6. (C) In terms of opportunities for U.S. companies, Dorda
said HIB had signed 90 percent of its contracts with around 200
companies, with the American firm AECOM contracted to act as
overall program manager (ref C). He said other sectors
(electricity, transport, and telecommunications) had similar
authority to sign their own contracts. He promised to provide
the Embassy with a multi-sectoral plan of Libya's development
needs so that the Embassy could brief U.S. companies interested
in coming to Libya. Dorda said American construction firms were

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welcome to come to Libya and discuss the remaining 10 percent of
contracts with HIB. Alternatively, they could go to Houston and
discuss the projects with AECOM. Dorda noted that Libya lacks
the technology for micro-tunneling, which is necessary for many
HIB projects in urban areas. According to Dorda, other needs in
Libya include solar energy, desalination, and agriculture.

7. (C) Comment: Dorda embodies a remarkable combination of
adherence to al-Qadhafi's rhetoric of the Jamahiriya (`state of
the masses') with a pragmatic outreach to Western companies.
The take-away message from this meeting with him is that
although HIB's contracts have almost all been allocated,
American construction firms are still welcome in Libya. In
post's experience, however, most American construction firms are
still reticent to engage in on-the-ground work that would entail
importing heavy machinery and making significant investments in
an unknown environment, especially given al-Qadhafi's recent
nationalization rhetoric. Dorda emphasized that the U.S.
companies needed to come here quickly, assess their prospects,
and begin making the personal connections necessary to work and
be successful in this target-rich commercial environment. End
comment.
CRETZ