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

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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

TRIPOLI 00000242 002.2 OF 002

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

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

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