NEW ENERGY AND WATER MINISTER WANTS RESULTS

UNCLAS SECTION 01 OF 02 YAOUNDE 000682

SENSITIVE
SIPDIS

COMMERCE PLEASE PASS TO ITA - K BURRESS
TREASURY PLEASE PASS TO OIA F BOYE AND D PETERS

E.O. 12958: N/A
TAGS: CM ECON ENRG EWWT PGOV PREL
SUBJECT: NEW ENERGY AND WATER MINISTER WANTS RESULTS

REF: A. YAOUNDE 591

B. YAOUNDE 590

C. 2007 YAOUNDE 1428

YAOUNDE 00000682 001.2 OF 002



1. (SBU) Summary: On July 24, Ambassador paid a courtesy
call on the new Minister of Energy and Water, Michael Ngako
Tomdio, who came to his job in a June 30 cabinet shuffle.
Clearly under pressure to produce results, he signaled a
breakthrough on the impasse between AES-Sonel and aluminum
producer ALUCAM over a new gas-fired power plant project. He
was pleased to be signing a TDA-funded feasibility study of a
hydropower plant and seemed eager to boost the energy sector
and engage with the U.S. Water shortages would take longer
to fix, especially in Yaounde, he said. End summary.

Minister Under Pressure to Advance Energy Development
-------------- --------------

2. (SBU) Minister Tomdio told the Ambassador he has six
months to produce results. Victor Mengot, Minister in Charge
of Special Duties in the Presidency, joined the meeting and
reinforced the sense of urgency, saying the next six months
would be very busy. Note: The previous Minister of Energy
and Water (MINEE by the French acronym) was reportedly
replaced in the cabinet shuffle (ref a) because President
Biya did not feel enough progress had been made in developing
the energy sector. End Note.
Initial Priorities
--------------

3. (SBU) Minister Tomdio ticked off a list of familiar ideas
needing attention in the energy sector, including the Lom
Pangar dam project (central to Cameroon,s energy strategy),
increasing electricity production to make export possible to
Chad and Nigeria, and increased natural gas exploration. On
natural gas, he said Cameroon has more gas than Equatorial
Guinea, but a major problem with storage capacity. He
mentioned interest in the possibility of converting natural
gas to cooking gas and sending it to the Northern Region.
Progress on AES-Sonel Dispute with ALUCAM?
--------------

4. (SBU) Ambassador raised the dispute on the price of power
between the U.S.-led AES-Sonel power company and ALUCAM, the
Rio Tinto/GRC-owned aluminum smelter (ref b). AES Sonel has
been locked in a dispute with the government over the pricing
structure of a planned gas-fired power plant at Kribi.
Tomdio and Mengot both affirmed to the Ambassador that
Anglo-French gas producer Perenco and Cameroon's National
Hydrocarbons Company, SNH, had just signed a pricing
agreement that should soon help break the deadlock in this
project.
Less Progress on Hydromine
--------------

5. (SBU) The Ambassador also asked Tomdio if he was aware of
a problem brewing with American company Hydromine,s
development plans in the energy sector (ref c). According to
sources at Hydromine, Tomdio,s predecessor signed an
agreement with a South African firm to study the development
of a hydropower facility at Noun Wouri, a location Hydromine
believed it had exclusive rights to study. Tomdio was not
aware of the problem, or apparently Hydromine, saying only
that "it,s a huge project, there,s enough to go around."
Water Challenges
--------------

6. (SBU) When the Ambassador asked about his water strategy,
Minister Tomdio responded that water shortages in Douala
would be solved by November, thanks to an 80,000 cubic meter
system built by the Chinese government. Tomdio said the
project would help for the moment, but a second, 150,000
cubic meter phase was needed because of Douala,s population
growth. Yaounde was more problematic for Tomdio, who said
the Ministry would rehabilitate a facility at Mefou and
eventually tap the massive Sanaga River. Cameroon relied
heavily on donors in the water sector, the Minister said.
Tomdio Laments Capacity
--------------

7. (SBU) When the Ambassador suggested the need to build up
the private sector as key to energy and water strategies,
Tomdio responded he came from the private sector where the
mentality and attitude was completely different. He said he
was trying to build some team spirit in his ministry. He
noted the ministry has only 500 employees, but a capacity for
1200, and there have been no new recruitments since 1997. He
lamented that "this budget contained very little money for
training."

YAOUNDE 00000682 002.2 OF 002


Comment
--------------

8. (SBU) On energy, Tomdio seems to realize his overriding
responsibility must be project execution. Victor Mengot's
presence seemed designed to signal seriousness from the top
in the energy sector. If the AES Sonel dispute has been
resolved, this would send a very positive signal that inertia
is breaking. We will be talking to AES to see if they agree
that the long-stalled gas project is getting back on track.
Tomdio likes the U.S., visits frequently, and has several
children studying there. He greatly appreciated TDA
assistance but it remains to be seen whether he can mobilize
his relatively small ministry to shift gears in the key
energy sector. Challenges in the water sector are equally
daunting, with almost a third of Douala's 3 million people
lacking clean drinking water and persistent shortages in
Yaounde.
Bio
---

9. (U) Immediately before President Biya named him to
MINEE, Tomdio served for 17 years as the General Manager of
the relatively obscure National Office of Free Trade Zones.
He has a background in education administration, serving as
Director General of both the Douala University Center and the
Higher Technical Teachers Training School. Early in his
career, he was a lecturer at the Yaounde National Higher
Polytechnic School. He is an electrical engineer with
training in the U.S. and the UK. Tomdio is married with five
children, several of whom study in the U.S. He has attended
many Embassy business forums in the U.S. and is very familiar
with U.S. government commercial services.
GARVEY