http://wikileaks.ch/cable/2006/05/06PORTAUPRINCE891.html

17 May 2006

WikiLeaks: DOS: Haiti Ambassador Sanderson to Washington

VZCZCXRO8450
PP RUEHQU
DE RUEHPU #0891 1372047
ZNR UUUUU ZZH
P 172047Z MAY 06
FM AMEMBASSY PORT AU PRINCE
TO RUEHC/SECSTATE WASHDC PRIORITY 3070
INFO RUEHZH/HAITI COLLECTIVE PRIORITY
RUEHBR/AMEMBASSY BRASILIA PRIORITY 1051
RUEHSA/AMEMBASSY PRETORIA PRIORITY 0896
RUEHQU/AMCONSUL QUEBEC PRIORITY 0474
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY

UNCLAS PORT AU PRINCE 000891
 
SIPDIS
 
SENSITIVE
SIPDIS
 
STATE FOR WHA/CAR
WHA/EPSC FOR FAITH CORNEILLE
EB/IFD
STATE PASS TO USAID FOR LAC/CAR
TREASURY FOR JEFFREY LEVINE
COMMERCE FOR SCOTT SMITH
 
E.O. 12958: N/A
TAGS: ENRG ECON EFIN EINV EAID HA
SUBJECT: PETROCARIBE WILL SELL TO EDH
 
REF: A. PAP 846
     B. PAP 856
 
1.  This message is sensitive but unclassified: please
protect accordingly.
 
2.  Michel Guerrier, Director of National, confirmed May 17
the scenario described in reftel A, whereby Haiti's National
Electricity Company (Electricite d'Haiti -- EDH) will be
designated as Haiti's state-owned oil company and will
distribute PetroCaribe oil to retailers.  Guerrier also said
that because EDH has no experience in buying and selling oil,
President Rene Preval has asked Edouard Baussan, the
President of the Board of Dynasa, to draw up a contract to
manage the oil stock on behalf of EDH.  Reportedly, Preval
and Baussan are good friends and traveled together to
Venezuela in late April to discuss PetroCaribe with
Venezuelan President Hugo Chavez.  The first ship of 100,000
barrels of PetroCaribe oil, which arrived on May 13, included
a donation of 60,000 barrels of diesel to EDH.  The remaining
40,000 barrels of unleaded gasoline (20,000 each of 91 and
95) will be sold to the oil companies.  Separately, the
international oil companies -- Texaco, Esso (a.k.a. Exxon)
and Total -- had a shipment of oil arrive May 15.  However,
they fear that the GOH will insist that they purchase the oil
from EDH in the future.
 
3.  Comment: Dynasa, which supplies to Haiti's domestic oil
company, National, is the only voice in the oil business to
endorse Preval's proposal to have EDH control the oil supply.
 The other international oil companies are increasingly
concerned -- both Texaco and Esso will meet with the
Ambassador in the near future -- that they will have to buy
their oil from the GOH.  A corrupt and mismanaged public
entity, EDH has failed to provide the country with
electricity. We will continue to raise our concerns about the
PetroCaribe deal with the highest levels of government, and
with Baussan.
SANDERSON