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 

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