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Viewing cable 06KHARTOUM1718, Sudan Economic Round-Up, July 1-15, 2006

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Reference ID Created Released Classification Origin
06KHARTOUM1718 2006-07-18 17:10 2011-08-24 16:30 UNCLASSIFIED Embassy Khartoum
VZCZCXRO2362
PP RUEHROV
DE RUEHKH #1718/01 1991710
ZNR UUUUU ZZH
P 181710Z JUL 06
FM AMEMBASSY KHARTOUM
TO RUEHC/SECSTATE WASHDC PRIORITY 3773
INFO RUCNIAD/IGAD COLLECTIVE
RUEHBJ/AMEMBASSY BEIJING 0032
RUEHKL/AMEMBASSY KUALA LUMPUR 0003
RUEHSA/AMEMBASSY PRETORIA 0081
RUEHNR/AMEMBASSY NAIROBI 1354
RUEHFR/AMEMBASSY PARIS 0027
RUEHDE/AMCONSUL DUBAI 0013
UNCLAS SECTION 01 OF 02 KHARTOUM 001718 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR AF/SPG, AF/EPS, AND EB/IFD 
DEPT PLS PASS USAID FOR AFR, AND ALSO PASS USAID 
 
E.O. 12958:  N/A 
TAGS: PREL PGOV EFIN EPET ECON EAID ELTN SU
SUBJECT:  Sudan Economic Round-Up, July 1-15, 2006 
 
KHARTOUM 00001718  001.2 OF 002 
 
 
2005 Investment Report:  USD 5 M Projected for 2006 
--------------------------------------------- ------ 
 
1.  Statistics released by the Central Bank of Sudan (CBOS) show 
that between 1999 and 2004, Sudan accumulated a total USD 9 billion 
in foreign investment.  In 2005, USD 3.2 billion in foreign 
investment was added to the total, and the Ministry of Investment 
expects another USD 5 billion in 2006.  Although the Ministry of 
Finance does not provide country breakdowns, China continues to be 
the largest investor in Sudan (detailed in septel). 
 
Malaysian Co. Set to Win GoSS Electric Power Contract 
--------------------------------------------- -------- 
 
2.  The media reported on July 1 that the Government of Southern 
Sudan is set to award Malaysia's Sithu M Company the $9.5 billion 
hydroelectric contract.  The company is expected to submit its final 
proposal within the next three months. 
 
Sudan, South Africa Form Bilateral Joint Commission 
--------------------------------------------- ------- 
 
3.  Sudan's State Minister of International Cooperation recently 
headed a 19-person delegation to South Africa.  This trip concluded 
with the signing of a Bilateral Joint Commission to establish 
cooperation on political, industrial, and economic matters. 
 
Central Bank to Organize Money Laundering Workshop 
--------------------------------------------- ----- 
 
4.  With collaboration with the World Bank, the CBOS will organize a 
workshop with the aim of combating money laundering in Sudan.  The 
workshop will deal with laws and schedules related to money 
laundering crimes, with an eye to assist in drafting legislation in 
line with current international efforts to address this issue. 
 
Kenya, GOSS Sign Cooperation Deal 
--------------------------------- 
 
5.  Kenya and the Government of Southern Sudan signed an agreement 
on technical, economic, and cultural cooperation on July 7 in 
Nairobi.  It calls for the identification of priority projects and 
programs for implementation and mobilization of financial resources 
from external donors and other international organizations for 
specific projects and programs.  Samson Kwaje, GOSS Minister of 
Information, Radio, and Television, said that the signing of the 
agreement is expected to increase training of GoSS personnel in the 
health care, education, military, and police sectors. 
 
Chinese Complete Khartoum Refinery Expansion 
-------------------------------------------- 
 
6.  The China National Petroleum Corp (CNPC) has completed expansion 
of the Sudan's sole major refinery north of Khartoum from its 
present capacity of 50,000 barrels per day to 100,000.  The total 
project is valued at $341 million. 
 
Central Bank, Arab Investment Co. Sign Agreements 
--------------------------------------------- ---- 
 
7.  On July 1, the Central Bank of Sudan (CBOS) and the Arab 
Investment Company signed an agreement establishing two funds with a 
capital of $250 million to provide financial coverage for commercial 
banks to assist imports of raw materials, agricultural inputs, and 
capital goods commodities in addition to agricultural machinery. 
 
Minister of Energy and Mining Meets with Schlumberger 
--------------------------------------------- -------- 
 
8. Schlumberger Company (headquartered in Paris) representatives met 
with the Minister of Energy and Mining to discuss ways to expand 
cooperation between the firm and Sudan, with the company seeking to 
increase its role as a regional center for its services in 
neighboring Arab and African countries. 
 
New Lebanese Bank Opens in Sudan 
-------------------------------- 
 
9.  Lebanon's Al Auda Bank has signed a joint venture with Sudan's 
Ahli Bank to increase banking services in Sudan.  An Al Auda 
representative stated that the Lebanese bank has already invested 
$70 million in Sudan. 
 
 
KHARTOUM 00001718  002.2 OF 002 
 
 
UAE Investors, DEPA Close Hotel Construction Deal 
--------------------------------------------- ---- 
 
10.  On July 12, UAE investors and DEPA Interiors have closed a deal 
to build a $30 million hotel in Khartoum.  This will be second 
large, up-scale hotel complex project in the capital.  Construction 
on the $30 million Libyan-owned Libya Commercial Center complex is 
nearing completion.  DEPA Interiors is best known for its 
partnership with owners of the Dubai Burjal Arab Tower. 
 
Kenya's Dairo Air to Fly Larger Planes into Juba 
--------------------------------------------- --- 
 
11.  Dairo Air is set to introduce bigger aircraft on it Entebbe - 
Juba route to satisfy increasing number of travelers and cargo to 
Southern Sudan. 
 
VP Taha Meets With Business Community 
------------------------------------- 
 
12.  On July 11, Vice President Ali Osman Mohamed Taha met with 
members of the Sudanese Businessmen's Union.  Press reports stated 
that the meeting was focused on two problems hindering the Union's 
work -- finance and taxation.  Taha stated that the finance problem 
was already solved through CBOS's agreement with the Arab Investment 
Company of Bahrain to provide $250 million to finance private sector 
imports.  They also discussed ways to increase Sudanese 
(non-petroleum) exports. 
 
STEINFELD