VZCZCXYZ0000
RR RUEHWEB

DE RUEHBE #0937 2982205
ZNR UUUUU ZZH
R 252205Z OCT 06
FM AMEMBASSY BELIZE
TO RUEHC/SECSTATE WASHDC 0629
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
RUEHLO/AMEMBASSY LONDON 0292
RUEHBH/AMEMBASSY NASSAU 1248
RUEHKG/AMEMBASSY KINGSTON 1453
RUEHPU/AMEMBASSY PORT AU PRINCE 0526
RUEHSP/AMEMBASSY PORT OF SPAIN 1230
RUEHGE/AMEMBASSY GEORGETOWN 1255
RUEHPO/AMEMBASSY PARAMARIBO 1015
RUEHDG/AMEMBASSY SANTO DOMINGO 1022
RUEHWN/AMEMBASSY BRIDGETOWN 1442
RUEHCV/AMEMBASSY CARACAS 0084
RUEHME/AMEMBASSY MEXICO 2585

UNCLAS BELIZE 000937 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR WHA/CEN//JASON MACK 
STATE PLEASE PASS TO EXIM//MICHELE WILKINS AND MICHELLE D. MILLER 
STATE PLEASE PASS TO DEPARTMENT OF ENERGY 
 
E.O. 12958: N/A 
TAGS: ECON EFIN ENRG EPET PREL SOCI BH
SUBJECT: BELIZE: GOB CONSTRUCTING HOLDING TANKS FOR 
VENEZUELA OIL UNDER PETRO-CARIBE DEAL 
 
 
¶1.  On October 18, Econ FSN spoke with Zaid Flores, General Manager 
of the Belize Banana Grower's Association and one of three 
owners/directors of the Big Creek Port, who confirmed that the 
Government of Belize (GoB) has contracted the services of the Big 
Creek Port to handle all on-ground logistics for the construction of 
holding tanks for Venezuelan oil under the Petro-Caribe arrangement. 
 The GoB project, according to Flores, calls for the construction of 
four to five holding tanks.  Flores noted that the other two 
owners/directors of the Big Creek Port are Mike Dunker and Tony 
Zabaneh, both major owners of banana plantations in southern 
Belize. 
 
¶2.  Econ FSN also spoke with Exxon Mobil country representative 
Guillermo Alamina on October 24, who said that "the entire GoB-Petro 
Caribe deal is shrouded in secrecy" because every time he tries to 
get information about the arrangement from the GoB, "no one wants to 
talk."  Alamina added that his staff visited the Big Creek Port 
recently and observed the construction of two holding tanks on land 
owned by Dunker that is inside the port compound and adjacent to the 
Belize Natural Energy fuel depot.  Alamina's staffers believe that 
these two tanks under construction are the GOB's - a revelation that 
Flores did not disclose. 
 
¶3.  Alamina confided that not too long ago Luke Espat, owner of the 
Ports of Belize Limited, offered to purchase the Exxon Mobil fuel 
depot near Port Loyola in Belize City "to accommodate Venezuelan 
oil."  Alamina explained to Espat that Exxon Mobil's terminal was 
not for sale, but that he would nonetheless forward the offer to the 
company's headquarters.  As expected, Exxon Mobil turned it down. 
Upon hearing this, Espat replied that he would go ahead and build a 
terminal anyway. 
 
¶4.  A visiting U.S. businessman told Ambassador and DCM that he had 
seen the construction site at Big Creek and observed that the tanks 
were poorly built.  For example, there is presently no catchment 
basin to contain spills and the welding is of poor quality.  He also 
noted that the proposed method of transferring Petro-Caribe oil from 
ship to tank was unsafe.  He expressed concern that operations at 
the tank farm would eventually result in a major oil spill. 
 
DIETER