VZCZCXRO1002
PP RUEHBI RUEHRG
DE RUEHSO #1059 2781314
ZNR UUUUU ZZH
P 051314Z OCT 06
FM AMCONSUL SAO PAULO
TO RUEHC/SECSTATE WASHDC PRIORITY 5861
INFO RUEHBR/AMEMBASSY BRASILIA 6915
RUEHRG/AMCONSUL RECIFE 3159
RUEHRI/AMCONSUL RIO DE JANEIRO 7488
RUEHMN/AMEMBASSY MONTEVIDEO 2168
RUEHBU/AMEMBASSY BUENOS AIRES 2481
RUEHSG/AMEMBASSY SANTIAGO 1875
RUEHLP/AMEMBASSY LA PAZ 3051
RUEHCV/AMEMBASSY CARACAS 0387
RUEHBI/AMCONSUL MUMBAI 0010
RUEHAC/AMEMBASSY ASUNCION 2794
RHEHNSC/NSC WASHDC
RUCPDOC/USDOC WASHDC 2585
RUEATRS/DEPT OF TREASURY WASHDC
RUEHC/DEPT OF LABOR WASHDC

UNCLAS SAO PAULO 001059 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR WHA/BSC, WHA/EPSC, EB 
AID/W FOR LAC/AA 
 
E.O. 12958:  N/A 
TAGS: ECON ETRD EINV EFIN EAGR EAID BR
SUBJECT:  AMBASSADOR INAUGURATES THE USAID-SPONSORED PARAISOPOLIS 
ELECTRICITY PROJECT 
 
 
¶1.  Ambassador Sobel participated in a September 27 ceremony to 
inaugurate the USAID Paraisopolis Slum Electrification and Loss 
Reduction (SELR) Program.  Close to 100 people attended the 
ceremony.  In his comments, the Ambassador emphasized the importance 
of the project itself and the rapport between both United States and 
Brazil in similar endeavors. The Ambassador praised USAID's support 
of the project while simultaneously highlighting the significance of 
the private sector involvement.  The ceremony was attended by the 
project's private sector partners and others, including 
AES-Eletropaulo President Eduardo Jos Bernini, International Cooper 
Association (ICA) Regional Director Glycon Garcia Junior, USAID/EGAT 
Energy Team Leader Simone Lawaetz, representatives from the City of 
Sao Paulo (municipality), SEHAB (housing), SABESPE (water utility), 
ANEEL and CSPE (electricity regulatory bodies), NGOs, community 
leaders, politicians, and consultants. 
 
¶2.  Recognizing the very large, growing number of slum residents 
lacking legal and affordable access to electricity in developing 
countries, the U.S. Agency for International Development (USAID), in 
cooperation with the International Copper Association (ICA), 
launched the SELR Program in October 2005.  Since then, SELR has 
selected two cities in two countries (Sao Paulo and Mumbai, India) 
in which to develop, test and evaluate sustainable and 
widely-replicable approaches for increasing access to electricity 
services for low-income, urban consumers. 
 
¶3.  In Brazil, AES-Eletropaulo (AES), USAID, ICA, and Nexans-Brazil 
(a leading global cable manufacturer) are working to regularize 
electricity services in Parasopolis, a favela (slum) in the middle 
of Sao Paulo. It is the second largest favela in Sao Paulo and, like 
most other favelas, is an informal community that lacks most 
municipal services and is home to families that migrated from rural 
areas over the years.  Located in a large ravine, Paraisopolis has a 
physically challenging geography and is surrounded by middle- and 
upper-income residential areas. 
 
¶4.  The total cost of the Pilot is estimated to be about USD 1.85 
million.  USAID is providing USD 429,000. Also, SELR Program is 
currently seeking complementing funds to develop a sustainable 
mechanism for making legal electricity service affordable by 
replacing highly inefficient refrigerators and other appliances with 
new, efficient ones. Negotiations with Whirlpool, which has 
demonstrated interest in working with this partnership, are 
currently ongoing. Whirlpools participation may include the 
development of a scheme for households to repay Whirlpool for an 
efficient appliance using cost savings from decreased electricity 
bills, rebate programs, and the design of an efficient refrigerator 
that meets the specific needs of favela households. 
 
¶5.  This cable was coordinated with Embassy Brasilia and cleared by 
Ambassador Sobel. 
 
MCMULLEN