VZCZCXYZ0001
RR RUEHWEB

DE RUEHJB #0337 1280529
ZNR UUUUU ZZH
R 080529Z MAY 07
FM AMEMBASSY BUJUMBURA
TO RUEHC/SECSTATE WASHDC 0268
INFO RUEHNR/AMEMBASSY NAIROBI 0052
RUEHDR/AMEMBASSY DAR ES SALAAM 0009
RUEHLGB/AMEMBASSY KIGALI 0010
RUEHKM/AMEMBASSY KAMPALA 0023
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS BUJUMBURA 000337 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR AF/C 
 
E.O. 12958: N/A 
TAGS: EAID EINV EMIN ENRG EPET PREL PBTS RW KE TZ UG BY
 
SUBJECT: CONSULTANT TO US TRADE DEVELOPMENT AGENCY VISITS BURUNDI TO 
ASSESS OIL PIPELINE FEASABILITY 
 
 
¶1. Summary. An energy consultant for the U.S. Trade and Development 
Agency (USTDA) met May 2-3 with senior Government of Burundi (GOB) 
officials and private energy officials to discuss a feasibility 
study for a petroleum pipeline to Burundi.  Burundian government 
officials and private concerns responded enthusiastically to the 
USTDA-funded study, and offered any necessary assistance. A workshop 
to discuss the results of the initial study will take place in 
Rwanda in September.  If the study indicates that a pipeline is 
economically viable, a more technically detailed feasibility study 
will follow. End Summary. 
 
 
¶2.  ?ke Densert, an energy consultant for the US Trade and 
Development Agency (USTDA) met with the Minister of Energy and 
Mines, the Minister of and Commerce and Trade, and leading figures 
in Burundi's private sector May 2-3 to asses a USTDA-funded economic 
feasibility study of the construction of a petroleum products 
pipeline from Kampala, Uganda, to Rwanda and Burundi.  Econoff and 
the Embassy's Econ assistant accompanied Mr. Densert in his 
meetings.  Mr. Densert relayed that the USTDA's focus in the study 
is to asses potential petroleum product demand and transportation 
costs for petroleum products for the next twenty years. 
 
¶3.  In all of the meetings, public officials and private 
representatives responded enthusiastically to the prospect of a 
petroleum pipeline to Burundi.  The Minister of Commerce and Trade, 
Donatien Nijimbere, immediately understood the importance to Burundi 
of the creation of such a pipeline, and promised full cooperation 
with the USTDA in the completion of the feasibility study. 
 
¶4.  Mr. Densert told the Ministers and private sector business 
people that the pipeline, if constructed, would be an extension of a 
light oil (gasoline, gas/oil, jet fuel and kerosene) pipeline from 
Eldoret, Kenya, to Kampala, Uganda.  Scheduled construction is to 
begin in fall 2007.  The USTDA anticipates that the pipeline will be 
finished in late 2008/early 2009.  Heavy fuel oil, he informed them, 
would contaminate the pipeline; therefore, transport to Burundi by 
tanker truck would continue for this commodity. 
 
¶5.  Mr. Densert indicated that, upon completion of the feasibility 
study in September 2007, a workshop to discuss the results of the 
study would be held in Rwanda. Participants from Burundi and the 
other countries involved in the proposed pipeline will be encouraged 
to offer input on the completed study.  He suggested that the 
Ministry of Energy and Mines, the Ministry of Commerce and Trade, 
and private business concerns, recommend approximately five 
participants from Burundi to attend the workshop, and offered to 
investigate potential funding to facilitate their participation. 
Mr. Densert said that a specific date for the workshop would be 
determined as the feasibility study drew closer to completion, and 
upon conclusion of the workshop, the USTDA will finalize the study 
and issue a final report.   If the initial study indicates that the 
pipeline is economically viable, a more technical feasibility study 
will follow. 
 
¶6. Comment. In his parting observations, Mr. Densert recommended 
training courses in the U.S. in the field of petroleum-product 
supply and distribution for appropriate government officials. 
Access to reliable energy, and increased expertise, will go far in 
boosting Burundi's economy, and serve as a foundation for its 
economic progress. End Comment.