VZCZCXYZ0006
RR RUEHWEB

DE RUEHBH #0939/01 2121857
ZNY CCCCC ZZH
R 311857Z JUL 07
FM AMEMBASSY NASSAU
TO RUEHC/SECSTATE WASHDC 4548
INFO RUCNCOM/EC CARICOM COLLECTIVE

C O N F I D E N T I A L NASSAU 000939 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 07/30/2017 
TAGS: PGOV ENRG SENV BF VZ
SUBJECT: BAHAMAS ENERGY MINISTER CONFIRMS PETROCARIBE ON 
BACK BURNER; KEEPS DOOR OPEN ON LNG 
 
REF: A. NASSAU 0608 
     ¶B. NASSAU 0631 
     ¶C. SECSTATE 80334 
     ¶D. NASSAU 1558 (2006) 
 
Classified By: CDA D. Brent Hardt, Reasons 1.4 (b) and (d) 
 
 ¶1. (C) Summary:  During a courtesy call with the Charge' and 
PolChief, Minister of State for Public Utilities Phenton 
Neymour confirmed that Petrocaribe was not and would not be a 
priority for the new Bahamian government.  He also indicated 
that the government had not had time to assess the Liquefied 
Natural Gas (LNG) investment proposals inherited from the 
previous government, but he signaled that the door was still 
open to eventual approval.  In the same meeting, Minister of 
Works and Transport Deveaux (to whom Neymour reports) 
emphasized his desire to reinvigorate relationships with the 
state of Florida, including information sharing on Florida's 
innovative land use policies.  End Summary. 
 
Where the Rubber Hits the Road:  Works, Transport and Energy 
--------------------------------------------- --------------- 
 
¶2. (U)  In his continuing round of calls on the new FNM 
ministers, Charge, accompanied by PolChief, met with Minister 
of Works and Transport Earl Deveaux and Minister of State for 
Public Utilities Phenton Neymour.  The FNM government 
abolished the Ministry of Energy and the Environment created 
by the previous government, and has moved the energy 
portfolio under the Minister of State for Public Utilities. 
Both ministers are U.S.-educated.  Deveaux is a seasoned 
politician who served in the previous FNM government as 
Minister for Agriculture.  Minister Neymour had been a member 
of the upstart Coalition for Democratic Reform (CDR) -- the 
Bahamas short-lived third party -- but he shifted his 
allegiance to the FNM prior to recent elections.  Together, 
Deveaux and Neymour from a team critical to the FNM's 
success, as their ability to improve public utilities, roads, 
traffic, and address energy challenges will directly affect 
the Bahamian public. 
 
Florida Connections 
------------------- 
 
¶3. (U)  Minister Deveaux emphasized his strong interest in 
reinvigorating Bahamian ties with the State of Florida.  He 
believed Florida could offer valuable partnerships in 
education, agriculture, and forestry management.  He 
expressed hope that Florida could eventually offer in-state 
tuition to Bahamian students.  The Minister also expressed an 
interest in obtaining information on Florida's innovative 
land use policies, such as "Livable Florida," noting that 
both The Bahamas and Florida faced the challenge of 
maintaining rural lands despite rapid development.  The 
Charge' noted that former Governor Bush had visited The 
Bahamas in 2006 to launch a series of partnerships in 
education, environment, health and energy.  With changes of 
leadership both in Tallahassee and The Bahamas, he agreed it 
was time to reinvigorate and refine these partnerships.  He 
said he had just spoken to Governor Crist's International 
Affairs Director, who had been part of Governor Bush's 
delegation in 2006, and that he confirmed Governor Crist's 
interest in reaching out internationally, particularly in the 
area of the environment and renewable energy.  The Charge 
offered to facilitate connections between Florida and The 
Bahamas, and promised to convey the Minister's interests in 
Florida partnerships to the Governor's office. 
 
Energy: Petrocaribe not a priority 
---------------------------------- 
 
¶4. (C)  Asked by the Charge about comments that appeared not 
to close the door to Petrocaribe, Minister Neymour confirmed 
that Petrocaribe was not and would not be a priority for the 
FNM government (see ref B).  Minister Deveaux, a strong 
advocate for the private sector, seconded this point, 
emphasizing that the last thing The Bahamas needed was more 
government involvement in the energy sector.  Both confirmed 
that The Bahamas had no interest getting involved with Chavez 
and noted that they have heard of other countries' 
disappointment with the program thus far. 
 
LNG to Get a Closer Look 
------------------------ 
 
¶5.  (C) The Charge then turned to the issue of pending U.S. 
energy investment proposals to develop LNG regassification 
plants in The Bahamas.  The FNM government had initially 
approved a proposal by the AES company prior to being voted 
out in 2002.  The PLP moved it forward -- albeit slowly -- 
and was reportedly close to approval when they were voted 
out.  Prime Minister Ingraham, in an early post-election news 
 
conference had indicated that LNG was "not a priority" for 
his government.  Neymour softened the PM's stance, however, 
noting that the government has been focused on the airport 
and sea ports, and would soon take up other issues that had 
been on the back burner.  He noted that he personally 
intended to take a closer look at the LNG proposals in the 
coming days.  Minister Deveaux said that the original LNG 
proposals had encompassed the possibility of linking the LNG 
facility to The Bahamas to meet some of its future energy 
needs, noting sarcastically that the PLP was unable to 
contemplate anything other than oil for domestic needs. 
 
¶6. (C) The Charge' welcomed the new government's openness to 
the U.S. companies' energy proposals, noting that the 
Embassy's interest was in ensuring a level playing field for 
U.S. investors.  He pointed out that the companies continue 
to invest considerable resources to keep the proposals 
viable, and that they were hoping for clarity on the new 
government's direction.  The Charge also noted that Florida 
would welcome a decision to move ahead on LNG, but that they 
could not wait indefinitely on The Bahamas.  If they waited 
too long, he cautioned, the Bahamas stood to lose 10-50 
million dollars per year in potential revenues..  The Charge 
renewed the invitation to both Ministers to attend the 
Washington Renewable Energy Conference scheduled for March 
¶2008. (ref. C) 
 
Comment 
------- 
 
¶7. (C)  Neymour's assurances on Petrocaribe confirm that the 
FNM government has no interest in Chavez and has a clear 
understanding of the importance of the private sector in 
ensuring the Bahamas' future energy needs.  Views on LNG 
within the new cabinet are quite diverse, with some ministers 
known to be strongly opposed and some in favor.  Having 
provided the initial approvals for LNG development back in 
2002, however, the FNM will certainly take a close look at 
whether to move ahead with what would be an important new 
economic direction that would help diversify the 
tourism-dependent economy. Energy prices are very high in The 
Bahamas and the Embassy continues to encourage the government 
to explore alternative sources of energy. (ref D)  This 
tracks well with Department priorities and the Florida 
Governor's new international emphasis, and offers scope for 
development of energy cooperation with the FNM government. 
 
HARDT 
HARDT