VZCZCXRO4167
PP RUEHBZ RUEHDU RUEHJO RUEHMR RUEHRN
DE RUEHLU #0898/01 2420912
ZNR UUUUU ZZH
P 300912Z AUG 07
FM AMEMBASSY LUANDA
TO RUEHC/SECSTATE WASHDC PRIORITY 4273
INFO RUCNSAD/SOUTHERN AFRICAN DEVELOPMENT COMMUNITY PRIORITY

UNCLAS SECTION 01 OF 02 LUANDA 000898 
 
SIPDIS 
 
SIPDIS 
 
STATE PASS USTDA 
 
E.O. 12958: N/A 
TAGS: ETRD ECON AO
SUBJECT: ANGOLA - USTDA MEETS MINISTRY OF TRANSPORTATION 
 
REF: LUANDA 862 
 
¶1.  Summary.  Druing his recent visit, Pierce Davis, Country 
Director for West and Southern Africa for the United States 
Trade and Development Agency, met with Joao Kuvingwa, 
National Director of Angola's Ministry of Transportation 
(MOT).  They discussed potential USTDA projects to help 
develop Angola's transportation sector.  Kuvingwa was 
enthusiastic about the proposed definitional mission study 
for the transportation sector.  Kuvingwa reviewed the status 
of MOT's plans for improvements to Angola's seaports, 
airports, road transport, and railroads.  In response, Davis 
described possibilities for corresponding USTDA-funded 
transportation studies.  End summary. 
 
¶2.  Pierce Davis, Country Director for West and Southern 
Africa with the United States Trade and Development Agency, 
and Joao Kuvingwa, National Director of Angola's Ministry of 
Transportation (MOT), discussed potential USTDA projects to 
promote development in Angola's transportation sector.  Davis 
explained USTDA's role in funding studies of areas that show 
promise for development and would also encourage U.S. 
investment.  Davis explained that USTDA first focuses on 
structural plans, and then tries to attract investors.  Davis 
proposed to Kuvingwa that USTDA conduct a definitional 
mission study of Angola's transportation sector, which would 
be prepared by a transportation specialist.  Kuvingwa 
expressed interest in such a study.  Davis then suggested 
that additional studies could focus on development 
possibilities for specific areas of the transportation sector 
such as ports, roads and railroads.  Davis added that USTDA 
already has funding approved for the definitional mission 
study and could start work in September. 
 
Transport's Role 
---------------- 
 
¶3.  Kuvingwa explained that Angola's Ministry of Transport 
oversees all transportation services and the national 
transportation strategy, while the Ministry of Public Works 
(MOP) actually builds the roads and airports.  While MOP may 
build the roads, he joked, the Ministry of Transport often 
knows better where to put the roads. 
 
Airports 
-------- 
 
¶4.  Kuvingwa said that the GRA plans to rehabilitate all of 
Angola's airports and build a new international airport and 
terminal for Luanda.  The MOT has budgeted for studies of the 
small regional airports but does not have the resources for a 
study of the international airport, as well.  He clearly 
hoped USTDA could help in this area. 
 
Land Transport 
-------------- 
 
¶5.  Government transportation companies provide 90 percent of 
intercity transportation and 20 percent of Luanda's bus 
companies are government owned, according to Kuvingwa.  MOT 
hopes to stimulate the underdeveloped private transportation 
sector.  It is preparing a "white book" setting acceptable 
standards for vehicles, engines, trailers, and insurance. 
The GRA, said Kuvingwa, would like to have USTDA's support in 
setting these standards.  Kuvingwa also hopes that USTDA can 
help the MOT to study traffic patterns in the cities of 
Luanda, Lubango, and the Benguela-Lobito metropolitan area. 
 
Maritime and Ports 
------------------ 
 
¶6.  All of Angola's ports belong to the government, which 
manages port operations by granting concessions for different 
aspects of port operations such as handling containers.  MOT, 
Kuvingwa said, wants to start granting 40-year 
build-operate-transfer concessions that will give the 
concessionaires the responsibility for implementing changes. 
MOT hopes to start this process with the port of Lobito, said 
Kuvingwa.  When rehabilitation is finished, a rehabilitated 
road and railroad system will connect Lobito Port to markets 
both inside and outside Angola.  This, said Kuvingwa, could 
relieve the pressure on the Port of Luanda.  MOT also wants 
to place a container terminal between Lobito and Benguela. 
Kuvingwa also hopes for an environmental study of ways to 
control pollution in the bays of Luanda and Lobito, which has 
become a growing problem.  Although some environmental 
studies were prepared in 1997 and 1998, Kuvingwa doubted that 
their recommendations would still be valid.  Here, he also 
hoped for some assistance from USTDA. 
 
¶7.  Once Lobito has been modernized, work on small ports -- 
 
LUANDA 00000898  002 OF 002 
 
 
Cabinda, Namibe and Soyo -- should follow.  Congestion in the 
Port of Luanda has led the MOT to consider developing new 
harbors at Porto Amboin, 200 kilometers south of Luanda and 
in Barro do Dande north of Luanda.  Kuvingwa acknowledged 
that MOT has made not made its own studies of these two new 
potential ports.  He proposed these as additional projects 
which might benefit from USTDA studies. 
 
Namibe Port 
----------- 
 
¶8.  Of all Angola's ports, Kuvingwa said Namibe is the one 
most in need of rehabilitation.  MOT hopes to make Namibe an 
international regional port, once new rail lines and improved 
roads connect it with Namibia and Botswana, providing a route 
to market for future production or iron ore.  While 
encouraging export of fruits and meat from Huila province, 
cane sugar and wood products from Cuando Cubango province. 
Despite partial renovation three years ago, the port still 
needs substantial work.  A study by the Japanese 
International Cooperation Agency (JICA) focused only on 
equipment maintenance and establishing a rail link to Huila, 
said Kuvingwa.   MOT has been working with South African 
companies to study ways to improve use of the portion already 
renovated. 
 
Request for Updated Cabinda Port Study 
-------------------------------------- 
 
¶9.  Kuvingwa said that since the completion of USTDA's 2005 
Cabinda Port Feasibility Study Cabinda's regional context has 
changed.  Angola, the DRC and Congo-Brazzaville all have 
transportation development plans for the mouth of the Congo. 
Kuvingwa hopes solid planning can avoid a huge duplication of 
effort.  (Note:  Kuvingwa confirmed news reports that a 
Chinese company is planning to build a bridge across the 
Congo in this same area to link Cabinda through the DRC with 
the rest of Angola.  End note.)  Kuvingwa also mentioned that 
the 2005 study described a port expected to recover its 
construction costs in 20-25 years, yet proposed equipment 
that would have to be replaced after only 15 years. 
 
Rail Roads 
---------- 
 
¶10.  Once Angola's railroads have been rebuilt, MOT envisions 
extending its northern line via Mbanza Congo in Zaire 
Province into the DRC.  Then, after continuing the southern 
line into Namibia and Botswana, MOT plans to connect all 
three national lines with a north-south line to develop 
Angola's interior.  Kuvingwa said that the General Electric 
Corporation and MOT are working on the last details of an 
agreement for modernization and rehabilitation of 20 
locomotives by GE Brazil.  The Chinese firms laying the 
rails, Kuvingwa explained are also installing the signaling 
systems.  Once the lines are rehabilitated, traffic will move 
at 80 kilometers per hour, faster than the original 30 kms 
per hour.  As Angola moves toward an integrated rail network, 
Kuvingwa wondered aloud, should Angola create a National RR 
Company, or perhaps a single company to maintain and extend 
its infrastructure, or a central maintenance shop for the 
whole system? 
 
Comment 
-------- 
¶11.  Kuvingwa had more potential projects than he could name 
during the time allotted for the meeting with Davis.  He was 
also eager to share his experiences with prior projects in 
order to put his plans for future projects into perspective. 
USTDA has an enthusiastic customer for a definitional mission 
in Angola's MOT.  Beyond that, the MOT is eager to work with 
USTDA in preparing additional studies to help develop 
specific projects MOT has already targeted for development. 
FERNANDEZ