VZCZCXRO7749
RR RUEHDU RUEHMR RUEHRN
DE RUEHLU #0908/01 2471642
ZNY CCCCC ZZH
R 041642Z SEP 07
FM AMEMBASSY LUANDA
TO RUEHC/SECSTATE WASHDC 4285
INFO RUCNSAD/SOUTHERN AFRICAN DEVELOPMENT COMMUNITY
RUEHHI/AMEMBASSY HANOI 0004
RUCNDT/USMISSION USUN NEW YORK

C O N F I D E N T I A L SECTION 01 OF 02 LUANDA 000908 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 09/03/2017 
TAGS: PGOV PREL ENRG SENV KOLY AO
SUBJECT: ANGOLA - AUGUST POLITICAL ROUNDUP 
 
REF: LUANDA 847 
 
Classified By: CDA FRANCISCO FERNANDEZ FOR REASONS 1.4 (B) AND (D) 
 
¶1. (U) SUMMARY 
-------------- 
- OPEC Secretary General Visits Angola 
 
- Energy and Economic Development Conference Held in Luanda 
 
- Angola Welcomes Vietnamese Doctors and Teachers 
 
- Angola Hosts and Wins African Basketball Championship 
 
OPEC Secretary General Visits Angola 
------------------------------------- 
¶2. (U) OPEC Secretary General Abdalla El-Hadri arrived in 
Luanda on August 25, 2007 for a four-day working visit.  Mr. 
El-Hadri told journalists he was not in Luanda to talk about 
Angola's production ceiling, which he said will be discussed 
and set in December, but to talk about crude oil pricing. 
The OPEC Secretary General met with President Dos Santos, 
Petroleum Minister Da Costa and the Vice Minister of Foreign 
Relations Jorge Chicoti. 
 
¶3. (C) COMMENT: Presidential insiders insinuated that the 
trip's purpose was to discuss Angola's habit of making side 
deals to sell crude oil below market - or even below 
production - value.  These opaque deals, often made under the 
auspices of assistance to impoverished African nations, have 
increasingly been used to reward cooperation with the GRA 
(reftel).  Despite the threat "rouge pricing" and lack of 
production quotas pose to OPEC market share, the organization 
is using kid gloves as it brings its newest member into the 
fold.  END COMMENT 
 
Energy and Economic Development Conference Held in Luanda 
--------------------------------------------- ------------ 
¶4. (U) The Eduardo dos Santos Foundation (FESA) held an 
Energy and Economic Development Conference in Luanda on 
August 27, 2007.  During the conference, Energy Minister 
Botelho de Vasconcelos stated the majority of Angola's 
electric production comes from its large reserves of 
non-renewable crude oil, which represents 80 percent of 
Angola's total electric energy production.  Three percent is 
hydro-energy and 17 percent is bio-energy, or wood and 
charcoal.  Overall, only 25 percent of Angolans have access 
to electricity; the remaining 65 percent rely on wood and 
charcoal. 
 
¶5. (U) Vasconcelos confirmed that Angola's energy production 
is far from adequate, especially production from renewable 
energy sources.  Despite Angola extensive waterways, it 
produces only 4 percent (790 megawatts) of its potential 
18,000 megawatts of hydro-power.  He stated that the 
electrical energy sector is open to private investment at all 
levels - production, transport and sale. 
 
Angola Welcomes Vietnamese Doctors and Teachers 
--------------------------------------------- -- 
¶6. (U) The Vietnamese Ambassador to Luanda, Nguyen Dinh, told 
journalists that there are 250 Vietnamese doctors and nurses 
working in Angola's healthcare system as well as 80 teachers 
working in Angolan schools.  Vietnam has sent 500 
professionals to Angola since a technical assistance accord 
was signed by the two governments in 1986.  Ambassador Dinh 
said Vietnam is considering new partnerships with the GRA in 
the petroleum, agriculture, fishing and commercial sectors. 
 
¶7. (U) In press interviews the Ambassador announced Vietnam's 
intention to run for a seat on the UN Security Council and 
asked for the GRA's support of their candidacy.  Angola and 
Vietnam established diplomatic relations in November 1975, 
and 60 million USD worth of goods were imported from Vietnam 
in 2006. 
 
Angola Hosts and Wins African Basketball Championship 
--------------------------------------------- -------- 
¶8. (U) On August 26, 2007 Angola secured a place at the 2008 
Beijing Olympics as its national basketball team won the 24th 
African Basketball Championship tournament, "Afrobasket". 
Sixteen African nations competed in this Olympic-qualifying 
event, sponsored by the African Basketball Federation 
(FIBA-Africa).  Over 500 journalists, scouts from around the 
world, and rabid sports fans watched the heavily favored 
Angolan national team win its 5th consecutive victory and its 
9th title in the past 10 tournaments.  The players each 
received houses in a government- financed housing development 
(market value 350,000 USD), new Volkswagen cars donated by a 
local dealership, and 10,000 USD in cash from the Ministry of 
Youth and Sports.  This is the first time that Afrobasket 
 
LUANDA 00000908  002 OF 002 
 
 
players received such substantial awards, but the bar was 
raised by the prizes awarded for the Angolan soccer team's 
World Cup run in 2006. 
 
¶9. (SBU) Angola hosted the tournament in five Angolan cities. 
 The organizing committee's budget of 70 million USD was used 
to build 4 new multipurpose sports centers in the provincial 
capitals of Cabinda, Benguela, Huambo and Huila, and to 
refurbish the Luanda Basketball center.  Delays plagued 
Chinese contractors' work on these facilities, and contacts 
expressed concern over shoddy workmanship to Emboffs.  Final 
touches were completed on several facilities only days before 
teams began arriving in Angola. 
FERNANDEZ