VZCZCXRO3766
RR RUEHRG
DE RUEHBR #2131/01 3141801
ZNR UUUUU ZZH
R 101801Z NOV 07
FM AMEMBASSY BRASILIA
TO RUEHC/SECSTATE WASHDC 0426
INFO RUEHSO/AMCONSUL SAO PAULO 1155
RUEHRI/AMCONSUL RIO DE JANEIRO 5415
RUEHRG/AMCONSUL RECIFE 7353

UNCLAS SECTION 01 OF 03 BRASILIA 002131 
 
SIPDIS 
 
SENSITIVE 
 
SIPDIS 
 
DEPT FOR OES/PCI - LARRY SPERLING AND FRANCES COLON AND AARON 
SALZBERG 
DEPT FOR OES/STC - LESLIE BLANCAS 
DEPT PASS TO U.S. ARMY CORPS OF ENGINEERS (USACE), VICKSBURG - STEVE 
COLLINSWORTH AND CARY TALBOT 
DEPT PASS FOR USACE LNO to SOUTHCOM - MARCELO SALLES 
 
E.O. 12958: N/A 
TAGS: SENV KSCA ECON EINV BR
SUBJECT:  BRAZIL:  COMMANDER OF U.S. ARMY CORPS OF ENGINEERS 
MEETINGS WITH CIVILIAN COUNTERPARTS 
 
¶1.  (U) THIS CABLE IS SENSITIVE BUT UNCLASSIFIED AND NOT FOR 
INTERNET DISTRIBUTION. 
 
¶2.  (SBU) SUMMARY.  During his visit to Brazil October 1-5, LTG 
Robert Van Antwerp, Commander of the U.S. Army Corps of Engineers 
(USACE), and his delegation met on October 3 with civilian Brazilian 
counterparts from the Ministry of the Environment, the National 
Water Agency (ANA), the Secretary of Ports, the Transportation 
Ministry, and the Ministry of National Integration.  As Brazil is 
about to launch numerous major infrastructure projects, the 
Brazilian officials were interested in learning about the USACE and 
its experience with developing and managing projects.  LTG Van 
Antwerp showed great willingness to share the USACE's experiences 
and to consider ways to cooperate, so that Brazil could avoid 
repeating our mistakes and benefit from our best practices.  He also 
expressed interest in learning from some of Brazil's success stories 
in the areas of waterways infrastructure maintenance and 
transposition of inland waterways projects, such as the Sao 
Francisco Revitalization and Transposition Project.  END SUMMARY. 
 
¶3.  (SBU) LTG Robert Van Antwerp, the Commander of the U.S. Army 
Corps of Engineers (USACE), visited Brazil October 1-5 to meet with 
Brazilian military and civilian counterparts.  On October 3, he and 
his delegation had a series of meetings with key civilian Brazilian 
officials from the Ministry of the Environment, the National Water 
Agency (ANA), the Secretary of Ports, the Transportation Ministry, 
and the Ministry of National Integration.  The timing of the visit 
was propitious because Brazil has been considering a massive series 
of infrastructure projects as part of its Program to Accelerate 
Growth (PAC).  The topic of designing and managing projects 
connected with waterways, dams and ports dominated the vigorous 
discussion between the U.S. and Brazilian officials. 
 
WATERWAYS AND WATER PROJECTS 
 
¶4.  (SBU) The Ministry of the Environment (known as MMA) and its 
subordinate national water agency, Agencia das Aguas Nacionais 
(ANA), briefed LTG Van Antwerp and delegation on water management in 
Brazil.  ANA President Jose Machado explained that ANA had 
responsibility for the seven interstate river basins and the states 
managed the other 140 river basins.  Each basin has a council that, 
among other things, sets bulk water price, usually a low fee for 
farmers and more for bigger companies.  Machado said that Brazil has 
a new law and needed to create a culture of considering multiple 
uses of the river basins.  He added, Brazil needs to look at water 
in terms of development.  MMA's Director for International Relations 
Fernando Lyrio highlighted that water had been a part of the Common 
Agenda for the Environment (CAE).  Under the CAE, there was a video 
conference on water cooperation.  Lyrio stressed that MMA would like 
to reinforce the partnership in water. 
 
¶5.  (SBU) Luciano Zica, MMA's Secretary of Water Resources and Urban 
Environment said he would like a partnership with the United States 
to help in preparing the National Water Plan.  He expressed concern 
about the impact of climate change on water resources.  Brazil would 
like to see regional coordination in South America.  MMA's Director 
of Water Resources Joao Bosco Senra stated his group worked with 
states and municipalities to implement the Water Law.  They were 
using "dynamic planning" with constant reevaluations.  He explained 
that under the constitution they used the councils to determine the 
priorities among multiple users of basin.  Benedito Braga, the 
Director at ANA, expressed interest in how the United States managed 
water in California and along the Colorado River.  He noted that the 
river basin councils control the use of funds they collect, though 
the money mostly goes towards new construction. 
 
¶6.  (SBU) LTG Van Antwerp noted that the USACE was trying to correct 
prior actions, such as in the Everglades and with the Mississippi. 
He stated that the USG was interested in how Brazil handled 
cross-boundary matters and set policies.  He said we have old 
infrastructure which needs much maintenance, having problems such as 
seepage.  He underscored USACE's interest in sharing experiences 
with Brazil.  Dr. Jerome Delli Priscoli noted a problem that we have 
in the United States is that many dams and levees are not government 
owned, which poses problems for ensuring adequate maintenance. 
 
PORTS 
 
¶7.  (SBU) The Minister of Ports, Pedro Brito, described the use of 
private dredging companies to work in Brazilian ports.  He was 
particularly interested to learn that the USACE used 
 
BRASILIA 00002131  002 OF 003 
 
 
"performance-based" contracts, such as "unit price" rather than 
"lump sum" payment.  Brazil had four or five small dredging 
companies.  For the bigger jobs Brazil uses foreign dredging 
companies, mostly from The Netherlands and Belgium.  He asked how 
they could make progress in a partnership with the United States. 
Fernando Antonio Brito Fialho of the Agencia Nacional para 
Transporte Aquatico (the National Inland Waterways Transportation 
Agency, or ANTAQ) said that the Ministry had master plans for ports. 
 Brazil does not want to leave ports to the private sector.  ANTAQ 
is interested in ideas for cooperation.  ANTAQ participated with 
USACE in putting together the first Brazil-US Inland Waterways 
Navigation Conference in August, 2007 in Brasilia.  The second 
Brazil-US Inland Waterways Conference will take place in Mississippi 
in 2008, where USACE will host the Conference. 
 
¶8.  (SBU) LTG Van Antwerp offered to help, saying USACE could show 
them some work in the United States.  Brazil could send some experts 
to see USACE's work.  The USACE contracts out most of its dredging 
work.  "We are open to trading ideas", he added.  Dr. Mohan Singh 
said that USACE offered a dredging training course.  Priscoli said 
USACE could help with training.  LTG Van Antwerp said the USACE 
would send some courses and ideas back to ANTAQ and the Ministry of 
Ports.  Singh concluded saying that maybe U.S. companies can help to 
build capacity of Brazilian firms.  We could build an alliance in 
this field. 
 
TRANSPORTATION 
 
¶9.  (SBU) The Minister of Transportation, Alfredo Nascimento, 
briefed LTG Van Antwerp on current transportation goals and also 
explained that like the U.S., Brazil's armed forces play an 
important role in infrastructure development and maintenance. 
Nascimento pointed out that Brazil must take advantage of its rivers 
as a means to develop its natural resources and to also integrate 
interior parts of the country. 
 
¶10.  (SBU) LTG Van Antwerp emphasized that the USACE would like to 
explore cooperation with the GOB and at the same time stands to 
learn from Brazil, especially as the US addresses its own aging 
infrastructure from the 50s and 60s.  Explaining that the United 
States and Brazil hold some similar infrastructure challenges, LTG 
Van Antwerp said that USACE looks forward to exploring technology 
transfers, and to learning how the GOB undertakes cost/benefit 
analyses of its infrastructure projects.  USACE is also interested 
in comparative studies of transboundary navigation considerations 
and the Brazilian process to calcinate clay to high temperatures to 
make aggregate.  Other areas where the GOB and USACE may benefit 
from cooperation include flood prevention and dam 
construction/maintenance/use. 
 
¶11.  (SBU) Nascimento agreed that the GOB and USG hold much in 
common and that expanded cooperation in infrastructure would be 
beneficial.  Nascimento admitted that Brazil4s growth occurred much 
quicker than the GOB had planned for - he estimated that Brazilian 
infrastructure is about ten years behind overall growth.  To address 
this gap, the GOB's current priorities include: 1) recuperating 
existing roadways - goal is to have 80% in good condition by 2010; 
2) revamp 30,000km of rail with creative financing since this is not 
currently in the GOB budget; 3) work in the northeast to improve 
infrastructure in poorer areas; 4) complete a national 
transportation plan, and; 5) explore creative financing through 
public private partnerships. 
 
¶12.  (SBU) Nascimento highlighted one of the most difficult 
challenges for his ministry - the legal challenges/blocks that are 
imposed by environmental restrictions and licensing requirements. 
MOT is pushing to have these restrictions eased in order to help 
facilitate development, while at the same time protecting the 
environment.  He pointed to one example of what he referred to as 
the impediment of environmental licensing in Brazil:  to receive a 
construction license that impacts a specific sector of a river way, 
the entire river must be examined, in addition to the targeted 
sector.  He argued that one shouldn't have to license the entire 
river, but only the sector where one is working.  Additionally, he 
explained, in order to receive permission to recuperate an existing 
roadway, for example, "We must go through the same licensing process 
as we already did to build the road in the first place, and so the 
damage has already been done." 
NATIONAL INTEGRATION 
 
¶13.  (SBU) Luiz Antonio Souza da Eira, Vice Minister of the Ministry 
 
BRASILIA 00002131  003 OF 003 
 
 
of National Integration (MONI), and his staff provided Van Antwerp 
with an overview of Brazil's water resources.  Souza da Eira also 
explained that MONI's mission is to promote integration of Brazil 
through programs centering on social inclusion, sustainable use of 
natural resources, reducing regional inequality, etc.  Souza da Eira 
said that while Brazil holds many water resources, a major challenge 
is the distribution of those resources to basins where water is less 
prevalent.  To achieve these goals, MONI looks to public-private 
partnerships, as well as the GOB funding it receives. 
 
¶14.  (SBU) To illustrate some of MONI's work in Brazil, Souza da 
Eira described MONI's largest project underway at the moment - the 
Sao Francisco Integration Project.  In a nutshell, the project aims 
to pump a fixed flow of water from the reservoir created by the 
Sobradinho dam through channels to the arid northeast.  The project 
is estimated to cost USD 3 billion over four years; it has been met 
with vocal opposition from the environmental community.  Souza da 
Eira explained that MONI's greatest challenge to date with this 
project has been effective storage of the water after being pumped 
from the reservoir.  When asked if the GOB planned to construct new 
reservoirs, Souza da Eira responded by saying that the GOB has plans 
to continue to pump water from existing reservoirs to dryer basins. 
 
¶15.  (SBU) Souza da Eira emphasized the following areas of 
cooperation that MONI would like to explore with USACE: 1) finance 
models for public private partnerships; 2) water resource management 
models; 3) project management models - looking at water resources as 
a whole, including state/federal and state/state integration, 
environmental considerations and logistics; 4) irrigation projects; 
and 5) multi-use applications to water resources.  Van Antwerp said 
that USACE is willing to explore such collaboration and indicated 
that he would like to send a team back to Brazil to investigate 
further, including the possibility of signing a memorandum of 
understanding. 
 
USACE DELEGATION 
 
¶16.  (U) The technical members of LTG Van Antwerp's USACE delegation 
were:  COL Norberto Cintron, MAJ Jerry Farnsworth, MAJ Dawn Conniff, 
Command Sergeant Major Robert Winzenried; Dr. Mohan Singh,  Marcelo 
Salles,  Stephen Collinsworth, and Dr. Jerome Delli Priscoli. 
Embassy's Environment, Science, Technology and Health (ESTH) 
Counselor Rick Driscoll, ESTH Officer KG Moore, ECON Counselor Tara 
Erath, and ECON Officer Gabrielle Sarrano also attended the 
substantive meetings. 
 
COMMENT 
 
¶17.  (SBU)  LTG Van Antwerp and party generated substantial interest 
in possible cooperation from Brazilian civilian counterparts in the 
environment, transportation and ports areas.  Embassy intends to 
work with USACE and Brazilians to build on the enthusiasm and 
interest displayed by both sides during this visit. 
 
SOBEL