VZCZCXRO2528
PP RUEHAO RUEHCD RUEHGA RUEHGD RUEHGR RUEHHA RUEHHO RUEHMC RUEHNG
RUEHNL RUEHQU RUEHRD RUEHRG RUEHRS RUEHTM RUEHVC
DE RUEHCV #0598 1211943
ZNR UUUUU ZZH
P 301943Z APR 08
FM AMEMBASSY CARACAS
TO RUEHC/SECSTATE WASHDC PRIORITY 1048
INFO RUEHWH/WESTERN HEMISPHERIC AFFAIRS DIPL POSTS
RUEHBO/AMEMBASSY BOGOTA 7776
RUEHLP/AMEMBASSY LA PAZ 2745
RUEHPE/AMEMBASSY LIMA 1021
RUEHQT/AMEMBASSY QUITO 2836
RUCPDOC/DEPT OF COMMERCE
RUEATRS/DEPT OF TREASURY
RUMIAAA/HQ USSOUTHCOM MIAMI FL

UNCLAS CARACAS 000598 
 
SIPDIS 
 
SIPDIS 
 
HQ SOUTHCOM ALSO FOR POLAD 
TREASURY FOR MMALLOY 
COMMERCE FOR 4431/MAC/WH/MCAMERON 
 
E.O. 12958: N/A 
TAGS: EAGR ECON PGOV VE
SUBJECT: BLACK-OUT HITS FIFTY PERCENT OF VENEZUELA 
 
REF: A. 2007 CARACAS 132 
     ¶B. CARACAS 341 
 
¶1. (SBU) Summary:  On April 29, a black-out caused chaos for 
several hours in thirteen Venezuelan states.  The BRV 
described it as a failure in the national grid system due to 
a forest fire near key, high tension lines.  The incident 
drew attention to the lack of investment in Venezuela's 
largely state-owned electricity sector.   End Summary. 
 
¶2. (SBU) According to General Hipolito Izquierdo, President 
of the National Electrical Corporation, the power failure 
resulted from a forest fire close to high tension lines.  He 
stated service has been restored in 85 percent of the 
country.  Media reports indicated the black-out was due to 
poor operations and maintenance at the large hydroelectric 
plant Raul Leoni in the state of Bolivar. 
 
¶3. (SBU) The black-out hit Caracas during rush hour, causing 
chaos throughout the city.  Passengers were trapped in the 
city's Metro, and traffic came to a stand-still.  Rumors flew 
that a coup was in progress.  The Minister of Justice and 
Interior was quick to state there was no emergency in the 
country, just a partial lack of electrical service, which was 
being restored. 
 
¶4. (SBU) An oil executive told us on April 30 service was 
halted at Maracaibo International Airport due to a lack of 
back-up generators.  The airport had emergency lighting but 
airline personnel were unable to check passengers in since 
their computers did not function. 
 
¶5. (SBU) The BRV has been promising to increase investment in 
the country's electricity sector.  In March 2008 the 
president of state-owned Electricidad de Caracas (EDC) 
announced they would invest USD 3.3 billion, but gave no 
details.  (Note: EDC was formerly owned by US firm AES before 
its nationalization in 2007 (ref A.) End Note.)  On April 9 
Chavez announced he would use 1 billion dollars from a joint 
fund with China to improve service in the electricity sector. 
 
 
¶6. (SBU) In spite of these promises, the Electrical Workers 
Federation of Venezuela (FETRAELEC) has led strikes and 
demonstrations in recent months to highlight the 
deteriorating power infrastructure.  FETRAELEC President 
Angel Naves has stated that "actions of higher profile" are 
needed to direct attention to the state of Venezuelan 
electrical plants (ref B.) 
DUDDY