VZCZCXYZ0014
RR RUEHWEB

DE RUEHMV #0427 1501651
ZNR UUUUU ZZH
R 291651Z MAY 08
FM AMEMBASSY MONROVIA
TO SECSTATE WASHDC 0062

UNCLAS MONROVIA 000427 
 
SENSITIVE 
SIPDIS 
 
PLEASE PASS OPIC FOR DIANA JENSEN 
DEPARTMENT FOR AF/W 
 
 
E.O. 12958: N/A 
TAGS: EINV EFIN OPIC LI
SUBJECT: LIBERIA: APPLICATION FOR OPIC FINANCE: BUCHANAN RENEWABLES 
FUEL LIBERIA, INC. 
 
REF A) STATE 54384  B)  Monrovia 139 
 
¶1. (SBU) The possibility of electricity generated from abundant 
locally-available fuel is tremendously appealing. The BRE/MacBain 
team presents a compelling case, but there are some assumptions and 
uncertainties that do not yet appear to have been resolved. 
 
¶2. (SBU) Econoff participated in a February meeting between 
President Sirleaf, her energy advisors, and members of the 
BRE/MacBain team.  At that time the outstanding issues were cost of 
power, location of the proposed plant, and GOL ability to facilitate 
land acquisition, confirm permitting and regulations, and secure 
expeditious legislative approval, if required.  We were told then 
that there were five potential U.S. partners, including one who 
already has extensive experience investing in Liberia.  We were not 
aware at the time that Mr. Steele, who was at that meeting 
representing OPIC, was a potential partner. 
 
¶3.  (SBU) BRE pressed the GOL for a rapid commitment, saying they 
needed to order $10 million in heavy equipment within 90 days (by 
about May 1) in order to meet the project's ambitious deadlines (the 
June OPIC board meeting, for a June 2010 completion date).  BRE also 
committed to providing firm cost and site data within 90 days. 
(Note:  We understand from a very recent discussion with Mr. Steele 
that cost estimates are imminent, although we have not seen them, 
and that three sites are being considered, none of them, he said, 
ideal.  End note.) 
 
¶4.  (SBU) Recent events that could impact the project:  The GOL has 
not made a commitment on an energy strategy.  It seems likely this 
project could be integrated with most future developments, but it 
relies on and/or will affect completion of the EC-financed 
transmission grid, continued improvement in the Liberia Electricity 
Corporation's ability to administer and regulate the sector, and 
other investment such as rehabilitation of the Mt. Coffee 
hydroelectric plant.  We are not in a position to confirm the 
sponsor's assurances that the supply of rubber trees is adequate to 
assure long-term supply for this project, BRE's commitments under 
its wood chip export project, growing interest in rubber wood 
exports and furniture building, and local requirements for charcoal. 
 
 
¶5. (SBU) Participants that would cause the embassy not to support 
the project: Mr. Steele has visited Monrovia several times in 
conjunction with OPIC, and we were impressed with his knowledge of 
the sector.  We are not able to evaluate other participants.  We are 
not aware of ties to terrorism, money laundering, corruption, or 
violations of law.  The project participants seem to be placing a 
high priority on social and environmental considerations. 
 
BOOTH