VZCZCXYZ0000
PP RUEHWEB

DE RUEHSF #0329 1441141
ZNR UUUUU ZZH
P 231141Z MAY 08
FM AMEMBASSY SOFIA
TO RHEBAAA/DEPT OF ENERGY WASHINGTON DC PRIORITY
INFO RUEHC/SECSTATE WASHDC PRIORITY 5071
RUEHBS/USEU BRUSSELS

UNCLAS SOFIA 000329 
 
SIPDIS 
SENSITIVE 
 
DOE FOR NICHOLAS CARLSON, KATHARINE FREDRIKSEN 
DEPARTMENT FOR EUR DAS BRYZA AND GARBER, EEB FOR SMANN 
USEU FOR SPECIAL ENVOY GREY 
 
E.O. 12958: N/A 
TAGS: ENRG SENV APER BU
 
SUBJECT: SOFIA:  STRATEGIC LOCATION FOR DOE ENERGY ATTACHE 
 
¶1.  (SBU)  The Department of Energy's Attach Program is a 
resounding success.  As DOE considers possible locations for its 
next Energy Attach, Embassy Sofia encourages a hard look at the 
superior value we offer.  An office here would bracket coverage, 
analysis, and advocacy in Russia, the Caspian, the Middle East and 
Eastern Europe. 
 
The Strategic Case 
-------------------- 
 
¶2.  (SBU)  Hydrocarbon-poor, energy inefficient and keen on getting 
guaranteed oil and natural gas supply, Bulgaria and its neighbors 
have established energy partnerships with Russia that are having a 
profound impact on Europe's energy security.  A Sofia-based Energy 
Attach could cover the developments in a strategic region 
encompassing "mid-stream" countries from Turkey to Austria -- 
pipeline projects, Russian investment and intentions, energy 
relations between midstream countries and their upstream and 
downstream partners, and EU energy dynamics. 
 
¶3.  (U)  Bulgaria is putting itself on the energy map: 
-- Hosting one existing gas pipeline and five potential oil and gas 
pipelines (Nabucco, South Stream, Burgas-Alexandroupolis, AMBO, and 
a Turkey-Greece-Italy Interconnetor hook-up); 
-- Reaching out to Azerbaijan, Kazakhstan, Dubai, Egypt and Iraq for 
oil, gas and LNG; 
-- Building nuclear plants:  Atomsroyexport and Siemens/Areva are 
building two new VVER-1000 reactors, and  Bulgaria is hedging its 
bets with talk of building two other reactors (Kozolduy 7 and 8) in 
which Westinghouse has expressed very preliminary interest -- all in 
the drive to regain its place as a net electricity exporter; 
-- Proposing itself as the home of a new, EU Energy Observatory, 
part of the EU's proposed energy early warning system; 
-- Winning the competition (against London) for international energy 
infrastructure firm Worley Parsons, which chose Sofia as its new 
"Pipeline Center of Excellence" which will employ several hundred 
specialists to handle the firm's oil and gas pipeline consultation 
and engineering business for all of Europe and Africa. 
 
The Programmatic Case 
--------------------- 
 
¶4.  (U)  The United States has a central piece of nuclear 
developments here.  In April 2008, the United States and Bulgaria 
signed a Nuclear Fuel Return Agreement to allow U.S. and Bulgarian 
experts to remove spent nuclear fuel from the ITR-2000 reactor in 
Sofia and safely transport the fuel to Russia, its original source. 
The agreement will open the door to multi-million dollar upgrades 
and refurbishments funded by the U.S., Bulgaria and IAEA to 
transform the aging ITR-2000 reactor into a safe, state-of-the-art 
200Kw research and training reactor, the most advanced in 
southeastern Europe.  The whole project will entail substantial DOE 
personnel and financial support. 
 
¶5.  (SBU)  During PM Stanishev's June visit we will sign a Second 
Line of Defense Program MOU with Bulgaria, under which DOE will 
provide more than USD 20 million over several years for installation 
of and training in radioactivity detectors at all Bulgaria's land 
crossings,  seaports and airports.  A Sofia-based Energy Attach 
would spearhead the Washington-based SLD office on the extensive 
planning, installation and training the SLD program will require. 
 
The Business Case 
----------------- 
 
¶6.  (U)  Embassy Sofia is an award-winning new chancery complex.  We 
have great, available space.  We boast fabulous, highly educated, 
highly skilled and highly motivated employees.  Wages are fractions 
of west European levels, and we provide superior productivity and 
efficiency.  Per diem rates are far below central and west European 
cities while direct air flights to Moscow and west European capitals 
are readily available; airfares to Washington are substantially 
cheaper than from other possible hub locations.  The Anglo-American 
School has its own award winning complex here and supports an IB 
program.  The Foreign Agriculture Service, FBI, Department of 
Justice and U.S. Secret Service have all chosen Sofia as a regional 
base. 
 
¶7.  (U)  We are convinced we offer a strong combination of 
strategic, programmatic and economic factors.  We invite DOE's due 
diligence, confident we have a compelling case. 
 
KARAGIANNIS