VZCZCXYZ0000
PP RUEHWEB

DE RUEHLGB #0414 1650941
ZNR UUUUU ZZH
P 130941Z JUN 08
FM AMEMBASSY KIGALI
TO RUEHC/SECSTATE WASHDC PRIORITY 5382
INFO RUEHBS/AMEMBASSY BRUSSELS 0239
RUEHJB/AMEMBASSY BUJUMBURA 0327
RUEHDR/AMEMBASSY DAR ES SALAAM 1142
RUEHKM/AMEMBASSY KAMPALA 1910
RUEHKI/AMEMBASSY KINSHASA 0462
RUEHLO/AMEMBASSY LONDON 0245
RUEHNR/AMEMBASSY NAIROBI 1238
RUEHFR/AMEMBASSY PARIS 0506

UNCLAS KIGALI 000414 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR USTDA A. LUPO, OPIC J.SIMON 
 
E.O. 12958: N/A 
TAGS: ECON EAID ETRD PREL PGOV RW
SUBJECT: RWANDA AND OPIC - PROJECTS AVAILABLE, OBSTACLES 
REMAIN 
 
¶1. (U) Overseas Private Investment Corporation (OPIC) 
Executive Vice President John Simon met with Government of 
Rwanda (GOR) officials, members of the private sector, and 
potential project partners during a visit to Rwanda June 4 
and 5.  In these discussions, Simon described to receptive 
audiences the financial products and services OPIC can 
provide to projects with U.S. investment capital, as well as 
current and potential OPIC-supported projects in Rwanda. 
 
¶2. (SBU) Over the course of several meetings, GOR ministers 
and other officials from the Ministries of Infrastructure, 
Investment and Industry, Finance, Agriculture, and Natural 
Resources as well as the Rwandan Import and Export Promotion 
Authority (RIEPA) expressed interest in attracting US 
investors to Rwanda and in taking advantage of OPIC's 
services.  Officials cited housing, agriculture and forestry, 
railway transport, and energy as priority sectors and 
welcomed the prospect of OPIC providing support for projects 
with U.S. investor involvement.  One of these, a Burlington 
Northern/Santa Fe (BNSF) railway project that would link 
Isaka, Tanzania to Kigali, Rwanda, is under consideration to 
receive up to USD $250 million in financing from OPIC. 
Minister of Infrastructure Linda Bahire provided information 
on the status of a feasibility study undertaken by Deutsche 
Bank (DB) for the railway.  Separately, Simon noted that 
USTDA is also conducting a major study on railway 
infrastructure in the region that will supplement the DB 
study and address some issues missing from it.  He emphasized 
the need for coordination of efforts on the expansive 
regional project whose cost is projected at USD $1 billion. 
 
¶3. (SBU) GOR officials said resource constraints and an 
underdeveloped local business culture created challenges for 
their economic growth efforts, and for some potential OPIC 
projects in particular.  For example, Minister of Agriculture 
Christopher Bazivamo expressed doubt that the GOR could 
provide an advance of USD $2 million to a bamboo forestry 
initiative that is seeking OPIC financing, although the 
ministry had previously shown interest in pursuing the 
partnership.  Other potential OPIC-support recipients noted 
difficulties they encountered due to regulatory and capacity 
gaps within the GOR.  An individual working on housing 
financing shared his frustration with the lack of land titles 
and other documentation necessary for establishing systems of 
collateral and with an absence of government policy on and 
understanding of liens. 
 
¶4. (SBU) Comment: OPIC has a long history of working in 
Rwanda and GOR officials seem very keen on its continued 
presence in the country.  Without sufficient U.S. investor 
interest, regulatory progress, and in the case of the bamboo 
initiative, GOR financial backing, however, the GOR will have 
difficulty taking full advantage of OPIC assistance.  End 
comment. 
 
¶5. (U) Vice President Simon did not clear this message. 
 
 
 
 
 
 
 
 
 
 
 
ARIETTI