VZCZCXRO1693
RR RUEHMA RUEHPA
DE RUEHNM #1066/01 3081059
ZNR UUUUU ZZH
R 031059Z NOV 08
FM AMEMBASSY NIAMEY
TO RUEHC/SECSTATE WASHDC 4655
INFO RUEHFR/AMEMBASSY PARIS 0731
RUEHZK/ECOWAS COLLECTIVE
RUEHNJ/AMEMBASSY NDJAMENA 1551
RUEHYD/AMEMBASSY YAOUNDE 0041
RUEHBJ/AMEMBASSY BEIJING 0193

UNCLAS SECTION 01 OF 02 NIAMEY 001066 
 
SIPDIS 
 
DEPT FOR AF/W Jane Dennison 
 
PARIS FOR AF WATCHER 
 
E.O. 12958: N/A 
TAGS: EPET EINV ECON SOCI PGOV SENV NG
 
SUBJECT: NIGER: CHINESE GOV'T BRINGS DREAM TO BUILD AN OIL REFINERY 
CLOSER TO REALITY AMID LOCAL CALLS FOR A THIRD TERM FOR PRESIDENT 
TANDJA 
 
REF:  A) NIAMEY 772  B) NIAMEY 452    C) NIAMEY 278 
 
¶1.  Summary.  The Government of Niger's (GON) dream to build an oil 
refinery moved a step closer to becoming reality at an elaborate 
first-stone laying ceremony on October 27, 2008.  The GON (all 
Cabinet Ministers, many National Assembly Members), traditional 
chiefs, political party heads, diplomatic corps dean (Chadian 
Ambassador) and Chinese Ambassador, business leaders and civil 
society leaders mobilized to Zinder (located approximately 900 
kilometers east of Niamey and future site of the refinery) to attend 
the ceremony.  Lauding President Tandja's vision and accomplishments 
such as the launches of the Kandaji Dam project and second Niamey 
bridge (to be built by the Chinese) to cross the Niger River, local 
chants filled the air calling for Tandja's third term.  The refinery 
has long been touted as the answer to Niger's energy needs and 
economic development.  The refinery's target completion year is 2011 
and is expected to produce 20,000 barrels per day.  End summary. 
 
¶2.  Fanfare and Expectations.  For several days after the laying of 
the first stone for the refinery, the media (print, radio, 
television) was saturated with reporting on the Chinese refinery 
project.  State television (Tele-Sahel) has had as its backdrop for 
the evening news a photo of the refinery draft.  Prime Minister 
Seini Oumarou's official remarks emphasized that the GON's "first 
refinery" will usher in a new era of industrialization, economic 
development and prosperity for Niger.  He noted the names of all 20 
Ministers of Mines and Energy who over the decades had worked on the 
portfolio and contributed in their own way to the realization of the 
nation's dream.  He spoke of the day when Niger would become a 
member of the Organization of the Petroleum Exporting Countries 
(OPEC).  (Note: the GON Council of Minister's voted on June 2, 2008, 
to award to the state-owned Chinese national petroleum corporation 
in a US$5 billion dollar deal the Agadem block in N'Guigmi (located 
about 1500 kilometers northeast of Niamey) in the region of Diffa. 
End note.) 
 
¶3.  The Minister of Mines and Energy Mohamed Abdoulahi helped broker 
the deal with the Chinese that the GON anticipates will facilitate 
Niger's entry into OPEC.  The refinery is expected to produce 20,000 
barrels a day, while Niger's internal oil consumption has been 
estimated at about 7,000 barrels a day.  The $US 1 billion 
investment to build the refinery is expected to cover construction 
costs, estimated at US$600 million, and the remaining US$400 million 
needed to build a pipeline connection to Chad.  It was reported that 
about 1500 jobs will be created during the construction phase of the 
project and that 500 jobs will be created at the oil exploitation 
phase.  The Council of Ministers in the project award phase required 
that the project be completed in three years or the Chinese face a 
financial penalty or possible or a retraction of the exclusive 
rights to explore in the Agadem block.  (Note:The newspaper 
"L'Enqueteur" reported the GON is preparing for the arrival of 
Chinese President Hu Juntao, but the GON has not made any statement 
on the matter.  End note.) 
 
¶4.  Nigerien Constitution is not the Coran.  Amid the droves of 
people who attended the Oct. 27 ceremony to lay the refinery's first 
stone, there were chants for GON President Tandja to "stay the 
course" and run for a third term of office.  On Oct. 31 in Zinder, 
there also was a call and a march by a "committee to support Tandja" 
inviting the President to seek a third term and urging the National 
Assembly to think about a mechanism to permit the President to do 
so. 
 
¶5.  In "As-Salam", the weekly Islamic newspaper, President of the 
Nigerien Islamic Association Collective Cheikh Salifou Oumarou 
affirmed his support for a third mandate for Tandja.  In response to 
a question about the Nigerien Constitution limiting presidential 
mandates to two five-year terms, the cheikh responded that "in Islam 
there are no term limits for a leader."  When the interviewer stated 
that many in the general public did not find it appropriate for the 
cheikh, as a religious leader, to make such a public statement of 
support for Tandja, the cheikh expressed surprise that "certain 
politicians believe Muslims shouldn't have any opinion about the 
nation's political life because Muslim leaders are also part of 
civil society."  He added, "we are not the United States of America, 
but one saw over there how religious leaders publicly supported 
President Bush when he ran for office.  Muslims have the right to 
state which candidate they support."  He concluded, "If a person in 
power has made the nation more prosperous, then there is no reason 
to block his momentum.  Speaking my personal opinion and in my role 
as the leader of the Muslim Association, it's a good thing to modify 
the constitution to enable Tandja to lead the country because he has 
 
NIAMEY 00001066  002 OF 002 
 
 
proven himself.  The constitution is not the Coran, one can change 
it when necessary." 
 
¶6. Moving Forward in the Dark.  The Network of Organizations on 
Transparency and Budget Analysis (ROTAB) issued a statement noting 
the laying of the first stone for the refinery as an historic event 
for Niger, but criticized the opacity in the contract award process, 
including certain financial clauses and actions taken.  It 
highlighted the GON failure to complete a study on the social and 
environmental impacts in the regions of the project exploitation. 
ROTAB called for more information on the additional revenue to 
become available for the national budget, as well as information on 
future investments necessary for Niger's development. 
 
ALLEN