VZCZCXRO0843
PP RUEHMA RUEHPA
DE RUEHUJA #0926/01 1481418
ZNR UUUUU ZZH
P 281418Z MAY 09 ZDK
FM AMEMBASSY ABUJA
TO RUEHC/SECSTATE WASHDC PRIORITY 6125
INFO RUEHOS/AMCONSUL LAGOS PRIORITY 1390
RUEHGB/AMEMBASSY BAGHDAD 0323
RUEHRO/AMEMBASSY ROME 0421
RUEHZK/ECOWAS COLLECTIVE
RHEBAAA/DEPT OF ENERGY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RULSDMK/DEPT OF TRANSPORTATION WASHDC

UNCLAS SECTION 01 OF 02 ABUJA 000926 
 
SENSITIVE 
SIPDIS 
 
DEPT PASS TO USTDA-MARIN; EXIM-RICHTER 
DEPT PASS USAID AFR/SD FOR CURTIS; ATWOOD; SCHLAGENHAUF 
DEPT PASS USTR FOR AGAMA 
BAGDAD FOR MCCULLOUGH 
ROME PASS TO TSA - ANTHONY GIOVANNIELLO 
DEPT OF TRANSPORTATION FOR FAA MEL CINTRON, AHARRIS 
USDOE FOR GEORGE PERSON 
TREASURY FOR PETERS AND HALL 
DOC FOR 3317/ITA/OA/KAREN BURRESS AND 3130/USFC/OIO/ANESA/MCREED 
 
E.O. 128 
TAGS: EINV EPET ENRG ELTN EAIR ETRD SOCI TPHY NI
SUBJECT: NIGERIA SIGNS INFRASTRUCTURE DEVELOPMENT AGREEMENT WITH GE 
 
REF: 08 ABUJA 2324 
 
ABUJA 00000926  001.2 OF 002 
 
 
SENSITIVE BUT UNCLASSIFIED - NOT FOR DISTRO OUTSIDE USG 
 
¶1.  (SBU) SUMMARY: Ambassador joined General Electric (GE) Vice 
President John Rice at the State House on May 26, 2009 for a 
30-minute courtesy call with President Yar'Adua and to witness the 
signing of a landmark Country-to-Company Memorandum of Understanding 
(MOU)agreement between the government of Nigeria (GON) and GE to 
assist with the sustained development of critical infrastructure in 
Nigeria.  The document was signed by Rice and Minister of Justice 
Chief Michael Aondoakaa.  On the eve of this signing, the GON placed 
an initial order for 25 GE locomotives at an estimated value of $120 
million, delivery scheduled for 2010.  At the mid-afternoon courtesy 
call meeting, President Yar'Adua walked into the room with expected 
command and addressed the U.S. delegation.  He was alert, poised, 
articulate, and frail (see Septel on more details on Yar'Adua's 
appearance.  Ambassador had a short exchange with Yar'Adua after the 
signing.) END SUMMARY. 
 
¶2. (SBU) Since the beginning of 2008 the Mission has worked with GE 
as the company explored the prospect of increasing its investment 
ties with Nigeria.  Last November GE brought a 23 member executive 
delegation to Africa to explore business opportunities.  GE's 
Sub-Sahara Africa (SSA) President Lazarus Angbazo told EconOff during 
the May 26 ceremony that Nigeria and Ghana are the only SSA countries 
where an investment incentive memorandum of understanding (IIMOU) has 
been committed.  According to Yar'Adua, this IIMOU is a first for 
Nigeria.  Yar'Adua thanked the Ambassador and the Mission for working 
with GE and the GON and stated that he is proud to be associated with 
GE, an honest and transparent partner, which will participate well in 
solving critical development challenges brought on by poor 
infrastructure.  He added his sincere gratitude for the partnership. 
 
¶3. (SBU) The agreement strengthens Nigeria's existing commercial 
relationship with GE, expanding possible opportunities to include 
railway infrastructure development and rehabilitation, oil and gas 
processing, distribution and transportation, electric power 
generation, water and wastewater treatment, healthcare, aviation and 
integrated safety and security systems.  Today, GE has almost 200 
employees in Nigeria based in offices in Lagos, a GE Oil & Gas 
Service Center in Port Harcourt, and a facility in Onne Port.  In 
addition to leveraging GE's infrastructural competencies, the two 
parties are agreeing to explore creating technical and managerial 
employment opportunities for Nigerians.  GE has agreed to mentor 
Nigeria with an initiative to change Nigeria's reputation globally 
through a compliance and integrity program.  The agreement is valid 
from an initial period of 5 years and is conditionally renewable. 
 
SUMMARY OF THE SPECIFIC AREAS OF INVOLVEMENT 
-------------------------------------------- 
 
¶4. (U) The IIMOU listed the following specific areas for cooperation: 
 
-Railway infrastructure development for freight and passenger 
services: 
 
--rehabilitation; maintenance and service; train control and 
communication systems; spare parts/components and tooling. 
 
-Oil and gas processing, distribution and transportation. 
 
-Electric power generation, bio-energy, cleaner energy, and energy 
conservation.  (Note: GE has delivered more than 200 gas turbines to 
Africa with more than half located in Nigeria. End Note.) 
 
-Water and waste water treatment infrastructure 
 
-Improving healthcare access through infrastructure development 
 
-Financial investments in Sovereign Instruments 
 
-Aviation:  (Note: In the aviation sector, GE Commercial Aviation 
Services (GECAS) and GE Aviation have a strong presence among leading 
 
ABUJA 00000926  002.2 OF 002 
 
 
Nigerian airlines.  GECAS currently has seven aircraft on lease to 
Virgin Nigeria and Bellview Airlines with a value of approximately 
$100 million and also recently concluded the sale of four B737NG 
series aircraft to Arik Air.  In addition, GECAS has sold about 95 
engines in Nigeria since 2006 with a list value of $1 billion. End 
Note.) 
 
--Aircraft engines 
 
--Service and support 
 
-Integrated safety and security systems.  (Note: GE has a 
manufacturing plant for GE Security in South Africa. End Note.) 
 
COMMENT 
------------------- 
 
¶5. (SBU) COMMENT: GE's decision to come to Nigeria and explore 
business opportunities is very welcome.  The IIMOU target areas 
complement the Mission pillars, our public-private partnerships and 
Yar'Adua's 7 Point Agenda.  The Mission will continue to work closely 
with GE and Nigeria to ensure a successful and fruitful 
implementation of the MOU.  END COMMENT 
 
¶5. (U) This cable was coordinated with Consulate Lagos. 
 
SANDERS