VZCZCXRO3581
PP RUEHGI RUEHRN
DE RUEHLGB #0536/01 2401451
ZNR UUUUU ZZH
P 281451Z AUG 09
FM AMEMBASSY KIGALI
TO RUEHC/SECSTATE WASHDC PRIORITY 6268
INFO RUEHXR/RWANDA COLLECTIVE
RUEAIIA/CIA WASHINGTON DC
RHEFDIA/DIA WASHINGTON DC
RHMFIUU/HQ USAFRICOM STUTTGART GE
RUFOADA/JAC MOLESWORTH RAF MOLESWORTH UK
RUEHLMC/MILLENNIUM CHALLENGE CORP 0069
RUCNDT/USMISSION USUN NEW YORK 0272

UNCLAS SECTION 01 OF 02 KIGALI 000536 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL EFIN EAID ENRG RW CG
SUBJECT: RWANDA, CONGO SOLICIT FUNDING FOR JOINT ENERGY 
PROJECT 
 
REF: A. KINSHASA 796 
     ¶B. KINSHASA 741 
     ¶C. KIGALI 513 
 
KIGALI 00000536  001.2 OF 002 
 
 
¶1. (U) SUMMARY: The energy ministers from Rwanda and the 
Democratic Republic of the Congo (DRC) met in Rwanda on 
August 17 to review and solicit donor support for a potential 
joint Rwandan-Congolese energy project.  This project is a 
tangible outcome of the groundbreaking August 6 Kagame-Kabila 
meeting.  Though mostly in the idea stage, with crucial 
details yet to be settled, the project is an important 
confidence-building measure that supports the growing 
rapprochement between Rwanda and the DRC.  END SUMMARY. 
 
¶2. (U) Under the auspices of the Economic Community of Great 
Lakes Countries (CEPGL), energy ministers Albert Butare of 
Rwanda and Laurent Muzangisa of the DRC met on August 17 in 
Gisenyi, Rwanda to present the rough outlines of and elicit 
donor support for a joint Congolese-Rwandan project to 
exploit methane gas in Lake Kivu, which the two countries 
share.  The Burundian energy minister and the CEPGL acting 
executive secretary also participated in the session; 
polcouns and several other Kigali-based diplomats, 
international financial institution representatives, 
technical experts and public utility officials from all three 
countries attended as observers.  Rwandan print, radio and 
television media covered the event. 
 
¶3. (U) During opening comments, Butare and Muzangisa 
emphasized that they had convened this meeting at the 
direction of their heads of state, who met on August 6 (Refs 
A and B).  Next, participants reviewed the status of existing 
and planned jointly-run hydroelectric facilities on the 
Rusizi River (Rusizi II, III and IV), listened to a 
presentation on regional power transmission and responded to 
questions.  Of note, both Butare and Muzangisa declared that 
if any of the three countries' national utilities failed to 
pay for the electricity it received, then SINELAC, the joint 
utility that managed the Rusizi power plants, would "cut them 
off."  Butare specified that the three governments had agreed 
that national utilities would receive formal notification of 
this by the end of August, and if any was in non-payment 
status by September 10, "they will get cut off." 
 
¶4. (U) Participants next reviewed ideas and recommendations 
on joint Congolese-Rwandan management of Lake Kivu's methane 
in general, as presented by consultant Philip Morkel of 
Methane Hydrates Limited, a South Africa-based firm.  Butare 
said the final document produced by Morkel and the "group of 
experts" was authoritative and the Rwandan government viewed 
its guidelines as "the bible."  Morkel and Muzangisa 
acknowledged, however, that the study had yet to be 
translated into French so the Congolese government could 
examine it easily.  The grand finale was an overview of the 
estimated 200MW joint Congolese-Rwandan Lake Kivu project, to 
be implemented in increments of 50MW, which would cost 
$400-$450 million and rely on what they called proven 
technology.  The two countries planned to hire within the 
next several weeks a consultant to conduct a feasibility 
study, and aimed to launch a formal request for proposals o/a 
July 2010. 
 
¶5. (U) Responding to a question from the Burundian minister, 
Butare and Muzangisa assured that Burundi would be included 
in the Lake Kivu project, albeit as an eventual consumer 
rather than a direct participant.  Answering the CEPGL acting 
Qrather than a direct participant.  Answering the CEPGL acting 
Executive Secretary's question about CEPGL involvement, 
Butare clarified that the CEPGL's role would remain confined 
to "follow-up" and "situational awareness;" however, there 
was no need to create an new CEPGL "Department of Gas" to 
oversee or regulate the project.  Turning to the question of 
who would pay for the Lake Kivu feasibility study and the 
formation of a bilateral regulatory authority, Butare said 
Rwanda and the DRC hoped to attract support from donors as 
well as the private sector.  Muzangisa commented that the DRC 
was not concerned about Rwanda's own recently-launched, 
private-sector initiative to exploit Lake Kivu's methane gas 
(Ref C).  As for the question of financing, he said, "this is 
why we invited donors" to attend the day's session. 
 
¶6. (SBU) COMMENT: Much flesh needs to be put on the bones of 
this prospective joint Congolese-Rwandan venture, and it may 
not be easy to attract public or private-sector funding. 
However, World Bank President Zoellick, who recently visited 
 
KIGALI 00000536  002.2 OF 002 
 
 
the pilot methane gas generation site now opening in Lake 
Kivu, spoke highly of the potential impact of a joint 
project.  DRC energy minister Muzangisa made a final, salient 
point:  this project would help address the growing energy 
"deficit" facing each of the three CEPGL countries.  And, in 
the short run, this energy-sharing initiative is most useful 
as a confidence-building measure.  It underscores the growing 
rapprochement between Rwanda and the DRC.  Rwandan officials 
have echoed these sentiments.  END COMMENT. 
SYMINGTON