VZCZCXYZ0145
RR RUEHWEB

DE RUEHSG #0812 2402057
ZNR UUUUU ZZH
R 282057Z AUG 09
FM AMEMBASSY SANTIAGO
TO RUEHC/SECSTATE WASHDC 5399
RUEATRS/DEPT OF TREASURY WASHDC
INFO RUEHSJ/AMEMBASSY SAN JOSE 0943
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS SANTIAGO 000812 
 
STATE FOR WHA/BSC, WHA/EPSC, EEB/IFD/ODF 
TREASURY FOR DAS MCDONALD, DVONKOCH, BLINDQUIST 
COMMERCE FOR KMANN 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EAID ECON EFIN EINV ECIN PGOV PREL CI CR
SUBJECT:  CHILE:  MINISTER OF PUBLIC WORKS SAYS TRILATERAL 
COOPERATION IN COSTA RICA WILL COTINUE 
 
REF:  2008 SANTIAGO 979 
 
¶1. (SBU) SUMMARY:  Chilean Minister of Public Works Sergio Bitar 
told the Ambassador August 26 that cooperation with the U.S. 
Treasury on an infrastructure project in Costa Rica will continue. 
Bitar underlined that this type of trilateral cooperation is "very 
important" to the GOC.  The Minister noted his budget for the 
project was "tight" but he had asked his staff to prioritize their 
eforts to find a way to keep working with U.S. Treasury officials 
in Costa Rica.  Bitar also reiterated his commitment to the 
Infrastructure Finance Experts Corps (IFEC) and future projects in 
the region.  Ministry staff said they would coordinate their efforts 
with U.S. Treasury representatives for upcoming project work in 
Costa Rica.  In addition, they hoped to bring a group of Costa Rican 
officials and professionals to Chile to view the concession process 
first-hand.  END SUMMARY. 
 
Potential Obstacle in Costa Rica IFEC Project 
--------------------------------------------- 
 
¶2. (SBU) The Ambassador met with Minister Bitar August 26 to resolve 
a potential obstacle in trilateral cooperation in Costa Rica. 
Leonel Vivallos, Head of the Division for Development and Project 
Bidding in Concessions Coordination at the Ministry of Public Works 
(MOP), John Diaz, Head of Project Financing and Risk in the Division 
for Development and Project Bidding in Concessions Coordination at 
the MOP, and Econoff also attended the meeting. 
 
¶3. (SBU) (Background note:  The U.S. Treasury had previously 
informed the Ambassador that the MOP was unable to fund the 
continued participation of its representative (John Diaz) in the 
IFEC pilot project due to budget constraints.  Treasury and the MOP 
have sent experts to help Costa Rica's government improve services 
and infrastructure at the Liberia Airport.  The project is at a 
critical juncture and could face significant problems without a MOP 
expert on concessions.) 
 
¶4. (SBU) The Ambassador had requested Minister Bitar prioritize the 
funding necessary to allow the MOP - U.S. Treasury cooperation to 
continue.  At the August 26 meeting, the Ambassador asked for an 
update on the situation.  Vivallos reported Minister Bitar had 
instructed his staff to find a way to continue MOP participation in 
the project. 
 
Bitar Reiterates Support for IFEC 
--------------------------------- 
 
¶5. (SBU) Minister Bitar confirmed to the Ambassador his support for 
maintaining a MOP representative on the project in Costa Rica.  He 
admitted his budget was "tight" but he wanted to find a way to 
continue cooperating with the U.S. Treasury.  Bitar thought it was 
wise for the IFEC to start with a smaller, relatively discrete 
project (like the Liberia Airport), with which the IFEC could easily 
succeed. 
 
¶6. (SBU) The Minister reiterated his belief that public-private 
partnerships were critical to building infrastructure, and 
infrastructure was critical to development in the Hemisphere.  He 
remained committed to the IFEC concept and future projects in the 
region.  The Ambassador emphasized that Presidents Obama and 
Bachelet -- in their meeting in June -- had talked about the 
importance of increasing trilateral cooperation across the region, 
which was now an increasing focus for the USG and GOC.  Bitar agreed 
and underlined that such cooperation with the U.S. was "very 
important" to the GOC. 
 
Next Steps in Costa Rica 
------------------------ 
 
¶7. (SBU) Vivallos explained MOP staff will coordinate with their 
counterparts at the U.S. Treasury on next steps in the Costa Rica 
project.  The Liberia Airport will require a 5-month window in which 
to effect an upgrade, during which time U.S. and Chilean expertise 
will be critical.  Three visits (one week each) will be scheduled 
with joint MOP and U.S. Treasury participation over the next three 
months.  The MOP also hopes to host a visit from relevant Costa 
Rican officials and professionals to showcase how concessions are 
handled in Chile. 
 
SIMONS