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DE RUEHYD #0682/01 2180706
ZNR UUUUU ZZH
R 060706Z AUG 09
FM AMEMBASSY YAOUNDE
TO RUEHC/SECSTATE WASHDC 0170
INFO RUEHZO/AFRICAN UNION COLLECTIVE
RUEHFR/AMEMBASSY PARIS 2138
RHMFISS/HQ USAFRICOM STUTTGART GE
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHLMC/MILLENNIUM CHALLENGE CORP WASHINGTON DC

UNCLAS SECTION 01 OF 02 YAOUNDE 000682 
 
SENSITIVE 
SIPDIS 
 
COMMERCE PLEASE PASS TO ITA - K BURRESS 
TREASURY PLEASE PASS TO OIA F BOYE AND D PETERS 
 
E.O. 12958: N/A 
TAGS: CM ECON ENRG EWWT PGOV PREL
SUBJECT: NEW ENERGY AND WATER MINISTER WANTS RESULTS 
 
REF: A. YAOUNDE 591 
     ¶B. YAOUNDE 590 
     ¶C. 2007 YAOUNDE 1428 
 
YAOUNDE 00000682  001.2 OF 002 
 
 
¶1.  (SBU) Summary:  On July 24, Ambassador paid a courtesy 
call on the new Minister of Energy and Water, Michael Ngako 
Tomdio, who came to his job in a June 30 cabinet shuffle. 
Clearly under pressure to produce results, he signaled a 
breakthrough on the impasse between AES-Sonel and aluminum 
producer ALUCAM over a new gas-fired power plant project.  He 
was pleased to be signing a TDA-funded feasibility study of a 
hydropower plant and seemed eager to boost the energy sector 
and engage with the U.S.  Water shortages would take longer 
to fix, especially in Yaounde, he said.  End summary. 
 
Minister Under Pressure to Advance Energy Development 
--------------------------------------------- -------- 
¶2.  (SBU) Minister Tomdio told the Ambassador he has six 
months to produce results. Victor Mengot, Minister in Charge 
of Special Duties in the Presidency, joined the meeting and 
reinforced the sense of urgency, saying the next six months 
would be very busy.  Note:  The previous Minister of Energy 
and Water (MINEE by the French acronym) was reportedly 
replaced in the cabinet shuffle (ref a) because President 
Biya did not feel enough progress had been made in developing 
the energy sector.  End Note. 
Initial Priorities 
------------------ 
¶3.  (SBU) Minister Tomdio ticked off a list of familiar ideas 
needing attention in the energy sector, including the Lom 
Pangar dam project (central to Cameroon,s energy strategy), 
increasing electricity production to make export possible to 
Chad and Nigeria, and increased natural gas exploration.  On 
natural gas, he said Cameroon has more gas than Equatorial 
Guinea, but a major problem with storage capacity.  He 
mentioned interest in the possibility of converting natural 
gas to cooking gas and sending it to the Northern Region. 
Progress on AES-Sonel Dispute with ALUCAM? 
------------------------------------------ 
¶4.  (SBU) Ambassador raised the dispute on the price of power 
between the U.S.-led AES-Sonel power company and ALUCAM, the 
Rio Tinto/GRC-owned aluminum smelter (ref b).  AES Sonel has 
been locked in a dispute with the government over the pricing 
structure of a planned gas-fired power plant at Kribi. 
Tomdio and Mengot both affirmed to the Ambassador that 
Anglo-French gas producer Perenco and Cameroon's National 
Hydrocarbons Company, SNH, had just signed a pricing 
agreement that should soon help break the deadlock in this 
project. 
Less Progress on Hydromine 
-------------------------- 
¶5.  (SBU) The Ambassador also asked Tomdio if he was aware of 
a problem brewing with American company Hydromine,s 
development plans in the energy sector (ref c).  According to 
sources at Hydromine, Tomdio,s predecessor signed an 
agreement with a South African firm to study the development 
of a hydropower facility at Noun Wouri, a location Hydromine 
believed it had exclusive rights to study.  Tomdio was not 
aware of the problem, or apparently Hydromine, saying only 
that "it,s a huge project, there,s enough to go around." 
Water Challenges 
---------------- 
¶6.  (SBU) When the Ambassador asked about his water strategy, 
Minister Tomdio responded that water shortages in Douala 
would be solved by November, thanks to an 80,000 cubic meter 
system built by the Chinese government.  Tomdio said the 
project would help for the moment, but a second, 150,000 
cubic meter phase was needed because of Douala,s population 
growth.  Yaounde was more problematic for Tomdio, who said 
the Ministry would rehabilitate a facility at Mefou and 
eventually tap the massive Sanaga River.  Cameroon relied 
heavily on donors in the water sector, the Minister said. 
Tomdio Laments Capacity 
----------------------- 
¶7.  (SBU) When the Ambassador suggested the need to build up 
the private sector as key to energy and water strategies, 
Tomdio responded he came from the private sector where the 
mentality and attitude was completely different.  He said he 
was trying to build some team spirit in his ministry.  He 
noted the ministry has only 500 employees, but a capacity for 
1200, and there have been no new recruitments since 1997.  He 
lamented that "this budget contained very little money for 
training." 
 
YAOUNDE 00000682  002.2 OF 002 
 
 
Comment 
------- 
¶8.  (SBU) On energy, Tomdio seems to realize his overriding 
responsibility must be project execution.  Victor Mengot's 
presence seemed designed to signal seriousness from the top 
in the energy sector.  If the AES Sonel dispute has been 
resolved, this would send a very positive signal that inertia 
is breaking.  We will be talking to AES to see if they agree 
that the long-stalled gas project is getting back on track. 
Tomdio likes the U.S., visits frequently, and has several 
children studying there.  He greatly appreciated TDA 
assistance but it remains to be seen whether he can mobilize 
his relatively small ministry to shift gears in the key 
energy sector.  Challenges in the water sector are equally 
daunting, with almost a third of Douala's 3 million people 
lacking clean drinking water and persistent shortages in 
Yaounde. 
Bio 
--- 
¶9.  (U)  Immediately before President Biya named him to 
MINEE, Tomdio served for 17 years as the General Manager of 
the relatively obscure National Office of Free Trade Zones. 
He has a background in education administration, serving as 
Director General of both the Douala University Center and the 
Higher Technical Teachers Training School.  Early in his 
career, he was a lecturer at the Yaounde National Higher 
Polytechnic School.  He is an electrical engineer with 
training in the U.S. and the UK.  Tomdio is married with five 
children, several of whom study in the U.S.  He has attended 
many Embassy business forums in the U.S. and is very familiar 
with U.S. government commercial services. 
GARVEY