VZCZCXYZ0000
RR RUEHWEB

DE RUEHBD #0247 2890740
ZNR UUUUU ZZH
R 160740Z OCT 09
FM AMEMBASSY BANDAR SERI BEGAWAN
TO RUEHC/SECSTATE WASHDC 4675
INFO RUCPDOC/USDOC WASHDC

UNCLAS BANDAR SERI BEGAWAN 000247 
 
SIPDIS 
 
STATE PASS USTR WASHDC 
 
 
E.O. 12958: N/A 
TAGS: ETRD ECON BX
SUBJECT: BRUNEI ECONOMIC DEVELOPMENT BOARD UPDATES DIPLOMATS ON 
ECONOMIC DIVERSIFICATION PROGRESS 
 
SUMMARY 
------- 
1.(SBU) Ambassador Todd recently attended a briefing for members of 
the Diplomatic Corps held by the Brunei Economic Development Board 
(BEDB). The briefing was to update Heads of Missions on the 
continued progress made with BEDB's projects, and provide new Heads 
of Missions with information on Brunei's economy and the initiatives 
that the BEDB is undertaking towards economic development. The 
overall presentation, while impressive on paper, still lacks the 
long term roadmap for real economic development so critical to 
Brunei's advancement beyond the oil and gas industries. End Summary. 
 
 
ECONOMIC DIVERSIFICATION PROGRESS 
--------------------------------- 
2.(SBU) In his presentation "Opportunities in Brunei Darussalam", 
BEDB's CEO, Vincent Cheong, updated the diplomatic corps on the 
current status of BEDB's key initiatives: 
* Sungai Liang (SPARK) petrochemical hub 
Methanol Export Facility for Brunei Methanol Company is currently 
under construction, with plant operations expected to commence in 
2010 
* Pulau Muara Besar (PMB) deepwater port, logistics and 
manufacturing hub project 
Master plan for the development of PMB deepwater port is expected to 
be submitted by Surbana-GMAPS (Singapore) for approval in the year. 
A tender for dredging, reclamation, bridge and infrastructure works 
will be called for in 2010, with port operations expected to begin 
in 2012. PetroBru Sdn Bhd (Brunei company with Malaysian TRC Synergy 
Bhd holding 26% stake) has completed a feasibility study on building 
a refinery on PMB, with a proposed start-up in 2014 at a cost of 
US$4.3 billion. 
* iCenter ICT knowledge based enterprises 
Phase 2 of Anggerek Desa Tech Park knowledge hub is ongoing. 
Construction of the knowledge hub is forecast to be completed by 
¶2010. 
* property and infrastructure projects 
With the implementation of the Strata Act Chapter 189 which allows 
foreign investment in high rise buildings, BEDB is offering new 
opportunites for investor takeowver and refurbishment for leasing or 
renting of 9 blocks (242 units) of the Ong Sum Ping Apartments 
(formerly 1999 SEA Games/2000 APEC Village). 
The construction of 2000 houses for the National Housing Scheme is 
ongoing and expected to be completed in 2011 as scheduled. Tenders 
for an additional 4000-houses project is currently under evaluation 
with an award to be announced before the end of the year. 
Tenders for building an 18.6km dual carriageway in the main 
throughfare between the capital city of Bandar Seri Begawan and the 
oil town of Seria is under evaluation. 
BEDB's waste management projects include ongoing rehabilitation of 
the existing Sg. Akar dumpsite, building a transfer station (tenders 
are being evaluated), and a new modern engineered landfill to be 
built in Sg. Paku. The new landfill project is being tendered with 
an award to be announced in the year. A PPP for energy efficient 
waste management system is a potential future development for BEDB. 
 
Q&A WITH DIPLOMATIC CORPS 
------------------------- 
3.(SBU) The highlight of the briefing was a discussion in which a 
number of key issues and suggestions were raised by the diplomats. 
Ambassador Todd specifically asked for updates on the development of 
clear and transparent guidelines for investors on existing 
procedures to improve "the ease of doing business in Brunei"; and, 
the development of consistent procurement rules across government 
agencies and ministries.  Other issues discussed included the BEDB's 
strategy for improving the ease of doing business in Brunei, as well 
as the importance of incentives in shaping the nation's future 
direction. 
 
COMMENTS 
-------- 
¶4. (SBU) While the list of projects and timelines above appear to be 
extensive and impressive, Ambassador Todd found the overall lack of 
any master strategic plan highly concerning.  It appears BEDB is 
focused on a series of one-off projects and when questioned, Vincent 
Cheong admitted there is not any roadmap in place for real economic 
development.  Despite efforts to streamline procurement and 
contracting systems within BEDB, they meet a steady stream of 
resistance and roadblocks from other ministries who perceive BEDB as 
encroaching on their portfolios without the respective expertise 
needed to provide any more value than themselves.  The ability to do 
business in Brunei as either a westerner or American business entity 
is still an uphill battle at best and no sign of improvement on the 
horizon. 
 
 
 
TODD