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### Viewing cable 09PORTAUPRINCE591, HAITI PLEASED WITH PETROCARIBE AND SUMMIT

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
09PORTAUPRINCE591 | 2009-06-19 19:21 | 2011-06-01 14:00 | CONFIDENTIAL | Embassy Port Au Prince
Appears in these articles: http://www.haitiliberte.com http://bit.ly/mDfYBE http://bit.ly/mcuO3r

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    VZCZCXRO4544
    PP RUEHQU
    DE RUEHPU #0591/01 1701921
    ZNY CCCCC ZZH
    P 191921Z JUN 09
    FM AMEMBASSY PORT AU PRINCE
    TO RUEHC/SECSTATE WASHDC PRIORITY 0071
    INFO RUEHZH/HAITI COLLECTIVE PRIORITY
    RUEHBR/AMEMBASSY BRASILIA PRIORITY 2341
    RUEHSA/AMEMBASSY PRETORIA PRIORITY 2066
    RUEHQU/AMCONSUL QUEBEC PRIORITY 1438
    RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
    RUMIAAA/HQ USSOUTHCOM J2 MIAMI FL PRIORITY
    RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
    RHEHNSC/NSC WASHDC PRIORITY

` `

    C O N F I D E N T I A L SECTION 01 OF 02 PORT AU PRINCE 000591

    SIPDIS

    STATE FOR WHA/CAR
    WHA/EPSC FOR FAITH CORNEILLE, ED MARTINEZ
    EB/IFD
    STATE PASS TO USAID FOR LAC/CAR
    TREASURY FOR JEFFEREY LEVINE
    COMMERCE FOR SCOTT SMITH

    E.O. 12958: DECL: 06/18/2019
    TAGS: PGOV PREL ENRG EPET ECON POL EAID HA
    SUBJECT: HAITI PLEASED WITH PETROCARIBE AND SUMMIT

    REF: A. PORT AU PRINCE 00583
         ¶B. 08 PORT AU PRINCE 01023

    PORT AU PR 00000591  001.2 OF 002

    Classified By: Charge d'Affaires Thomas C. Tighe for
    reasons 1.4 (a, d)

    ¶1. (SBU) Summary: The Sixth PetroCaribe Summit in St. Kitts
    on June 12 congratulated Haiti as the ''best payer'' out of
    13 countries, having paid approximately USD 220 million to
    Venezuela.  GOH sources confirm that Venezuela announced
    plans to finance and construct an oil refinery in Haiti
    projected to process 20,000 barrels per day.  GOH officials
    say Haiti's parliament will soon ratify a tripartite
    agreement with Venezuela and Cuba that will decide on Haiti's
    use of a portion of its PetroCaribe revenues for social
    programs.  Haiti's General Director of Monetization in the
    Ministry of Economy and Finance (the office responsible for
    Haiti,s PetroCaribe Fund) lauds the agreement and believes
    it should not be politicized. End summary.

    ¶2. (U) Minister of Foreign Affairs Alrich Nicholas stood in
    for President Preval at the Heads of State meeting at the 6th
    PetroCaribe Summit in St. Kitts on June 12 (Note: Per Ref. A,
    President Preval decided to remain in Haiti to continue
    minimum salary negotiations with Parliament and the private
    sector. End note) Minister of Finance Daniel Dorsainvil
    attended the Energy Ministers meeting at the summit on June
    ¶11.  Director General of the Office of Monetization Michael
    Lecorps also attended the summit.

    ¶3. (SBU) General Director Lecorps told Econ/PolOff June 16
    that the summit congratulated Haiti as the ''best payer'' out
    of 13 countries benefiting from the petroleum preference
    agreement.  With the cost of a barrel of oil now below USD
    80, Haiti currently pays 60 percent of its oil debt to
    Venezuela within 90 days of a shipment, and pays the
    remaining 40 percent under a long-term financing agreement at
    one percent interest.  Haiti, to date, has paid approximately
    USD 220 million of its debt this year to Venezuela.  As of
    April 30, Haiti's PetroCaribe account (after Haiti's
    withdrawal of USD 197 million for its emergency response to
    the 2008 hurricanes), had a balance of USD 58.5 million.  On
    May 27, the Government of Haiti (GOH) announced that its
    total fuel imports under PetroCaribe, since the first
    shipment was received in March 2008, amounts to approximately
    USD 489 million.  Haiti's long-term debt, payable over 17 to
    25 years, amounts to approximately USD 240 million.

    ¶4. (SBU) Lecorps confirmed to Econ/PolOff June 15 press
    reports that Venezuela pledged again to construct an oil
    refinery in Haiti.  (Note:  Ref. B reported that Venezuela
    announced this project at the July 2008 PetroCaraibe Summit
    in Caracas.  End note).  Lecorps put its capacity at 20,000
    bpd and the cost at USD 400 million.  He added that the GoH's
    Office of Mines and Energy, within the Ministry of Public
    Works, needs to be more cooperative and help Venezuela
    identify three potential locations for the refinery.

    ¶5. (SBU) Lecorps stated that Haiti is not a member of
    Venezuela's Bolivarian Alternative of the Americas platform
    (ALBA).  He did note, however, that a tripartite
    (Haiti-Venezuela-Cuba) energy cooperation agreement is
    waiting to be ratified by Parliament.  According to Lecorps,
    the agreement's purpose is to decide how ten percent of funds
    from Haiti's PetroCaribe revenue would be spent on social
    programs in Haiti.  Lecorps stated that PetroCaribe ''...is
    very good for the country.''  He noted that
    Venezuelan-financed electricity generating plants are
    operating in Port-au-Prince, Gonaives and Cap Haitien and
    have led to longer hours of power in those areas.  Haiti
    receives shipments of PetroCaribe fuel every two weeks.  The
    next is expected on June 25-26.  Lecorps asserted that Haiti
    is satisfied with the PetroCaribe agreement and that it
    should not be ''politicized.''

    ¶6. (C) Comment:  PetroCaribe's generous financing terms make
    it a deal the GOH cannot refuse.  The GOH continues
    discretely to express satisfaction with this program.

    PORT AU PR 00000591  002.2 OF 002

    However, the yet-to-be-ratified tripartite agreement would
    give Venezuela (and Cuba) a say over Haiti's use of a part of
    its PetroCaribe funds.  Last October, this arrangement would
    have tied the GOH's hands in disaster response by requiring
    agreement from Havana and Caracas on Haiti use of PetroCaribe
    funds, which the GOH used for hurricane relief under state of
    emergency legislation (Refs B and C).  In addition to three
    power plants already in operation and promises to modernize
    the airport in Cap Haitien, Venezuela's oil refinery project
    -- implementation of which we still see as questionable --
    would expand Venezuelan and Cuban influence in Haiti.  Post
    will continue to monitor and report on developments. End
    comment.
    TIGHE

    =======================CABLE ENDS============================

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