Cable Viewer

Currently released so far... 15663 / 251,287

### Articles

Brazil Sri Lanka United Kingdom Sweden 00. Editorial United States Latin America Egypt Jordan Yemen

### Browse latest releases

2010/11 2010/12 2011/01 2011/02 2011/03 2011/04 2011/05 2011/06
2010/11/28 2010/11/29 2010/11/30
2010/12/01 2010/12/02 2010/12/03 2010/12/04 2010/12/05 2010/12/06 2010/12/07 2010/12/08 2010/12/09 2010/12/10 2010/12/11 2010/12/12 2010/12/13 2010/12/14 2010/12/15 2010/12/16 2010/12/17 2010/12/18 2010/12/19 2010/12/20 2010/12/21 2010/12/22 2010/12/23 2010/12/24 2010/12/25 2010/12/26 2010/12/27 2010/12/28 2010/12/29 2010/12/30
2011/01/01 2011/01/02 2011/01/04 2011/01/05 2011/01/07 2011/01/09 2011/01/10 2011/01/11 2011/01/12 2011/01/13 2011/01/14 2011/01/15 2011/01/16 2011/01/17 2011/01/18 2011/01/19 2011/01/20 2011/01/21 2011/01/22 2011/01/23 2011/01/24 2011/01/25 2011/01/26 2011/01/27 2011/01/28 2011/01/29 2011/01/30 2011/01/31
2011/02/01 2011/02/02 2011/02/03 2011/02/04 2011/02/05 2011/02/06 2011/02/07 2011/02/08 2011/02/09 2011/02/10 2011/02/11 2011/02/12 2011/02/13 2011/02/14 2011/02/15 2011/02/16 2011/02/17 2011/02/18 2011/02/19 2011/02/20 2011/02/21 2011/02/22 2011/02/23 2011/02/24 2011/02/25 2011/02/26 2011/02/27 2011/02/28
2011/03/01 2011/03/02 2011/03/03 2011/03/04 2011/03/05 2011/03/06 2011/03/07 2011/03/08 2011/03/09 2011/03/10 2011/03/11 2011/03/13 2011/03/14 2011/03/15 2011/03/16 2011/03/17 2011/03/18 2011/03/19 2011/03/20 2011/03/21 2011/03/22 2011/03/23 2011/03/24 2011/03/25 2011/03/26 2011/03/27 2011/03/28 2011/03/29 2011/03/30 2011/03/31
2011/04/01 2011/04/02 2011/04/03 2011/04/04 2011/04/05 2011/04/06 2011/04/07 2011/04/08 2011/04/09 2011/04/10 2011/04/11 2011/04/12 2011/04/13 2011/04/14 2011/04/15 2011/04/16 2011/04/17 2011/04/18 2011/04/19 2011/04/20 2011/04/21 2011/04/22 2011/04/23 2011/04/24 2011/04/25 2011/04/26 2011/04/27 2011/04/28 2011/04/29 2011/04/30
2011/05/01 2011/05/02 2011/05/03 2011/05/04 2011/05/05 2011/05/06 2011/05/07 2011/05/08 2011/05/09 2011/05/10 2011/05/11 2011/05/12 2011/05/13 2011/05/14 2011/05/15 2011/05/16 2011/05/17 2011/05/18 2011/05/19 2011/05/20 2011/05/21 2011/05/22 2011/05/23 2011/05/24 2011/05/25 2011/05/26 2011/05/27 2011/05/28 2011/05/29 2011/05/30 2011/05/31
2011/06/01 2011/06/02 2011/06/03 2011/06/04 2011/06/05 2011/06/06 2011/06/07 2011/06/08 2011/06/09 2011/06/10 2011/06/11 2011/06/12 2011/06/13 2011/06/14 2011/06/15 2011/06/16 2011/06/17 2011/06/18 2011/06/19 2011/06/20 2011/06/21 2011/06/22 2011/06/23

### Browse by creation date

66 72 73 75 79 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10
1966/12
1972/02 1972/08
1973/04
1975/03
1979/08
1985/03 1985/05 1985/06
1986/05 1986/08 1986/12
1987/06
1988/01 1988/03 1988/04 1988/07 1988/08 1988/12
1989/12
1990/01 1990/07 1990/08 1990/10
1991/05
1992/01 1992/03 1992/06 1992/09 1992/12
1993/01 1993/10
1994/11 1994/12
1995/01 1995/04
1996/07 1996/09 1996/11
1997/02 1997/05 1997/06 1997/10 1997/12
1998/05
1999/09
2000/05 2000/06 2000/09 2000/11
2001/02 2001/03 2001/04 2001/05 2001/06 2001/07 2001/09 2001/10 2001/11 2001/12
2002/01 2002/02 2002/03 2002/04 2002/07 2002/08 2002/09 2002/11 2002/12
2003/01 2003/02 2003/03 2003/04 2003/05 2003/06 2003/07 2003/08 2003/09 2003/10 2003/11 2003/12
2004/01 2004/02 2004/03 2004/04 2004/05 2004/06 2004/07 2004/08 2004/09 2004/10 2004/11 2004/12
2005/01 2005/02 2005/03 2005/04 2005/05 2005/06 2005/07 2005/08 2005/09 2005/10 2005/11 2005/12
2006/01 2006/02 2006/03 2006/04 2006/05 2006/06 2006/07 2006/08 2006/09 2006/10 2006/11 2006/12
2007/01 2007/02 2007/03 2007/04 2007/05 2007/06 2007/07 2007/08 2007/09 2007/10 2007/11 2007/12
2008/01 2008/02 2008/03 2008/04 2008/05 2008/06 2008/07 2008/08 2008/09 2008/10 2008/11 2008/12
2009/01 2009/02 2009/03 2009/04 2009/05 2009/06 2009/07 2009/08 2009/09 2009/10 2009/11 2009/12
2010/01 2010/02

### Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z
Embassy Athens Embassy Asuncion Embassy Astana Embassy Asmara Embassy Ashgabat Embassy Apia Embassy Ankara Embassy Amman Embassy Algiers Embassy Addis Ababa Embassy Accra Embassy Abuja Embassy Abu Dhabi Embassy Abidjan Consulate Auckland Consulate Amsterdam Consulate Adana American Institute Taiwan, Taipei
Embassy Bujumbura Embassy Buenos Aires Embassy Budapest Embassy Bucharest Embassy Brussels Embassy Bridgetown Embassy Bratislava Embassy Brasilia Embassy Bogota Embassy Bishkek Embassy Bern Embassy Berlin Embassy Belmopan Embassy Belgrade Embassy Beirut Embassy Beijing Embassy Banjul Embassy Bangkok Embassy Bandar Seri Begawan Embassy Bamako Embassy Baku Embassy Baghdad Consulate Belfast Consulate Barcelona
Embassy Copenhagen Embassy Conakry Embassy Colombo Embassy Chisinau Embassy Caracas Embassy Canberra Embassy Cairo Consulate Curacao Consulate Ciudad Juarez Consulate Chiang Mai Consulate Chennai Consulate Casablanca Consulate Cape Town Consulate Calgary
Embassy Dushanbe Embassy Dublin Embassy Doha Embassy Djibouti Embassy Dili Embassy Dhaka Embassy Dar Es Salaam Embassy Damascus Embassy Dakar Consulate Dubai
Embassy Freetown Consulate Fukuoka
Embassy Guatemala Embassy Gaborone Consulate Guayaquil Consulate Guangzhou Consulate Guadalajara
Embassy Helsinki Embassy Harare Embassy Hanoi Consulate Hong Kong Consulate Ho Chi Minh City Consulate Hermosillo Consulate Hamilton Consulate Hamburg Consulate Halifax
Iran RPO Dubai Embassy Islamabad Consulate Istanbul
Embassy Jakarta Consulate Jerusalem Consulate Jeddah
Embassy Kyiv Embassy Kuwait Embassy Kuala Lumpur Embassy Kinshasa Embassy Kingston Embassy Kigali Embassy Khartoum Embassy Kathmandu Embassy Kampala Embassy Kabul Consulate Kolkata Consulate Karachi
Embassy Luxembourg Embassy Luanda Embassy London Embassy Ljubljana Embassy Lisbon Embassy Lima Embassy Lilongwe Embassy La Paz Consulate Lahore Consulate Lagos
Mission USOSCE Mission USNATO Mission UNESCO Mission Geneva Embassy Muscat Embassy Moscow Embassy Montevideo Embassy Monrovia Embassy Minsk Embassy Mexico Embassy Mbabane Embassy Maputo Embassy Manila Embassy Manama Embassy Managua Embassy Malabo Embassy Madrid Consulate Munich Consulate Mumbai Consulate Montreal Consulate Monterrey Consulate Milan Consulate Melbourne Consulate Matamoros
Embassy Nicosia Embassy Niamey Embassy New Delhi Embassy Ndjamena Embassy Nassau Embassy Nairobi Consulate Nuevo Laredo Consulate Naples Consulate Naha
Embassy Ouagadougou Embassy Ottawa Embassy Oslo
Embassy Pristina Embassy Pretoria Embassy Prague Embassy Port Of Spain Embassy Port Louis Embassy Port Au Prince Embassy Phnom Penh Embassy Paris Embassy Paramaribo Embassy Panama Consulate Peshawar
Embassy Quito Consulate Quebec
REO Basrah Embassy Rome Embassy Riyadh Embassy Riga Embassy Reykjavik Embassy Rangoon Embassy Rabat Consulate Rio De Janeiro Consulate Recife
Secretary of State Embassy Suva Embassy Stockholm Embassy Sofia Embassy Skopje Embassy Singapore Embassy Seoul Embassy Sarajevo Embassy Santo Domingo Embassy Santiago Embassy Sanaa Embassy San Salvador Embassy San Jose Consulate Strasbourg Consulate St Petersburg Consulate Shenyang Consulate Shanghai Consulate Sapporo Consulate Sao Paulo
Embassy Tunis Embassy Tripoli Embassy Tokyo Embassy The Hague Embassy Tel Aviv Embassy Tehran Embassy Tegucigalpa Embassy Tbilisi Embassy Tashkent Embassy Tallinn Consulate Toronto Consulate Tijuana Consulate Thessaloniki
USUN New York USEU Brussels US Office Almaty US Mission Geneva US Interests Section Havana US Delegation, Secretary UNVIE UN Rome Embassy Ulaanbaatar
Embassy Vilnius Embassy Vienna Embassy Vatican Embassy Valletta Consulate Vladivostok Consulate Vancouver
Embassy Windhoek Embassy Wellington Embassy Warsaw
Embassy Yerevan Embassy Yaounde
Embassy Zagreb

### Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ASEC AEMR AMGT AR APECO AU AORC AJ AF AFIN AS AM ABLD AFFAIRS AMB APER AA AG AE ADM ALOW ACOA AID ATRN ADCO AND ABUD ADANA APEC ARABL ADPM ANARCHISTS AADP ANET AGAO AMED AY AORG ASEAN AO AL ACABQ ARF AGRICULTURE AINF AROC APCS AODE AX AMEX AZ ASUP ARM AQ ATFN AMBASSADOR ACBAQ AFSI AFSN AC ASIG ASEX AER AVERY ASCH AFU AMG ATPDEA ASECKFRDCVISKIRFPHUMSMIGEG AORL AN AIT AGMT ACS AGR AMCHAMS AECL AUC AFGHANISTAN ACAO
BR BB BG BEXP BY BA BRUSSELS BU BD BK BL BM BO BE BH BTIO BC BX BILAT BP BMGT BIDEN BBG BF BBSR BT BWC BEXPC BN BTIU
CPAS CA CASC CS CBW CIDA CO CODEL CI CROS CU CH CWC CMGT CVIS CDG CG CF CHIEF CJAN CBSA CE CY CD CT CM CONS CDC CR CW CN COUNTRY CONDOLEEZZA CZ CICTE CYPRUS CARICOM CTR CAPC CBE CARSON COPUOS COM COE CACS CIVS COUNTER CFED CV CKGR CHR CVR CLINTON COUNTERTERRORISM CITEL CLEARANCE CB CSW CIC CITT CARIB CAFTA CACM CDB CJUS CTM CAN CONSULAR CLMT CBC CIA CNARC CIS CEUDA CHINA CAC CL
DR DJ DHS DAO DCM DO DEFENSE DA DOMESTIC DK DOD DE DOT DPRK DEPT DEA DISENGAGEMENT DOE DTRA DS DEAX
ECON ETTC EFIS ETRD EC EMIN EAGR EAID EU EFIN EUN ECIN EG EWWT EINV ENRG ELAB EPET EN EAIR EUMEM ECPS ELTN EIND EZ EI ER ET EINT ECONOMIC ENIV EFTA ES ERNG ECONOMY ELECTIONS EXIM ENERG ECIP EREL EK EDEV ECOSOC EPA EINVEFIN ENGR ETRC ENVI EXTERNAL ELN EAIDS EFINECONCS EPREL EUREM ECA EDU ETRDEINVECINPGOVCS ETC ENVR EAP EINN EXBS ENGY ECONOMICS EIAR EINDETRD ECONEFIN EURN ETRDEINVTINTCS EFIM EINVETC ECONCS ETRA ESA EAIG EUR EUC ERD ETRN EINVECONSENVCSJA EEPET EUNCH ESENV ENNP ECINECONCS ETRO ETRDECONWTOCS ECUN
FR FI FAS FOREIGN FTAA FREEDOM FBI FINANCE FAO FAA FJ FTA FARC FAC FM FDA FINR FOR FOI FO FMLN FISO
GM GG GERARD GT GA GR GTIP GLOBAL GCC GC GV GL GOV GOI GF GH GANGS GE GTMO GAERC GZ GAZA GY GUILLERMO GASPAR
HR HO HA HYMPSK HK HUMAN HN HURI HU HILLARY HI HUM HSTC HEBRON HUMOR
IZ IN IAEA IS IMO ILO IR IC IT ITU IV IMF IBRD IWC IRAQI IDB ISRAELI ITALY ID ITPGOV ITALIAN IADB ISCON ICRC ICAO IFAD IPR IRAQ INMARSAT INTERNAL IO ITRA IQ ICJ INDO IRS IIP ILC IEFIN ICTY IA INTERPOL IEA INR INRB IAHRC ISRAEL IZPREL IRAJ IF ITPHUM IL IACI IDA ISLAMISTS IGAD ITF INRA INRO IBET INTELSAT IDP ICTR IRC
JA JO JM JP JUS JOHNNIE JOHN JOSEPH JAMES JML JIMENEZ
KNNP KFLO KDEM KOMC KSUM KIPR KFLU KPAO KE KCRM KJUS KAWC KZ KSCA KDRG KCOR KGHG KPAL KTIP KMCA KCRS KPKO KOLY KRVC KVPR KG KWBG KMDR KTER KSPR KV KTFN KWMN KFRD KSTH KS KN KISL KGIC KSEP KFIN KTEX KTIA KUNR KCMR KMOC KCIP KTDB KBIO KU KIRF KSTC KICC KIRC KIDE KNUC KSEO KCFE KPWR KSAF KR KNUP KREC KCSY KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KHLS KOCI KMPI KCRIM KPAONZ KNAR KPRP KHDP KNPP KTBT KMCC KENV KPRV KHIV KTRD KTAO KHSA KWAC KJUST KBCT KAWK KVIR KX KNDP KMRS KCRCM KSCI KGIT KACT KVRP KBTS KFSC KO KMFO KNNPMNUC KERG KPIR KCOM KAID KTLA KPOA KRCM KCFC KNEI KCHG KPLS KREL KFTFN KTFM KLIG KDEMAF KRAD KBTR KGCC KICA KHUM KSEC KPIN KESS KDEV KWWMN KOM KWNM KRFD KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KRGY KIFR KSAC KWMNCS KPAK KOMS KFPC KRIM KDDG KCGC KPAI KID KMIG KNSD KWMM
LY LE LABOR LAB LTTE LU LO LA LI LG LH LT LOG
MARR MX MASS MOPS MNUC MCAP MTCRE MRCRE MTRE MASC MY MK MAS MO MCC MCA MIL MTCR MEPP MG ML MAPP MP MU MAR MZ MD MR MA MOPPS MTS MLS MILI MEPN MEPI MEETINGS MERCOSUR MW MT MIK MAPS MV MILITARY MARAD MDC MASSMNUC MUCN MEDIA MI MQADHAFI MPOS MPS MC
NZ NATO NI NO NU NG NL NPT NS NP NA NATIONAL NC NSF NDP NIPP NSSP NR NATOIRAQ NE NGO NAS NZUS NH NSG NAFTA NEW NRR NT NASA NAR NK NOVO NATOPREL NEA NSC NV NPA NSFO NW NORAD NPG
OTRA OECD OVIP OREP OPRC ODC OIIP OPDC OAS OSCE OPIC OMS OEXC OPCW OSCI OPAD ODIP OFDP OHUM OIE OFFICIALS ODPC OSHA OVIPPRELUNGANU OTR OMIG OSAC OBSP OFDA OVP ON OCII OES OCS OIC
PGOV PREL PARM PINR PHUM PM PREF PTER PK PINS PBIO PHSA PE PBTS PL POL PAK POV POLITICS POLICY PERL PA PCI PNAT PAS PALESTINIAN PPA PROP PERM PETR PREZ PO PRELPK PAIGH PROG POLITICAL PJUS PMIL PRAM PSI PINO PDOV PBTSRU PTE PAO PARMS PG PREO PGOF PTERE PRGOV PORG PP PS PKFK PSOE PEPR PDEM PINT PMAR PRELP PREFA PNG PTBS PFOR PUNE PGOVLO PHUMBA POLINT PGOVE PHALANAGE PARTY PECON PY PLN PHUH PEDRO PF PHUS PETER PU PARTIES PCUL PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PHUMPREL POGOV PEL PINL PBT PINF PRL PSEPC POSTS PAHO PHUMPGOV PGOC PNR PROV
QA
RS RP RU RW RFE RCMP RIGHTSPOLMIL ROBERT RM RICE RO RELAM ROOD REGION RSP RF RELATIONS RIGHTS RUPREL REMON RPEL REACTION REPORT RSO
SZ SENV SOCI SNAR SY SO SP SU SI SMIG SYR SA SCUL SW SR SYRIA SNARM SPECIALIST SF SENS SEN SN SC SMIL SCRM SARS SENVSXE SL SAARC STEINBERG SWE SCRS SG SNARIZ SAN ST SIPDIS SSA SPCVIS SOFA SENVKGHG SANC SHI SEVN SHUM SK SH SNARCS SPCE SNARN SIPRS
TRGY TBIO TSPA TU TPHY TI TX TH TIP TSPL TNGD TS TW TP TZ TN TC TINT TF TR TT TK TRAD TD TL TV TWI TERRORISM TO TRSY TURKEY TSPAM TRT TFIN TAGS TBID THPY
UNSC UK UNGA UN US UZ USEU UG UP UNAUS UNMIK USTR UR UY UNHRC UA USPS UNSCR UNESCO UNFICYP USAID UV UNMIC UNCHR USUN UNDP UNHCR UNEP USGS USOAS USNC UE UNVIE UAE UNO UNODC UNCHS UNDESCO UNC UNPUOS UNDC UNICEF UNCHC UNCSD UNFCYP UNIDROIT UNCND
VE VM VT VZ VTEG VTIZ VISIT VTPREL VENZ VAT VC VI VN
WHTI WIPO WTRO WTO WFP WS WHO WA WZ WI WBG WMD WWARD WHA WITH WTRQ WEU WMO WB
XA XR XW XX XK XL XM XS XF XG XT XC XH XD XB XU XE XV XZ XY XQ XI XTAG
YI YM YL YE YMCS
ZU ZI ZP ZR ZOELLICK ZF ZK ZO ZL ZB ZH ZT ZJ ZEALAND ZN ZA ZANU

### Browse by classification

CONFIDENTIAL CONFIDENTIAL//NOFORN SECRET SECRET//NOFORN UNCLASSIFIED UNCLASSIFIED//FOR OFFICIAL USE ONLY

### Community resources

Follow us on Twitter Check our Reddit Twitter this Digg this page Contact us on IRC

courage is contagious

### Viewing cable 06PANAMA2105, LATIN AMERICA-CARIBBEAN BIOFUEL INITIATIVE

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:

- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.

To understand the justification used for the classification of each cable, please use this WikiSource article as reference.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #06PANAMA2105.

Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
06PANAMA2105 | 2006-10-26 15:30 | 2011-05-29 00:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Panama

`

    VZCZCXYZ0000
    RR RUEHWEB

    DE RUEHZP #2105/01 2991530
    ZNR UUUUU ZZH
    R 261530Z OCT 06
    FM AMEMBASSY PANAMA
    TO RUEHC/SECSTATE WASHDC 9231
    INFO RUCNDT/USMISSION USUN NEW YORK 0227
    RHMFIUU/DEPT OF ENERGY WASHINGTON DC

` `

    UNCLAS PANAMA 002105

    SIPDIS

    SENSITIVE
    SIPDIS

    DEPARTMENT FOR WHA/EPSC CORNEILLE
    DEPARTMENT FOR EB/ESC/IEC IZZO
    DEPARTMENT FOR S/P MANUEL
    DEPARTMENT FOR OES/STC PAMELA BATES
    DEPARTMENT FOR OES/OGC G.THOMPSON

    E.O. 12958: N/A
    TAGS: ECON ENRG PREL PGOV SENV PM
    SUBJECT: LATIN AMERICA-CARIBBEAN BIOFUEL INITIATIVE

    REF: A. STATE 164558

         ¶B. PANAMA 2005
         ¶C. PANAMA 651

    ¶1. (U) SUMMARY. Below is post's response to Reftel A.  END
    SUMMARY.

    ----------------------------
    ENERGY SECTOR - HYDROCARBONS
    ----------------------------

    ¶2. (U) Panama's energy sector consists of the hydrocarbons
    industry and the electricity sector.  Panama's hydrocarbons
    industry was 100% private until July 2006 when the GOP passed
    legislation authorizing the creation of a state-run
    hydrocarbons entity.  GOP vision for this entity remains
    divided between utilizing a state-run entity to negotiate and
    participate in regional energy initiatives and recognition of
    the inherent conflict between regulating an industry in which
    they are an active participant.  To date, the state-run
    entity, Empresa de Generacion (EGESA) is in its inception
    phase with a pending finance request to the GOP of $300
    million .  The private sector hydrocarbons industry consists
    of Chevron-Texaco, Exxon-Mobil, Shell-BP and two national
    companies Accel and Delta.

    ¶3. (SBU) At this time, fuel importers are required to onsell
    wholesale product based on an "import parity price" (IPP).
    This is a formula determined by the Ministry of Industry and
    Commerce (MICI) based on international transportation and
    commodity prices.  MICI recalculates the IPP every two weeks.
     MICI also publishes a "suggested retail price" weekly.
    Distributors are not legally required to adhere to this price
    but exceeding this price can be perceived as "price gouging"
    by the Panamanian consumer.  During the 2006 spike in oil
    prices, MICI leaned heavily on the petroleum companies to
    minimize the pass-through of along price increases to
    consumers.

    ---------------------------
    ENERGY SECTOR - ELECTRICITY
    ---------------------------

    ¶4. (U) Panama's electricity sector is divided into
    generation, transmission and distribution companies.  This
    sector was privatized in the late 1990's when the GOP sold
    49% of its holdings to the private sector.  The GOP remains
    an active participant in the electricity market through its
    partial ownership in each of the three areas and because the
    Panama Canal Authority (ACP) is also allowed to sell excess
    hydro electricity generated by the operation of the Canal to
    the distribution companies.  The GOP heavily subsidizes
    electricity for low income residents.

    ¶5. (SBU)  About 64% of Panama's electricity is hydro
    generated.  The GOP is actively pursuing additional
    hydroelectricity capacity to reduce the country's dependency
    on thermal electricity, as Panama imports 100% of its fossil
    fuel consumption.  Generation capacity has not kept pace with
    demand.  By law, the distribution companies are required to
    contract for 100% of the electricity demand.  In the years
    following privatization, spot market prices were lower than
    contract prices and these companies began contracting for
    only about 70% of the demand with short term contracts.  The
    absence of long term supply contracts discouraged investment
    in new capacity by the industry.  MICI reversed this trend in
    2005 and several new hydroelectric plants as well as the
    conversion of an existing marine diesel plant to coal are
    underway.  However, Panama can be expected to remain
    dependent on expensive thermal electricity from the spot
    market to meet demand through 2008 when new (and cheaper)
    capacity is expected to come on-line.  Panama is actively
    pursuing the completion of the Central American electricity
    grid under the MesoAmerican Energy Initiative.

    ------------------------------
    HOST COUNTRY FUEL DISTRIBUTION
    ------------------------------

    ¶6. (U) Panama currently uses bunker C and marine diesel for
    thermoelectricity generation and gasoline and diesel for
    transportation.  Passenger vehicles use motor gasoline
    (MOGAS) and buses and some passenger vehicles use diesel
    (Gasoil).  According to the GOP, Panama's 2005 hydrocarbon
    consumption was 14.8 million barrels.  The transport sector
    consumes 7.8 million, industry consumes 5.3 million and
    residential use consumes .945 million.  Within the transport
    sector, taxis and buses consume 3.6 million gallons of gas
    and 2.8 million gallons of diesel per year.  Further
    information is available at
    www.mici.gob.pa/hidrocarburos/consumonacional 2006.html.

    ¶7. (U) The GOP is also actively exploring the importation
    liquid natural gas from Colombia.  Media reports state that
    Panama uses 100 million cubic meters of natural gas a day.

    ¶8. (U)  At this time, there is no reliable measure of the use
    or availability of flex fuel cars in Panama.  In the last six
    months, two companies have begun selling kits to run existing
    vehicles on LP gas.  Although there is no legal impediment to
    the use of ethanol/gasoline blends, none of the current fuel
    suppliers/distributors offer the product.  Further, many
    automobile manufacturers do not guarantee performance when
    using alternative blends and it may negate the warranty on a
    vehicle.

    --------------
    SUGAR INDUSTRY
    --------------

    9.(U) In recent years, the Panamanian sugar industry reported
    lower production and profits claiming excess world supply and
    the decreased U.S. Tariff Rate Quota (TRQ).  During 2006, the
    U.S. increased the TRQ and the industry is reporting profits
    and planning to increase production.  Increased profit and
    high oil prices spurred interest in ethanol by the industry.
    The industry proposed to the GOP the doubling of the current
    sugar cultivation area through tax breaks and other
    protectionist measures against foreign competitors, primarily
    Brazil.  This legislation is under review by the governing
    committee in the Panamanian legislature.  In its current
    form, it may contain provisions in violation of Panama's WTO
    obligations.

    ¶10. (U) All of Panama's sugar producers burn the fields
    before harvesting to increase efficiency and improve labor
    conditions.  One foreign company (an alcohol producer)
    expressed concern about the environmental damage and stated
    its intention to try alternative practices, including
    mechanized harvest.  However, as low cost labor is plentiful
    in Panama, the industry is not incented to invest in
    expensive mechanization for environmental reasons.  Post's
    Foreign Agricultural Section (FAS) staff could not find an
    instance of citizen action against sugar cane field burning.

    ¶11. (U)  The total area under sugar cultivation in Panama is
    19,200 hectares.  Some 12,400 hectares are owned among
    Panama's four sugar producers and 6,400 hectares are
    subcontracted from private farmers.  Production is
    concentrated in Panama's central provinces.  One hectare of
    sugar cane can consume up to 60,000 liters of water per day
    with usage diminishing as the plants mature.  The most common
    fertilizer in use is UREA.  Also prevalent is Potassium
    Molibdate (MOP) and Diamine Phosphate (DAP).  The four
    privately owned and operated refineries produce 143,000
    metric tons of sugar each year.  The industry employs 3,800
    people during the low season and up to 8,500 during the high
    season.  All four mills burn bagasse as an energy source.
    One of the four mill owners told FAS staff that the sugar
    cultivation area could be tripled but would require
    additional land purchases and/or subcontracts to farmers.

    -----------------------------------
    INVESTMENT CLIMATE - LAND OWNERSHIP
    -----------------------------------

    ¶12. (U) Panamanian law allows the private ownership of land
    by foreigners.  However, at this time only 30% of Panama's
    sovereign territory is properly surveyed and titled.
    Panama's land management bureau (CATASTRO) is currently
    receiving Inter-American Development Bank (IADB) funding to
    complete the land surveying and titling process.  Law 2
    passed in February of 2006 asserted the GOP's authority over
    Panama's coastal and island areas as concessionary property
    (similar to land lease in Hawaii).  Development of these
    areas requires the negotiation of a concession agreement with
    the GOP.

    ¶13. (U) Significant portions of Panama are classified as
    Rights of Possession (ROP) land.  ROP property technically
    belongs to the government but occupants who can demonstrate
    they reside on the property, derive their primary subsistence
    and perform regular maintenance on the property for 15 years
    or more, can be awarded prescriptive rights (legal
    recognition that the property "belongs" to them.)  However,
    ROP, even with a certificate issued by the Department of
    Agriculture's Agrarian Reform (MIDA - Reforma Agraria) is
    susceptible to legal challenge.  The majority of Panama's
    indigenous population lives on ROP property, often within
    specially designated tribal lands (comarcas).

    ---------------------------
    INVESTMENT CLIMATE - ENERGY
    ---------------------------

    ¶14. (U)  At this time, Panama has little to no environmental
    regulation specific to the production or refining of
    bio-fuels.

    ¶15. (SBU) Panama is a global transportation and logistics
    center with highly sophisticated port facilities.  The
    availability of fuel storage tanks, however, is limited.
    Until recently, all fuel storage was owned or leased by the
    existing petroleum industry.  The GOP is negotiating an
    agreement with Chevron Texaco to take back several tanks on
    the Pacific coast near the entrance to the Panama Canal.

    ¶16. (U) Panama has world class engineering and construction
    firms.  The market for these services as well as the related
    skilled and construction labor is extremely tight due to
    Panama's housing and construction boom, upcoming Canal
    expansion and a proposed $5 billion petroleum refinery in
    Puerto Armuelles (Refs B & C).

    ¶17. (U) In the period after privatization (1999), electricity
    generation companies building new power plants could import
    material and equipment duty free and several did.  However,
    one U.S. company had several million dollars of duty
    incorrectly assessed.  Despite receiving a favorable ruling,
    they have yet to receive these funds back from the GOP.

    18.(U) In October 2006, the GOP proposed a new law which
    would introduce ethanol to Panama as of March 15, 2008.  The
    law provides the guidelines for the promotion and development
    of the use and production of ethanol.  The law establishes a
    minimum 5% ethanol blending requirement and allows the
    transport fleet and power generation sector to use up to 10%
    ethanol/gasoline blend.  The GOP contracted a private
    consulting firm to determine whether the proposed production
    of 16 million gallons of ethanol per year is beneficial.
    Media reports state it is estimated this would require an
    investment of $50 million and an additional 16,000 hectares
    of sugar cultivation.  The draft legislation considers the
    use of maize, banana, soya, manioc and/or sorghum for the
    production of bio-diesel as well.

    ¶19. (U) Panama has an Association of Renewable Energy
    Producers (APPER).  On October 12 and 13, this association
    reportedly hosted the First Conference of Central American
    and Caribbean Renewable Energy Investors in Panama's City of
    Knowledge.  Renewable energy experts from the European Union
    are scheduled to visit Panama November 13 to 30 to assist
    this group in defining strategies to promote the use of
    renewable energy in Panama, establish a foundation for Panama
    to work with the EU in the transfer of technology, and
    potentially establish the City of Knowledge as a pilot site
    for the exploration of alternative energies.

    ¶20. (U) Panama will host an OAS General Assembly meeting in
    June 2007.  The GOP has proposed the meeting's theme as
    "Energy for Development".  This, together with the UN
    Commission on Sustainable Development's two year cycle
    focused on energy issues could offer a useful platform to
    promote biofuels in the region.

    -------
    COMMENT
    -------

    ¶21. (U) The GOP has a clear interest in exploring alternative
    energy sources and reducing its dependence on foreign oil.
    The transportation, financial and construction industries in
    Panama are highly developed and sophisticated.  Panama also
    has available agriculture capacity and inexpensive labor.
    These factors create a positive environment for investment in
    alternative energy sources if bio-fuels can be shown to be
    viable and profitable.  The challenge for the GOP is to
    enable market-driven solutions without undue government
    intervention.  It would be helpful if the OAS and UN CSD
    processes could show clear examples where private sector
    driven solutions have achieved real results.
    ARREAGA

`