![Keep Us Strong](/static/gfx/ja-cg.jpg)
![WikiLeaks logo](/static/gfx/WL_Hour_Glass_small.png)
Currently released so far... 5422 / 251,287
Articles
Browse latest releases
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
Browse by creation date
Browse by origin
Embassy Athens
Embassy Asuncion
Embassy Astana
Embassy Asmara
Embassy Ashgabat
Embassy Ankara
Embassy Amman
Embassy Algiers
Embassy Addis Ababa
Embassy Accra
Embassy Abuja
Embassy Abu Dhabi
Embassy Abidjan
Consulate Amsterdam
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 Belgrade
Embassy Beirut
Embassy Beijing
Embassy Banjul
Embassy Bangkok
Embassy Bandar Seri Begawan
Embassy Bamako
Embassy Baku
Embassy Baghdad
Consulate Barcelona
Embassy Copenhagen
Embassy Conakry
Embassy Colombo
Embassy Chisinau
Embassy Caracas
Embassy Canberra
Embassy Cairo
Consulate Curacao
Consulate Casablanca
Consulate Cape Town
Embassy Dushanbe
Embassy Dublin
Embassy Doha
Embassy Djibouti
Embassy Dhaka
Embassy Dar Es Salaam
Embassy Damascus
Embassy Dakar
Consulate Dubai
Embassy Kyiv
Embassy Kuwait
Embassy Kuala Lumpur
Embassy Kinshasa
Embassy Kigali
Embassy Khartoum
Embassy Kampala
Embassy Kabul
Embassy Luxembourg
Embassy Luanda
Embassy London
Embassy Ljubljana
Embassy Lisbon
Embassy Lima
Embassy Lilongwe
Embassy La Paz
Consulate Lagos
Mission USNATO
Embassy Muscat
Embassy Moscow
Embassy Montevideo
Embassy Monrovia
Embassy Minsk
Embassy Mexico
Embassy Mbabane
Embassy Maputo
Embassy Manama
Embassy Managua
Embassy Malabo
Embassy Madrid
Consulate Munich
Consulate Montreal
Consulate Monterrey
Consulate Milan
Embassy Pristina
Embassy Pretoria
Embassy Prague
Embassy Port Au Prince
Embassy Phnom Penh
Embassy Paris
Embassy Paramaribo
Embassy Panama
Consulate Peshawar
REO Basrah
Embassy Rome
Embassy Riyadh
Embassy Riga
Embassy Reykjavik
Embassy Rangoon
Embassy Rabat
Consulate Rio De Janeiro
Consulate Recife
Secretary of State
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 Shenyang
Consulate Shanghai
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
USUN New York
USEU Brussels
US Mission Geneva
US Interests Section Havana
US Delegation, Secretary
UNVIE
Embassy Ulaanbaatar
Browse by tag
AF
AE
AJ
ASEC
AMGT
AR
AU
AG
AS
AM
AORC
AFIN
APER
ABUD
ATRN
AL
AEMR
ACOA
AO
AX
AMED
ADCO
AODE
AFFAIRS
AC
ASIG
ABLD
AA
AFU
ASUP
AROC
ATFN
AVERY
APCS
AER
ASECKFRDCVISKIRFPHUMSMIGEG
AEC
APECO
AGMT
CH
CASC
CA
CD
CV
CVIS
CMGT
CO
CI
CU
CBW
CLINTON
CE
CJAN
CIA
CG
CF
CN
CS
CAN
COUNTER
CDG
CIS
CM
CONDOLEEZZA
COE
CR
CY
CTM
COUNTRY
CLEARANCE
CPAS
CWC
CT
CKGR
CB
CACS
COM
CJUS
CARSON
CL
COUNTERTERRORISM
CACM
CDB
EPET
EINV
ECON
ENRG
EAID
ETRD
EG
ETTC
EFIN
EU
EAGR
ELAB
EIND
EUN
EAIR
ER
ECIN
ECPS
EFIS
EI
EINT
EZ
EMIN
ET
EC
ECONEFIN
ENVR
ES
ECA
ELN
EN
EFTA
EWWT
ELTN
EXTERNAL
EINVETC
ENIV
EINN
ENGR
EUR
ESA
ENERG
EK
ENGY
ETRO
ETRDEINVECINPGOVCS
ETRDEINVTINTCS
ESENV
ENVI
ELECTIONS
ECUN
EINVEFIN
ECIP
EINDETRD
EUC
EREL
IR
IZ
IS
IT
INTERPOL
IPR
IN
INRB
IAEA
IRAJ
INRA
INRO
IO
IC
ID
IIP
ITPHUM
IV
IWC
IQ
ICTY
ISRAELI
IRAQI
ICRC
ICAO
IMO
IF
ILC
IEFIN
INTELSAT
IL
IA
IBRD
IMF
INR
IRC
ITALY
ITALIAN
KCOR
KZ
KDEM
KN
KNNP
KPAL
KU
KWBG
KCRM
KE
KISL
KAWK
KSCA
KS
KSPR
KJUS
KFRD
KTIP
KPAO
KTFN
KIPR
KPKO
KNUC
KMDR
KGHG
KPLS
KOLY
KUNR
KDRG
KIRF
KIRC
KBIO
KHLS
KG
KACT
KGIC
KRAD
KCOM
KMCA
KV
KHDP
KVPR
KDEV
KWMN
KMPI
KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG
KOMC
KTLA
KCFC
KTIA
KHIV
KPRP
KAWC
KCIP
KCFE
KOCI
KTDB
KMRS
KLIG
KBCT
KICC
KGIT
KSTC
KPAK
KNEI
KSEP
KPOA
KFLU
KNUP
KNNPMNUC
KO
KTER
KSUM
KHUM
KRFD
KBTR
KDDG
KWWMN
KFLO
KSAF
KBTS
KPRV
KNPP
KNAR
KWMM
KERG
KFIN
KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG
KTBT
KCRS
KRVC
KSTH
KREL
KNSD
KTEX
KPAI
KHSA
KR
KPWR
KWAC
KMIG
KSEC
KIFR
KDEMAF
KGCC
KPIN
MOPS
MARR
MASS
MTCRE
MX
MCAP
MO
MNUC
ML
MR
MZ
MPOS
MOPPS
MTCR
MAPP
MU
MY
MA
MG
MASC
MCC
MEPP
MK
MTRE
MP
MIL
MDC
MAR
MEPI
MRCRE
MI
MT
MQADHAFI
MD
MAPS
MUCN
MASSMNUC
MERCOSUR
MC
ODIP
OIIP
OREP
OVIP
OEXC
OPRC
OFDP
OPDC
OTRA
OSCE
OAS
OPIC
OECD
OPCW
OSCI
OIE
OIC
OTR
OVP
OFFICIALS
OSAC
PGOV
PINR
PREL
PTER
PK
PHUM
PE
PARM
PBIO
PINS
PREF
PSOE
PBTS
PL
PHSA
PKFK
PO
PGOF
PROP
PA
PARMS
PORG
PM
PMIL
PTERE
POL
PF
PALESTINIAN
PY
PGGV
PNR
POV
PAK
PAO
PFOR
PHALANAGE
PARTY
PRGOV
PNAT
PROV
PEL
PINF
PGOVE
POLINT
PRL
PRAM
PMAR
PGOVLO
PHUMBA
PHUS
PHUMPREL
PG
POLITICS
PEPR
PSI
PINT
PU
POLITICAL
PARTIES
PECON
POGOV
PINL
SCUL
SA
SY
SP
SNAR
SENV
SU
SW
SOCI
SL
SG
SMIG
SO
SF
SR
SN
SHUM
SZ
SYR
ST
SANC
SC
SAN
SIPRS
SK
SH
SI
SNARCS
STEINBERG
TX
TW
TU
TSPA
TH
TIP
TI
TS
TBIO
TRGY
TC
TR
TT
TERRORISM
TO
TFIN
TD
TSPL
TZ
TPHY
TK
TNGD
TINT
TRSY
TP
UK
UG
UP
UV
US
UN
UNSC
UNGA
USEU
USUN
UY
UZ
UNO
UNMIK
UNESCO
UE
UAE
UNEP
USTR
UNHCR
UNDP
UNHRC
USAID
UNCHS
UNAUS
UNCHC
Browse by classification
Community resources
courage is contagious
Viewing cable 08TRIPOLI595, A COMMERCIAL CAUTIONARY TALE: BECHTEL'S BID FOR SIRTE PORT PROJECT FALLS FLAT
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.
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. #08TRIPOLI595.
Reference ID | Created | Released | Classification | Origin |
---|---|---|---|---|
08TRIPOLI595 | 2008-07-23 08:08 | 2011-02-05 00:12 | CONFIDENTIAL | Embassy Tripoli |
VZCZCXRO3934
RR RUEHTRO
DE RUEHTRO #0595/01 2050832
ZNY CCCCC ZZH
R 230832Z JUL 08
FM AMEMBASSY TRIPOLI
TO RUEHC/SECSTATE WASHDC 3721
INFO RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEHRB/AMEMBASSY RABAT 0675
RUEHTU/AMEMBASSY TUNIS 0567
RUEHAS/AMEMBASSY ALGIERS 0729
RUEHEG/AMEMBASSY CAIRO 1169
RUEHVT/AMEMBASSY VALLETTA 0327
RUEHRO/AMEMBASSY ROME 0457
RUEHFR/AMEMBASSY PARIS 0556
RUEHLO/AMEMBASSY LONDON 0875
RUEHMD/AMEMBASSY MADRID 0026
RUEHTRO/AMEMBASSY TRIPOLI 4231
C O N F I D E N T I A L SECTION 01 OF 02 TRIPOLI 000595
SIPDIS
DEPT FOR NEA/MAG; COMMERCE FOR NATE MASON
E.O. 12958: DECL: 7/23/2018
TAGS: ECIN ECON EINV ETRD EWWT KCOR PGOV LY
SUBJECT: A COMMERCIAL CAUTIONARY TALE: BECHTEL'S BID FOR SIRTE PORT PROJECT FALLS FLAT
CLASSIFIED BY: John T. Godfrey, CDA, U.S. Embassy - Tripoli, Dept of State. REASON: 1.4 (b)
¶1. (C) Summary: An unsuccessful year-long bid by U.S. firm Bechtel to build a commercial port in the Libyan city of Sirte has shed light on how decisions about large foreign investment projects in Libya are made. Bechtel's bid went through several evolutions, including signing a memorandum of understanding with the Prime Minister and a resolution by Libya's Cabinet-equivalent to give the company the contract. In the end, the contract evaporated after apparent late-innings intervention by senior regime figures. Despite a year's worth of effort, $1 million worth of expenses, numerous high-level visits, and formal decisions by the GOL to bless the contract, the company's efforts were ultimately unsuccessful, underscoring the fact that Libya's much-trumpeted bidding process is less than transparent, and that the GOL's formal structures do not have the final word on major foreign investment projects. The fact that an operator with Bechtel's savvy and deep pockets was ultimately unable to secure its contract serves as a cautionary tale for the many U.S. and western companies seeking to enter Libya's booming market. End summary.
PROMISING BEGINNINGS ...
¶2. (C) U.S. engineering and consulting giant Bechtel has just declared as dead a year-long attempt to secure a $1 billion cost-plus contract to build a commercial port in the Libyan city of Sirte. Bechtel began its pursuit of the Sirte port contract in July 2007, when senior Bechtel representative Charles Redman (strictly protect), former U.S. Ambassador to Germany, arrived in Tripoli for discussions at the invitation of the Qadhafi Development Foundation (QDF), a quasi-governmental entity headed by Saif al-Islam al-Qadhafi, son of Muammar al-Qadhafi. During the initial visit, QDF representatives encouraged Bechtel to bid on several small infrastructure projects so the company could "prove itself". Redman made it clear that Bechtel wanted, but did not need, business in Libya and had a record that spoke for itself. Eventually, QDF representatives invited Bechtel to execute two projects: a new commercial port facility at Sirte and management of an industrial city adjacent to the Ras Lanuf oil facility. The QDF proposed that Bechtel partner with the Libyan Economic and Social Development Fund (ESDF) to execute the Sirte Port project.
¶3. (C) This initial burst of positive energy dissipated over the next six months. Bechtel slowly made progress on a contract for the Sirte port project, but its relationship with General People's Committee (GPC) for Transportation, its primary interlocutor on the deal (apart from the QDF), became increasingly difficult. This primarily manifested itself in a lack of responsiveness on facilitation of visas for Bechtel representatives, prompting Bechtel to seek support from other quarters of the Government of Libya (GOL) to facilitate travel by its negotiators and technical staff. In November 2007, then Deputy Foreign Minister Muhammed Siala remarked publicly during a visit to Washington that Bechtel would not secure the Sirte port contract if Secretary Rice failed to visit Libya by year's end.
LEAD TO HIGH-PROFILE COMMITMENTS
¶4. (C) After months of go-slow negotiations, Bechtel experienced an apparent breakthrough in February, when Redman received an urgent call from Minister of Transportation Elmabruk, who asked that the company's team be in Sirte on February 25 to "sign the contract". Although the company was still in the midst of conducting a laborious due diligence review of the contract (key provisions of which had not been finalized), they were convinced to rush a delegation to Sirte in time for a signing event. At that event, Prime Minister al-Baghdadi al-Mahmoudi and Bechtel signed a memorandum of understanding (MOU) committing the two sides to finalizing the contract as soon as possible. In addition, the General People's Committee (Cabinet-equivalent) issued Decision #158 on March 3, which was effectively an announcement of contract terms that granted permission to the GPC for Transportation to sign a contract with Bechtel. Following these public steps by the GOL, Bechtel reported that the GPC for Transportation appeared to be working in earnest to finalize an English-language version of the contract.
RADIO SILENCE BROKEN BY BAD NEWS FROM SAIF AL-ISLAM'S INTERMEDIARY TRIPOLI 00000595 002 OF 002
¶5. (C) With expectations running high that a final deal was imminent, Bechtel pressed on with negotiations and a fully-vetted contract was presented to the Transportation Minister in early May. From that point on, all communication with the QDF, GPC for Transportation and Libyan Ports Authority (another key player in the deal) went dead. Sensing that something was amiss, Bechtel representatives continued to inquire about that status of the contract, but received no response. On July 14, Abdulhakim el-Ghami, described as "an intermediary for a person very close to Saif al-Islam", called Redman to inform him that the port project had been canceled. (Note: Redman told us el-Ghami, who is based in Munich, appears to be a key conduit for Saif al-Islam's dealings with foreign companies. End note.) Bechtel received no explanation as to why the contract was cancelled, but el-Ghami encouraged the company to "seriously consider" undertaking a different, unspecified infrastructure development project.
¶6. (C) Comment: Bechtel's experience throws into stark relief the fact that economic and commercial decisions ostensibly finalized by even the most senior levels of the GOL can be overturned by influential elements operating outside the formal government structure. Libyan officials have made much of recent measures designed to ensure transparency and predictability in bids for commercial contracts; however, the reality is that contracts of any size, particularly those involving foreign companies, are subject to intense maneuvering by regime insiders jockeying to ensure that they company they happen to champion wins the prize. Bechtel's story also reinforces post's understanding of Saif al-Islam's key as a principal gatekeeper for large foreign investment projects in Libya, a process he manages through the QDF and the National Engineering Services and Supply Company (NESSCO - further details will be reported septel). The silver lining in this tale of woe is that Bechtel's power division has been awarded a project management job for construction of a new power plant outside Sirte; however, the sorry denouement of the company's efforts to secure the Sirte port contract have dampened its for seeking any new major projects in Libya in the near future and should serve as a cautionary tale for other U.S. companies considering major investment projects here. . GODFREY