US embassy cable - 04KINSHASA1506

UNCLAS KINSHASA 001506 
 
SIPDIS 
 
SENSITIVE 
 
AF/C FOR THOMAS GALLAGHER, DEPT FOR OPIC - CONAL DUFFY AND 
JIM WILLIAMS 
 
E.O. 12958: N/A 
TAGS: ECON, EINV, ELTN, CG, OPIC 
SUBJECT: EMBASSY COMMENTS ON NO.1 CONTRACTING OPIC 
APPLICATIONS 
 
REF: DUFFY-NEWMAN EMAIL 07/19/04 
 
1. (U) Sensitive but Unclassified, Privileged Business 
Information. Not for internet distribution. 
 
2. (SBU) Embassy Kinshasa has reviewed the two applications 
for political risk insurance that No.1 Contracting 
Corporation of Ashley, PA has submitted to OPIC. Post opines 
that there are no current political or economic difficulties 
associated with either the company or the two projects. Both 
bids that No.1 Contracting submitted are for World Bank 
funded infrastructure rehabilitation and reconstruction 
projects. Hence, the source of funding is guaranteed. DRC 
treatment of foreign contractors varies, however, the bid 
process for such projects is carried out according to World 
Bank norms. Once commencing the project, the contractor will 
likely encounter some bureaucratic delays possibly related to 
licensing and authorization, taxes, and/or relationships with 
local chieftains. Logistical difficulties (e.g. consistent 
supply of gasoline, cement, etc) will further complicate 
project success. 
 
3. (SBU) The following reesponds to the specific questions 
listed in the referenced email: 
 
a. Post does not foresee any negative public or host 
government sentiment toward the projects. 
 
b. The projects are unlikely to have negative impacts on U.S. 
policy and interests in the DRC. 
 
c. Post has no knowledge of accusations of improprieties on 
the part of No.1 Contracting. 
 
d. Post does not believe that the projects could potentially 
result in serious adverse environmental effects beyond those 
normally encountered in heavy construction projects. 
 
e. These projects fall under the World Bank's Emergency 
Multisectoral Reconstruction and Rehabilitation Plan. Hence, 
they are not in conflict with the DRC's economic objectives 
and welfare. 
 
f. Post is unaware of potential uneconomic use of raw 
materials or labor. 
 
g. These projects will not have an adverse affect on the 
DRC's balance of payments. The whole of funding is provided 
by the World Bank. 
 
4. (U) Please direct questions regarding OPIC applications 
that need Embassy Kinshasa assistance to Peter Newman. IVG: 
934-2234, Cell: (243) 81-700-4428, Email: NewmanPD@state.gov 
MEECE