US embassy cable - 04MANAMA1319

C O N F I D E N T I A L SECTION 01 OF 03 MANAMA 001319 
 
SIPDIS 
 
STATE FOR NEA/ARPI 
STATE PASS USTR/JASON BUNTIN 
LONDON FOR ETHAN GOLDRICH 
 
E.O. 12958: DECL: 08/24/2014 
TAGS: ENRG, ECON, PGOV, ASEC, BA 
SUBJECT: HOT TIME, SUMMER IN THE CITY:  BAHRAIN COPES WITH 
NATIONWIDE BLACKOUT 
 
REF: A. MANAMA 1206 
 
     B. MANAMA 496 
 
Classified By: Charge d'Affaires Susan L. Ziadeh for reasons 
1.4 (b) and (d) 
 
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Summary 
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1. (C)  Bahrain experienced a nationwide blackout that lasted 
up to 15 hours in some neighborhoods.  Minister of 
Electricity and Water (MEW) Shaikh Abdullah bin Salman Khalid 
Al Khalifa attributed the blackout to an unexpected massive 
power surge from the nation's aluminum manufacturer ALBA. 
Prime Minister Khalifa bin Salman Al Khalifa publicly called 
for an immediate investigation, and angry parliamentarians 
demanded a special session to discuss the issue.  Security 
forces dispersed throughout populated areas to maintain 
public security and direct traffic.  Despite intense heat and 
humidity, there were no reports of any blackout-related crime 
or disturbances.  Hospitals reported that they were able to 
operate intensive and critical care units and emergency 
departments.  The press reports an estimate of BD 10 million 
($27 million) in economic losses from the one day 
interruption to normal work schedules.  Senior government 
officials in the past have noted to us the increasing strain 
on the power system, and the GOB will have to deal with 
inevitable questions from potential investors about the 
infrastructure capacity as it seeks to promote Bahrain as an 
investment destination.  End Summary. 
 
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Power Surge Causes Blackout 
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2. (U)  On August 23rd, Bahrain experienced a nationwide 
blackout that started at 8 AM and lasted up to 15 hours in 
some neighborhoods. Most businesses and government agencies 
shut down by 10 AM.  On a day that reached nearly 50 degrees 
Centigrade and 90 percent humidity, many Bahrainis sought 
refuge from the heat by driving over the causeway to eastern 
Saudi Arabia while others flew to Dubai. A few retail outlets 
known to have back-up generators experienced a huge surge in 
business as Bahrainis piled into establishments like 
McDonalds and the Jawad and Al Osra supermarkets.  At Jawad, 
families with overheated babies lingered in the frozen foods 
section.  Other Bahrainis clogged roadways by driving around 
the island in their air-conditioned cars. Some citizens ran 
out of gas while trying to keep cool because only four gas 
stations were operational.  Traffic lights were out and there 
were reports of minor car accidents, including an unfortunate 
collision involving a truck carrying a large delivery of 
fresh eggs.  Domestic telephone landlines remained 
operational but cellular networks were jammed. Two-thirds of 
Bahrain's water supply was cut off because there was no 
electricity to power the country's desalination plants. 
 
3.  (SBU)  A MEW official told FSN on August 24 that the 
blackout was due to a 400MW power surge from the ALBA 
aluminum smelter during routine maintenance of a production 
line. The official refuted widespread rumors that the 
blackout came as a result of maintenance problems at the Hidd 
power plant or due to a fire at the Manama power station.  In 
a July 27 explanation about recent rolling brownouts (Ref A), 
the Electricity Minister explained to Charge that the power 
distribution network, designed to accommodate a 20 percent 
load increase, has had to service an 80 percent growth in 
demand over the past three years. 
 
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Police Report No Blackout-Related Incidents 
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4.  (SBU)  The Bahrain Defense Force, Coast Guard, and police 
stepped up the pace of their operations, and 100 public 
security personnel immediately mobilized to support the 
traffic directorate in controlling the flow of vehicles in 
the absence of traffic lights.  Security contacts report that 
as the day went on, police had reduced communications ability 
because the batteries on their radios wore down.  Airport 
contacts confirmed on August 24 that the Bahrain 
International Airport remained fully operational during the 
blackout.  Some flights were delayed but none were canceled. 
The intensive and critical care units and emergency rooms at 
all major hospitals remained open, though they had to turn 
away non-emergency cases.  Hospitals did experience problems 
with crowd control because an overwhelming number of people 
without medical emergencies showed up to sit in 
air-conditioned ER waiting rooms.  The Saudis ran electrical 
wires to the Bahraini side of the causeway to ensure that 
immigration, customs and security operations were not 
interrupted.  There were no reports of blackout-related 
crimes or disturbances. 
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MPs Promote Special Session to Investigate 
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5.  (C)  In response to the blackout, the Prime Minister 
convened an emergency Cabinet meeting on August 23 and 
ordered an immediate inquiry into the blackout and formed an 
investigative committee.  Council of Representatives (COR) 
First Vice Chairman Abdulhadi Marhoon called for convening a 
special session of Parliament to discuss electricity and 
water cuts, which have become more frequent in recent years. 
Over 15 members of Parliament met and agreed to form an 
investigative committee.  Shura Council First Vice Chairman 
Abdulrahman Jamsheer told FSN and PolOFF on August 23 that he 
expects the Minister of Electricity and Water to be fired. 
Al Minbar (Sunni) member MP Shaikh Mohammed Khalid Mohammed 
accused the GOB of not planning for emergencies and warned 
that this lack of planning affects critical sectors of the 
economy.  Islamic Bloc (Shi'a) President and MP Ali Samaheeji 
told PolOFF on August 24 that these power outages affect all 
Bahrainis, but Shi'a even more so.  He noted that Sunni 
areas, particularly the central Rifaa district that houses 
the royal family and a number of government ministries, had 
its power restored within a few hours while predominantly 
Shi'a areas in the north and west had to wait until 10 PM or 
later until the electricity flowed again.  Others noted that 
following the blackout, Sunni and Shi'a were united in their 
misery because previously, during the rolling brownouts, only 
the poor Shi'a areas were affected. 
 
6.  (U)  In contrast with the anodyne official news reports, 
Radio Bahrain disc jockeys kept the English speaking public 
informed of developments by passing on reports from listeners 
about when the power was restored to parts of the country. 
Embassy local staff reported that the Electricity Ministry 
complaints and information hotline was constantly busy.  Only 
after power was fully restored to all areas did the MEW 
Minister hold a late night press conference to explain to 
journalists the cause of the blackout.  In his August 24 
press release, the Prime Minister expressed the GOB's regrets 
for any inconvenience caused by the blackout. 
 
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Economic Losses, and Damaged Reputation 
--------------------------------------- 
 
7.  (SBU) The press reported that the blackout caused BD 10 
million ($27 million) in economic losses.  A front-page 
article stated that Bahrain,s banks, a source of economic 
growth and national pride, faced delays of up to four hours 
in their international operations.  A source at the Ministry 
of Finance and National Economy told us that at this point it 
was impossible to quantify accurately the economic losses, 
but the GOB would conduct investigations to arrive at an 
estimate.  The press noted that the business community 
supports the investigations.  One banking contact told us 
that his office had to close by noon, leading to financial 
losses and lost opportunities in a sector characterized by 
activity 24/7.  Others were too busy to comment, saying that 
the loss of a workday caused an extraordinary queue of 
transactions the following day, August 24. 
 
8.   (SBU) The blackout highlighted a gap between Bahrain,s 
aspirations to become a regional center for finance, 
insurance, education, health care, and other services, and 
the necessary infrastructure to support such development. 
Bahrain seeks to leverage a Free Trade Agreement with the 
U.S. to attract more foreign direct investment and to promote 
its reputation as a regional services center.  The blackout 
could lead to embarrassing questions regarding the country's 
ability to support more investment.  Representatives of 
American firms in country had mixed assessments of the impact 
of the blackout.  One said the net result was just "disrupted 
business and an unproductive day," while another said that 
the incident was the "harvest of years of poor planning" and 
would cause "big firms to ask questions" about Bahrain as an 
investment destination.  Minister of Finance and National 
Economy Abdullah Saif told the Shura Council in April the 
growth in demand for power requires the state to invest in 
new power facilities every two to three years, and the GOB 
has to prepare itself for this. 
 
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Comment 
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9.  (C) Though the blackout harmed Bahrain and its 
government's reputation politically and economically, what is 
perhaps most noteworthy is what did not happen.  Despite the 
heat, humidity, heavy traffic, and crowds, there was no 
breakdown in public order or blackout-related incidents. 
Possibly reflecting consensus that "we're all in this 
together," family groups waiting out the day inside the food 
court next to the Jawad supermarket reconfigured the tables 
into impromptu "majleses," where citizens expressed their 
views.  Perhaps the blackout may result in greater government 
responsiveness to repeated Shi'a complaints about the impact 
of rolling brownouts on their lives.  It would seem that 
Bahrain's Sunni and Shi'a alike, will not accept another 
iteration of the lack of planning that they believe led to 
yesterday's power failure.  Already calls have begun for 
greater government accountability and action.  End Comment. 
ZIADEH