US embassy cable - 04KINSHASA2021

UNCLAS KINSHASA 002021 
 
SIPDIS 
 
SENSITIVE 
 
DEPT FOR OPIC/CDUFFY 
 
E.O. 12958: N/A 
TAGS: EINV, ECON, ELTN, CG, OPIC 
SUBJECT: EMBASSY COMMENTS ON NO.1 CONTRACTING OPIC 
APPLICATION 
 
1. (U) Sensitive but Unclassified. Privileged business 
information. 
 
2. (SBU) Embassy Kinshasa has reviewed the application that 
No.1 Contracting and Franoza Trucking have submitted to OPIC 
for political risk investment insurance on a performance 
bond. Post believes that there are no current political or 
economic difficulties associated with either the company or 
the project. No.1 Contracting will be providing construction 
services for two World Bank funded infrastructure repair and 
development projects. Funding is guaranteed. DRC treatment of 
foreign contractors varies, however, the bid and contracting 
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 officials. Logistical difficulties (e.g. consistent 
supply of gasoline, cement, etc.) will further complicate 
project success. 
 
3. (SBU) The following responds to specific questions in 
OPIC's memo to Post: 
 
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