US embassy cable - 05DUBAI94

UNCLAS DUBAI 000094 
 
SIPDIS 
 
DEPT FOR OBO/PE/SM; DS/PSD/CAT, DS/PSD/PCB (D. REDABUGH); 
OBO/OM/AM/NEA (RUBEN ALCANTARA); NEA/SA/EX/PMA (HELEN REED-ROWE) 
ABU DHABI FOR AMB, ROS, ESC,FMM, FMO 
CAIRO FOR RDSE 
 
E.O. 12958: N/A 
TAGS: ASEC, KSEO, ABLD, AMGT, TC 
SUBJECT: DUBAI GOV'T REMAINS WILLING TO ENGAGE ON BUILDING NOB FOR 
CONSULATE 
 
REF: A) STATE 225187  B) DUBAI 4928 
 
This is an action request -- See para 6. 
 
1. Consul General met December 20 with Sultan bin Sulayem (SBS), 
the Dubai government's point person for the proposed NOB for 
ConGen Dubai, to review the points raised in reftel.  Following 
is a summary of the discussion, which was favorable overall. 
 
2. Contractors: SBS said there were three US companies he was 
currently working with (on other projects in Dubai who could be 
interested in the proposed NOB project:  Parsons, KBR, and 
Bechtel, all major, well-known entities. Regarding the CAA point 
raised in para 7 of reftel, SBS said he "completely understood" 
that the selected contractor would be given classified 
information that would figure into the cost of the project but 
which could not be made available to the Dubai government. 
(Note: reftel mentioned that OBO could provide a list of 
already-cleared contractors currently doing work with OBO who 
could be contacted to provide a competitive bid.  Post would 
appreciate receiving that information so it can be shared with 
the Dubai authorities.) 
 
3. SED documentation/CD:  SBS thanked us for providing the CD 
and said he was certain that, while it showed a building that 
was larger than what would be needed for the Consulate, it would 
be useful in giving his planners and architects a better sense 
of what would be involved in the project. 
 
4. Scope of project: SBS balked at the idea (expressed in paras 
2 and 3 of reftel) that Dubai would pay for outbuildings 
(including a warehouse annex), fit-out and interior furnishings. 
 He said that what he was proposing was building, to USG 
standards, a basic 4,000 GSM office building, surrounded by a 
perimeter wall that included compound access control.  Any 
outbuildings and all but the most basic interior furnishings 
would need to be provided at USG expense; even communication and 
computer lines would be best supplied and installed by the USG, 
though this should not be difficult because the building would 
be outfitted by the cleared US contractor with conduit.  (Note: 
SBS's position on these issues strikes us as reasonable. With 
the Embassy Abu Dhabi warehouse less than an hour and a half a 
way by car, Dubai does not currently require a warehouse of its 
own, and we see little logic to compelling the Dubai government 
to construct one on the relatively small (6 acre) plot in 
question.  Similarly, given that we are talking about an effort 
to remedy an unacceptable security situation, we do not believe 
the project should be made contingent on the landlord providing 
interior furnishings.  If necessary, post could utilize 
furniture from our existing facility.) 
 
5. While he was somewhat more cautious about the cost and scope 
of the project than he had been in previous conversations, SBS 
made it clear that Dubai remained ready to work with us on this 
proposal.  He reiterated that he looked forward to receiving a 
more detailed plan that he could put out to his contractors for 
at least an initial cost estimate.  He added that, while Dubai 
remained willing to build a new consulate building and then rent 
it back to us indefinitely, Dubai would strongly prefer an 
approach that would allow ownership of the property to pass to 
the U.S. once a sufficient number of "lease" payments had been 
made to cover the cost of construction. 
 
Action Request 
-------------- 
 
6. Per para 6, reftel, post requests that Department initiate 
the necessary planning process so that we can move forward 
toward formalizing an arrangement with the appropriate parties 
in Dubai.