US embassy cable - 05SANAA106

C O N F I D E N T I A L SANAA 000106 
 
SIPDIS 
 
E.O. 12958: DECL: 01/12/2015 
TAGS: ECON, ETRD, KCOR, YM, ECON/COM 
SUBJECT: ADEN PORT: YEMEN MISSES ANOTHER OPPORTUNITY 
 
 
Classified By: DCM Nabeel Khoury for reasons 1.4 (b. and d.) 
 
1. (SBU) In a briefing to donors on January 10, Deputy Prime 
Minister and Minister of Planning and International 
Cooperation Ahmed Sofan announced that Prime Minister Ba 
Jammal "in the interest of promoting the widest competition" 
rejected the Rotterdam Management Group's (RMG) 
recommendation to short-list three companies (believed to be 
Maersk, Hutchison-Whampoa and Dubai Ports International) and 
let all nine companies compete for the Aden Port Tender. 
Sofan touched on concerns raised by the USG and World Bank 
regarding the integrity of the process, but assured donors 
that "high international" standards would be met. 
 
2. (SBU) Sofan said that RMG produced two lists of 
short-listed companies a group of three and a group of six. 
Ba Jammal chose to override the RMG decision and placed the 
due date for the 9 bids on February 16.  In a nod to 
credibility concerns, Sofan offered to open up the process to 
international monitoring. 
 
3. (C) Deputy Foreign Minister Mustafa Noman indicated to 
Pol/Econ Deputy on January 8 that a "compromise" would likely 
occur allowing the existing operator OPM (with heavy Yemeni 
interests) to stay in the running.  Noman also noted concerns 
in Sanaa over the viability of the Dubai International Port 
offer, saying that many believe the offer to be from 
"investors in Dubai," but not the same company as Dubai Ports 
International.  (Note: This is not the case.) Former 
Parliamentarian Saad Talib confirmed on January 10 that OPM 
does have ties to PM Ba Jammal and reiterated long-standing 
concerns over OPM's viability. 
4. (C) Comment: While there is still a chance that Yemen will 
award the tender to Dubai Ports International, Maersk or 
Hutchison-Whampoa, the fact that rumors are spreading about 
Dubai, and that Ba Jammal is making his case on "fairness," 
leads post to suspect the deal will go to the existing 
operator OPM.  We will continue to advocate at the highest 
levels and coordinate with the donor community to ensure that 
international standards are maintained.  Sofan's announcement 
came the same week Ba Jammal characterized himself as a 
"crusader against corruption."  Given the rejection of the 
short-list, and the lack of the credibility in Ba Jammal's 
promises, the government's commitment to bring in 
international investors is yet again in question. 
KRAJESKI