US embassy cable - 05SOFIA508

UNCLAS SOFIA 000508 
 
SIPDIS 
 
 
SENSITIVE 
 
STATE FOR EB/ESC/IEC 
 
E.O. 12958:  N/A 
TAGS: ENRG, PREL, ETRD, PGOV, IZ, TU, BU 
SUBJECT:  BULGARIA LOOKING TO SELL ELECTRICITY TO IRAQ 
 
 
1. (SBU) SUMMARY.  Bulgaria's new Minister of Energy, 
Miroslav Sevlievski, asked March 15 for U.S. assistance in 
facilitating a deal that would provide Bulgarian 
electricity to Iraq through Turkey.  In a meeting with the 
DCM, he suggested that the deal would provide up to 300 MW 
to the Bosporus grid for use in Turkey.  Turkey would in 
return provide electricity to Iraq.  Bulgaria will need to 
take the first step by approaching Turkey bilaterally.  END 
SUMMARY. 
 
2. (SBU) Sevlievski implied U.S. assistance would be needed 
to convince Turkey to cooperate.  The idea to sell 
electricity to Iraq is very much in the formative stage. 
While Bulgarian officials intend to raise it with the Iraqi 
Energy Minister, they have not approached Turkey yet. 
Related to this, the PM's office has contracted Washington 
lobbying firm Patton Boggs to assist in putting this and 
other Iraq-related deals together.  Patton Boggs has 
approached the Embassy requesting our assistance in 
arranging meetings at State to discuss the proposed deal. 
 
3. (U) Under a 1998 "Bilateral Agreement on Cooperation in 
the Areas of Energy and Infrastructure," Turkey agreed to 
purchase 32 billion kWh of Bulgarian electricity between 
1999 through 2008.  In return, a Turkish company would 
construct a highway and a hydroelectric power plant in 
Bulgaria.  However, Turkey terminated electricity imports 
from Bulgaria in April 2003, claiming that Bulgaria was 
delaying implementation of the infrastructre projects. 
 
4. (SBU) COMMENT:  Post is unable to evaluate the 
feasibility of this proposal.  However, an electricity sale 
to Iraq would support Bulgaria's desire for tangible 
benefits for its participation in the Iraq coalition.  It 
could also assist Iraq to meet its energy needs.  Energy 
analysts here believe some infrastructure work would have 
to be done on Turkish/Iraqi territory to make this deal 
feasible.  The Bulgarians need to take the first step by 
approaching Turkey bilaterally.  At that point, U.S. 
assistance may be appropriate. 
 
Bagdad minimize considered