US embassy cable - 05DJIBOUTI1111

UNCLAS DJIBOUTI 001111 
 
SIPDIS 
 
For OBO/PD/PDD Mahfuzur Rahman 
OBO/AM Franklin White 
AF/EX Virginia Milhous 
AF/E Nole Garey 
DS/IP/AF George Frederick 
 
E.O. 12958: N/A 
TAGS: AMGT, ABLD, ASEC, DJ 
SUBJECT: DISPOSITION OF EXISTING CMR AND 
COMPOUND IN DJIBOUTI 
 
REF A) STATE 197023; B) DJIBOUTI 627 
 
1.  (U) Post appreciates OBO's advance planning for disposition 
of the existing CMR and mission compound in Djibouti in 
conjunction with construction of the New Embassy Compound. 
While the current location offers many benefits for maintaining 
the CMR where it is, the design and size of the residence are 
incompatible with minimum Ambassadorial representation and 
housing requirements.  Moreover, its co-location with all other 
mission functional buildings, except the warehouse, affects 
maximum use of the existing site. 
 
2.  (U) OBO might consider constructing a new CMR on the 
existing compound after the functions of the chancery and 
related buildings move to the new site, even though this would 
result in some inconvenience and the need for temporary CMR 
relocation.  The current compound is one of the rare sites in this 
nation with many mature trees.  That is a significant concern in 
the statistically hottest nation on earth, and a very much barren 
nation as well.  Also the existing compound is much closer to 
other CMRs, government offices and diplomatic missions than 
would be the case if a new CMR were constructed near the 
NEC.  Continued use of the existing site would encourage 
acceptance of representation invitations and thus better enable 
the mission to fulfill that requirement, compared to site 
selection proximate to the NEC. 
 
3.  (U) Nevertheless, should the Department be required to sell 
the existing property, post advises that the Kingdom of Saudi 
Arabia (KSA) is a potential buyer.  The KSA already owns a 
vacant lot next to the existing compound and has expressed 
interest in acquiring the U.S. compound if it is to be sold.  The 
EU, the Government of Djibouti, and possibly the French 
military, might also be potential buyers. 
 
4.  (U) If the existing compound will be sold, post suggests that 
one option for a new CMR would be to work with local 
developers on a build-to-lease CMR arrangement, using 
American designs to enhance property usefulness.  Post 
believes property owners in Djibouti would be interested in 
developing/constructing a CMR but that they would need to be 
guided to construct a property to American standards.  If this 
method is selected, work should coincide with construction of 
the NEC to permit the entire existing compound to be totally 
vacated when the NEC is occupied. 
 
5.  (U) Post asks OBO to consider carefully the long-term 
benefit of retaining ownership of existing property versus 
leasing.  Post estimates that leasing a property would cost a 
minimum of USD 85,000 per year, and likely more.  The 
current compound was recently appraised at USD 1,863,000. 
In just a few years lease payments would equal current value 
and thereafter would require the Department to "dip into its 
pockets" for subsequent funding.  Construction of a new 
residence on the existing compound should cost much less than 
the expense of lease arrangements where the USG would be 
permanently paying someone else.  Consider also that the 
existing compound, as a potential CMR site, already has in 
place many security enhancements that would have to be 
duplicated elsewhere at additional, substantial cost - nine-foot 
walls, cameras, vehicular controls, for example. 
 
6.  (U) Post will work closely with OBO, DS, AF/EX and 
others on whatever eventual process occurs. 
 
 
RAGSDALE