US embassy cable - 03COLOMBO1065

UNCLAS SECTION 01 OF 02 COLOMBO 001065 
 
SIPDIS 
 
AIDAC 
 
STATE FOR SA, DON CAMP AND LARRY ROBINSON 
USAID/ANE FOR WENDY CHAMBERLIN AND GORDON WEST 
USAID/EGAT FOR GRIFFIN THOMPSON 
NSC FOR ELIZABETH MILLARD 
MANILA PASS TO USED/ADB 
USDOE FOR TOM CUTLER 
 
E.O. 12958:  N/A 
TAGS: NONE, ECONOMICS 
SUBJECT:  FIFTH SEMI-ANNUAL MEETING OF SOUTH ASIA 
REGIONAL INITIATIVE FOR ENERGY (SARI/ENERGY) 
 
 
1.  SUMMARY.  THE FIFTH SARI/ENERGY SEMI-ANNUAL REVIEW 
MEETING WAS HELD IN COLOMBO, SRI LANKA ON JUNE 9-10, 
2003. IN TOTAL 75 PARTICIPANTS ATTENDED OF WHICH 35 WERE 
HOST COUNTRY STAKEHOLDERS FROM BANGLADESH, BHUTAN, INDIA, 
MALDIVES, NEPAL, AND SRI LANKA. OTHER ATTENDEES WERE 
REPRESENTATIVES FROM USAID WASHINGTON AND SOUTH ASIA 
FIELD MISSIONS, U.S. EMBASSIES IN SOUTH ASIA, U.S. 
DEPARTMENT OF ENERGY, AND IMPLEMENTING CONTRACTORS AND 
GRANTEES.  IN AN INTERNAL USG DISCUSSION ON THE FINAL 
DAY, PARTICIPANTS APPROVED THE PROGRAM DESCRIPTION FOR 
AUTHORIZATION OF A SECOND PHASE. THEY RECOMMENDED: 
 
A) INCREASE LIFE OF PROGRAM (LOP) FUNDING FROM $50 
MILLION TO $65 MILLION AND EXTEND PROGRAM 
COMPLETION DATE TO SEPTEMBER 2008. 
 
B) ESTIMATED ANNUAL FUNDING LEVEL FOR FY 2003 IS $8.5 
MILLION, FOR FY 2004 IS $7.5 MILLION AND IS $5 
MILLION THEREAFTER WITH A SIMPLIFIED IMPLEMENTATION 
MECHANISM. 
 
C) A SHIFT IN FOCUS TO ADDRESS SOCIO-ECONOMIC BENEFITS 
OF REGIONAL ENERGY COOPERATION, A BROADER RANGE OF 
STAKEHOLDERS INCLUDING THE MEDIA, AND GREATER 
INVOLVEMENT OF REGIONAL ORGANIZATIONS AS CENTERS OF 
EXCELLENCE. 
 
D) CONTINUATION OF ACTIVITIES IN REGIONAL ENERGY 
SECURITY, REGULATORY REFORMS, DISTRIBUTION REFORM 
WITH EMPHASIS ON RURAL ENERGY AND ENERGY 
EFFICIENCY. 
 
E) FUNDING FOR ACTIVITIES BEYOND FY 2006 IS CONTINGENT 
UPON A SATISFACTORY ASSESSMENT OF PROGRESS. END 
SUMMARY. 
 
2.  THE FIFTH SARI/ENERGY SEMI-ANNUAL REVIEW MEETING WAS 
HELD  TO  (A) REVIEW ACHIEVEMENTS AND LESSONS LEARNED 
FROM THE LAST TWO AND HALF YEARS OF PROGRAM 
IMPLEMENTATION; (B) FINALIZE THE PROGRAM FOCUS FOR PHASE 
II; AND (C) GET HOST COUNTRY STAKEHOLDER BUY-IN FOR THE 
ACTIVITIES PLANNED FOR THE NEXT TWO YEARS. 
 
3.  CONTRACTORS AND GRANTEES (ACADEMY FOR EDUCATIONAL 
DEVELOPMENT, CORE INTERNATIONAL INC., DEPARTMENT OF 
ENERGY/ENERGY INFORMATION ADMINISTRATION, NEXANT INC., 
U.S. ENERGY ASSOCIATION, AND U.S. CHAMBER OF COMMERCE) 
PRESENTED ACCOMPLISHMENTS AND LESSONS LEARNED FROM THEIR 
PAST TWO AND HALF YEARS' ACTIVITIES AND PROVIDED 
ILLUSTRATIVE FOLLOW-ON ACTIVITIES. 
 
4.  IN THE INTERNAL USG DISCUSSION ON THE FINAL DAY, 
PARTICIPANTS AGREED ON THE PROGRAM DESCRIPTION,NEW LOP 
FUNDING CEILING AND PROGRAM ACTIVITIES COMPLETION DATE 
(PACD), AND IMPLEMENTATION MECHANISMS FOR A SECOND PHASE. 
 
     A) A CONTINUATION OF THE PROGRAM BASED ON REALISTIC 
ASSUMPTIONS ABOUT REGIONAL POLITICAL AND ECONOMIC TRENDS, 
PROVIDING CONTINUED ENGAGEMENT AND ABILITY TO RAMP UP 
QUICKLY IN THE EVENT OF MAJOR OPPORTUNITIES. 
 
     B) A SIMPLIFIED IMPLEMENTATION MECHANISM FOR DEALING 
WITH STAKEHOLDERS. 
 
     C) A SHIFT IN FOCUS TO SOCIO-ECONOMIC BENEFITS OF 
REGIONAL ENERGY COOPERATION, A BROADER RANGE OF 
STAKEHOLDERS INCLUDING MEDIA, AND GREATER INVOLVEMENT OF 
REGIONAL CENTERS OF EXCELLENCE. 
 
5.  NEXT STEPS. (A) ANE/SPO WILL STEER THE PROGRAM 
AUTHORIZATION FOR PHASE II BY ANE/AA; (B) ACTIVITIES OF 
EXISTING CONTRACTORS/ GRANTEES WILL BE BROUGHT TO 
CONCLUSION BY DECEMBER 2003; (C) RCO/NEW DELHI WILL 
COMPLETE NEGOTIATIONS AND AWARD CONTRACT TO A NEW 
INSTITUTIONAL CONTRACTOR THROUGH OPEN COMPETITION BY 
SEPTEMBER 2003. 
 
6.  THIS CABLE HAS BEEN CLEARED BY USAID AND/OR EMBASSY 
REPRESENTATIVES FROM ALL PARTICIPATING POSTS. 
 
NOVAK