US embassy cable - 03AMMAN3785

UNCLAS SECTION 01 OF 03 AMMAN 003785 
 
SIPDIS 
 
SENSITIVE 
 
NSC FOR ELIOTT ABRAMS 
STATE FOR NEA/RA LAWSON 
 
E.O. 12958: N/A 
TAGS: PREL, EAID, JO, MEPN 
SUBJECT:  THE RED SEA - DEAD SEA CONVEYANCE PROJECT:  A 
CONDUIT FOR REGIONAL COOPERATION? 
 
 
1. (SBU) SUMMARY AND RECOMMENDATION: Sunday afternoon's 
World Economic Forum (WEF) panel session on the Red Sea - 
Dead Sea canal was noteworthy for the first-ever public 
meeting of the Palestinian Minister of Planning, the Israeli 
Minister of National Infrastructure, and the Jordanian 
Minister of Water and Irrigation to discuss the project. 
Jordan has historically been the most aggressive proponent 
of the project (and probably has the most to gain), with 
Israel supportive, and the Palestinian Authority (PA) often 
marginalized.  Some politics crept into the forum when the 
Israelis showed their reservations by talking of the 
Palestinians as "potential partners"-clearly signaling a 
longstanding concern that recognizing a Palestinian right to 
the Dead Sea might constrain the Israeli position in 
subsequent territorial negotiations.  Similarly, the 
Palestinians raised their political concerns that the 
project might compromise their negotiating position on water 
rights, a prickly final status issue.  Despite these 
political concerns, both the Israelis and Palestinians 
expressed great interest in further pursuing the project. 
 
2. (SBU) The WEF panel did not directly address the cost 
(estimated at between $10-13 million) of a comprehensive 
feasibility study outlined in the draft Terms of Reference 
(TOR) prepared by the World Bank, and only the Jordanian 
minister hinted at the $1 billion needed for the initial 
phase of the expected $5-6 billion project.  In a subsequent 
discussion with the Jordanian Minister of Water and 
Irrigation, he shared with us that his government as well as 
the Israeli government each are committed to contribute $1 
million towards the feasibility study.  He also told us that 
the Swiss government offered $1 million and the Italians are 
expected to make an unspecified contribution as well.  The 
minister confided to us that the three parties would be 
forwarding a formal request to Washington to help finance 
the feasibility study with other international donors. 
 
3. (SBU) We recommend that Washington encourage the 
Jordanians, Palestinians, and Israelis to reach agreement on 
the TOR so that it meets each of the parties' requirements. 
Once the three core parties invite the U.S. to become 
involved, we should participate to the extent possible to 
facilitate the regional cooperation.  Finally, we recommend 
that the U.S. join the international donor group already 
forming to help finance the comprehensive feasibility study. 
END SUMMARY AND RECOMMENDATION. 
 
--------------------- 
THE POLITICAL CONTEXT 
--------------------- 
 
4. (SBU) The Jordan River Basin is shared by five 
riparians-Lebanon, Syria, Jordan, Israel and the PA-and 
plays a critical role in their individual and collective 
well-being.  Water is also an important element in regional 
cooperation and security.  Water will continue to be an 
important part of any future agreement among all 
beneficiaries of the Basin and may well serve as key 
contributor to a foundation for comprehensive peace, 
security, and cooperation in the region. 
 
5. (SBU) A trilateral Jordanian/Israeli/U.S. initiative from 
the mid-1990s declared the Jordan Rift Valley a strategic 
development zone.  The objective of this initiative is to 
strengthen economic integration and cooperation through 
development and construction of infrastructure and services 
between Jordan and Israel, supported by public and private 
sector investments.  Plans intended to help with the 
integrated water resources planning and management of the 
Jordan Rift Valley, have been developed through a 
consultative process among Israel, Jordan, and the PA and 
with assistance from the donor and the financial 
communities.  The proposed Red Sea - Dead Sea Water 
Conveyance Project (RDP) is one such scenario.  The RDP 
concept is one of the projects being promoted by Jordan and 
Israel, and indirectly by the PA. 
 
6. (SBU) As articulated by the parties, individually and/or 
jointly, notably at the Johannesburg Summit on Sustainable 
Development last year and at the Third World Water Forum in 
Kyoto this spring, the shared public vision of the RDP is: 
 
--"saving" the Dead Sea; 
--making drinking water available at affordable prices to 
  Jordan, Israel, and the PA; 
--building a symbol of peace and cooperation in the region. 
 
7. (SBU) The RDP would constitute a major opportunity for 
the stakeholders to work together to prepare, construct, and 
operate the project.  The PA has been following the 
proceedings without being directly involved up to this 
point.  It will be important in the near future for the PA 
to be directly involved in the feasibility study process. 
 
8. (SBU) If water resources management is to be established 
on a cooperative basis, a process and a framework for 
cooperation need to be developed.  Global interest in this 
project and the sustainability of water resources in the 
region will greatly depend on the degree of cooperation 
demonstrated by the beneficiary parties. 
 
9. (SBU) While currently sharing water through water rights 
and treaties, Jordan, Israel, and the PA may find it to 
their advantage, individually and collectively, to move 
towards sharing the benefits that can be generated from the 
water and the shared vision.  The RDP, if proven feasible, 
could well provide a practical vehicle for working together 
to bring this about. 
 
--------------------- 
THE TECHNICAL CONCEPT 
--------------------- 
 
10. (SBU) The concept of an inter-sea transfer between the 
Red Sea and Dead Sea has been studied in many forms since 
the 1800s and more seriously since the mid-20th century. 
The 400-meter difference in elevation between the Red Sea 
and the Dead Sea creates a gravity flow advantage and 
considerable potential for the generation of hydropower. 
The present concept, stemming from earlier peace 
negotiations between Jordan and Israel, proposes an 
alignment from the Red Sea that generally follows the border 
between the two countries, but lies entirely in Jordanian 
territory. 
 
11. (SBU) Under consideration is a design that places a high 
priority on restoration of the Dead Sea and involves three 
phases:  (1) Red Sea water conveyed to the Dead Sea via a 
conduit; (2) a desalination facility to be built close to 
the Dead Sea to produce potable water from part of the water 
transferred and to provide energy; and (3) potable water 
distribution via pipelines to municipalities in Jordan, the 
PA, and Israel. 
 
12. (SBU) Transferring water from the Red Sea to the Dead 
Sea means many things to the stakeholders and beneficiaries, 
including: 
 
--arresting and reversing the environmental degradation of 
  the Dead Sea region; 
--protecting a unique region of the world with cultural, 
  religious, and political significance; 
--driving economic development of the Dead Sea area, 
  focusing on the expansion of tourism activities and the 
  protection of the extractive potash industry; 
--involving government entities in the region to work 
  together on a major project of mutual interest, 
  increasing the prospects for stability, security, and 
  prosperity in the region; 
--alleviating the medium- to long-term drinking water needs 
  in Jordan, Israel, and the PA. 
 
At times, the project has been viewed as a water supply 
project with positive environmental benefits, while more 
recently it has been promoted as an environmental project 
with potential water supply benefits--probably a result of 
pandering to environmental sensitivities. 
 
13. (SBU) At the request of Jordan, the World Bank recently 
developed the TOR for a feasibility study on the latter 
approach to the RDP.  The principal objective of the 
feasibility study is to help determine whether or not the 
concept of transferring water from the Red Sea to the Dead 
Sea makes environmental and economic sense, and what would 
be the impact of the project on the region.  There has been 
a particular environmental concern about the effect of 
mixing the two waters whose properties are significantly 
different from each other.  Although the scope of the TOR is 
somewhat limited geographically and technically, it is 
designed to be carried out within a comprehensive 
development framework with a multidisciplinary approach, 
involving the full range of economic, financial, technical, 
environmental, social, and political issues. 
 
14. (SBU) COMMENT AND RECOMMENDATION:  We were extremely 
pleased to see the Jordanians, Palestinians, and Israelis 
jointly promote the RDP at the recent extraordinary meeting 
of the WEF.  It was the first such public declaration of 
intent by the three parties to move forward on the RDP. 
Previous fora, such as last year's Johannesburg World Summit 
on Sustainable Development, only brought together the 
Jordanians and Israelis.  Despite some minor political 
statements on the part of both the Israeli and Palestinian 
ministers, the tri-lateral support for the project was 
clearly there.  We also found broad support for the project 
from other WEF attendees.  To the extent possible, the U.S. 
should support the Jordanians, Palestinians, and Israelis as 
they seek to develop the TOR of the RDP feasibility study 
acceptable to all.  We understand that the three parties 
will formally request the U.S. government to participate 
shortly.  Given the apparent commitment by Jordan and Israel 
to partially finance the feasibility study, as well as the 
willingness of the Swiss and Italians to also contribute to 
its cost, we recommend that Washington join the 
international donor consensus. 
GNEHM