PROFILE

OFFICIAL NAME:
Republic of Equatorial Guinea

Geography
Location: Western Africa, bordering the Bay of Biafra. Bordering nations--Cameroon, Gabon.
Area: 28,050 sq. km; slightly smaller than Maryland.
Cities: Capital--Malabo. Other cities--Bata (also capital of Littoral province on the mainland).
Terrain: Varies. Bioko Island is volcanic, with three major peaks of 9,876 feet, 7,416 feet and 6,885 feet. Behind the coastal plain, the mainland provinces are hilly at a level of approximately 2,000 feet, with some 4,000-foot peaks. Annobon Island is volcanic.
Climate: Tropical; always hot, humid. Bata on the mainland is somewhat drier and cooler.

People
Nationality: Noun--Equatorial Guinean(s), Equatoguinean(s) Adjective--Equatorial Guinean, Equatoguinean.
Population (July 2005 est.): 540,109.
Annual growth rate (2003 est.): 24.1%; 2.8% (1975-2002).
Ethnic groups: The Fang ethnic group of the mainland constitutes the great majority of the population and dominates political life and business. The Bubi group comprises about 50,000 people living mainly in Bioko Island. The Annobonese on the island of Annobon are estimated at about 3,000 in number. The other three ethnic groups are found on the coast of Rio Muni and include the Ndowe and Kombe (about 3,000 each) and the Bujebas (about 2,000). The pygmy populations have long been integrated into the dominant Bantu-speaking cultures. Europeans are less than 1,000, mostly Spanish.
Languages: Official--Spanish, French; other--pidgin English, Fang, Bubi, Ibo.
Religion: Nominally Christian and predominantly Roman Catholic; pagan practices.
Education: Primary school compulsory for ages 6-14. Attendance (2002 est.)--85%. Adult literacy (2003 est.)--85.7%.
Health (2003 est.): Life expectancy--49 years. Infant mortality rate--89/1,000.

Government
Type: Nominally multi-party Republic with strong domination by the executive branch.
Independence: October 12, 1968 (from Spain).
Constitution: Approved by national referendum November 17, 1991; amended January 1995.
Branches: Executive--President (Chief of State) and a Council of Ministers appointed by the president. Legislative--100-member Chamber of People's Representatives (members directly elected by universal suffrage to serve five-year terms). Judicial--Supreme Tribunal.
Administrative subdivisions: Seven provinces--Annobon, Bioko Norte, Bioko Sur, Centro Sur, Kie-Ntem, Littoral, Wele-Nzas.
Political parties: The ruling party is the Partido Democratico de Guinea Ecuatorial (PDGE), formed July 30, 1987. Numerous other parties were allowed to form in the early 1990s.
Suffrage: 18 years of age; universal adult.

Economy
GDP (2005 est.): $25.69 billion.
GDP growth rate (2004 est.) 25.7%.
Inflation rate (2004 est. average): 5.8%.
Unemployment rate: (1998 est.) 30%.
Natural resources: Petroleum, timber, small, unexploited deposits of gold, manganese, and uranium.
Agriculture (1999 est.): 16% of GDP. Products--coffee, cocoa, rice, yams, cassava (tapioca), bananas, palm oil nuts, manioc, livestock, and timber.
Industry (1999 est.): 75.3% of GDP. Types--petroleum, fishing, saw milling, natural gas.
Services (2001): 4.1% of GDP.
Trade (2003 est.): Exports--$2.6 billion: hydrocarbons (97%), timber (2%), others (1%). Imports--$1.2 billion. Major trading partners--United States, Spain, China, Canada, France, Great Britain, Cameroon and Norway.
Currency: Communaute Financiere Africaine (CFA) Franc.

GEOGRAPHY
The Republic of Equatorial Guinea is located in west central Africa. Bioko Island lies about 40 kilometers (25 mi.) from Cameroon. Annobon Island lies about 595 kilometers (370 mi.) southwest of Bioko Island. The larger continental region of Rio Muni lies between Cameroon and Gabon on the mainland; it includes the islands of Corisco, Elobey Grande, Elobey Chico, and adjacent islets.

Bioko Island, called Fernando Po until the 1970s, is the largest island in the Gulf of Guinea--2,017 square kilometers (780 sq. mi.). It is shaped like a boot, with two large volcanic formations separated by a valley that bisects the island at its narrowest point. The 195-kilometer (120-mi.) coastline is steep and rugged in the south but lower and more accessible in the north, with excellent harbors at Malabo and Luba, and several scenic beaches between those towns.

On the continent, Rio Muni covers 26,003 square kilometers (10,040 sq. mi.). The coastal plain gives way to a succession of valleys separated by low hills and spurs of the Crystal Mountains. The Rio Benito (Mbini), which divides Rio Muni in half, is unnavigable except for a 20-kilometer stretch at its estuary. Temperatures and humidity in Rio Muni are generally lower than on Bioko Island.

Annobon Island, named for its discovery on New Year's Day 1472, is a small volcanic island covering 18 square kilometers (7 sq. mi.). The coastline is abrupt except in the north; the principal volcanic cone contains a small lake. Most of the estimated 1,900 inhabitants are fisherman specializing in traditional, small-scale tuna fishing and whaling. The climate is tropical--heavy rainfall, high humidity, and frequent seasonal changes with violent windstorms.

PEOPLE
The majority of the Equatoguinean people are of Bantu origin. The largest tribe, the Fang, is indigenous to the mainland, but substantial migration to Bioko Island has resulted in Fang dominance over the earlier Bantu inhabitants. The Fang constitute 80% of the population and are themselves divided into 67 clans. Those in the northern part of Rio Muni speak Fang-Ntumu, while those in the south speak Fang-Okah; the two dialects are mutually unintelligible. The Bubi, who constitute 15% of the population, are indigenous to Bioko Island. In addition, there are coastal tribes, sometimes referred to as "Playeros," consisting of Ndowes, Bujebas, Balengues, and Bengas on the mainland and small islands, and "Fernandinos," a Creole community, on Bioko. Together, these groups comprise 5% of the population. There are also foreigners from neighboring Cameroon, Nigeria, and Gabon.

Spanish and French are both official languages, though use of Spanish predominates. The Roman Catholic Church has greatly influenced both religion and education.

Equatoguineans tend to have both a Spanish first name and an African first and last name. When written, the Spanish and African first names are followed by the father's first name (which becomes the principal surname) and the mother's first name. Thus people may have up to four names, with a different surname for each generation.

HISTORY
The first inhabitants of the region that is now Equatorial Guinea are believed to have been Pygmies, of whom only isolated pockets remain in northern Rio Muni. Bantu migrations between the 17th and 19th centuries brought the coastal tribes and later the Fang. Elements of the latter may have generated the Bubi, who immigrated to Bioko from Cameroon and Rio Muni in several waves and succeeded former Neolithic populations. The Annobon population, native to Angola, was introduced by the Portuguese via Sao Tome.

The Portuguese explorer, Fernando Po (Fernao do Poo), seeking a route to India, is credited with having discovered the island of Bioko in 1471. He called it Formosa ("pretty flower"), but it quickly took on the name of its European discoverer. The Portuguese retained control until 1778, when the island, adjacent islets, and commercial rights to the mainland between the Niger and Ogoue Rivers were ceded to Spain in exchange for territory in South America (Treaty of Pardo). From 1827 to 1843, Britain established a base on the island to combat the slave trade. The Treaty of Paris settled conflicting claims to the mainland in 1900, and periodically, the mainland territories were united administratively under Spanish rule.

Spain lacked the wealth and the interest to develop an extensive economic infrastructure in what was commonly known as Spanish Guinea during the first half of this century. However, through a paternalistic system, particularly on Bioko Island, Spain developed large cacao plantations for which thousands of Nigerian workers were imported as laborers. At independence in 1968, largely as a result of this system, Equatorial Guinea had one of the highest per capita incomes in Africa. The Spanish also helped Equatorial Guinea achieve one of the continent's highest literacy rates and developed a good network of health care facilities.

In 1959, the Spanish territory of the Gulf of Guinea was established with status similar to the provinces of metropolitan Spain. As the Spanish Equatorial Region, a governor general ruled it exercising military and civilian powers. The first local elections were held in 1959, and the first Equatoguinean representatives were seated in the Spanish parliament. Under the Basic Law of December 1963, limited autonomy was authorized under a joint legislative body for the territory's two provinces. The name of the country was changed to Equatorial Guinea. Although Spain's commissioner general had extensive powers, the Equatorial Guinean General Assembly had considerable initiative in formulating laws and regulations.

In March 1968, under pressure from Equatoguinean nationalists and the United Nations, Spain announced that it would grant independence to Equatorial Guinea. A constitutional convention produced an electoral law and draft constitution. In the presence of a UN observer team, a referendum was held on August 11, 1968, and 63% of the electorate voted in favor of the constitution, which provided for a government with a General Assembly and a Supreme Court with judges appointed by the president.

In September 1968, Francisco Macias Nguema was elected first president of Equatorial Guinea, and independence was granted in October. In July 1970, Macias created a single-party state and by May 1971, key portions of the constitution were abrogated. In 1972 Macias took complete control of the government and assumed the title of President-for-Life. The Macias regime was characterized by abandonment of all government functions except internal security, which was accomplished by terror; this led to the death or exile of up to one-third of the country's population. Due to pilferage, ignorance, and neglect, the country's infrastructure--electrical, water, road, transportation, and health--fell into ruin. Religion was repressed, and education ceased. The private and public sectors of the economy were devastated. Nigerian contract laborers on Bioko, estimated to have been 60,000, left en masse in early 1976. The economy collapsed, and skilled citizens and foreigners left.

In August 1979, Macias' nephew from Mongomo and former director of the infamous Black Beach prison, Teodoro Obiang Nguema Mbasogo, led a successful coup d'etat; Macias was arrested, tried, and executed. Obiang assumed the Presidency in October 1979. Obiang initially ruled Equatorial Guinea with the assistance of a Supreme Military Council. A new constitution, drafted in 1982 with the help of the United Nations Commission on Human Rights, came into effect after a popular vote on August 15, 1982; the Council was abolished, and Obiang remained in the presidency for a 7-year term. He was reelected in 1989. In February 1996, he again won reelection with 98% of the vote; several opponents withdrew from the race, however, and international observers criticized the election. Subsequently, Obiang named a new cabinet, which included some opposition figures in minor portfolios.

Despite the formal ending of one-party rule in 1991, President Obiang and a circle of advisors (drawn largely from his own family and ethnic group) maintain real authority. The President names and dismisses cabinet members and judges, ratifies treaties, leads the armed forces, and has considerable authority in other areas. He appoints the governors of Equatorial Guinea's seven provinces. The opposition had few electoral successes in the 1990s. By early 2000, President Obiang’s PDGE party fully dominated government at all levels. In December 2002, President Obiang won a new seven-year mandate with 97% of the vote. Reportedly, 95% of eligible voters voted in this election, although many observers noted numerous irregularities.

GOVERNMENT
The 1982 constitution gives the President extensive powers, including naming and dismissing members of the cabinet, making laws by decree, dissolving the Chamber of Representatives, negotiating and ratifying treaties and calling legislative elections. The President retains his role as commander in chief of the armed forces maintains close supervision of military activity. In June 2004, the President reorganized the cabinet and created two new positions: Minister of National Security and Director of National Forces. The Prime Minister is appointed by the President and operates under powers designated by the President. The Prime Minister coordinates government activities in areas other than foreign affairs, national defense and security.

The Chamber of Representatives is comprised of 100 members elected by direct suffrage for 5-year terms. In practice, the Chamber is not independent and rarely acts without presidential approval or direction. A new National Assembly was directly elected in April 2004. There are 100 members in this body, of which 14 are from the loyal opposition and 2 from opposition parties (the CPDS: Convergencia Para la Democracia Social).

The President appoints the governors of the seven provinces. Each province is divided administratively into districts and municipalities. The internal administrative system falls under the Ministry of Territorial Administration; several other ministries are represented at the provincial and district levels.

The judicial system follows similar administrative levels. At the top are the President and his judicial advisors (the Supreme Court). In descending rank are the appeals courts, chief judges for the divisions, and local magistrates. Tribal laws and customs are honored in the formal court system when not in conflict with national law. The current court system, which often uses customary law, is a combination of traditional, civil, and military justice, and it operates in an ad hoc manner for lack of established procedures and experienced judicial personnel.

The other official branch of the government is the State Council. The State Council's main function is to serve as caretaker in case of death or physical incapacity of the President. It comprises the following ex officio members: the President of the Republic, the Prime Minister, the Minister of Defense, the President of the National Assembly and the Chairman of the Social and Economic Council.

Although the abuses and atrocities that characterized the Macias years have been eliminated, effective rule of law does not exist and the government is ultimately run by the Presidency. Religious freedom is tolerated.

Principal Government Officials
President--Teodoro Obiang Nguema Mbasogo, Brig. Gen. (ret.)
Prime Minister--Miguel Abia Biteo
Minister of Foreign Affairs and International Cooperation--Pastor Micha Ondo Bile
Ambassador to the United States--Purification Angue Ondo

Equatorial Guinea maintains an embassy at 2020 16th Street NW, Washington, DC 20009 (Tel. (202) 518-5700, Fax. (202) 518-5252). Its mission to the United Nations is at 801 Second Avenue, Suite 1403, New York, N.W. 10017 (Tel. 212-599-1523).

POLITICAL CONDITIONS
In the period following Spain's grant of local autonomy to Equatorial Guinea in 1963, there was a great deal of political party activity. Bubi and Fernandino parties on the island preferred separation from Rio Muni or a loose federation. Ethnically based parties in Rio Muni favored independence for a united country comprising Bioko and Rio Muni, an approach that ultimately won out. (The Movimiento para la Auto-determinacion de la Isla de Bioko (MAIB) which advocates independence for the island under Bubi control, is one of the offshoots of the era immediately preceding independence). After the accession of Macias to power, political activity largely ceased in Equatorial Guinea. Opposition figures who lived among the exile communities in Spain and elsewhere agitated for reforms; some of them had been employed in the Macias and Obiang governments. After political activities in Equatorial Guinea were legalized in the early 1990s, some opposition leaders returned, but repressive actions have continued sporadically.

The country’s first freely contested municipal elections were held in September 1995. Most observers agree that the elections themselves were relatively free and transparent and that the opposition parties garnered between two-thirds and three-quarters of the total vote. The government, however, delayed announcement of the results and then claimed a highly dubious 52% victory overall and the capture of 19 of 27 municipal councils. In early January 1996 Obiang called for presidential elections. International observers agreed that the campaign was marred by fraud, and most of the opposition candidates withdrew in the final week. Obiang claimed re-election with 98% of the vote. In an attempt to mollify his critics, Obiang gave minor portfolios in his cabinet to people identified as opposition figures. In the legislative election in March 1999, the party increased its majority in the 80-seat parliament from 68 to 75. The main opposition parties refused the seats they had allegedly won. In May 2000, the ruling PDGE overwhelmed its rivals in local elections. Opposition parties rejected the next election, the December 2002 Presidential election, as invalid. During this election, President Obiang was re-elected with 97% of the vote. Following his re-election Obiang formed a government based on national unity encompassing all opposition parties, except for the CPDS, which declined to join after Obiang refused to release one of their jailed leaders.

In April 2004, parliamentary and municipal elections took place. President Obiang's Democratic Party of Equatorial Guinea (PDGE) and allied parties won 98 of 100 seats in parliament and all but seven of 244 municipal posts. International observers criticized both the election and its results.

While President Obiang's rule, in which schools reopened, primary education expanded, and public utilities and roads restored, compares favorably with Macias' tyranny and terror, it has been criticized for not implementing genuine democratic reforms. Corruption and a dysfunctional judicial system disrupt the development of Equatorial Guinea's economy and society. In 2004, the President appointed a new Prime Minister, Miguel Abia Biteo, and replaced several ministers; however, the government budget still does not include all revenues and expenditures. The United Nations Development Program has proposed a broad governance reform program, but the Equatoguinean Government is not moving rapidly to implement it.

Equatorial Guinea suffered a severe human rights setback in May 2002 when a special tribunal convicted 68 prisoners and their relatives and sentenced them 6 to 20 years in prison for an alleged attempted coup d’etat. Among the prisoners were leaders of the three main opposition parties that had remained independent from President Obiang's ruling party. There were numerous irregularities associated with the trial, including evidence of torture and a lack of substantive proof. In August 2003, 31 of these convicted prisoners were granted a presidential amnesty.

In March 2004, Zimbabwean police in Harare impounded a plane from South Africa with 64 alleged mercenaries on board. The group said they were providing security for a mine in Democratic Republic of Congo, but a couple of days later an Equatorial Guinean minister said they had detained 15 more men who he claimed were the advance party for the group captured in Zimbabwe. Nick du Toit, the leader of the group of South Africans, Armenians and one German, in Equatorial Guinea, said at his trial in Equatorial Guinea that he was playing a limited role in a coup bid organized by Simon Mann, the alleged leader of the group held in Zimbabwe, to remove Obiang from power and install an exiled opposition politician, Severo Moto.

In September 2004, Mann was sentenced to seven years in jail in Zimbabwe after being convicted of illegally trying to buy weapons. Others arrested with him were acquitted of any links to a suspected coup attempt after magistrates said prosecutors had failed to prove their case but were convicted on immigration charges to one year in jail. Both Mann's trial in Zimbabwe and the Equatorial Guinea trial began amid complaints of abuse and unfair treatment from relatives of those being held. One suspect, a German, died in prison in Equatorial Guinea of malaria (Amnesty International believes that he died as a result of the effects of torture, and has called for an investigation). In Equatorial Guinea in November 2004, a total of 22 people were convicted, including nine tried in absentia. Three Equatoguineans and three South Africans were acquitted. In June 2005, President Obiang decided to grant amnesty to the six Armenian pilots.

Although Equatorial Guinea lacks a well-established democratic tradition comparable to the developed democracies of the West, it should be noted that, out of the anarchic, chaotic, and repressive conditions of the Macias years the country has made small, haphazard steps toward the development of participatory political system.

ECONOMY
Oil and gas exports have increased substantially and will drive the economy for years to come. Real GDP growth reached 18% in 2000, 66% in 2001, 20% in 2002, 10% in 2003 and 25.7% in 2004 (est.). Per capita income rose from about $590 in 1998 to $2,000 in 2000 and $5,300 today. The energy export sector is responsible for this rapid growth. Oil production increased from 81,000 barrels per day (bbl/d) in 1998 to more than 300,000 bbl/d by 2004, and is currently capped at 350,000 bbl/d. Exploration efforts continue in search of further potential offshore concessions.

Equatorial Guinea has other unexploited human and natural resources, including a tropical climate, fertile soils, rich expanses of water, deepwater ports, and an untapped, if unskilled, source of labor. Following independence in 1968, the country suffered under a repressive dictatorship for 11 years, which devastated the economy. The agricultural sector, historically known for cocoa of the highest quality, never fully recovered. In 1969, Equatorial Guinea produced 36,161 tons of highly bid cocoa, but production dropped to 4,800 tons in 2000 and 3,430 tons in 2002. It increased slightly from 2003 levels to 2,906 tons by 2004. Coffee production was 126,000 metric tons in 2002, up from 67000 tons 5 years earlier. Timber is the main source of foreign exchange after oil, though it now only accounts for 2% of total export earnings. Timber production increased steadily during the 1990s; wood exports reached a record 789,000 cubic meters in 1999 as demand in Asia (mainly China) gathered pace after the 1998 economic crisis. Since 1998, production of timber has fallen closer to a sustainable level. 530,500 cubic meters were sold in 2002. Most of the production (mainly Okoume) goes to exports, and only 3% is processed locally. Bioko Island has already suffered permanent damage due to earlier exploitation. Consumer price inflation has declined from the 38.8% experienced in 1994 following the CFA franc devaluation, to 7.8% in 1998, and 4.0% in 2000, according to BEAC data. Consumer prices inflation has remained steady at around 6% since 2002.

Equatorial Guinea's economic policies, as defined by law, comprise an open investment regime. Qualitative restrictions on imports, non-tariff protection, and many import licensing requirements were lifted in 1992 when the government adopted a public investment program endorsed by the World Bank. The Government of Equatorial Guinea has sold some state enterprises. It is attempting to create a more favorable investment climate, and its investment code contains numerous incentives for job creation, training, promotion of nontraditional exports, support of development projects and indigenous capital participation, freedom for repatriation of profits, exemption from certain taxes and capital, and other benefits. Trade regulations have been further liberalized since Central African Economic and Monetary Union (CEMAC) reform codes in 1994. This included elimination of quota restrictions and reductions in the range and amounts of tariffs. The CEMAC countries agreed to the introduction of a value added tax (VAT) in 1999.

While business laws promote a liberalized economy, the business climate remains difficult. Application of the laws remains selective. Corruption among officials is widespread, and many business deals are concluded under nontransparent circumstances. A newly introduced wage law now regulates separate wage levels for the petroleum, private and government sector.

There is little industry in the country, and the local market for industrial products is small. The government seeks to expand the role of free enterprise and to promote foreign investment but has had little success in creating an atmosphere conducive to investor interest.

The Equatoguinean budget has grown enormously in the past 5 years as royalties and taxes on foreign company oil and gas production have provided new resources to a once poor government. The 2005 government revenue was about $1.97 billion. Oil revenues account for more than 81% of government revenue. Value Added Tax and trade taxes are other large revenue sources for the government.

The Equatoguinean Government has undertaken a number of reforms since 1991 to reduce its predominant role in the economy and promote private sector development. Its role is a diminishing one, although many government interactions with the private sector are at times capricious. The government is anxious for greater U.S. investment. Beginning in early 1997, the government initiated efforts to attract significant private sector involvement through cooperative efforts with the Corporate Council on Africa visit and numerous ministerial efforts. In 1998, the government privatized distribution of petroleum products. There are now Total and Mobil stations in the country. The maritime border with Nigeria was settled in 2000, allowing Equatorial Guinea to continue exploitation of its oil fields. In October 2002, the government launched a national oil company, GEPetrol, under the Ministry of Mines and Hydrocarbons.

The government has expressed interest in privatizing the outmoded electricity utility. Several ports and a new terminal were built to accommodate the needs of the oil industry. A French company operates cellular telephone service in cooperation with a state enterprise. Most of the new infrastructure has not reached the average Equatoguinean living on the mainland. Agriculture, fishing, livestock, and tourism are among sectors the government would like targeted.

Equatorial Guinea's balance-of-payments situation has improved substantially since the mid-1990s because of new oil and gas production and favorable world energy prices. Exports totaled $6.72 billion in 2005. Crude oil exports now annually accounts for more than 97% of export earnings. Timber exports, by contrast, now represent only about 2% of export revenues. Imports into Equatorial Guinea also are growing very quickly. Imports totaled $1.86 billion in 2005.

Equatorial Guinea in the 1980s and 1990s received foreign assistance from numerous bilateral and multilateral donors, including European countries, the United States, and the World Bank. Many of these aid programs have ceased altogether or have diminished. Spain, France, and the European Union continue to provide some project assistance, as do China and Cuba. The government also has discussed working with World Bank assistance to develop government administrative capacity.

Equatorial Guinea operated under an International Monetary Fund-negotiated Enhanced Structural Adjustment Facility (ESAF) until 1996. Since then, there have been no formal agreements or arrangements. However, since 1996, the IMF has held regular held Article IV consultations (periodic country evaluations). After the 2003 consultations, IMF directors stressed the need for further improvements in governance and transparency, the attainment of a sustainable fiscal position, the implementation of structural reforms to bolster the non-oil sector, the development of a transparent framework for saving and managing part of the country’s oil wealth and a comprehensive effort to reduce poverty.

Trade and Investment
With investments estimated at $11 billion, the United States is the largest cumulative bilateral foreign investor in Equatorial Guinea. In 2003, 74% of U.S. exports to Equatorial Guinea consisted of energy sector-related transportation and machinery equipment. The United States' main import from Equatorial Guinea is petroleum (99% of imports in 2003). In 1999, the European Union (EU) imported $281.7 million in goods from Equatorial Guinea, 89% of which was petroleum and 7% timber. The European Union exported $104 million to Equatorial Guinea. Approximately 20% of these exports were oil and gas-related, and the remaining 80% ranged from agricultural products to clothing to used cars.

Infrastructure
Infrastructure is generally old and in poor condition. Surface transport options are increasing as the government has invested heavily in road pavement projects. In 2002, the African Development Bank and the European Union co-financed two projects to improve the paved roads from Malabo to Luba and Riaba; and to build an interstate road network to link Equatorial Guinea to Cameroon and Gabon. The Chinese are undertaking a project to link Mongomo to Bata, both cities on the mainland. In November 2003, the government announced an ambitious ten-project program to upgrade the country’s road network and improve the airport facilities at Bata, the country’s second city (on the mainland). A new road links Malabo with the airport and there have been improvements in the city. The program is estimated to cost hundreds of millions of dollars, but there are doubts over the capacity of the government to manage such a huge scheme.

Estimates of Equatorial Guinea's electricity generating capacity vary, with 15.4 megawatts (MW) of certain installed capacity, and 5-30 MW of estimated additional capacity. About 5.0 MW are located on the mainland, including 4 MW of oil-fired thermal capacity and 1 MW of hydroelectric capacity. Bioko Island receives electricity from two thermal plants and one hydroelectric plant. The expansion of natural gas production at the Alba field in recent years has provided a convenient fuel source for new power generation in the country. The 10.4-MW, natural gas-fired Punta Europa plant began operation in 1999, supplying gas-fired electricity to Bioko Island. Another 4-6 MW of generation capacity is currently under construction at the AMPCO complex on the island. Equatorial Guinea is estimated to have 2,600 MW of hydropower potential.

Equatorial Guinea's electricity sector is owned and operated by the state-run monopoly, SEGESA. The power supply is unreliable, due to aging equipment and poor management, as demonstrated by regular blackouts in Malabo. As a result, small diesel generators are widely used as a back-up source of power supply. In Malabo, the American company, Marathon Oil, built a 30 mega-watt electric power plant financed by the government, which came on line in mid-2000.

Potable water is available in the major towns but is not always reliable because of poor maintenance and mismanagement; consequently, supply interruptions are often frequent and prolonged in some neighborhoods. Some villages and rural areas are equipped with generators and water pumps, usually owned by private individuals.

Telecommunications have improved dramatically in recent years. Parastatal Getesa, a joint venture with a 40% ownership stake held by France Telecom, provides telephone service in the major cities through an efficient, digital fixed network and good mobile coverage. Getesa’s fixed-line service has 9,000 subscribers and the mobile service has 28,000. Internet access is limited and has yet to make an impact on the dissemination of information.

Equatorial Guinea has two of the deepest Atlantic seaports of the region, including the main business and commercial port city of Bata. The ports of both Malabo and Bata are severely overextended and require extensive rehabilitation and reconditioning. In partnership with a U.S. petroleum company, Amerada Hess, a British company, Incat, has made significant progress in a project to renovate and expand Luba, the country's third-largest port, located on Bioko Island. The government hopes Luba will become a major transportation hub for offshore oil and gas companies operating in the Gulf of Guinea. Luba is located some 50 kilometers from Malabo and was previously virtually inactive except for minor fishing activities and occasional use to ease congestion in Malabo. Riaba, the only other port of any scale on Bioko, is less active. The continental ports of Mbini and Cogo have deteriorated as well and are now used primarily for timber.

Five small airlines now offer regular daily services between the two cities of Malabo and Bata and nearby neighboring countries. A few aging Soviet-built aircraft operated by several small carriers (one state-owned, the others private,) constitute this national aircraft fleet. In March of 2006 the European Union fully banned most airlines based in Equatorial Guinea from flying into the EU. The influx of oil workers has increased international air activity. Major international carriers now connect Malabo to the European cities of Amsterdam, Paris, Madrid and Zurich. A weekly business-class charter flight was providing service to Houston, Texas. The runway at Malabo’s international airport (3,200 meters) is equipped with lights and can service equipment similar to DC-10s and C130s. The runway at Bata (2,400 meters) does not operate at night but can accommodate aircraft as large as B737s. Two minor airstrips (800 meters) are located at Mongomo and on the island of Annobon.

Energy Developments
Oil is Equatorial Guinea's most valuable asset. Since the discovery of the Zafiro field in 1995, production has increased more than tenfold, and oil has quickly become the country's most important export commodity, accounting for nearly 90% of the value of total exports in 2003. Equatorial Guinea is now the third largest producer of crude oil in sub-Saharan Africa, after Nigeria and Angola. Equatorial Guinea's oil reserves are located mainly in the hydrocarbon-rich Gulf of Guinea, containing estimated probable reserves as high as 10% of the world total. As a result, large amounts of foreign investment primarily by U.S. companies have poured into the country's oil sector in recent years.

Oil production from Equatorial Guinea is expanding rapidly, averaging 237,500 bbl/d in 2003, of which 206,000 was crude. This represents a tremendous increase from the 1996 oil output of 17,000 bbl/d. Production improvements and expansion projects undertaken in 2003 pushed petroleum output even higher, resulting in average production of 350,000 bbl/d for the first half of 2004. In October 2004, the government capped production levels at 350,000 bbl/d to extend the life of the country's petroleum reserves. Three fields--Zafiro, Ceiba, and Alba--currently account for the majority of the country's oil output.

Equatorial Guinea's oil profits have expanded since 1998, when the country introduced more liberal regulatory and profit sharing arrangements for hydrocarbon exploration and production activities, including revised and updated Production Sharing Contracts (PSCs). As a result, government oil revenues increased from 13% to 20% of total oil export earnings. Although significant, the government's share is still relatively small by international standards.

In 2001, GEPetrol became Equatorial Guinea's national oil company. It was established as the primary state-run institution responsible for the country's downstream oil sector activities. However, since 2001 its primary focus has become managing the government's interest stakes in various PSCs with foreign oil companies. GEPetrol also partners with foreign firms to undertake exploration projects and has a say in the country's environmental policy implementation. Plans to increase the government's stake in new and existing PSCs have been discussed, but not formally pursued.

The majority of the reserves are found in the Zafiro field, located northwest of Bioko Island and south of Nigeria's offshore oil fields. In recent years, Exxon Mobil has focused on increasing production from Zafiro, expanding drilling capacity to accommodate this plan. Zafiro is Equatorial Guinea's largest oil producer, with output rising from an initial level of 7,000 bbl/d in August 1996 to approximately 280,000 bbl/d by 2004. Ceiba, Equatorial Guinea's second major producing oil field, is located just offshore of Rio Muni and is estimated to contain 300 million barrels of oil. Production at Ceiba has risen dramatically during the past 2-3 years, following improvements and upgrades to the facility. Alba, Equatorial Guinea's third significant field was discovered in 1991. Original estimates of reserves at Alba were around 68 million barrels of oil equivalent (BOE), but recent exploration has increased new estimates significantly, to almost 1 billion BOE. Unlike the Zafiro or Ceiba fields, exploration and production at Alba has focused on natural gas, including condensates.

Ceiba's discovery has significantly increased interest in petroleum exploration of surrounding areas, with many new companies acquiring licenses in exploration blocks further offshore in the Rio Muni basin. International companies with interests in one or more exploration blocks include Chevron (U.S.), Vanco Energy (U.S.), Atlas Petroleum International (US), Devon Energy (US), Roc Oil (Australia), Petronas (Malaysia), Sasol Petroleum (South Africa), and Glencore (Switzerland). In October 2004, Noble Energy Equatorial Guinea, an Equatoguinean subsidiary of American Noble Energy, Inc. signed a contract to exploit a new oil field off the island of Bioko. Equatorial Guinea's total proven oil reserves are estimated at 1.1 billion barrels.

Equatorial Guinea's natural gas reserves are located offshore Bioko Island, primarily in the Alba and Zafiro oil and gas fields. Natural gas and condensate production in Equatorial Guinea has expanded rapidly in the last five years in response to new investments by major stakeholders in the Alba natural gas field. Alba, the country's largest natural gas field, contains 1.3 trillion cubic feet (Tcf) of proven reserves, with probable reserves estimated at 4.4 Tcf or more.

Marathon Oil and GE Petrol have joined together in a $1.4 billion deal to construct a liquefied natural gas (LNG) facility on Bioko Island. In May 2003, the government gave final approval for the plan to construct an LNG plant, once Marathon and GE Petrol had secured a 17-year purchase agreement with British Gas (BG) of the United Kingdom. Under the contract, the LNG facility will supply 3.4 million tons of LNG to BG, beginning in 2007. In June 2005, Marathon and GE Petrol restructured the deal to include two Japanese companies, Mitsui and Marubeni, as minority shareholders. Natural gas consumption in Equatorial Guinea has increased in recent years, along with higher production. Natural gas consumption jumped to 45 Bcf in 2002, from approximately 1 Bcf during each of the four previous years.

DEFENSE
The Equatoguinean military consists of approximately 2500 service members. The largest contingent is the Army with 1400 soldiers; the police have 400 para-military policemen, the Navy has 200 members and the Air Force has approximately 120. There is a Gendarmerie but the exact number of members is unknown. All are very poorly trained, but the government is steadily purchasing new equipment from Ukraine and China among others. In 2003, the government spent $75 million on military expenditures, about 9% of the 2002 budget. Neither the Navy nor the Air Force has trained crews to operate or maintain their equipment. Family and ethnic ties to the president determine promotions and influence within the military. Military decision-making is completely centralized with the President also serving as the Minister of Defense.

Between 1984 and 1992, service members went regularly to the United States on the International Military Education Training program, after which funding for this program for Equatorial Guinea ceased. U.S. military-to-military engagement has been dormant since 1997 (the year of the last Joint Combined Exchange Training Exercise), although their representatives did attend a recent military hosted conference on Gulf of Guinea Security Cooperation.

FOREIGN RELATIONS
A transitional agreement, signed in October 1968, implemented a Spanish pre-independence decision to assist Equatorial Guinea and provided for the temporary maintenance of Spanish forces there. A dispute with President Macias in 1969 led to a request that all Spanish troops immediately depart, and a large number of civilians left at the same time. Diplomatic relations between the two countries were never broken but were suspended by Spain in March 1977 in the wake of renewed disputes. After Macias' fall in 1979, President Obiang asked for Spanish assistance, and since then, Spain has regained its place of influence in Equatorial Guinea. The two countries signed permanent agreements for economic and technical cooperation, private concessions, and trade relations. Spain maintained a bilateral assistance program in Equatorial Guinea. Most Equatoguinean opposition elements (including a purported government-in-exile) are based in Spain to the annoyance of the Equatoguinean Government. Relations between the two countries grew difficult after the March 2004 coup attempt due to their hosting opposition figure Severo Moto and their belief that Spain had foreknowledge of the coup. However, the Spanish Foreign Minister, Miguel Angel Moratinos, visited Equatorial Guinea in March 2005.

Equatorial Guinea has had generally cordial relations with its neighbors. It is a member of the Central African Economic and Monetary Union (CEMAC), which includes Cameroon, Central African Republic, Chad, Congo/Brazzaville, and Gabon. Equatorial Guinea is also part of the central Africa CFA franc zone and the Cameroon-based Bank of Central African States coordinates monetary policy. The Bank of France guarantees the CFA franc, and French technical advisers work in the finance and planning ministries. France, Spain, Cuba, and China have participated in infrastructure and technical development projects.

Equatorial Guinea had a minor border dispute with Cameroon that was resolved by the International Court of Justice in 2002. The Corisco border dispute with Gabon was solved by an agreement signed with the help of UN mediation in January 2004, but the small island of Mbane and potentially oil-rich waters surrounding it remain contested. The majority Fang ethnic group of mainland Equatorial Guinea extends both north and south into the forests of Cameroon and Gabon. Cameroon exports some food products to Equatorial Guinea and imports oil from Equatorial Guinea for its refinery at nearby Limbe. The development of the oil industry by U.S.-based companies and the lack of a well-trained work force have provided motivation for an influx of English-speaking workers (legal and illegal) from Cameroon, Nigeria and Ghana. (However, relations with the Nigerian government have lately been cordial as the two countries delineated their offshore borders to facilitate development of nearby gas fields.) Roundups and expulsion of foreigners following the March 2004 coup attempt revived tensions between these neighbors.

The government's official policy is one of nonalignment and it has been reluctant to fully integrate itself into CEMAC. In its search for assistance to meet the goal of national reconstruction, the Government of Equatorial Guinea has established diplomatic relations with numerous European and Third World Countries.

U.S.-EQUATORIAL GUINEA RELATIONS
The Equatoguinean government favorably views the U.S. Government and American companies. The United States is the largest single foreign investor in Equatorial Guinea. U.S. companies have the largest and most visible foreign presence in the country. In an effort to attract increased U.S. investment, American passport-holders are entitled to visa-free entry for short visits. The United States is the only country with this privilege.

With the increased U.S. investment presence, relations between the U.S. and the Government of Equatorial Guinea have been characterized by a positive, constructive relationship. In 2003, the Department of State re-opened a limited embassy in Malabo after an 8-year absence. Under the current arrangement, the U.S. Ambassador in Yaounde remains concurrently accredited to Cameroon and Equatorial Guinea. Consular responsibilities will remain with the U.S. embassy in Yaounde for the foreseeable future, though the embassy maintains a consular agent in Bata.

Equatorial Guinea maintains an embassy in Washington, DC. President Obiang has strived to cultivate the Equatorial Guinea-U.S. relationship with regular visits to the U.S. for meetings with senior government and business leaders.

The 2005 U.S. State Department Human Rights report on Equatorial Guinea cited shortcomings in basic human rights, political freedom, and labor rights. Equatorial Guinea attributes deficiencies to excessive zeal on the part of local authorities and promises better control and sensitization. U.S. government policy involves constructive engagement with Equatorial Guinea to encourage an improvement in the human rights situation and positive use of petroleum funds directed toward the development of a working civil society. Equatoguineans visit the U.S. under programs sponsored by the U.S. Government, American oil companies and educational institutions. The Ambassador's Self-Help Fund annually finances a number of small grassroots projects.

In view of growing ties between U.S. companies and Equatorial Guinea, the U.S. Government's overseas investment promotion agency, the Overseas Private Investment Corporation (OPIC), has concluded the largest agreement in Sub-Saharan Africa for a major U.S. project in Equatorial Guinea. The U.S. Agency for International Development has no Equatorial Guinea-related programs or initiatives nor is the Peace Corps present. American-based non-governmental organizations and other donor groups have very little involvement in the country.

Principal U.S. Embassy Officials
Ambassador--Niels Marquardt (resident in Yaounde, Cameroon)
Chargé d'Affaires (Malabo)--Sarah Morrison