US embassy cable - 04YEREVAN1641

UNCLAS SECTION 01 OF 02 YEREVAN 001641 
 
SIPDIS 
 
SENSITIVE 
 
DEPT FOR EUR/CACEN, EUR/ACE, EUR/PGI, DRL, EB 
DEPT PLEASE PASS USAID AND MCC 
 
E.O. 12958: N/A 
TAGS: PREL, PGOV, EAID, AM 
SUBJECT:  MCA BI-WEEKLY REPORT -- JULY 26, 2004 
 
REFS: A) YEREVAN 1556  B) HYUSYAN-DUTKEWYCH JULY 22 E-MAIL 
 
 
Sensitive but unclassified.  Please treat accordingly. 
 
------- 
SUMMARY 
------- 
 
1. (U) The GOAM has indicated that it may be ready to 
present its MCA compact proposal to the GOAM's MCA Board by 
September 1, and to follow this with a consultative process 
that we understand will include the donor community here.  A 
recent consultative session in Armenia's Syunik region was a 
first-hand indication for Emboffs that the GOAM has taken 
the MCA process to the people, but that logistical 
complications resulting from using the country's Poverty 
Reduction Strategy Paper (PRSP) consultative structures may 
be causing the GOAM to miss some of its target audience. 
The GOAM acknowledged this issue during a recent GOAM MCA 
Board meeting and told the Embassy that it is addressing the 
problem and repeating meetings where all NGOs might not have 
had the opportunity to attend.  Recent press releases 
regarding high-level USG-GOAM meetings in Washington and in 
Yerevan have put MCA-related issues back in the media 
spotlight.  End Summary. 
 
------------------------------------------- 
GOAM AIMS FOR SEPTEMBER 1 INTERNAL DEADLINE 
------------------------------------------- 
 
2. (U) MCA issues dominated discussion during a July 21 
meeting of Armenia's PRSP commission (ref B).  USAID and IFI 
representatives attended the meeting at the GOAM's 
invitation.  Minister of Finance and Economy Vardan 
Khachatryan announced during the meeting that the GOAM was 
reviewing the input and proposals from a number of NGOs and 
international organizations and would incorporate them to 
the extent possible into the GOAM's compact proposal by its 
internal September 1 deadline.  According to Khachatryan, 
the GOAM will submit the proposal o/a that date to the GOAM 
MCA Board for comment and review.  We understand that this 
will be followed by another round of public consultations, 
which will also include the donor community here, prior to 
submitting the compact proposal to the MCC. 
 
3. (U) The MFE acknowledged publicly during the meeting that 
the use of the GOAM's PRSP consultative structure has caused 
some confusion in some cases and may have "unintentionally 
missed some of the NGO community."  It was also reported on 
the sidelines of the meeting that the GOAM has instructed 
regional governments and PRSP NGO networks to repeat or 
expand consultative sessions in those areas where this may 
have occurred.  According to reports, select Yerevan-based 
NGOs that have not attended or commented on previous MCA 
discussions, including the Open Society Institute, have been 
recently approached by the GOAM's MCA Board and invited to 
hold consultative sessions with their affiliate NGOs and 
submit their comments this month. 
 
--------------------------------------------- ------- 
EMBOFFS ATTEND CONSULTATIVE SESSION IN SYUNIK REGION 
--------------------------------------------- ------- 
 
4. (U) Embassy and USAID representatives attended a 
consultative meeting co-hosted by the GOAM MCA Board and 
municipal leaders in the southern town of Goris on July 23. 
Approximately 25 people attended the meeting, including 
three representatives of the GOAM MCA board (whose official 
capacities include responsibility for implementation of the 
GOAM's PRSP).  NGOs sending representatives to the meeting 
included:  The Goris Teacher's Union; the PERAS 
Organization; the Partnership Arch; the Goris Boomerang; the 
Goris Karate Federation; the Goris Artists' Union; the Tteni 
Partnership; and the Employees' and Teachers' Union of the 
Goris Arts Center. 
5. (U) GOAM MCA Board representative and GOAM PRSP 
Coordinator Hovik Azizyan opened the meeting by explaining 
the GOAM's opinion that a tangible link should exist between 
the PRSP and any MCA compact submission.  Azizyan presented 
the general sectors in which the GOAM expected to submit a 
compact proposal (rural roads, irrigation, social sector 
including health and/or education).  NGOs took an active 
role in the ensuing discussion and appeared unhindered in 
voicing their opinions.  In a brainstorming session, NGO 
representatives and other attendees made a list of priority 
areas they want the GOAM to consider when completing its MCA 
compact proposal.  The final list ranked the areas as 
follows: 
-- rehabilitation of irrigation and drinking water systems 
-- school renovation and heating projects 
-- rehabilitation of rural roads 
-- job creation programs 
 
6. (SBU) NGOs, while calling the meeting mostly productive, 
voiced disappointment about what they perceived as 
lackluster participation by other NGOs in the region.  They 
said that some NGO representatives were confused about the 
nature of the consultations and thought its purpose was to 
discuss the implications of the PRSP, not the MCA. 
(Comment: Post has heard similar comments before.  While the 
PRSP mechanism has enabled the GOAM to quickly mobilize, it 
brings with it a certain amount of history and perhaps even 
prejudice on the part of some NGOs.  While far from totally 
debilitating it is a valid concern about the consultative 
process, which the GOAM appears committed to addressing - 
see para. 3 above. End Comment.)  NGOs called on the GOAM 
and local leaders to convene an additional meeting in Goris 
and pledged to "activate" their internal NGO network to 
ensure that more NGOs were present for the next meeting. 
 
------------------------------------- 
RECENT DOMESTIC PRESS COVERAGE ON MCA 
------------------------------------- 
 
7. (U) There has been an increase in MCA-related media 
reports during recent weeks.  There was generally objective 
reporting of Senior Presidential Economic Advisor Vahram 
Nercissiantz' mid-July meeting with the MCC Board in 
Washington.  In addition, MCA issues featured prominently in 
coverage of Ambassador Ordway's July 13 meeting with 
Minister of Finance and Economy Khachatryan.  Media reports 
tend to concentrate on the consultative process and 
emphasize the likely areas of concentration of Armenia's 
eventual MCA proposal (ref A).  GOAM and World Bank sources 
tell us that regular domestic coverage of the GOAM's MCA 
consultative process (including meeting proceedings and 
updates) continues on Armenia's public television network. 
The Armenian Embassy in Washington has already begun 
publicizing an August 18 press conference at the National 
Press Club in Washington with Nercissiantz as likely to 
cover MCA issues. 
ORDWAY