US embassy cable - 04AMMAN7506

UNCLAS AMMAN 007506 
 
SIPDIS 
 
SENSITIVE 
 
USDOC FOR 4520/ITA/MAC/ONE/PTHANOS 
TREASURY FOR OASIA - LARRY MCDONALD 
 
E.O. 12958: N/A 
TAGS: PREL, ECON, EAID, IZ 
SUBJECT: Iraqi Reconstruction Fund Facility for Iraq (IRFFI) 
Meeting Reviews State of Play 
 
 
1.  (SBU) On September 6 the Japanese Embassy in Amman 
hosted an information sharing meeting on the current 
activities of the Iraqi Reconstruction Fund Facility for 
Iraq (IRFFI) in the run up to the October 13-14 Tokyo Donor 
Conference.  The meeting was chaired by IRRFI Donor 
Committee chief Ambassador Akio Shirota, assisted by Interim 
Iraqi Government (IIG) Planning and Development Cooperation 
Minister Mehdi al-Hafedh, and the UN Development Group 
(UNDG) and World Bank IRFFI Trust Managers.  Attendees 
included representatives (mainly Ambassadors) of 
approximately twenty Amman-based Embassies. 
 
2.  (SBU) Shirota opened the meeting by distributing a draft 
agenda for day one of the October 13-14 Tokyo Donor 
Conference (faxed separately).  Planning Minister Mehdi 
stressed the IIG's desire to use the Tokyo conference as a 
vehicle to "present our vision of the future" and to obtain 
additional donor support.  Shirota commented that the Tokyo 
conference should indeed be a "celebratory event," 
underlining areas of significant progress that have been 
ignored by the media focus on acts of violence. 
 
IIG Working Toward an Iraq Development Strategy 
--------------------------------------------- -- 
 
3.  (SBU) Mehdi said that the IIG is preparing a 
comprehensive document to serve as a three-year Iraq 
"national development strategy," noting that the IIG hopes 
that this paper will serve as a basis for discussion at the 
Tokyo conference.  He promised to provide the strategy 
document to donor countries for review by late September 
2004.  In response to questions, Mehdi and Shirota assured 
attendees that donors will also be provided with a 
substantial list of development "success stories" and an 
overview of the current overall security situation at or 
before the Tokyo meeting. 
 
Iraq Trust Fund Developments 
---------------------------- 
 
4.  (SBU) The World Bank and UNDG trust fund managers 
outlined the status of funds received and projects awarded. 
The managers reported that both trust funds have nearly 
exhausted the over $720 million in pledged funds already 
deposited (approximately $200 million in pledged funds have 
not yet been provided).  Funded World Bank trust fund 
programs include approximately $100 million for education 
and school rehabilitation, $60 million for water and 
sanitation projects, $55 million for telecommunications 
projects, $90 million for other infrastructure, and $55 
million for private sector development.  Planned UNDG 
projects include $340 million split among 35 electricity, 
health, and education projects. 
 
5.  (SBU) The UNDG manager acknowledged that at least one 
major donor (read the USA) is considering re-directing its 
trust fund contribution away from electricity toward job- 
creation projects.  This evoked a comment from attending EU 
Director General Patrick Laurent that the EU may similarly 
adjust its outyear Iraq assistance strategy.  (Note: Laurent 
later privately confirmed that the EU will announce a new 
200 million Euro trust fund donation at the Tokyo 
Conference.  End Note.) 
 
Implementation Monitoring 
------------------------- 
 
6.  (SBU) The World Bank and the UNDG managers strongly 
praised the professionalism of their Iraqi counterparts at 
the senior and working level.  In response to questions on 
effective monitoring, the World Bank representative noted 
that the Bank is currently advertising for Iraqi companies 
to take over financial management and environment/social 
safety net responsibilities typically performed by World 
Bank in-country staff.  For his part the UNDG trust fund 
manager acknowledged that optimal efficiency cannot be 
ensured until full-time international UN staff begin working 
in Iraq, at a point in time yet unknown. 
 
7.  Baghdad minimize considered. 
 
Hale