US embassy cable - 04KINSHASA2167

UNCLAS KINSHASA 002167 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EAID, EFIN, ECON, CG 
SUBJECT: CONSULTATIVE GROUP PLEDGES $5.7 BILLION FOR DRC 
 
1.  Summary.   The Paris Club Consultative Group met in 
Kinshasa November 11-12 to review the DRC's economic 
transition and recovery program (Minimum Partnership Program 
for Transition and Recovery - MPPTR), and to pledge support 
for the country's development needs over the next 3-4 years. 
Of a total of $6.9 billion requested by the GDRC, donors 
pledged $5.7 billion.  With an additional $1 billion already 
invested in current projects, World Bank sources indicate 
that almost all of the GDRC's MPPTR needs will be funded. 
End summary. 
 
2.  The GDRC, after consultation with the World Bank and the 
IMF, formally presented a $6.9 billion program for economic 
development over the next 3-4 years.  It asked donors in the 
Consultative Group to fund 16 key areas:  macroeconomic 
management ($1.24 billion); transport ($919 million); health 
($651 million); water ($621 million); education ($620 
million); energy ($598 million); urban development ($409 
million); Disarmament, Demobilization, Reintegration and 
Security Sector Reform ($325 million); elections ($285 
million); agriculture ($258 million); productive sectors 
($255 million); HIV/AIDS ($250 million); governance ($181 
million); social and humanitarian ($170 million); environment 
($50 million); and scientific research ($37 million).  The 
government said it intends to supplement all international 
assistance received with a 10% contribution of its own. 
 
3.  Opening the meeting on November 11, President Kabila 
asked donors to "take into account the government's efforts" 
on the macroeconomic front, highlighting achievements in 
reducing inflation, increasing GDP growth, and stabilizing 
the monetary exchange rate.  The President made a plea for 
donor pledges to be translated into rapid disbursements so 
that the government can get on with its program of rebuilding 
infrastructure and revamping the economy. 
 
4.  Kabila's positive message on the economy was reinforced 
by a generally upbeat assessment from an IMF mission in 
Kinshasa at the same time (septel).  Donors responded 
favorably, and the level of pledges was surprisingly high. 
As Emmanuel Mbi, outgoing Director of Operations for Central 
Africa at the World Bank, subsequently pointed out, it is 
very unusual to see such a large-scale program to be fully 
funded at a donor's meeting. 
 
5.  The GDRC was likewise satisfied with the outcome. 
Minister of Plan Alexis Thambwe said the government was "very 
pleasantly surprised by our partners" who had clearly 
signaled they "believe in our country."  The one sour note 
came from Finance Minister Andre Philippe Futa who complained 
that donors were only funneling 40% of their assistance 
directly through the GDRC. 
 
6.  USAID/DRC Mission Director provided opening and pledging 
statements.  He highlighted USG commitment to support a 
successful transition in the DRC and the achievements made by 
the DRC over the past several years.  He noted, however, that 
positive achievements are tempered by continued political 
instability and conflict.  He reported the USG provided more 
than $110 million to support development and humanitarian 
assistance programs in the DRC in FY04.  The USG plans to 
continue its important development activities in the areas of 
health, civil society building, human rights, gender 
violence, conflict resolution, agriculture and livelihoods 
promotion, basic education, environment and the reintegration 
of ex-combatants.  The USG will also continue to support 
humanitarian efforts, particularly in eastern DRC. 
 
7.  Comment:  The Consultative Group meeting has to be seen 
as a success by the GDRC.   While donors reiterated ongoing 
concerns about important aspects of the GDRC's economic 
performance and management, their pledges are a clear 
indication of strong support for the Transition and for the 
efforts made thus far to rebuild a war-ravaged economy.  End 
summary. 
MEECE