US embassy cable - 04MANAMA1782

UNCLAS SECTION 01 OF 02 MANAMA 001782 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: AMGT, EAID, ECON, KDEM, KPAO, PREL, KMPI, BA 
SUBJECT: BAHRAIN: POST SUPPORT FOR MEPI PROGRAM IMPLEMENTERS 
 
REF: STATE 238836 
 
1. (U) Post appreciates this opportunity to provide feedback 
on our experiences working with MEPI implementers.  For the 
most part our experience has been positive, however, we would 
like to see better coordination on implementer travel 
including advance notice and contact information for those 
arranging logistics.  Embassy Manama would also like to be 
better integrated into the process of selecting MEPI projects 
for approval, to include regular updates of what topics are 
discussed at inter-agency pillar specific meetings in 
Washington.  As an example, we particularly appreciate the 
timeline of trade-related assistance provided by 
MEPI-Washington and suggest one be done for each pillar and 
be distributed to posts regularly.  We look forward to 
working with the MEPI regional office in Abu Dhabi on these 
kinds of issues.  Many of the challenges Embassy Manama faces 
in implementing MEPI programs are due to restrictions placed 
on the operation of both local and international NGOs by the 
GOB.  Comments are keyed to questions in para 4 of Reftel. 
 
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Registration of Local Offices 
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2. (U) At present there are two MEPI-funded implementers that 
have established offices in Bahrain, the National Democratic 
Institute (NDI) and the American Bar Association (ABA).  In 
the coming year we hope to have a resident representative 
from Junior Achievement and expect a representative from the 
Beyster Institute to head the BMENA entrepreneurship center 
for its first year.  There are no MEPI-funded implementers in 
Bahrain under existing USAID or other bilateral agreements. 
 
3. (U) Without a GOB mechanism for registering international 
NGOs, representatives from NDI and the ABA operate in Bahrain 
without being officially registered.  In addition, the ban on 
the funding of any local NGO by a foreign government or 
international NGO further limits implementation.  Both NDI 
and the ABA have developed unique mechanisms to cope with GOB 
restrictions, and we expect that post will have to work 
closely with the GOB and future MEPI implementers seeking to 
establish offices in the country to ensure they are able to 
operate effectively. 
 
4. (U) NDI partners with local NGOs implementing its 
programs.  NDI was originally in Bahrain at the behest and 
with the permission of the King's Court.  NDI was later 
requested to register with the Ministry of Labor and Social 
Affairs (MOLSA). However, after a period of negotiation it 
became clear that NDI would be not be able to register with 
MOLSA as a local association and has begun to negotiate a 
Memorandum of Understanding (MOU) with the Ministry of 
Foreign Affairs.  The MOU remains under review and until 
finalized NDI has been asked to refrain from scheduling any 
new activities.  However, projects already underway are being 
implemented. 
 
5. (U) The ABA, here at the behest and with the permission of 
the Minister of Justice, works within the Minister's office 
and keeps a low profile in order to avoid a request to 
register similar to that faced by NDI.  In order to operate, 
the ABA also spent a considerable amount of time negotiating 
an MOU with the MOJ. 
 
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Significant Barriers 
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6. (U) Expat staff of MEPI implementers in Bahrain must 
qualify for an identity card.  With an identity card an 
individual can rent housing and office space, get a phone and 
establish a bank account.  In the past we have found that 
MEPI implementers, while not prohibited from obtaining an 
identity card, do face significant red tape.  We understand 
that NDI has purchased liability coverage, but are not aware 
of any requirement that they do so. 
 
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Costs 
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7. (U) Post is not aware of local MEPI implementers being 
forced to pay higher costs than those imposed on local 
organizations.  Bahrain is a tax-free environment and fees 
(municipal fees or commercial registration fees) tend to be 
minimal. 
 
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Security Issues 
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8. (U) While visiting and locally resident MEPI implementers 
have expressed concern about the security situation in 
Bahrain, particularly after post went to authorized departure 
last summer, to date the RSO has nor received specific 
inquiries from implementers. 
 
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Use of Embassy Services 
----------------------- 
 
9. (U) To date there has been no request for commissary 
access or accommodation exchange. 
 
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Misrepresentation 
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10. (U) To our knowledge none of the MEPI implementers have 
presented themselves to the GOB as anything other than MEPI 
grantees. 
ZIADEH