US embassy cable - 05VIENNA810

UNCLAS VIENNA 000810 
 
SIPDIS 
 
STATE PASS EB/ODF/RDEMARCELLUS 
 
E.O. 12958: N/A 
TAGS: EAID, ECON, EFIN, IZ, AU 
SUBJECT: STATUS OF AUSTRIAN RECONSTRUCTION DISBURSEMENTS IN 
IRAQ 
 
REF: STATE 36580 
 
1.  On March 10, Econ/Pol Counselor and Econ Unit Chief met 
with Michael Linhart, Managing Director of the Austrian 
Development Agency, to encourage expeditious disbursement of 
GoA assistance to Iraq.  Linhart confirmed data that post 
had recently obtained from Lydia Saadat, the MFA's 
Assistance Coordinator for the Middle East. 
 
2.  According to Saadat, the GOA had disbursed Euro 1.27 
million (USD 1.65 million) in technical assistance to Iraq 
by the end of 2004.  There are no figures available yet for 
the first two months of 2005.  At the Madrid Conference, 
Austria's total pledge amounted to Euro 16.4 million (USD 
21.3 million).  The pledge included: 
 
--Euro 10.2 million (USD 13.3 million) in export credit 
guarantees; 
--Euro 1.84 million (USD 2.4 million) in technical 
assistance; 
--Euro 1.4 million (USD 1.82 million) in infrastructure 
assistance in 2003-2004; and 
--Euro 3.0 million (USD 3.9 million) in infrastructure 
assistance in 2005-2007. 
 
3.  Projects that have been completed and disbursed include 
the evacuation and emergency support for injured Iraqi 
children for Euro 135,000 (USD 176,000); the first phase of 
the "Adopt-A-Hospital" project, which is aimed at the 
revitalization and rehabilitation of health care in the 
Shatra region for Euro 150,000 (USD 195,000); and financing 
emergency response activities by an Austrian NGO and the 
UNHCR for Euro 250,000 (USD 325,000).  The following 
projects are in an implementation phase with funds already 
disbursed: an Austrian-Slovenian project called 
"Psychological Support for Children and Families in Iraq" 
for Euro 200,000 (USD 260,000) and an initiative called 
"Strengthening Capacities Within the Iraqi MFA" for Euro 
93,000 (USD 121,000).  Two other projects are currently 
suspended with partial disbursement: the second phase of the 
"Adopt-A-Hospital" project, which amounts to Euro 850,000 
(USD 1.1 million), and a contribution to a Red Cross 
Emergency Response in the amount of Euro 150,000 (USD 
200,000) are currently suspended. 
 
4.  According to Saadat the GoA has suspended several 
disbursements, primarily because of security concerns and 
"the lack of an enabling environment."  This includes Euro 
10.2 million (USD 13.3 million) of export credits, 
administered by the Austrian Control Bank.  It also includes 
Euro 3.0 million (USD 3.9 million) for 2005-2007 
infrastructure assistance, and approximately Euro 600,000 
(USD 780,000) in technical assistance. 
 
5. Minimize considered. 
 
BROWN