US embassy cable - 05MANAMA1185

C O N F I D E N T I A L SECTION 01 OF 02 MANAMA 001185 
 
SIPDIS 
 
E.O. 12958: DECL: 08/16/2015 
TAGS: PREL, ECON, KMPI, BA 
SUBJECT: UPDATE ON BMENA ENTREPRENEURSHIP CENTER 
 
 
Classified By: Charge d'Affaires Susan L. Ziadeh for 
reasons 1.4 (b) an d (d) 
 
1. (C) Summary.  Ministry of Finance Economic Planning 
Director Yousif Humood and MFA Bilateral Relations Director 
Dhafer Al Umran told NEA/PI TDYer and Econoff August 16 that 
the GOB has concerns about funding for the proposed Broader 
Middle East and North Africa (BMENA) Entrepreneurship Center 
in Bahrain and believes that the Center needs a new building. 
 They called for broad G8 financial support for the 
initiative.  While the Bahraini government is pleased with 
the business plan prepared by MEPI contractor Beyster, Al 
Umran requested a more comprehensive business plan for the 
Center, to include plans for construction.  The officials 
declined to issue an invitation to Beyster expert David Mosby 
to begin work in Bahrain in near term, saying that decisions 
on a building and fund-raising had to be made first.  While 
we have heard repeatedly from Bahraini officials about their 
strong interest in a building for the Center, this is the 
first time they have slowed down the process on other aspects 
of the Center until the question of a building is addressed. 
The Embassy is seeking clarification with more senior GOB 
officials.  End Summary. 
 
------------ 
GOB CONCERNS 
------------ 
 
2. (U) NEA/PI TDYer and EconOff met on August 16 with 
Ministry of Finance Director of Economic Planning Yousif 
Humood and MFA Director of Bilateral Relations Dhafer Al 
Umran to discuss the proposed BMENA Entrepreneurship Center. 
In response to EmbOffs' question about the status of the 
draft business plan, Humood said that he needed some 
clarifications and had some doubts about the initiative.  He 
called for a clearer financial commitment from the G8 so that 
the Center is not viewed as a U.S.-Bahrain initiative only. 
Humood noted that there is room for the Center to be housed 
temporarily--for two or three years--in the Bahrain Institute 
for Banking and Finance (BIBF), but the Center should 
eventually be separate from BIBF.  Humood said that the GOB 
could make a partial contribution for a permanent building, 
but did not discuss specifics. 
 
3. (C) Humood continued that the GOB wants to see the Center 
in operation as soon as possible and seeks to attract a 
strong commitment from the G8 and Gulf region so the 
initiative does not fail.  The GOB is pleased with the 
Beyster business plan and feels that it will complement 
existing small-business programs in Bahrain.  However, its 
focus on just the curriculum is not enough to present the 
GOB's vision for the Center to potential donors.  He also 
expressed concern about the first-year funding gap of some 
$400,000.  (Note:  The UK Embassy has indicated it will 
recommend that HMG fund the salary of the Bahraini director 
of the Center.) 
 
4. (U) NEA/PI TDYer recommended that the GOB use the 
finalized Beyster business plan to approach the G8 for 
potential funding.  He said the BIBF could be a good starting 
point for the first few years, and that it would be helpful 
for Beyster expert David Mosby to begin work soon so that 
Bahrain could demonstrate to potential donors before and 
during the November Forum for the Future that programs are 
already underway. 
 
------------------------------------------- 
A NEW BUILDING THE ENTREPRENEURSHIP CENTER? 
------------------------------------------- 
 
5. (C) Humood said that the GOB had discussed the initiative 
with French and Japanese diplomats in Bahrain, who had 
expressed interest but made no clear commitments.  He noted 
that "some G8" officials have said that the Entrepreneurship 
Center would duplicate existing programs that they are 
already funding.  He stated that the Center needed new 
construction because of limited space at BIBF, and that a 
"state-of-the-art building" for the Center had been a part of 
initial discussions to showcase that it is a G8 initiative. 
 
6. (C) Al Umran asked for USG assistance in developing an 
overall study of the entire project that would include 
information from the existing business plan and plans for the 
building.  The GOB would use this plan to approach other G8 
nations.  He said that the Foreign Minister would have to 
announce progress on the Center at the Forum, and that 
"classes at BIBF is not what was agreed to.  Funding teachers 
for the Center is not the project."  Al Umran called for the 
G8 to make commitments by the time of the Forum to construct 
a home for the Center and said that if we start with classes 
before a building is constructed, "the G8 will say it's not 
necessary, and it will die."  Al Umran and Humood both said 
that a decision needs to be made on the construction issue 
before any other steps can be taken. 
 
7. (C) EmbOffs encouraged the GOB to approach the G8 with the 
existing business plan and to get activities underway as soon 
as possible, starting with an invitation to Mosby to come to 
Bahrain.  Humood said it was up to MFA to issue an invitation 
to Mosby, and Al Umran was noncommittal.  Al Umran said that 
decisions regarding the building and fund-raising had to be 
made so that Mosby could "eventually" be invited.  Both also 
noted that in September many MFA and Finance officials would 
be in the U.S. for UNGA and fall Bank/Fund meetings, making 
Mosby's arrival difficult. 
 
8. (C) Comment.  The GOB believes that a new signature 
building will attract G8 and regional contributions to the 
BCEE, despite our emphasis that it is training activities 
that are more likely to show that the Entrepreneurship Center 
is a worthwhile initiative.  Moreover, despite GOB concerns 
about lack of funding for the project, its proposal for a new 
site for the Center would add significant costs in the first 
year and detract energy from getting programs underway.  At 
this point, it is unclear if the GOB intends to hold up 
development of the Center until it can obtain commitments to 
fund a building.  Post is seeking further clarification with 
more senior GOB officials. 
ZIADEH