US embassy cable - 05KUWAIT4459

UNCLAS KUWAIT 004459 
 
SIPDIS 
 
STATE FOR NEA/ARPI SWALKER, LONDON FOR LTSOU 
 
E.O. 12958: N/A 
TAGS: PGOV, PREL, KU 
SUBJECT: KUWAIT FUND UPDATE ON GOK ASSISTANCE TO 
PALESTINIANS 
 
REF: A. KUWAIT 3850 
 
     B. KUWAIT 3867 
     C. KUWAIT 4105 
 
1. (U) EconOff met on October 16 with Marwan Al-Ghanem, 
Regional Manager for Arab Countries at the Kuwait Fund for 
Arab Economic Development (KFAED), for an update on the 
latest GOK figures on economic assistance to Palestinians. 
Al-Ghanem provided the following breakdown of GOK economic 
assistance to the Palestinian Authority (PA) in support of 
governance and reconstruction in the Palestinian territories: 
 
a) $25M grant in December 2003 to the World Bank's Peace Fund 
    -$21M for PA operational expenses 
    -$ 2M for resettlement of Palestinian refugees from the 
"Canadian Camp" in Sinai to             the West Bank and Gaza 
    -$ 2M for school reconstruction 
 
b) $25M grant in December 2000 with the Arab Fund 
    -Funds allocated for educational and health projects (see 
reftel B para 2 for details) 
 
c) $171M grant Al-Aqsa and Al-Quds funds (Islamic Development 
Bank) 
    -$150M disbursed in 2000 
    -$ 21M disbursed in 2005 
 
2. (U) Al-Ghanem added that although KFAED could not extend 
concessional loans to the PA it is considering grants valued 
at approximately $1M for feasibility studies on 
infrastructure development.  The offer is pending final 
approval by KFAED's management board before it is submitted 
to the PA for consideration. (Note: Al-Ghanem explained that 
the PA is not an internationally recognized sovereign and 
therefore lacks the legal identity to qualify for KFAED 
loans). 
 
3. (SBU) Al-Ghanem suggested that the Saudi Fund and Arab 
Fund are better positioned than KFAED to provide additional 
financial assistance to the PA.  Al-Ghanem expressed 
satisfaction with the rapport he has developed with his 
counterparts and interlocutors in the PA Planning Ministry. 
LEBARON