US embassy cable - 05KUWAIT4746

UNCLAS KUWAIT 004746 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR NEA/ARPI SWALKER, LONDON FOR LTSOU 
 
E.O. 12958: N/A 
TAGS: EAID, EFIN, PGOV, PHUM, PREL, PK, KU 
SUBJECT: GOK TO ATTEND NOVEMBER 19 ISLAMABAD CONFERENCE BUT 
NO NEW PLEDGE EXPECTED FOR NOW 
 
REF: A. KUWAIT 4684 
     B. SECSTATE 207043 
 
1. (SBU) Begin Summary.  According to MFA and Kuwait Fund for 
Arab Economic Development (KFAED) officials, the GOK is 
unlikely to make any additional pledges at the November 19 
Islamabad conference.  However, a GOK delegation, including 
KFAED's Director of Operations, will attend the conference. 
The GOK's present $100M pledge appears to be the third 
largest contribution by a donor nation thus far.  Of the 
total $100M pledge, $50M has been disbursed to the Kuwait Red 
Crescent Society (KRCS) for in-kind assistance; the remaining 
$50M in a concessional loan package is pending a KFAED needs 
assessment.  KFAED confirmed that an assessment team will 
depart for Pakistan on November 17 to offer project 
recommendations for the expenditure of the loan funds.  End 
Summary 
 
2.  (SBU) On November 13, Post followed-up with the GOK's MFA 
(per ref A) to request an update on GOK assistance to 
Pakistan and determine whether or not the GOK would be making 
a new pledge at the November 19 conference in Islamabad. 
Although unable to confirm the likelihood of a new GOK pledge 
by November 19, the MFA's Pakistan desk did confirm that a 
GOK delegation was expected to attend the conference and that 
the Foreign Minister was expected to decide its composition. 
 
3.  (SBU) Abdul Karim Al-Mutawa, Regional Manager for 
Pakistan at KFAED, confirmed to Econoff on November 13 that 
KFAED's Director of Operations, Fawzi Al-Huneif, will attend 
the Islamabad conference as part of a GOK delegation. 
Al-Mutawa added that a three-member KFAED assessment team 
would depart for Pakistan on Thursday (Nov 17) to conduct a 
3-4 day assessment of the stricken areas and report back to 
the KFAED management board (chaired by the Foreign Minister) 
on how best to allocate the $50M bilateral concessional loan 
package pledged as part of the GOK's total $100M assistance 
offer.  (Note: the remaining $50M has already been disbursed 
by the GOK to KRCS.) 
 
4.  (SBU) According to Al-Mutawa, the assessment team, at the 
direction of KFAED's board, will identify specific 
infrastructure projects to be funded through the loan 
package.  Al-Mutawa explained that the terms of the $50M loan 
offer "will be very concessional" with a minimal interest 
rate (possibly as low as 1 percent), a 5-year grace period 
and a 25-year repayment schedule. 
 
5.  (U) Kuwait's contribution to relief efforts, particularly 
through KRCS, continues to receive positive local press 
coverage and appreciation from Pakistani officials praising 
KRCS and the GOK for their responsiveness and generosity. 
The GOK's $100M assistance package appears to be the third 
largest donor pledge following USG ($156M) and Saudi Arabia 
($133M). 
 
6.  (U) Post will continue to follow-up with the MFA for 
updates prior to the November 19 conference. 
 
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LEBARON