US embassy cable - 05ACCRA2344

UNCLAS SECTION 01 OF 02 ACCRA 002344 
 
SIPDIS 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: KMCA, ECON, EAGR, PREL, GH, MCA 
SUBJECT: PRESIDENT KUFUOR AND AMBASSADOR DISCUSS MCA 
PROGRESS AND NEXT STEPS 
 
 
Summary 
------- 
1. (SBU) On November 11, 2005, Ambassador Bridgewater and 
Millennium Challenge Corporation (MCC) officials held the 
most open and frank discussion to date with President Kufuor 
about the state of Ghana's Millennium Challenge Account (MCA) 
program.  On the eve of meetings in Washington between the 
MCC and Ghana MCA team, Kufuor expressed impatience with his 
team's slow progress.  He announced Minister for Public 
Sector Reform Paa Kwesi Nduom as the new team leader, charged 
with quickening the pace of Compact development.  Kufuor 
strongly urged more on the ground assistance from the MCC to 
avoid further delays and misunderstandings.  The Ambassador 
stated that the goal of the Washington meetings was to 
develop a roadmap for completing the Compact, and cautioned 
against focusing too much on timing.  Ambassador also 
outlined Post's public outreach plan on MCA.  End Summary 
 
Kufuor Changes Team Leader, Urges Faster Progress 
--------------------------------------------- ---- 
2. (SBU) In advance of critical meetings in Washington 
between the Ghana MCA team and MCC officials, Ambassador 
Bridgewater, MCC's Rod Norman and David Ameyaw, and EconChief 
Chris Landberg, met with President Kufuor, Minister Nduom, 
and Secretary to the President Ambassador D.K. Osei to 
discuss the latest progress and outstanding issues related to 
the draft Ghana Compact.  The only original Ghana MCA team 
member in attendance was the President's representative on 
the team. 
 
3. (SBU) Kufuor expressed deep frustration his own team's 
slow efforts at developing a proposal and for the first time 
he asked for explicit feedback on the Ghana MCA team.  He 
noted his commitment to quickening the pace of Compact 
development, and as evidence of his willingness to shake 
things up announced that Minister Nduom would replace Finance 
Minister Baah-Wiredu as head of the Ghana MCA team, starting 
immediately.  He stated that Nduom would lead the delegation 
to Washington. 
 
4. (SBU) Kufuor also voiced concern that the Ghana team's 
decision to increase the project amount from $290 million to 
almost $500 million (mostly added infrastructure projects) 
would lead to problems with the MCC and further delays.  He 
was unsure how the increase had come about and said he had 
taken his team to task.  He admitted that he was a little 
uncomfortable with the larger amount and asked Rod Norman for 
a candid reaction on whether the enlargement was realistic, 
emphasizing that his priority was to avoid additional delays. 
 He proposed a phased approach, with the original $290 
million Compact as the first phase and the second phase 
dependent on solid progress on the first. 
 
5. (SBU) Kufuor also expressed a strong desire to receive 
more on site assistance from the MCC so that any further 
misunderstandings would not delay the process.  He said he 
felt like Ghana was in an examination that it could not seem 
to pass and commented that all further work needs to occur 
with close coordination with MCC.  He said he has wondered if 
he should have hired a U.S. consulting company from the 
start, instead of believing in the idea of "country 
ownership."  Although he worried that some might see him as 
responsible for leadership changes at MCC, he emphasized that 
his main point in meetings with President Bush was for the 
MCC to have more of an on-the-ground presence. 
 
Ambassador, MCC Note Progress, Urge Focus on Quality 
--------------------------------------------- ------- 
6. (SBU) Ambassador Bridgewater reassured the President that 
the U.S. shared his interest in completing the process 
quickly.  She noted that progress had been made under the 
reorganized MCA team and momentum seemed to be building.  The 
Ambassador also urged less focus on timing and more on 
developing a Compact that both countries can be proud of and 
that will have a measurably positive impact on Ghanaians' 
living standards.  The Ambassador and Rod Norman emphasized 
that the Washington meetings were crucial to identifying what 
aspects of the Ghana program still needed work and what 
resources were necessary to complete the work.  They stated 
that the overall goal was to develop an action plan and 
timeline for finalizing program design, MCC due diligence, 
and other documentary requirements necessary for 
consideration by the MCC Board of Directors.  Norman hoped to 
be able to deliver the end result (the "roadmap") to Kufuor 
in writing. 
 
7. (SBU) In response to the President's concern about the 
revised program amount, Rod Norman commented that most 
important was that it be defensible.  He added that the two 
sides would be in a better position to assess the size of the 
program during the upcoming meetings.  The MCC would also be 
in a better position to gauge what MCC support -- in terms of 
consultants and funding -- would be necessary, going forward. 
 While the MCC would stand ready with the approximately $3 
million in 609(g) funds, and would explore ways to quicken 
the MCC's procurement process, Norman noted that they would 
rely on the Ghana government's continued financial 
commitment. 
 
8. (SBU) Kufuor and Ambassador Osei pressed for detailed 
comments about the Ghana team and the program.  In response, 
Norman stated the priorities were:  1) create a unified team, 
as the current one is too large, many of the consultants have 
competing interests, and they do not have a unified vision of 
the proposal; 2) the revised program is three-quarters 
infrastructure, but that is the most under-resourced part of 
the Ghana team; 3) more commitment on resources, as many on 
the Ghana team have not been paid; and 4) a high-level 
representative with decision-making authority. 
 
9. (SBU) Kufuor responded that Minister Nduom has the 
requisite authority and would ensure Ghanaian compliance. 
Nduom agreed the team was too large and unfocussed, but noted 
that given the timing he would take the current team to 
Washington and wait until after the meetings to make changes. 
 He also stated that he was forcing the team to practice and 
improve their presentations.  Norman reassured him that given 
the resources the existing infrastructure consultants could 
deliver. 
 
10. (SBU) The Ambassador closed the meeting briefly outlining 
Post's media outreach strategy to promote MCA.  She said the 
Embassy would monitor local coverage to ensure reporting 
accuracy.  Embassy officials would also look for 
opportunities to discuss MCA with the public, including 
accompanying the MCC on trips to the Compact's three target 
regions, and using those opportunities to speak to the press 
about progress of the Ghana program and its importance for 
Ghana. 
 
Comment 
------- 
11. (SBU) The President was in no mood to discuss the MCA 
program in general terms, and as a result the meeting 
immediately went off script.  Kufuor was frustrated and 
repeatedly pushed for detailed MCC observations on both the 
draft Compact and the Ghana team.  He made clear he is ready 
to do whatever is necessary to expedite the process.  U.S. 
officials went into more detail about Ghana's shortcomings 
than in any previous meeting, and the President appeared open 
to the criticism and interested only in solving the problems. 
 If he had been open to this kind of dialogue in 2004 the 
Ghana program would be done. 
 
12. (SBU) Minister Nduom's appointment will cause some 
upheaval on the team, particularly as it will take time to 
iron out the Finance Ministry's responsibilities.  However, 
there is clearly no power struggle in Nduom's mind.  He 
stated unequivocally following the meeting that "I am in 
charge."  And of all the Ministers in government, Post would 
argue that Nduom is the most capable of taking control of the 
team and completing an acceptable Compact.  Prior to his 
appointment as Minister of Energy in 2003, Nduom oversaw the 
development of the Ghana Poverty Reduction Strategy (Ghana's 
Poverty Reduction Strategy Paper -- PRSP), an even more 
unwieldy program than the MCA proposal.  He received 
well-earned praise for his ability to steer that process, and 
should be able to do the same this time around.  End Comment. 
 
 
LANIER