US embassy cable - 05KUWAIT4791

UNCLAS KUWAIT 004791 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
LONDON FOR LTSOU 
 
E.O. 12958: N/A 
TAGS: EAID, PREL, PHUM, SENV, PAK, KU 
SUBJECT: DEMARCHE DELIVERED ON FOLLOW-UP APPEAL FOR SUPPORT 
FOR PAKISTAN EARTHQUAKE RELIEF AND RECONSTRUCTION 
 
REF: A. STATE 208903 
 
     B. KUWAIT 4746 
 
1. (SBU) Begin Summary.  Econoffs delivered ref A demarche 
points to Abdulkareem Al-Mutawa, the Regional Manager for 
South Asia at the Kuwait Fund for Arab Economic Development 
(KFAED).  Al-Mutawa acknowledged the importance of expediting 
GOK assistance to earthquake victims and confirmed KFAED 
participation at the upcoming Islamabad donor conference.  He 
indicated that a KFAED assessment team would visit Pakistan 
to identify projects for the allocation of KFAED's $50M 
concessionary loan package and complete the outstanding 
requirements for a hydro-power project in Jolan-Jol Pakistan. 
 End Summary 
 
2. (SBU) On November 16, Econoffs delivered reftel demarche 
points to Abdulkareem Al-Mutawa, Regional Manager for South 
Asia at the GOK's Kuwait Fund for Arab Economic Development 
(KFAED).  Econcouns thanked Al-Mutawa for the GOK's generous 
assistance and urged sustained GOK support to address the 
ongoing plight of earthquake victims, including the provision 
of assistance based on specific Kuwaiti areas of expertise. 
(Note: KFAED is administering $50M of the GOK's $100M 
assistance package through loans and the Kuwait Red Crescent 
Society is administering the remainder through in-kind 
assistance.  See ref B). 
 
3.  (SBU)  Al-Mutawa welcomed KFAED contact with the Embassy 
on GOK assistance and explained that KFAED was determined to 
expedite its assistance to help earthquake victims.  He 
confirmed the attendance of KFAED's Director of Operations 
and an assessment team at the upcoming Islamabad donor 
conference, adding that the KFAED objective over the next few 
days would be three-fold:  (1) attend the conference and 
gather current information on outstanding needs; (2) 
coordinate with the GOP on its needs and expedited disbursal 
of KFAED's $50M concessionary loan package to specific 
projects; and (3) finalize appraisal of a pending hydro-power 
project in Jolan-Jol, Pakistan, near the Afghan border. 
 
4.  (SBU) Al-Mutawa noted that KFAED's mandate precluded it 
from functioning as a pledging agency, therefore limiting its 
ability to influence GOK pledges.  He explained that KFAED 
was nonetheless cognizant of the urgent needs and recognized 
the importance of disbursing its assistance as soon as 
possible.  Without offering details, he explained that the 
$50M KFAED concessionary loan package was "very, very 
concessionary" and would forego "normal lending procedures" 
in order to address the urgent assistance timeline.    He was 
confident that KFAED Chairman, Foreign Minister Dr. Mohammed 
Al-Sabah, will approve the loan package once the assessment 
team submits its findings within the next two weeks. 
Al-Mutawa commented that the disbursal's timing is "really a 
political decision."  In response to Econcouns's request for 
a possible increase in GOK assistance, Al-Mutawa replied 
"everything is possible in politics." 
 
5.  (SBU) Al-Mutawa acknowledged the importance of providing 
country-specific expertise but noted that KFAED's expertise 
was limited to short-term technical assistance and not 
long-term training as may be sought after in this case. 
Econcouns reaffirmed the importance of technical assistance 
and the proposed hydro power project in Jolan-Jol as 
important GOK contributions to Pakistan's overarching needs, 
urging timely conclusion of the project.  Al-Mutawa explained 
that six months ago KFAED signed the Jolan-Jol project 
agreement with the GOP, adding that the last few months 
entailed updates to an outdated 1997 Canadian feasibility 
study.  The proposed assessment team's visit would help 
expedite the project, he explained. 
 
6.  (SBU) With regard to KFAED lending procedures, Al-Mutawa 
explained that although KFAED finances one project per 
country every GOK fiscal year (April 1-March 31), financing 
two projects in Pakistan was possible.  He pointed out that 
"for political reasons" KFAED currently funds two projects a 
year in Egypt and China. 
 
7.  (SBU) Econcouns informed Al-Mutawa of possible USG milair 
and sea transport to Pakistan of Kuwaiti donated relief 
supplies.  Al-Mutawa was appreciative and offered to pass 
along the information to interested NGOs, including Muslim 
charitable organizations.  Al-Mutawa expressed his personal 
sense of loss and grief for the victims, but noted that it 
would be emotionally overwhelming for him to visit the 
afflicted areas, explaining that he was still recovering from 
the emotional grief he experienced after visiting Tsunami 
affected areas and the devastated village of Bam in Iran. 
 
 
Bio Note 
-------- 
 
8.  (SBU) Abdulkareem Al-Mutawa serves as Regional Manager 
for East Asia, South Asia and the Pacific at KFAED, having 
joined the organization in 1992.  He speaks English very well 
and has studied at Cole College in Cedar Rapids, Iowa.  He 
also maintains private business interests in the airline 
industry, working since 1996 with the Florida-based U.S. firm 
The Aegis Group (now Volvo Aero).  His extended family is 
comprised of successful Kuwaiti businessmen representing such 
firms as Lockheed Martin, Volvo, Kia and others. 
 
Background on Kuwait Fund 
------------------------- 
 
9. (U) KFAED is the GOK's primary vehicle for providing 
assistance and aid to other countries.  It was founded the 
same year that Kuwait gained its independence, 1961, and was 
originally intended to assist Kuwait's Arab neighbors.  In 
1974 its mandate was expanded to include all developing 
countries.  To date, KFAED has committed over 11.5 billion 
USD in low interest loans to 102 countries through 650 
separate projects, has provided over 323 million USD in 
grants and technical assistance, and has contributed 1.15 
billion USD to other development institutions. 
 
********************************************* 
Visit Embassy Kuwait's Classified Website: 
http://www.state.sgov.gov/p/nea/kuwait/ 
 
You can also access this site through the 
State Department's Classified SIPRNET website 
********************************************* 
LEBARON