US embassy cable - 03OTTAWA1662

UNCLAS OTTAWA 001662 
 
SIPDIS 
 
STATE FOR SA/RA AND WHA/CAN 
USAID FOR KUNDER. 
TREASURY FOR CORFIELD. 
 
E.O. 12958: N/A 
TAGS: EAID, EFIN, PREL, AF, CA, IMF, IBRD, Afghanistan 
SUBJECT: AFGHANISTAN: CANADA ANNOUNCES ARTF SUPPORT AND AID 
ALLOCATIONS 
 
REF: A. OTTAWA 1250 
     B. OTTAWA 1168 
     C. STATE 105217 
     D. OTTAWA 99 
     E. 02 STATE 262304 
     F. 02 OTTAWA 3255 
 
 1.  Summary:  On June 10, the GOC announced the opening of 
its embassy in Kabul (septel) and allocation of C$21.2 
million of the C$250 million in new aid pledged for the next 
two years.  The allocation includes an additional C$15 
million to support the operational budget of the Afghan 
Transitional Authority through the World Bank's Afghanistan 
Reconstruction Trust Fund, plus about C$6 million for 
security and reconstruction.  The exchange rate is about 
C$1/US$0.72.  End summary 
 
Total pledged 
------------- 
2.  At the Brussels conference in March, 2003, the GOC 
pledged $250 million over the next two calendar years for 
rural development, natural resources management, security and 
the rule of law, as well as budget support for TISA (Ref A). 
The just-announced C$15 million in operational support 
through the ARTF for the current year is in addition to the 
C$23.5 million anounced in Brussels.  Counting the C$19 
million provided last year, Canada has contributed C$57.5 
million to TISA's operating budget. 
 
3.  The GOC also announced allocations of C$5 million to the 
UN Mine Action Program for Afghanistan, and C$1.2 million to 
support civil-military cooperation projects. 
 
Plans for FY04 aid 
------------------ 
4.  CIDA staff evaluate project proposals on an ongoing 
basis, using priorities identified in consultations with TISA 
officials and other donors.  Minister Whelan periodically 
approves proposals for overall allocation of funds, and in 
the case of Afghanistan, later approves each individual 
project.  We expect future commitments to address the 
priorities in paragraph 2. 
 
Total amount delivered 
---------------------- 
5.  Between September 2001 and March 2003,  Canada disbursed 
C$116.6 million in aid to Afghanistan, including the C$19 
million in budget support for TISA mentioned above.  Other 
previously-reported amounts include C$1.5 million for 
electoral support through Elections Canada and the 
International Foundation for Election Systems; C$3.5 million 
to the UN to support reform of the judicial system; and C$0.5 
million to Justice Canada to assist TISA (Ref D). 
 
This message responds to the reporting requirements of the 
Afghanistan Freedom Support Act (Ref E). 
CELLUCCI