AFGHANISTAN: CANADA ANNOUNCES ARTF SUPPORT AND AID

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 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