NETHERLANDS ASSISTANCE FOR IRAQ

UNCLAS SECTION 01 OF 02 THE HAGUE 001893 SIPDIS SENSITIVE EB FOR JOHN FINN E.O. 12958: N/A TAGS: EAID PREL EFIN IZ NL SUBJECT: NETHERLANDS ASSISTANCE FOR IRAQ REF: A. STATE 214593 ¶B. THE HAGUE 793 ¶1. (SBU) Summary. The Netherlands has pledged approximately EUR 21 million to Iraq humanitarian relief. They have also offered technical experts, particularly in the areas of water management. A consortium of Dutch government and industry has submitted to the World Bank and CPA a comprehensive plan to rebuild Iraq's water sector. (They are hoping for a response to their proposal from the CPA.) The Dutch emphasize private sector solutions to Iraq's reconstruction. Toward this end, the Ministry of Economic Affairs set aside EUR 3 million to identify and fund reconstruction projects for which Dutch companies will be invited to bid. Post will provide information on Netherlands military contributions including Dutch troop deployment septel.End Summary. Humanitarian Assistance -------------- ¶2. (U) The Netherlands pledged 19.3 million EUR to the UN and International Organizations of which 18 million EUR has already been delivered: -- EUR 14.3 million to UN Consolidated Appeal; -- EUR 1 million to International Federation of Red Cross/Red Crescent; -- EUR 4 million to ICRC (all three reported in ref A); ¶3. (U) In addition, the GONL gave EUR 1.675 million to Dutch NGOs for programs on the ground in Iraq: -- EUR 1 million to CARE Netherlands for its project in central and southern Iraq that provides emergency power generators for hospitals and water purification plants; -- EUR 675,000 to Stichting Vluchtlingen (Refugees Foundation) for its Emergency Mine Action Project in Northern Iraq. Technical Experts -------------- ¶4. (SBU) Water Sector Reconstruction Plan -- The Dutch water industry (aka Netherlands Water Partnership) drafted a plan for the reconstruction of Iraq's water sector. It is a comprehensive strategy that covers drinking water, sanitation, irrigation, marshlands, and water transport. It also features a list of technical experts. The Dutch submitted this to the World Bank, and post forwarded the plan to ORHA/CPA via EUR. Post would be happy to resend an electronic copy of this plan to any interested parties. Post would welcome feedback from CPA on the Dutch Water Sector Reconstruction Plan. ¶5. (U) The Dutch banking industry (with the support of the Dutch government) has developed proposals for facilitating development of the Iraqi commercial banking sector. The Dutch have ben in close contact with Treasury regarding these proposals. ¶6. (SBU) Call for Experts -- The Dutch have not answered our request for experts to staff Iraq ministries, but they have responded to the World Bank's call for experts. Post has the CVs of these experts. Private Sector Fund -------------- 7.(U) The Dutch Ministry of Economic Affairs set up a EUR 3 million fund, known as the "Iraq Facility", to help Dutch companies participate in reconstruction. It will fund a scouting mission for seven consultants to visit Southern Iraq in late August. The consultants will perform a needs assessment and will identify potential projects in the areas of water management, ports, telecom, and the medical sector. Dutch companies will then bid on the contracts offered by the Ministry. Frozen Iraqi Assets Transferred to Development Fund for Iraq -------------- -------------- ¶8. (U) The Dutch claim they have no domestic legal basis to confiscate frozen Iraqi assets. Accordingly, they have transferred no blocked Iraqi assets to the DFI but will continue to keep them frozen. The Ministry of Finance has told us that the total amount of Iraqi funds frozen in the Netherlands is relatively insignificant. RUSSEL RUSSEL