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