EC FINANCIAL SUPPORT FOR DARFUR CRISIS: DEMARCHE

UNCLAS BRUSSELS 003057 SIPDIS PASS TO USADI FOR RMT DARFUR; PPC SWIFT; NAIROBI FOR SFO ANDERSON E.O. 12958: N/A TAGS: PREL PHUM EAID EUN USEU BRUSSELS SUBJECT: EC FINANCIAL SUPPORT FOR DARFUR CRISIS: DEMARCHE RESPONSE FOLLOW-UP REF: A. SECSTATE 145183 ¶B. BRUSSELS 02897 ¶1. (U) Following up on reftel demarche request for further information on EU funding initiatives, PRM Assistant and USAID Advisor for Humanitarian Assistance met with Javier Perez, ECHO desk officer for Sudan. According to Perez, the EC has mobilized nearly 70.7 million Euros from different budget lines for Darfur, including 14 million Euros for Sudanese refugees in Chad. EC contributions to Darfur include 12.4 million in contributions to the cease-fire, 44.3 million Euros for on-going humanitarian activities in Darfur, and 14 million Euros for humanitarian activities in Chad for refugees from Darfur. An additional 18.1 million Euros for humanitarian activities in Darfur is currently under preparation. This will bring the total to nearly 88.8 million Euros for Darfur and refugees in Chad. Included in this sum is the July 12 funding decision of 18 million Euros, which is to be channeled through the Humanitarian Aid Office of the European Commission, ECHO. ¶2. (C) PRM Assistant also spoke with Roger Moore, DG Development Acting Director Horn of Africa, East and Southern Africa, and Joaquim Salqueiro, DG Development Officer for Sudan. Moore confirmed earlier reports that a possible budgetary shift could account for an additional 40 million Euros to be made available within the next six months. The shift would entail the transfer of monies from the A-Envelope of the European Development Fund (EDF),currently reserved for development funds subject to agreements with the receiving governement, to the B-envelope of the EDF, which includes, but is not limited to, emerging humanitarian and rehabilitation needs unhindered by such constraints. This would set in motion funds that have been essentially hijacked by the lack of progress on the peace accord. There remains nearly 450 million Euros in the EDF for development projects in Sudan. In light of this, Moore added that the total amount in the A-envelope would likely be reduced and partitioned to other regional projects. He also intimated that it would not surprise him to see more budgetary shifts into humanitarian accounts for Sudan and Chad if prospects for peace remain elusive. ¶3. (SBU) Regarding disbursements of the aforementioned funding initiatives, Salqueiro stated that it should not be much longer before money begins moving. Specifically, he said that we should expect to see the disbursement of last month's pledge of 12 million Euros for the Peace Facility within the next two weeks, that the delay should not pose a problem since funding will be retroactive to expenses already incurred. MINIMIZE CONSIDERED McKinley